What is Bitcoin?Bitcoin is a peer-to-peerpayment system and digital currencythat is created through mining on either a CPU or GPU in which the computer will solve complex mathematical problems and algorithms in order to mine a ‘block’. Bitcoin uses software known as ‘wallets’ in which through the decentralized system of Bitcoin your coins and not counted but tallied, meaning instead of a centralized system checking you for a valid number of coins it will view all your transactions (as they’re public) and will use these to determine how many Bitcoins you actually have. Now you ask why is this information even relevant to speculation? Well, I will tell you. This is a philosophical statement, it will and cannot be ever used as valid currency due to it’s inherent problems. Yet we can still view this as an experiment. The network of Bitcoin is completely decentralized on the basis that there is no central bank giving out or generating the coins. This is big, very big. This is something people have had always discussed (as banks are viewed as corrupt entities, and really, who denies this?) and so people really are interested in this. No central bank. Anonymous in the fact anyone can make a wallet with ease and never give any information. Etc. This makes people buy into the Bitcoin market as they find it’s zeal revolutionary and often it is in alignment with their political ideology. What does this tell us exactly? It means that for the time being and while the experiment if you will is continuing, people will continue to buy into Bitcoin for these reasons ensuring a constant flow. In a way this is like a guarantee on your investment if you invest at the right time which I will discuss in another section of this ebook. With the understanding of the philosophical and political repercussions of Bitcoin you will be better equipped to understand Bitcoin.------------------------------------------------------------------------------------------------------------
What is speculation?Speculation is the practice of engaging in risky financial transactions in an attempt to profit from short or medium term fluctuations in the market value of a tradable good such as a financial instrument, rather than attempting to profit from the underlying financial attributes embodied in the instrument such as capital gains, interest, or dividends. (Source: Wikipedia.org). Now what is the difference between speculation and investments? It is the margin of risk you are willing to shoulder. Investments are usually longer term and are considered generally safe choices. But this is for the more traditional type of investment like stocks. We are not dealing with a stock, we are dealing with a cryptocurrency which is valued in USD. If you are already familiar with Bitcoin you will know that the Bitcoin market is very, very volatile and you can make a lot of money or quickly lose everything you invested. The type of investments I am going to teach you are ones whom are very short term and will yield small profits but at the same time will accumulate into a large profit. But we can look at it another way, if we speculate Bitcoin we are effectively (as the name implies) inspecting the price of Bitcoin in the hopes that it will rise and will give a handsome ROI. Knowing how to speculate the price will greatly help you in investing into Bitcoin. ------------------------------------------------------------------------------------------------------------Why bother speculating it?This is a great question undoubtably asked by some of you, “why bother speculate Bitcoin, isn’t it no different from any other stock?”. The Bitcoin market is very volatile, very volatile and it is very rare for anyone to ever see this much price fluctuation in a ‘stock’ (to make it simple we’ll consider Bitcoin “stock”). In one day Bitcoin can either surge $100 in ‘stock’ price or it can lose 50% of it’s value, making this very attractive to those whom like to speculate prices. You can turn a lot of profit from speculating it and the market almost always corrects itself if you it does lose value, patience will be your friend. Because of this it is no wonder why more people are actively speculating Bitcoin everyday.------------------------------------------------------------------------------------------------------------Where to purchase BTC safely?
There are several places in which you can purchase BTC safely. One such place I commonly use is VirWox (https://www.virwox.com/). This is the safest and fastest way to obtain BTC in my opinion. The way you purchase the BTC is to sign up --> login --> under ‘My Account:’ find ‘Deposit’ --> Click that --> You now have several options to deposit money (most people have these basic online banking businesses such as paypal) --> You then deposit the USD --> Go to ‘Exchange:’ and you will find ‘USD/SLL’ --> Convert all your USD into SLL (Linden Dollars) --> The find ‘BTC/SLL’ --> Then convert all your SLL into BTC --> You’re done, you have BTC from using your CC or Paypal from a trusted source. The first time you withdraw BTC from the site you’ll have to wait 48 hours for security reasons. This is by far the safest and best method I have came across unless you wish to use your bank account to transfer funds to an exchange (Which I advise against). ------------------------------------------------------------------------------------------------------------Where to exchange? My favourite site is BTC-e.com/ru. The rates are the lowest on the market and the fees are minimal. There is a great and constant flow of exchanges. This site has always been on time with giving out payments with me and I think you would like it too. Other exchanges are often corrupt, unsafe, or they don’t allow you to withdraw your money like MtGox. It is straight forward to make an account and exchange, don’t look at the chat box othewise known as the ‘troll box’ because many people there just spread misinformation to make you sell or buy for them to make profit and make you lose.------------------------------------------------------------------------------------------------------------Where to find BTC price graphs/maps?I personally use http://bitcoinwisdom.com/markets/btce/btcrur as the place to view the current price and rates of BTC with РУБ or USD. This provides you with a very nice overview of the latest exchanges and prices of the market. The optimal settings I suggest is for each candle to be separated is 15 minutes to see the price changes. When you get out and buy in as I will detail later in this ebook I will tell you the best settings to view the trends.
------------------------------------------------------------------------------------------------------------How to use the news to predict the future of the coinLike any stock in any market it Bitcoin is also highly influenced by news. It is also fairly straight forward and you need not to be an expert on this information. Good news usually will mean an increase in price (I.e Country embraces Bitcoin), bad news usually will mean a decrease in price (I.e Country bans Bitcoin). It is good practice to keep a list of readily available sources for the news. Here are a list of news outlets I personally use that are dedicated to Bitcoin related topics. A forum that you can give questions or inquiries about Bitcoin to, and also view news and happenings. There are many knowledgeable users here. https://bitcointalk.org/A twitter that gives some news about Bitcoin.https://twitter.com/bitcoinnewsTwitter like site that gives some news about Bitcoin, isn’t always updated unfortunately.http://www.breakingnews.com/topic/bitcoin/Another twitter that is updated almost everyday with an interesting article or news.https://twitter.com/BTCNews247Last but not least reddit. Reddit is one of the largest communities online and has a sub-forum dedicated to Bitcoin. This forum has thousands of users and has a constant flow of information about Bitcoin added- this is my most used source. It also provides some interesting links and funny threads. http://www.reddit.com/r/Bitcoin/These will give you when combined 24/7 news coverage of Bitcoin related news which will be your greatest ally when investing. Remember, when there is bad news it does not mean to pull out, sometimes a drop in price is a blessing in disguise. ------------------------------------------------------------------------------------------------------------
When to get out?When do you get out? This is a question that many people actually cannot answer for you, and I will admit, this will be a task for me. Personally I believe that you should be in for the long run- panic selling is very destructive not only to your finances but to the market collectively hurting everyone else which will also hurt you. I HIGHLY suggest that you have in your exchange account a combination of fiat and bitcoin to make sure that you can invest more and pull out whenever needed. Make sure to remain calm in the situation and review everything. If you need money it is best not to pull out all your Bitcoin into fiat. Again, if you need help determining when to do this as every situtation is different contact me. ------------------------------------------------------------------------------------------------------------How to exchange BTC with high rates?Last but not least there is the time when you have withdrawn your invested Bitcoin. Now you could have had converted it into RUR (or USD for my Americans) on BTC-e or whatever exchange site you use-- you now have one last option to maximize your profits and that includes using the very site you most likely got this ebook from: http://www.hackforums.net with this site there is a currency exchange that is vibrant and many people use this to exchange. People are also desperate for Bitcoin more than any other place I have seen in this section which is found here: http://www.hackforums.net/forumdisplay.php?fid=182 You will need to make an account if you do not have one and post a thread in the section. I will provide a template for you so you do not need to go through the troubles of this process.
