HOW TO INVEST

IN CRYPTO
[BEGINNER’S GUIDE]
 01 Introduction

02 Cryptocurrency Basics

03 Crypto Types & Terminology

TABLE 04 Wallets vs Exchanges - Which is best?

OF 05 Coinbase Tutorial

06 How to Research Cryptocurrencies

CONTENTS 07 Building Your Crypto Portfolio

08 Crypto Taxes

09 Best Crypto Tips

10 What’s Next?

11 Beginner Resources for Crypto Investing

 Chapter 1
Why You Should Learn & Invest In Crypto

Introduction
 Why You Should Learn About Crypto

To make money
If you learn & understand how the crypto markets move, you have the opportunity to make life-changing
money IF you are patient enough and put in the work.
The overall crypto market cap is down significantly - which means that cryptocurrencies are still on a
discount from previous all-time highs.

Crypto is still in its infancy

You have the chance of being at the forefront of a potentially transformative wave in finance and
technology.

Crypto is the future

Governments are looking into crypto laws, regulations, CBDCs, etc.
Companies and institutions are learning, investing, and implementing blockchain technology into their
businesses
Countries are making certain cryptocurrencies legal tenders
Many universities are now offering blockchain and cryptocurrency courses
 What is Cryptocurrency?

What Problems Does Crypto Solve?

Chapter 2
Bitcoin Explained
Cryptocurrency
Proof-of-work vs. Proof-of-stake
Basics
4 Ways to Make Money From Crypto

Cryptocurrency Risks
 What is Cryptocurrency?

A cryptocurrency is a digital currency, which is an alternative form of

payment created using encryption algorithms. The use of encryption
technologies means that cryptocurrencies function both as a currency
and as a virtual accounting system. To use cryptocurrencies, you need
a cryptocurrency wallet.

Crypto has been used for a wide range of applications, including buying goods/services, trading, and peer-to-
peer transactions
 Why is Crypto Important Today?

Hedge Against Inflation

In countries with high inflation, cryptocurrencies offer an alternative store of value, helping people and
businesses preserve their wealth.
There is no central bank authority that can inflate your money by printing trillions of dollars for stuff you
don’t care about

Decentralization
Cryptocurrencies operate on decentralized networks, reducing dependency on central financial institutions
and governments.
More control and privacy to users
Protection from central entities

Security and Transparency

Crypto offers a secure and transparent way of recording transactions. This can lead to reduced fraud and
corruption, especially in systems that are prone to human error or manipulation.
 Why is Crypto Important Today?

Hedge Against Inflation

In countries with high inflation, cryptocurrencies offer an alternative store of value, helping people and
businesses preserve their wealth.
There is no central bank authority that can inflate your money by printing trillions of dollars for stuff you
don’t care about

Decentralization
Cryptocurrencies operate on decentralized networks, reducing dependency on central financial institutions
and governments.
More control and privacy to users
Protection from central entities

Security and Transparency

Crypto offers a secure and transparent way of recording transactions. This can lead to reduced fraud and
corruption, especially in systems that are prone to human error or manipulation.
 What is Bitcoin?

Bitcoin was the first cryptocurrency ever created in 2008 by an unknown

person or group of people using the name, Satoshi Nakamoto.

It was initially created to be an electronic peer to peer cash system, but it

turns out that it also attracted many investors as a store of value currency.

Bitcoin has always been the largest cryptocurrency, making up roughly 50% of the entire crypto market cap as
of right now.
 How Does Bitcoin Work?
Blockchain Explained

Bitcoin operates on a decentralized network called the blockchain.

The blockchain is essentially a public and digital ledger that securely and
sequentially logs every transaction, ensuring they are permanently
recorded.

This public ledger (blockchain) is comprised of blocks containing data that includes the transaction records,
such as who sent the Bitcoin, how much was sent, whose receiving it, and lastly a unique identifier for that
specific block which is like a digital fingerprint.

When you send or receive Bitcoin, the transaction is broadcast to the network. It then gets verified by
participants known as miners.
BTC Blockchain Explorer

https://www.blockchain.com/explorer
 Bitcoin’s Key Features

Decentralized
Bitcoin operates on a decentralized network of computers. This network uses blockchain technology to record
all Bitcoin transactions across these computers. These transactions are recorded permanently on the
blockchain.

Limited Supply
Bitcoin has a capped supply of 21 million tokens. There are currently only 19.5 million tokens in circulation and
Bitcoin is expected to reach its cap in the year 2140.

Security & Anonymity

Bitcoin transactions are secure and, to an extent, anonymous. While transactions are recorded on the
blockchain and are publicly accessible, the identities of the people involved are encrypted.

Accessibility
Anyone with an internet connection can buy, sell, or trade Bitcoin using various cryptocurrency exchanges or
wallets.
 Bitcoin Mining

The transaction / creation of new Bitcoins is done through a process

called Bitcoin mining.

Bitcoin mining is like a digital version of mining for gold, where instead of
physical mining, computers solve complex math problems that validate
and secure transactions on the blockchain.

These miners are essentially processing the transactions through a built-in mechanism called proof-of-work.

This process involves verifying the transactions to ensure they are valid (for example, making sure the sender
has enough Bitcoin to complete the transaction).

Once a miner successfully solves the problem and validates the block, the new block is added to the
blockchain, and the miner is issued with new Bitcoins as a reward.
 Proof-of-Work

Proof-of-Work (PoW) is a consensus mechanism used by certain blockchain networks, including Bitcoin, to validate
transactions and create new blocks.

Proof-of-Work Key Features:

Problem Solving: In PoW, miners compete to solve complex mathematical problems. These problems require
significant computational effort and power to solve.

Block Validation: The first miner to solve the problem gets the right to validate a block of transactions and add it to
the blockchain. This process verifies and secures each transaction.

Network Security: The difficulty of these problems ensures network security. It makes it practically impossible for
any single entity to manipulate the blockchain, as altering any block would require re-mining all subsequent blocks.

Mining Rewards: As an incentive, the successful miner receives a reward, typically in the form of the blockchain's
native cryptocurrency (like Bitcoins in the Bitcoin network).

Energy Intensive: PoW is known to be energy-intensive due to the computational power required, leading to
concerns about its environmental impact.
 Proof-of-Stake
Proof-of-Stake (PoS) is a consensus mechanism used by some blockchain networks as an alternative to Proof-of-Work
(PoW). It's designed to be more energy-efficient and operates on different principles:

Proof-of-Stake Key Features:

Staking Cryptocurrency: In PoS, validators (equivalent to miners in PoW) are chosen to create new blocks and
validate transactions based on the amount of cryptocurrency they hold and are willing to "stake" or lock up as
collateral.

Random Selection and Validation: Validators are selected to confirm blocks of transactions. The larger their stake,
the higher their chances of being chosen. It’s more of a lottery system instead of a competition. Crypto Exchanges
like Coinbase offer staking services, so you don’t need a big holding to participate now. We’ll cover this later!

Rewards: Unlike PoW, where miners are rewarded with new cryptocurrency, validators in PoS may receive
transaction fees as rewards. The actual reward mechanism can vary between different PoS-based blockchains.

Security and Control: The staked coins act as a deterrent against dishonest behavior. If a validator approves
fraudulent transactions, they risk losing their staked coins, providing a financial incentive to act honestly.

Energy Efficiency: PoS is considered more energy-efficient than PoW because it doesn't require extensive
computational work and power to validate transactions.
 PoW vs PoS - Pros and Cons
Proof-of-Work (PoW) Proof-of-Stake (PoS)
Pros Pros
Security: The complexity and computational effort Energy Efficiency: PoS is far more energy-efficient than
required to mine blocks and validate transactions make it PoW, as it doesn't require intensive computational work for
very difficult to attack or manipulate the blockchain. mining.

Immutable Transactions: Once a transaction is confirmed Lower Barrier to Entry: Without the need for expensive
on a PoW blockchain, it's nearly impossible to alter mining rigs, more users can participate in the validation
process, potentially leading to greater decentralization.
Cons
Energy Consumption: PoW is extremely energy-intensive Scalability: PoS can process transactions faster and more
due to the computational power required for mining, efficiently, helping the network to scale more effectively.
leading to environmental concerns.
Cons
Scalability Issues: The time and energy required to Security Concerns: Some argue that PoS is less secure
validate transactions can limit the number of transactions than PoW, as the cost of attacking the network might be
the network can process, leading to slower transaction lower, though this is a subject of ongoing debate.
times and higher fees during peak usage.
Risk of Centralization: Wealth concentration can become
an issue, where the richest stakeholders have more control
over the network, potentially leading to centralization.
 4 Ways You Can
Make Money From Crypto
1. Crypto Trading & Value Appreciation
You buy the crypto and over time if the value appreciates, you can then lock in some profits.

2. Crypto Staking
Earn passive income by locking up some of your cryptocurrency in a wallet to support the network’s
operations. Crypto exchanges have made this process easy to get started and I’ll show you exactly
how later on in this video.

3. Crypto Mining
Earn block rewards for using computational power to validate transactions and secure a blockchain
network, primarily in Proof-of-Work (PoW) systems like Bitcoin.

4. Crypto DeFi
DeFi (or “decentralized finance”) is an umbrella term for financial services on public blockchain.
With DeFi, you can do most of the things that banks support — earn interest, borrow, lend, buy
insurance, trade derivatives, trade assets, and more — but it’s faster and doesn’t require paperwork or
a third party.
Defi Lending
 More ways to make money with Crypto

Yield farming - Allows investors to earn yield by putting coins or tokens in a decentralized
application, or dApp. Examples of dApps include crypto wallets, DEXs, decentralized social
media and more.

Airdrops - A cryptocurrency airdrop is a marketing strategy that involves sending coins or

tokens to wallet addresses.

Small amounts of the new virtual currency are sent to the wallets of active members of the
blockchain community for free or in return for a small service, such as retweeting a post
sent by the company issuing the currency. The ultimate goal of a crypto airdrop is to
promote awareness and circulation of a new token or coin.
 Risks of Cryptocurrency

Risks of Crypto Trading

All cryptocurrencies (even Bitcoin) are considered high-risk assets because they are volatile and experience
MASSIVE price fluctuations in short periods.

Risks of Crypto Staking

When you stake your crypto assets, sometimes they are locked up for a certain period. During this time, you cannot
sell or use them, which might be an issue if you need liquidity or if the market conditions change unfavorably. You’ll
be stuck ‘holding the bag’.

HOWEVER - You can avoid this risk through a service that many top crypto exchanges offer, called ‘Soft Staking’.

Soft staking allows you to receive the benefits from staking without locking up your crypto for an indefinite
period of time.

You are essentially allowed to ‘unstake’ your crypto at any time to reduce your risk

Another option that is offered from exchanges like Coinbase is having unstaking periods that is usually a number
of days from the time of request and does not require a set timeframe.
 General Risks of Crypto Mining

Profit Margins are thin.

Equipment / Electricty can be costly.

Rewards are reduced & payout is decreasing

over time

More competition

Icelandic BTC Mining Facility uses more of

the Nordic island nation's electricity than
its homes.
 General Risks of Cryptocurrency

Scams & Hacks

According to Chainanalysis.com, 2022 was the biggest year for crypto hacking with $3.8 billion stolen

Regulatory concerns & evolving laws

Since crypto is so new, the frameworks for how crypto is allowed to operate in the government’s financial
system is still unclear.

Lack of transparency and/or oversight for crypto companies

In the past two years, we witnessed some of the most prominent crypto projects, exchanges, and
companies go bankrupt or insolvent - resulting in many crypto users losing their funds.
Use reputable exchanges only!!

Market Volatility
Cryptocurrencies are volatile by design, and their markets are highly speculative
 How To Protect Yourself

Security Measures To Take

Use a trusted password manager for your crypto keys
Write your keys down and/or store them in an encrypted file offline
Do not answer messages from random people or fake influencer accounts
Do not click on random or suspicious links (even from people you know as they could’ve been hacked)
Do not buy into projects without researching who’s behind them
Only use reputable exchanges and wallets
Use VPNs for general protection
 What are Altcoins?

What are Stablecoins?

Chapter 3
What are Exchange Tokens?
Crypto Types
What are Memecoins?
&
Terminology What are Metaverse Tokens?

What are NFTs?

Crypto Key Terms

 What are Altcoins?
Altcoins, short for "alternative coins," refer to all cryptocurrencies other than Bitcoin. They emerged after the
success of Bitcoin, offering different features, functionalities, and use cases.

Altcoin Characteristics

Variety: There are tens of thousands of altcoins, each with unique features. Some aim to improve on
Bitcoin's technology by offering faster transaction speeds, increased privacy, or lower transaction fees.

Volatility: Altcoins have a smaller market capitalization compared to Bitcoin and tend to be much more
volatile.

Use Cases: Beyond just being digital currencies, some altcoins are developed for specific use cases. For
example, Ethereum enables smart contracts and decentralized applications (dApps), while others might
focus on digital identity, decentralized finance (DeFi), or other niche applications.

Some of the most prominent altcoins include Ethereum, XRP, Solana, and Cardano
 What are Stablecoins?
Stablecoins are a type of cryptocurrency designed to maintain a stable value, as opposed to the high volatility
seen in many other cryptocurrencies. Stablecoins are pegged to a stable asset, like the US dollar, other fiat
currencies, or commodities like gold. This means the value of a stablecoin aims to mirror the value of its
underlying asset.

Three Types of Stablecoins

Fiat-Collateralized Stablecoins: Backed one-to-one by fiat currency reserves. For example, for every
stablecoin issued, there is an equivalent amount of dollars or other currencies held in reserve.

Crypto-Collateralized Stablecoins: Backed by other cryptocurrencies but over-collateralized to absorb

price fluctuations of the backing crypto assets.

Algorithmic Stablecoins: Not backed by any reserve but use a complex algorithm to control the supply of
the issued tokens and maintain stability.

The most popular stablecoins include USDT (Tether) and USDC (USD Coin), which are both fiat-collateralized
stablecoins that are pegged to the U.S. dollar.
 What are Exchange Tokens?
Exchange tokens are cryptocurrencies issued by a crypto exchange and are primarily used to provide benefits
to users of the exchange.

You can think of exchange tokens as loyalty points or membership cards for these platforms.

Key Characteristics

Utility: Exchange tokens provide users with benefits on the respective platform. This can be in the form of
reduced trading fees, voting rights, access to exclusive features, etc.

Value and Incentives: The value of exchange tokens can be influenced by the success and popularity of
the exchange platform.
 What are Memecoins?

A memecoin is a type of cryptocurrency that is primarily driven by internet memes and social media attention
rather than any inherent value or technological innovation.

Key Characteristics

Community driven

Highly speculative AND risky

The projects can be funny... if you didn’t lose money on them!

Some of the most popular memecoins include Dogecoin, Shiba Inu, and Pepecoin.
 What are Metaverse Tokens?

Metaverse tokens are digital currencies used within the metaverse, which is like a virtual reality space where
you step inside the internet and can connect with others through playing games, interacting, etc.

Key Characteristics

Utility in the Metaverse: You can use these tokens to buy virtual goods and/or services, like virtual land,
clothing for avatars, etc.

Investment and Speculation: Metaverse tokens are volatile crypto investments since they tend to have a
lower market-cap and many people are also unsure about whether the Metaverse concept will become
significant in the future

The most popular metaverse projects in the last bull run were Decentraland, Sandbox, and Axie Infinity.
 What are NFTs?

Non-Fungible Tokens (NFTs), are a type of digital asset that represent ownership for a unique item or piece of
content, using blockchain technology. You can think of them as a digital certificate.

NFTs are NOT cryptocurrencies, but they do share some similarities, and both utilize blockchain technology.

The main differences between NFTs and cryptocurrencies is the ‘non-fungible’ principle and the purpose they
serve.

Cryptocurrencies like Bitcoin or Ethereum are "fungible," meaning each unit is the same as every other unit.
NFTs, on the other hand, are "non-fungible," meaning each token is unique and cannot be exchanged on a
one-to-one basis with another.

Where to buy NFTs?

Coinbase NFT Platform
Opensea.io
Top 20 Cryptocurrencies
Crypto Key Terms
 How To Buy Crypto Properly
Chapter 4
Hot Wallets vs Cold Wallets
Crypto
Wallets Crypto Exchange Explained For Beginners

VS.
Centralized Exchanges vs Decentralized
Crypto Exchanges
Exchanges
How I maximize my wallet and crypto
exchange.
 How To Buy & Invest Crypto
If you want to buy, store, trade, invest, or transact crypto, you’ll need to use a crypto exchange first.

A crypto exchange is a platform where buyers and sellers can trade crypto. These exchanges function
similarly to traditional stock exchanges but deal specifically with digital currencies instead of stocks. You
essentially are entrusting a third party to hold & secure your funds and fulfill any transactions you want to
make.

Next you can transfer your crypto over to a crypto wallet. This is a digital tool or application that allows you to
store, send, and receive cryptocurrencies. With this option, you are in charge of securing your crypto and take
full accountability for what goes in and out of your wallet.
 Crypto Wallets
Unlike a physical wallet that holds cash, a crypto wallet doesn't actually "store" your crypto assets physically.

Instead, it securely saves your cryptographic keys – public and private keys – that give you access to your
cryptocurrencies and enable transactions.

A crypto wallet consists of a pair of keys

Public Key: This is similar to your bank account number. You can share it with others to receive funds.
Private Key: This is like the password to access your crypto and should be kept secret. The private key
allows you to sign transactions, effectively proving your ownership of the wallet and authorizing the
transfer of cryptocurrencies to another wallet.

The security of your crypto wallet is crucial. If someone gains access to your private key, they can control your
funds. Conversely, if you lose your private key, you can lose access to your cryptocurrency.

Primary Crypto Wallets To Choose From

Custodial Wallets
Hot Wallets
Cold-Storage Wallets
 Custodial Wallets

A custodial wallet is where a third-party service provider, such as a cryptocurrency exchange or online wallet
platform, manages and controls the private keys on your behalf. You are trusting in the service’s security
measures and practices to manage your crypto funds.

Other names for this wallet type are hosted wallet, or third-party wallet.

Custodial Wallet Advantages

User-friendly
Easy to set up
Free

Custodial Wallet Disadvantages

No control over your private keys
 Hot Wallets
Hot wallets are connected to the internet and actively used for managing and transacting with
cryptocurrencies. They often are applications that can be installed on a computer or smartphone.

Hot Wallet Advantages

Convenient
User-friendly
Easy to set up
Free

Hot Wallet Disadvantages

Less secure and more vulnerable to hacks

Popular Hot Wallets for Beginners

- MetaMask
 Cold Storage Wallets
A cold storage wallet is a type of cryptocurrency wallet that is kept offline and is not connected to the internet
for regular use. Another name you may hear for these are hardware wallets

These are physical devices that look similar to USB drives and are widely considered as the most secure type
of crypto wallet. They store the user's private keys offline, providing an extra layer of security by being
immune to online hacking attempts.

Cold Wallet Advantages

Most secure option for holding your crypto
In control of your private crypto keys (Not your keys, not your crypto)

Cold Wallet Disadvantages

Less convenient for everyday transactions
Not free. These wallets can range from $60 - $300. Maybe more.

Popular Cold Wallets for Beginners

Ledger
Trezor
 Crypto Exchanges

A cryptocurrency exchange is a platform that facilitates the buying, selling, and trading of cryptocurrencies.
Most exchanges allow users to convert cryptocurrencies into fiat currencies or vice versa.

Exchanges are a crucial part of the crypto ecosystem because they provide the marketplace for trading
various types of tokens.

There are two types of crypto exchanges

1. Centralized Exchanges (CEXs)

2. Decentralized Exchanges (DEXs)

 Centralized Exchanges (CEXs)
Centralized Exchanges (CEXs) operate under a centralized authority that serves as a middleman for facilitating
transactions. The sign-up process for CEXs is simple and they tend to have the Know Your Customer (KYC)
requirement.

KYC is a regulatory and legal requirement for businesses, particularly in the financial sector, to verify the
identity of their clients.

Centralized Exchange(s) Key Features

User-friendly interface
Wider range of trading pairs
Higher liquidity
Security Measures (2FA, encryption)
Variety of trading tools and features
User funds held by the exchange
Best choice for beginners
 Decentralized Exchanges (DEXs)

Decentralized Exchanges (DEXs) operate without a central authority and allow users to trade directly from
their crypto wallets. These exchanges rely on using smart contracts on the blockchain to facilitate peer-to-
peer trading directly between users.

Decentralized Exchange(s) Key Features

Higher degree of privacy
More control over your funds
Reduced counterparty risk (since DEXs don’t hold users’ funds)
Less user-friendly
Less liquidity
Not ideal for beginners

Examples of popular DEXs include Uniswap, SushiSwap, and PancakeSwap

 How I maximize my wallet and crypto
exchange.

Long term holdings I put it on a cold storage wallet.

If you have high value NFT’s or other altcoins you can move that to your cold storage wallet.

For my remaining crypto I put it on a centralized exchange but make sure I implement maximum security
protocols.

Set up 2FA -> Utilize Physical Security Keys for login.

I try to keep as little on my hot wallet as possible. These tend to get hacked more frequently than other
resources.
 Why Coinbase Is My Top Choice
Coinbase was the first crypto exchange I started off with and I’ve stuck with them for several reasons:

Coinbase Advantages & Features:

Easy user interface for crypto and NFT beginners
Supports a WIDE variety of cryptocurrencies
Currently one of the largest & most reputable exchanges in the U.S.
Coinbase is FDIC Insured & a publicaly traded company
Offers passive earning opportunities on over 100 assets
Coinbase offers extensive learning resources for crypto basics & trading
Provides a detailed history of your trading activity
Coinbase makes crypto taxes EASY for customers through issuing 1099 forms
Competitive fees when using Coinbase Pro or the free Advanced Trading feature
Coinbase contains everything I need for crypto: Trading, Staking, NFTs, Charting Software, etc.
 How To Sign Up & get $200 in getting
started

Making Your First Crypto Trade

Chapter 5

Coinbase Earning Passive Rewards Through Staking

Tutorial

Coinbase Advanced Trading Feature Overview

 How To Get Started With Coinbase

New applicants if you use my link down below Coinbase will hook you up with up
to $200 in crypto for just getting started and up to $400 cash in free rewards.
 Fundamental Analysis Overview

Chapter 6
Technical Analysis Overview

How To
Research What Makes a Crypto Project Valuable?
Cryptocurrencies

How To Find Emerging Crypto Projects

 Fundamental Analysis in Crypto
Fundamental Analysis - The method of evaluating an asset's intrinsic value by examining factors such as financial performance,
industry conditions, and economic indicators to assess its investment potential. Traders who rely on fundamental analysis are
generally longer-term investors.

Key differences between fundamental analysis in crypto versus in the stock market
Fundamental analysis on stocks consists of studying a company’s:
Financial reports, financial health, earning reports, market share, etc.
For crypto fundamental analysis, you aren’t looking at how much money the crypto project has made in sales or revenue.
Instead, you are analyzing:
Blockchain technology, network security, adoption, community support, tokenomics, and utility of the specific
cryptocurrency.

Tokenomics refers to the economics of a cryptocurrency. It encompasses everything related to the token’s creation, management,
and overall economic model.

How To Perform Fundamental Analysis Research in Crypto

Read through the whitepaper to understand the purpose and use-case of the crypto project
Follow the project and leadership team on social media. Analyze the team’s track record, and ability to deliver on goals
You want to see them ACTIVE, offering updates and transparency about the project’s initiatives
Research the project’s market position and competitors to see how it differentiates itself
Evaluate the strength and activity of the community supporting the project
 Technical Analysis in Crypto
Technical Analysis - The study of charts and trading volumes to make predictions about future price
movements and identify potential buying or selling opportunities in financial markets. Traders who rely on
technical analysis are generally shorter-term investors who enter/exit positions quickly.

Technical analysis in crypto and stocks are very similar. Crypto and stock traders use several of the same
technical indicators, charting patterns, charting software, and trading strategies.

How To Get Started with Technical Analysis

For beginners, you’ll need to learn about the different technical indicators, understand support/resistance
levels, and the basics of a TA chart.

The best way to learn TA is through joining a community of profitable traders who can support and mentor
you throughout the journey.

Join Kaizen to Learn Technical Analysis from Profitable Traders: https://brianjung.org/JoinKaizen

 How To Find Emerging Projects
There are a few different methods for finding new crypto projects to begin researching.

1. Using a crypto tracking website

The most popular options are CoinMarketCap and CoinGecko because you can filter through
hundreds/thousands of coins based on criteria that you’re looking for and they also provide PLENTY of
information about the project to begin your research.

2. Monitoring the portfolio of top crypto Venture Capital (VC) Firms

With a quick google-search, you can find the top crypto VCs and what projects they are investing in. Don’t
blindly follow VCs. Use them as a starting point to find new tokens and begin your own research from there.

3. Onchain Analytic Firms

These are some of the best places to track funds and crypto across the blockchain. Some good platforms that
you can use to track big wallets and entities are the Arkham network and Spotonchain.AI.

4. Checking Total Value Locked vs Marketcap

Using sites like defi llama look for projects with a high TVL compared to the marketcap.

Disclaimer: Investing in early-stage crypto projects is VERY risky and should be approached with caution.
 Low-Risk Cryptocurrencies

Chapter 7
Medium-Risk Cryptocurrencies

Building Your
Crypto Portfolio High-risk Cryptocurrencies

Portfolio Allocation
 Disclaimer!

Crypto should not be a majority of your investment portfolio.

All cryptocurrencies are considered as high-risk assets

because they are speculative, volatile, and early in its adoption.

The risk categories listed in this PowerPoint are RELATIVE TO THE OVERALL CRYPTO MARKET.

Any crypto labeled as ‘Low-Risk’ in this PowerPoint is STILL considered a high-risk asset and should be
approached with caution.
 Low-Risk Cryptocurrencies

Our list of low-risk cryptocurrencies consists of coins that have been labeled as a ‘commodity’ or at the very
minimum, been labeled as ‘Not a security’ by the SEC (U.S. Securities and Exchange Commission) and CFTC
(Commodity Futures Trading Commission).

Projects labeled as securities are extra vulnerable to legal attacks from the SEC and could face regulatory
issues

List of Low-Risk Cryptos

Bitcoin (BTC): The only digital asset which has been clearly defined as not being a security is Bitcoin
(BTC)

Ethereum (ETH): This crypto is in an extremely grey area. Gary Gensler, the SEC chairman, has been
unwilling to say whether Ethereum is a security or not. However, the CFTC has labeled Ethereum as a
commodity, and the previous SEC director even labeled ETH as a commodity

XRP (XRP): In the summer of 2023, Ripple won an important victory in a long-standing battle with the
SEC. A Southern District Judge ruled that the XRP token is NOT a security when sold to retail investors.
 Medium-Risk Cryptocurrencies
Our list of medium-risk cryptocurrencies consists of projects that are competing on establishing themselves as
leaders in the crypto space and trying to out-develop one another.

These cryptocurrencies are the more prominent altcoins in the crypto market that most people have heard of
before. While these coins are working on providing real-world utility, they are still subject to major price
volatility.

List of Medium-Risk Cryptos

Solana (SOL) Polkadot (DOT)

Cardano (ADA) Avalanche (AVAX)

ChainLink (LINK) Stellar (XLM)

Tron (TRX) Cosmos (ATOM)

Polygon (MATIC) Monero (XMR)

 High-Risk Cryptocurrencies
Our list of high-risk cryptocurrencies consists of memecoins, small-caps, and micro-caps

Small-cap cryptocurrencies have a market cap of less than $500 million.

Micro-cap cryptocurrencies have a market cap of less than $100 million.

List of High-Risk Cryptos

Shiba Inu (SHIB)

Any additional Memecoins
Crypto projects under $500 million in market cap
 Building Your Crypto Portfolio
Key Suggestions
Diversify your crypto portfolio. Don’t put all your money into a single project.
Keep crypto as a minor portion of your overall investment portfolio.
Assess your risk profile to determine whether you can manage the volatility of the crypto market.

General Crypto Portfolio Recommendations

Allocate around 60% of your crypto funds into BTC and/or ETH
Allocate 25-30% of your crypto funds into medium-risk coins
Allocate 10-15%, or less, of your crypto funds into high-risk coins

The more comfortable you are with risk, the more you can allocate your portfolio towards the medium/high
risk coins.

Portfolio allocation will differ for everyone. Do what you’re comfortable with.

Some individuals believe so strongly in Bitcoin’s future that they’re comfortable putting 100% of their crypto
into Bitcoin. These people are called Bitcoin Maximalists.
 How Do Crypto Taxes Work in the US?

Chapter 8
Short-term vs Long-term capital gains

Crypto Taxes
(USA Only) Taxable Crypto Events

3 Ways To Do Crypto Taxes

 How Do Crypto Taxes Work in the US?
The IRS treats cryptocurrency as property so whenever you buy, sell, or exchange crypto, this counts as a
taxable event and results in either a capital gain or capital loss - similar to how stocks are taxed.

Calculating how much cryptocurrency tax you owe in the U.S. is based on how long you’ve held the assets
prior to disposing of them, as well as which income tax bracket you fall under.

This is divided into two parts:

Short-term capital gains: Profits from a crypto asset held less than a year are taxed at the same rate as
whichever income tax bracket you’re in. Any losses can be used to offset income tax by a maximum of $3,000.
Any further losses can be carried forward.

Long-term capital gains: For crypto assets held for longer than one year, the capital gains tax is much lower;
0%, 15% or 20% tax depending on individual or combined marital income.
 Taxable Crypto Events
Taxable Crypto Events To Be Aware Of:

Selling your crypto (Exchanging cryptocurrency for fiat)

Paying for goods, services, or property
Exchanging one cryptocurrency for another cryptocurrency (Ex. BTC/ETH trading pair)
Receiving mined or forked cryptocurrencies.
Staking Crypto Rewards
Crypto staking rewards are taxed at the income level. You must report the income on your tax return
using form 1040 Schedule 1 and report it as ‘Other Income’.
Receiving Airdrops
Airdrops are typically taxed at market value of receipt.
For example, if you were airdropped 10 BTC for a total price of $100,000, your taxable income would
go up by that amount immediately. Even if you sold those 10 BTC the next day for $90,000, you would
still report income of $100,000 and a capital loss of $10,000.
 3 Ways To Do Crypto Taxes

If you use an exchange like Coinbase, crypto taxes will be simple as they’ll provide you with the necessary tax
forms. But if you don’t, here are your options:

First Way: Use a 3rd party tax service.

Convenient, effective, and relatively cost-efficient if you want to outsource this work.
Our recommended choice: Koinly https://brianjung.org/Koinly

Second Way: Hire a tax professional/CPA

Convenient
Effective
Expensive

Third Way: Manually input entries for every taxable crypto event you made during the year.
Tedious
Room for human error
Most cost-effective option.
 Start Your Crypto Journey In A Simple Way

Chapter 9 Join A Community

Best Crypto Tips Make A Plan

&
Suggestions Be Skeptical

Take Profits!
 Tip 1: Start Your Crypto Journey
In A Simple Way

If you’re new to the crypto space, then all this information could be overwhelming.

Simplify everything.

Just start by opening up a free account with an exchange and start slowly from there.

As you get more comfortable and knowledgeable with crypto, then you can increase your investment or begin
experimenting with other features like staking or crypto lending.
 Tip 2: Join A Community

The best way to learn anything is by surrounding yourself with others who are on the same path.

Joining a community will give you access to:

Experienced traders that could answer your questions provide guidance.

Trading ideas
New relationships with like-minded people
Livestream and training workshops

We offer these benefits and more in our discord community, Kaizen: https://brianjung.org/JoinKaizen
 Tip 3: Make A Plan To Achieve
Your Goals AND Stick To It

Digest all the information from this video and decide what your goals are.

Do you want to become an active trader who enters/exits trades quickly?

Or would you rather capitalize on the long-term trajectory of the crypto market and become a HODLer?

The answer to that question will determine your goals and plans.
 Tip 4: Be Skeptical

If you want to try out a new crypto service or work with someone using crypto - DO YOUR RESEARCH AND
TAKE CAUTION!!

Many people have left the crypto markets because they became victims to scams or hacks. Don’t be one of
them!

Protect yourself and be on the lookout for malicious actors.

 Tip 5: Take Profits!

Don’t be greedy.

When the crypto bull market pops off and your investments are up, don’t forget to take some profits off the
table.

Realize those gains and reinvest them when the market drops again.
 Chapter 10

4 Crypto Narrative Plays For The Next Bull

What’s Next? Run To Watch For

BRC-20
GameFi
RWA or Real World Assets
AI
 Coinbase

Chapter 11 Kaizen

Beginner Coinmarketcap
Resources for
Crypto Trading YouTube

CoinDesk