Crypto Mania

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This is an easy to read pdf that breaks it down. How to get set up and how to get the coins. It is as simple as that. You don't have to care what a block chain is. You don't have to care about hash rates. You don't need to worry about money. Just get in the game now. Put your jersey on and let's kick some major you know what.

This product will get you in the game, get you coins, and take you down the crypto rabbit hole. Once you go crypto you will never go back.

Take a look at this Screenshots!

Turning DVC into USD

Ok, so I got over a million DVC. That’s great and all, but it does me no good if I can’t spend them or convert them into something useful, like BTC or even better USD, right?

Now you see why I went through the process of online wallets and currency exchanges for Joe (my previous example).

I’m not a speculator, but if you wanted to you could analyze the charts of all of the major altcoins and see which ones have the greatest potential for gain and then convert all of your DVC into that. Or you could put it all into something more popular like LTC or BTC. Or you could cash out to USD.

For purposes of this report, let’s assume that you want to cash out to USD (or your local currency if you’re in another country).

Once I get the DVC into my local wallet, I need to find an exchange that deals with Devcoin. Fortunately, the previously mentioned exchange – Cryptsy – will allow you to buy and sell DVC for either LTC or BTC.

But right now I just have all of my DVC in my local wallet, so I need to send that to my Cryptsy account. Here is a step-by-step breakdown of the process.

1. First, you need to login to Cryptsy, then click on the Balances icon at the top.

2. Scroll down until you see Devcoin, then hover your cursor over it to bring up a menu:

3. Click on “Deposit / Autosell DVC”. The deposit address will be blank, so just click on the button to generate a new address:

4. Copy that deposit address (Note: this is my deposit address! don't copy the address on the screenshot)
5. Now open my local DVC wallet and send coins to that deposit address.
6. After six confirmations, the deposit will go through and you will see your coins show up at Cryptsy.
7. Now that you have your DVC at Cryptsy, you need to convert them to BTC.
a. Why? Because Coinbase only deals with BTC. Once we have BTC at Coinbase, we can convert/cash out to USD.

8. Click on the Trade icon at the top of Cryptsy.
9. Scroll down until you see the DVC/BTC Market and click on that.
10. Here you’ll see a box where you can sell DVC for BTC.
11. In Amount DVC enter your total. For me it will be 1,013,670. It will calculate the total BTC you can buy, the transaction fee, and the net total BTC that you will receive. For the current prices as of this writing, here is what mine would look like:

(Since I don’t have any DVC in my account (yet) it shows that I have 0.0 DVC available. )

12. Once you submit the sell order, it will have to match your sell order with other people’s buy orders and then process the transaction. Right now I see a buy order for more than what I’m selling, so this should go through pretty quickly.
13. After the transaction goes through, I will have 0.67712142 BTC in my account at Cryptsy. Now I need to send that to my Coinbase account so I can cash it out.
14. Login to Coinbase. On the left side, click on Account Settings. Above where it has your name/email/etc on the page, you’ll see “Bitcoin Addresses”. Click on that.
15. Create a new address. I like to then go into Details and give it a label. For this transaction, I would enter “DVC from Cryptsy”:

16. Copy that new address from Coinbase and go back to Cryptsy.
17. Again, click on Balances and scroll down to BTC. You should now see your balance in BTC. In my example, it would be 0.67712142 BTC.
18. Hover over where it says Bitcoin and choose “Withdraw BTC”.
19. In the popup box, enter your exact amount of BTC, which is the number in #17 for my example. Copy and paste in the new address from Coinbase in the BTC Withdraw Address. Enter your password and captcha.
20. Cryptsy will assess a 0.0005 BTC transaction fee and show you the net:

21. Once I click on Process Withdraw, the money is sent to my Coinbase account.
22. Go to Coinbase to confirm the transfer. You’ll see the balance in your account once the transfer is complete.
23. In Coinbase, click on Buy/Sell on the left side. Then in the main area of that page, click on Sell Bitcoin and enter how much you want to sell. In this example, I’m cashing everything out and not leaving anything in any of my accounts at Cryptsy or Coinbase.

24. The “pay out method” that I blacked out is just my bank account info. Once I sell the Bitcoin, I will get $536.83 transferred to my bank account.

Specific Ways to Earn Coins

OK, that probably sounds a little vague. But if you look at the list of cryptocoins, they all have different purposes.

For example, Ripple is actually an internet protocol for making financial transactions. So it’s like PayPal, but it’s not controlled by any organization. As HTTP is the protocol for displaying web pages, RTXP is the protocol for making transactions on the internet. And the market cap for Ripple is over $2 billion.

They even have altcoins that serve different functions, such as:
✔ Tickets – also called LotteryTickets, it gives random rewards for each block solved
✔ Sexcoin – an altcoin that can be used for adult websites and services
✔ Craftcoin – used as portable in-game currency for Minecraft servers
✔ Devcoin – to support open-source projects by programmers, hardware developers, writers, musicians, painters, etc. worldwide

Ok, so pay attention to that last one. More specifically, because it supports WRITERS.

Other Ways to Make Money with Cryptocoins

Now let’s get to the meat of this report. Hopefully you’ll be much better informed on what is required of you to deal with cryptos, because it’s not always simple for someone who has never done this before.

Other than mining or buying cryptocoins directly, there ARE other ways to make money with crypto.

Faucets

A faucet in the alternate currency world is basically a website that gives you a small amount of the coin for free, whether because of the advertising revenue they have on the site, various clicks they get, or because they are interested in promoting their crypto-currency & if someone has a stake in that crypto-currency then they are more likely to promote it.

Personally, I stay away from them. I liken faucets to the “earn credits by surfing” programs, or “complete surveys to earn points” programs. They just seem like scams to me. Just take a quick look at most faucet sites. They are spammy, full of ads, and my personal opinion is that they are a complete waste of time.

What free coins you get are probably worth a fraction of a cent, and if you want to spend hours per day on the hundreds of faucet sites (or cryptocoin lottery sites) trying to earn maybe a buck, then by all means go ahead. I’ve got better things to do.

I really can’t comment any more than that, and this is just my personal opinion since I have not looked into it more, but my time is valuable and I’m certainly not going to waste it on faucets. Do research and form your own opinion, though.

Wallets

When dealing with cryptocurrencies, there are two types of wallets: online and offline.

Online wallets like Coinbase let you store your BTC or USD with them so that you have it available to trade using the cryptocurrency exchanges.

Online exchanges will store your cryptocoins as well, so that you can buy/sell at will without having to worry about sending or receiving coins in order to make transactions.

If you do a lot of trading, it’s not unreasonable to keep these online balances filled to whatever amount you need to trade. It saves time and you don’t have to worry about constantly funding your account.

If you want to make a one-time trade to hold on to some cryptocoins for the future in hopes that the price will rise (kind of like investing in gold or silver coins, or even stocks for that matter) then you might want to store those coins in an offline wallet on your PC (or even off your PC, i.e. on a flash drive or even paper).
All cryptocoins have a wallet associated with them. Well, at least I think so. For Bitcoin, the wallet is what allows you to transact with other users. It gives you ownership of a Bitcoin balance so that you can send and receive bitcoins. Just like email, all wallets can interoperate with each other.

Once you install the wallet (there is a different program/wallet for each cryptocoin which you need to install separately), you can generate an address to send or receive cryptocoins.

So now, you can (within Coinbase, Cryptsy, or other online wallet or exchange) send whatever coins you have to an address that you generate with your local wallet. Once that transaction gets processed, the coins are now held in your local wallet.

Many people do this as a security measure so that if an exchange crashes, or worst case goes out of business or gets shut down for some reason, you won’t lose whatever coins you had stored with them.

Personally, if I’m in this for the long term, I would recommend keeping all of your cryptocoins offline. In fact, I even copy the data file from my PC to a flash drive (or even multiple flash drives for security, or in case one fails) and then delete the data file on my PC.

Why do this? Well, if you get hacked, the hacker can steal that data file and get ALL of the coins in that wallet. And if you’re dealing with thousands of dollars’ worth of cryptocoins, even tens of thousands, then you probably want to make sure your money is safe. It’s like a safe deposit box.

Let’s continue our example with Joe:

Joe just bought 37.95 LTC on Cryptsy and wants to store this offline in his Litecoin wallet.
Joe goes to https://litecoin.org/ and downloads and installs the LTC wallet. 

When Joe runs the wallet for the first time, it takes hours to sync, since it needs to download all of the previous transaction blocks. Once this is done, Joe is ready for the next step. 

Joe generates a new address within the LTC wallet to receive coins. 

Within Cryptsy, Joe chooses to withdraw his LTC to his local wallet. He does this by going to his Account Balances, hovering over Litecoin, and choosing Withdraw LTC. 

Joe puts in 37.945 as the amount since there is a .005 LTC withdraw fee. 

Joe then enters the withdraw address that he created from his offline LTC wallet installed on his PC. After entering his password and captcha, he processes the withdraw. 

Joe opens his LTC wallet on his PC and lets it run. Eventually it processes his transaction and his offline wallet is now credited with 37.945 LTC.

OK, that may have been too long and drawn out for some of you, but I wanted to go through the entire process, showing you everything that is involved when you’re dealing with buying and selling cryptocurrencies.

Investing

Plain and simple, you can buy cryptocoins now and hold on to them, hoping their value will rise when you can sell them for a profit.

It’s the same as investing in gold, silver, stocks, bonds, etc. Buy low, sell high.

On the technical side, this is a much easier way to get into cryptocurrencies. But you still have to jump through a few loops.

First of all, you need a way to pay for the cryptocoins. You do this by signing up with a bitcoin wallet and platform site where you can use USD (and possibly other currencies, but since I’m in the US I’ll only talk about doing this with USD) to buy and sell Bitcoins.

I use Coinbase. You sign up with Coinbase and connect your bank account so you can fund your account. Once you have money in your Coinbase account, you can use this to buy Bitcoins.

Now, they only deal in Bitcoins, but that is fine. I know I talked about other cryptocurrencies earlier, like Litecoin, but the grand-daddy of them all is Bitcoin and honestly if you’re going to use any cryptocoin like currency, it will probably be Bitcoin anyway. You may buy/sell/earn other cryptos, but you will eventually trade them into Bitcoins so you can use them.

Once you buy Bitcoins, you can then use them in one of the many exchanges to buy other cryptocoins. BTC is like the USD of the world. You can trade almost any currency to/from Bitcoins.
I’ll give you a quick example to clarify.

Joe wants to buy Litecoins. At around $21 each, he feels that the price is good and the long term potential for profit is high. He has read where LTC might reach $100 by the end of 2014.
Joe opens an account at Coinbase. He verifies his bank account and deposits $800 into his Coinbase account. 

Joe then uses Coinbase to buy Bitcoins directly at their current buy price. Since right now it is exactly $800.00, he gets exactly one BTC. 

Joe then opens an account with Cryptsy, a cryptocurrency exchange. 

Within Cryptsy, Joe creates a new deposit address. This is a long alphanumeric string like 17jUWvAWa79boxmgdnEtf4JLv4CBUW8b3D. 

Joe then goes back to Coinbase and chooses to Send Money. He copies the deposit address from Cryptsy, the amount he wants to send (in this case 1.00 BTC) and clicks to send the money. 

After a period of authorization for this transaction (could be 15 minutes or longer) he goes back to Cryptsy and sees that he now has a balance of 1.00 BTC. 

Within Cryptsy, he goes to the LTC/BTC market to buy LTC. 

The price per LTC is currently 0.02629412 so he can buy 37.95 LTC with his 1.00 BTC. This includes a 0.20% fee (in BTC). I figured this out just by putting in different amounts for how much LTC I wanted to buy until my net total was just barely under 1.00, since that is all I had to invest. 

Joe clicks on Submit Buy Order and he buys 37.95 LTC. At around $21 that is worth $796.95, so he paid around $3 in fees. Not too bad.

 At this point you have a balance of 37.95 LTC at Cryptsy. You can use this to buy any cryptocurrency that trades on Cryptsy.

You now have two options: leave the balance at Cryptsy, or withdraw the balance to a local wallet.

Mining

First, you can mine coins. I won’t go into explicit detail, but mining is basically using your own computing resources (called a rig) to attempt to solve a complex algorithm which helps to verify and approve any transactions with that particular currency.

Here is the description of Bitcoin mining from https://en.bitcoin.it/wiki/Mining:

Mining is the process of adding transaction records to Bitcoin's public ledger of past transactions. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.

Mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid. This proof of work is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses the hashcash proof-of-work function.

The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce Bitcoins into the system: Miners are paid any transaction fees as well as a "subsidy" of newly created coins. This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system.

Bitcoin mining is so called because it resembles the mining of other commodities: it requires exertion and it slowly makes new currency available at a rate that resembles the rate at which commodities like gold are mined from the ground.

If you keep reading on that page, you’ll see the different ways that you can mine Bitcoins. The problem today is that in order to mine them profitably, you need very powerful and expensive hardware (see ASIC mining) that can cost five figures. Most of us don’t have the kind of cash or technical know-how to set that up.

The next most popular cryptocoin to mine is Litecoin. Right now one Litecoin (LTC) is going for around $21. These are much easier to mine. While typical mining rigs use CPU power to mine, you are limited to usually just the one CPU in a typical computer. That’s why recently people have been switching to GPUs to mine.

GPU (graphics processing unit) is the CPU of a graphics card. What GPU miners do is focus all of their processing power to the GPU because they can install multiple graphics cards on one motherboard so that they can mine much faster. And the more computing power you have, the better chance you have of solving the algorithm.

I was actually going to get into GPU mining, trying to mine Litecoin, by building my own LTC mining rig. The problem I ran into was that the graphic cards themselves are very hard to come by. And even if they are available, they are ridiculously expensive.

I don’t think that mining is the cause of the video card scarcity (people do love their computer games and high-end graphics you know), but due to the recent popularity of mining with GPUs, it’s now much harder to even find the right hardware.

The cost to build a LTC mining rig isn’t terrible. I was pricing one out by buying each piece individually (the motherboard, CPU, memory, graphic cards, etc.) and it came to around $1200. Not too bad really for a moderately high-end computer. I could always use it to play the latest PC games or sell it to someone who wants to.

And since I could not get the best graphics cards (I think the ones I priced were still around $350 each), my hash rate (a measure of how much power I’m using to compute) wasn’t top of the line. At my proposed hash rate and power consumption, I think that I could have made about $20 per day mining Litecoins.
That might seem awesome at first, but that $20 depends on a lot of things, especially the price of Litecoin. If it drops or crashes, then that $20 could go down to $10 or even $5. Best case scenario would be about 2.5 months to get my investment back, then the rest is profit.

But that’s a lot of work, and you have to be somewhat of a techie to get it all setup correctly. Plus, you really have to join a mining pool so that you are joining forces with other miners. I could write an entire book on mining and pools and GPUs and ASIC mining.