The Beginners Guide To Crypto
Crypto Market Cap:
The Market Cap of a cryptocurrency is the amount of currency in the market multiplied by it's price in the market.
Quest: (Crypto Market Cap)
1) Visit the following website:
2) Find the Total Crypto Market Cap Chart.
Make sure to select the full range of the chart.
(insert image of total crypto market cap here with notes for legibility)
In the graph you can see that Coingecko has collected the information of 15239 different cryptocurrencies, sold across 1154 markets around the world. And the chart represents the sum of all market cap of those 15239 cryptocurrencies.
Task: What is the total crypto market cap?
(Ans: Text) Write down this value, we will use it in the next task.
Notice:
Notice that at the time of this writing the total market cap is about 3 Trillion dollars. A trillion is 10^12. A billion is 1000 Millions and a Trillion is 1000 Billions.
Quest: (Gold Market Cap)
Golds market cap is the price of gold per ounce multiplied by the amount of gold stored in the worlds reserves.
1) Visit this website:
Task: What is the Gold Market Cap?
(Ans: Text)
Exercise:
Compare the Gold Market Cap to the Total Crypto Market Cap. At the time of this writing Gold's market cap is around 17 Trillions. Therefore the Total Crypto Market Cap is over 17% of Gold's Market Cap, showing how important is this class of digital assets.
Quest: (Companies Market Cap)
The market cap of a company is the number of shares multiplied by the price of each share.
1) Visit this website:
Largest Companies by Market Cap
Task: What is the most valued company by Market Cap?
(Ans: text)
Exercise
Compare the Total Crypto Market Cap to the top valued companies in the world.
Notice that the most valued companies are related to computers. Cryptocurrency is a computer technology and it has achieved the same size as the largest companies in the world.
BTC Dominance Chart
Bitcoin is the major contributor to the Total Crypto Market Cap
Find the top 3 Cryptocurrencies by market cap.
Quest: (BTC Dominance Chart)
1) Visit the following website:
2) Find the Bitcoin Dominance Chart. Hover your mouse over the chart to display the top ten cryptocurrencies contributing to the Total Crypto Market Cap.
Task: What is the percentage of Bitcoin Market Cap. (Percent of the Total Crypto Market Cap)?
Bitcoin Price History
Bitcoin was released to public in 2009, but until 2000x didn't even have a price! This is the most important lesson in Cryptocurrency. Pay attention. There is a recurring pattern in Bitcoins price history. Every four years on average there is a bull run that brings Bitcoin's price to an all time high value. We will see why this happens in the next sections.
Quest: (View all Price History)
1) Visit this website:
(Insert image of btc price)
Select "MAX" as the range of data displayed.
Select Logarithmic scale in the price chart.
Task: Take a screenshot of the graph in logarithmic scale.
(Ans: Upload File)
Exercise:
Using a logarithmic scale on a data chart helps to manage large ranges of values by compressing the scale of higher values more than lower ones. This makes it easier to see patterns and compare data points across a wide range of magnitudes, highlighting trends that might be missed on a linear scale.
For example see the beginning of the BTC price chart, this large change in price was not visible compared to the larger more recent price spikes. And when you select log scale these price spikes are more visible.
Quest (Analyzing the Bitcoin Price History Chart)
1) In this exercise we will use TradingView:
TradingView Bitcoin Price Chart
Using the ruler icon in the left hand side of the chart, we will measure the height of the last Bitcoin price spike from the bottom of the bear market That happened around November 2022. Click and drag the mouse from the bottom of the chart to the peak, as shown in the picture.
(Introduce a picture of the required result)
Task: Take a screenshot showing the percentage of price increase from the bottom of the last bear market to the present.
(Ans: upload file)
Exercise:
Introduce here the explanations of the various parts of the price action, halvings, bull runs, bear markets. (see brochure)
Trading View
Trading view has many useful functions to analyze markets. In this section we will use it to compare Bitcoin and Ethereum's price history. Notice how Ethereum's price follows the same pattern as the Bitcoin price. When bitcoin price rises, it causes other cryptocurrencies price to rise. This is called "alt-season". (alt-coins are all other cryptos except Bitcoin).
Quest (Comparing BTC and ETH Price History)
1) Sign in to Trading View. You can sign in with your Google account.
2) From the "Markets" tab select: Crypto.And From Crypto select Large Cap.
3) Right click on BTC and select: Add CRYPTO:BTCUSD to Watchlist > Select Watchlist or create a new list.
4) Right click on ETH and select: Add CRYPTO:ETHUSD to Watchlist > Select Watchlist or create a new list.
5) On the right hand side column you see your Watchlist. Select BTC to display Bitcoin's price chart.
6) Select Full Chart
7) Click on the Compare Button
8) Select ETHUSD notice that there are various markets available to see the price history. Choose the first one.
9) On the Gear icon at the bottom right select regular, not percent.
10) Notice that the difference in prices makes it difficult to compare the behavior of the prices. Select LOG scale
Task: Take a screenshot of your chart comparing Bitcoin to Ethereum
(Ans: Upload File)
Exercise
Notice how it was not easy to see the similarities in the regular chart. Changing the scale to a logarithmic scale made it possible to see that the Ethereum price chart looks very similar to Bitcoin's.
This is very important because we know that all other cryptos follow Bitcoin's behavior. And Bitcoin price action has a periodic behavior. Every 4 years there is a bull market leading to all time highs in prices, and then a bear market follows that can last up to 3 years.
Investors who know this can make significant profits with a long term view.
= Summary / check point /
Bitcoin
Let us dive directly into the world of cryptocurrency. Let’s go where Bitcoin started.
The idea was first published on a cryptography mailing list.
You can be a real insider! And behold the very place of birth of the famous cryptocurrency.
Let’s go and visit the place where all started>
Task> Visit the Mailing List. Read and discuss the words in the description.
https://www.bitcoin.com/satoshi-archive/emails/cryptography/
Bitcoin introduced, read abstract. Notice key concepts.
https://www.bitcoin.com/satoshi-archive/emails/cryptography/1/
Bitcoin Client released. Read about total circulation, and the transition to transaction fees.
https://www.bitcoin.com/satoshi-archive/emails/cryptography/16/
Blockchain Explorer
Indtroduction. look for some famous transactions. First transaction and metadata.
Look for wallet with lots of BTC and not moving. address security in this way. It is public, everybody knows about it, but nobody has taken the money in 15 years.
First mint transaction with 50 BTC or so… Current block, a mint transaction now…
First transaction Hash
000000000019d6689c085ae165831e934ff763ae46a2a6c172b3f1b60a8ce26f
First transaction between 2 persons> Satoshi to Hal Finney:
Hash ID f4184fc596403b9d638783cf57adfe4c75c605f6356fbc91338530e9831e9e16
First Bitcoin Sold
The latest Block mined
Observe the BTC reward. And Fees.
https://www.blockchain.com/explorer/blocks/btc/864924
Exploring an Address
Look up an address that has been dormant for years, with lots of money in it. to discuss some features, differences from a transaction address, and the fact that nobody has moved the money, even if the fact that it contains millions of dollars is public.
Node Explorer:
Bitnodes.io
Task> Number of reachable nodes on Bitnodes.io
Task> Nodes per country.
https://newhedge.io/terminal/bitcoin/node-map
Hashrate and price
https://newhedge.io/terminal/bitcoin/hashrate-vs-price
How to get Bitcoin: CEX
CEX, credit card, examples. KYC
Top Cryptocurrency Exchanges:
https://coinmarketcap.com/rankings/exchanges/
CMC Liquidity score 0 to 1000
Bitcoin Halving.
Trading View graph.
Task> Logarithmic Graph. Halvings.
Ethereum:
EVM
Smart contracts
Gas fees
https://milkroad.com/ethereum/gas/
https://etherscan.io/gastracker#chart_gasprice
EtherScan
DEX
https://coinmarketcap.com/rankings/exchanges/dex/?type=spot
Examples, explanations on Uniswap V3
Liquidity Pools:
Examples and explanations of features.
Price Impact
Try a swap and see.
Layer II
Polygon.
PolygonScan
Compare features to Etherscan
Wrapped BTC
https://www.kraken.com/learn/what-is-wrapped-bitcoin-wbtc
Wrapped tokens
WEB III
Test Drive
Metamask
Website Integration
Ethereum / Polygon Chains (Explorers Transactions)
Token smart contracts.
Mint transactions.
Mining Pool
GPU
BlackMiners
Swaps
Uniswap liquidity pools
Token Pair Contracts
Price trackers
Buy Sell
Farming
Creating a farm position NFT
Polygon Bridge
Ways to make money with S.T
Trading Simulator Trade tokens for more tokens
Investors Club