Introduction to Crypto

Investing
Why, How and What to do
Why is everyone talking about it?

Blockchain as a tech gives us 3 important innovations

● Ability to create decentralized apps, not possible on technologies before - HTTPS, TCP/IP enabled building of
centralized ecosystems like Google and Facebook, Blockchain enables us to build decentralized cloud storage and
decentralized peer to peer money transfer
● Ability to have permanent records - Immutable transparent ledger (record keeping which can’t be changed or
destroyed), which allows the above decentralization to be executed with perfection
● Ability to tokenize your business - now every company can go public right at the start, does not need to wait to
earn profits

When you can go public right from the start the movement in price is more and returns are higher (almost 35X from
trading in stock markets) Thus…. The Gold rush

This is why hordes of individual investors who never thought of investing in stocks are coming in crypto because of the
returns… AND THE PARTY HAS JUST STARTED !!
Some practical examples of Blockchain applications
Dropbox - Cloud storage, Sia coin - Decentralized cloud storage - Sia gives a 10X cost savings than
Dropbox

AWS - Cloud processing, Golem - Decentralized Cloud processing - Golem gives 10X cost savings

SWIFT transfer - to transfer money internationally using banks, Bitcoin - peer to peer money transfer
anywhere, anytime - 10 to 100X improvements

KYC - Banks spend a lot of money on KYC, Civic - Digital management and sharing of identities - Cost
of KYC reduced by 10X

And again… This is just the start, everything which is centralized can be more effectively decentralized
with Blockchain
What are crypto currencies and why is there no $$ or INR?
When we have to effectively decentralize an ecosystem we need to incentivise the people or nodes who help in
decentralizing it, this gave birth to crypto currencies.

“Cryptocurrencies are nothing but rewards given to nodes of a decentralized network.”

Pro tip - there are no incentives for running full nodes (Voluntary nodes running on PC/Spare computing)

This currency if used within the ecosystem is also called a utility currency as it has a direct use case within the ecosystem.
If there is no use case within the ecosystem then it borderlines with a security. Pro tip - Do not invest in securities, look
for utility tokens as SEC will come after all security tokens http://bit.ly/HoweyTest

So every blockchain will have it’s own currency as that would be the incentive for anyone to be a part of the
network.

The higher the value of the use case, bigger the community, more the volume of rotation... the higher the value of
the crypto currency :)
What is the Indian Legal Stand on this?
RBI does not have any stand on crypto currency as of now. They are only advising everyone to be
cautious.

They require you to declare your capital gains from trading these and pay a tax of minimum 20% on
capital gains

http://bit.ly/BTCtaxIndia

The tax you pay also depends on how long you are holding

Short term holding less than 3 years is 30% tax on an income of above INR 10L, for a long term hold more
than 3 years - 20%
What are crypto exchanges
There are 2 basic types of exchanges -

1. Fiat (local Currency) to crypto currency - Like Zebpay (INR to crypto), Unocoin (INR to crypto), Koinex (INR to
crypto), Coinbase (USD to crypto) - They give you cryptocurrency in lieu of local currency. They have limited options
to buy crypto.
2. Crypto to crypto - You can’t trade on these exchanges using Fiat currency. Only cryptocurrencies and Tether
(Crypto equivalent of dollar - 1 USDT = 1USD) trading is possible - Bittrex, Poloniex, HitBTC and Binance. A lot of
crypto currencies are available to trade on these exchanges.

Pro Tip 1 - To enter the market you will first need to buy cryptocurrency from Fiat. Then transfer it to a crypto to crypto
exchange if you need more options to diversify your portfolio. You can’t directly enter a crypto to crypto exchange with fiat
money

Pro Tip 2 - Use Bittrex and Poloniex to trade in the most popular coins, while HitBTC and Binance to trade in the best new
coins coming in the crypto markets.
How to buy your first crypto-currency (India)
Step 1 - Go to an Indian (Fiat to crypto) exchange to buy - Zebpay, Koinex, Unocoin (top 3)

But in India you can buy only a few currencies on these. If you need more diversification -

Step 2 - Go to a crypto to crypto exchange - Bittrex and Poloniex - Make an account and transfer your crypto to this
address to start trading

All the exchanges will require a complete KYC

Pro Tip - Arbitrage in India vs US rates is 15% plus, Everything here is 15% more expensive than US rates, so if you can...
enter the markets from Coinbase or a USD fiat to crypto exchange.

Pro Tip - 2FA Authentication - Please authenticate your exchange accounts using 2FA, which makes it harder for others
to hack into your account. Check out more here http://bit.ly/Security2FA
How to keep your crypto safe?
There are a lot of places that you can keep you cryptocurrencies

1. Random Crypto exchanges - Highly risky

2. Established Crypto Exchanges - medium risky
3. Established Crypto exchanges with 2FA - Low to medium risk
4. Software wallets - Highly secure - MyEtherWallet, Jaxx, Exodus etc
5. Hardware wallets - One layer of security over and above Software wallets - Trezor, Ledger Nano S
Can I get cryptocurrencies without buying them ?
Yes you can !!

CPU mining - Minergate - I mine Bytecoin here

Steemit - A place where you can blog and get rewards for the same in Steem currency

Masternodes (Advanced users)- A user becomes a masternode by staking some currency and then providing a better
transaction experience e.g. http://bit.ly/Masternodes

DASH - 1000 coins to become a masternode. Masternodes help in maintaining privacy of the transactions and they get
financially compensated for it.

Bounties in Crypto - Rewards early users get for promoting the network via social media/Word of mouth
https://bitcointalk.org/index.php?board=238.0

Referral programs and sign ups

How to make money from the markets ? (part 1)
The crypto markets have risen…

● From $25bn in Jan 2017 to $464bn in Dec 2017

● Projected rise will be from $464bn to $1.5tn or greater by 2018 end

But does everything keep on increasing

all the time?
How to make money from the markets ? (part 2)

It’s not just BTC !! ETH, BCH, LTC, DASH, NEM, XMR, IOTA, NEO are all making waves in this space
How to make money from the markets ? (part 3)

Buy the dip and HODL !! ETH - $8 to $540, DASH $11 to $750, BCH - $300 to $2400
How to make money from the markets? (part 4)
Information is freely available… It all depends on who

1. Gets it
2. Understands it
3. Able to act upon it

What if you could get the right information quickest? Wouldn’t that change the game for you?

For Fundamental news - Twitter http://bit.ly/TwitterCrypto Telegram http://bit.ly/Tradingcryptocoach

For Technical Analysis - Trading view - http://bit.ly/TradingView_1

For Social Chatter - Telegram and whatsapp groups - Helps you understand what are the traders talking about - Indiabits
http://bit.ly/Indiabits and Blockchain Assets https://t.me/blockchainassets
How to make money from the markets? (part 5)
1. Map the Trends - Study long term and short term charts both to understand the trend

2. Spot the Trend and Go With It - See if the trend is long term, positional or intraday and trade

3. Find the Low and High of It - Figure out the support and resistance

4. Know How Far to Backtrack - Know by how much % it can fall back (Fibonacci) to determine buy back points

5. Draw the Line - Draw trend lines to see if the coins are breaking out or not

6. Follow That Average - Use moving averages to see buy and sell points

7. Learn the Turns - Understand oscillators as they show you when a coin oversold or overbrought

8. Know the Warning Signs - Trade using MACD

9. Trend or Not a Trend? - Confirm the trend using ADX

10. Know the Confirming Signs - Don’t ignore volume !! Volume always supports genuine price increase

Adapted from John Murphy’s 10 laws of trading - details here http://bit.ly/JohnMurphy_1

Things to take care
1. Don’t believe you can get rich quickly… it took 10 years of trust in BTC for it to reach $10,000.
Anybody who says so is lying !!
2. The real excitement of the market is playing it… don’t enter to become mute spectators… Play…
trust me you have never seen anything like this
3. Try and understand the fundamental value of the concept by giving it time, this is probably a once in
a lifetime chance !!
4. Out of 100 products in this market, 98 are scams… but the rest 2 are gold. Volume of transactions
and engagement in the community will clearly show you what is gold and what is not
5. Lastly invest what you can lose… Not more, certainly less... until you gain trust :)
6. For Heaven’s sake… please don’t take a loan and invest in crypto !!
How to’s ?
1. How to buy and sell on bittrex?
2. How to put up a stop loss?
3. How to transfer from one exchange to another?
4. What is Minergate?
5. What is Steemit?
6. How to see basic technical charts on Bittrex?
7. How to use Tradingview?
8. How to use Twitter?
9. How to use Telegram?
10. How to use Coin market cap?
Connect with us
Stature.Network

Aditya@staturecoin.com

Rishi@staturecoin.com

We curate crypto currency trading analysis in this group… Just incase you want to
join https://www.facebook.com/groups/stature.network

Get this deck here at

http://bit.ly/Stature_Wework
PS this deck has comments enabled… so if you have any feedback please
comment it out :)