CRYPTO FOR BEGINNERS

BY:{Clefts Exchange}

JESREIGN CLEFTS

CONTENT
• DEFINITION OF CRYPTO CURRENCY
• ADVANTAGE OF CRYPTO CURRENCY
• TYPES OF CRYPTO CURRENCY AND THEIR ABBREVIATION
• DEFINITION OF SHITCOIN & MEME COIN
• ADVANTAGE & DISADVANTAGE OF SHITCOINS
• TYPES OF AITCOINS
• TYPES OF CRYPTO CURRENCY WALLETS AND EXCHANGE
• DEFINITION OF CENTRALIZED EXCHANGE
• ADVANTAGE & DISADVANTAGE OF CEXs
• PRIMARY ROLES OF CEXs

• DEFINITION OF DECENTRALIZED EXCHANGES

• ADVANTAGE AND DISADVANTAGE OF DECENTRALIZED
EXCHANGE
• HOW DOES CRYPTO MAKES MONEY
****STARTS****

DEFINITION OF CRYPTO CURRENCY

A Crypto Currency is a digital or virtual currency that is secured
by crypto greatly which makes it nearly impossible to Counters
or double speed.
Many Crypto Currencies are decentralized networks based on
block chain technology- a distributed Ledger enforced by a
disparate network of computer.

ADVANTAGE OF CRYPTO CURRENCY

The advantage of Crypto currencies include: cheaper and faster
money transfer and decentralized Systems that don't collapse at
a single points of failure.

DISADVANTAGE OF CRYPTO CURRENCY

It includes their price volatility, high energy consumption for
mining activities and use in Criminal activities.

TYPE OF CRYPTO CURRENCIES

Bitcoin - bitcoin is the most popular and Valuables Crypto
Currency. An anonymous person called Satoshi Nakamoto
invented it and introduced it to the could via a white paper in
2008.
Every crypto currency claims to have a different function and
specification.
Example are Etherin's Ether market itself as gas for the
underlying Smart contract platform.

RIPPLE XRP
Is used by banks to facilitate transfer between different
geographies Anyone On Crypto Space can purchase Crypto
Currency from any legit Crypto Exchange such as Coinbase,
cash app, Binance, trust wallet, Blockchain Etc.

THE TYPE OF CRYPTO CURRENCY AND THEIR ABBREVIATIONS

Bitcoin BTC
Ethereum Ether
Smart chain BSC
Binance BNB
Tron TRX
Ripple XRP
Tether USDT

DEFINITION OF SHITCOIN
The term Shitcoin refers to a Crypto Currency with little to no
values or a digital Currency that has no immediate.
The diminished values of a shitcoin are often due to failed
investor interest because it was not created in good. It can be
considered to be bad investment. Although there may be some
interest in a coin when its launched, its price increases
exponentially over a short period of time as investors begin to
jump on board. This is followed by a nosedive caused by
investors who dump their coins to capitalize on a short term
gains.
Again shitcoin is given to crypto Currency that is useless and
has no value some well-known shitcoin are:.
Bittorrent BTT
Shiba inu SHIB
Dogecoin DOGE
ADVANTAGE OF SHITCOINS:
Price may rise sharply: for example, there are cases where the
prices of shitcoins such as barges and experience points
suddenly increases as a result, investing in shitcoins can lead to
sharp price increases, and youʼll often get big profits.

DISADVANTAGE OF SHITCOINS:
There is a possibility that the Prices will plummet and lose itʼs
value. Handling of exchange may be abolished there is a
possibility of fraud.

MEME COIN
Même coin was named after Social media Jokes and puns,
meme coins are type of altcoin whose value Crouse from
Community buy-in more than anything else unlike bitcoin,
whose race's more. Directly connected to fundamental such as
scarcity and total potential market Cap. Meme coin often hit the
Crypto ecosystem in a Mass quantifies and get bought up by an
eager. Trend followers and influencers.

EXAMPLES OF MEME COINS

1. DOGE COIN
2. SHIBA INU
3. FLOW
4. KUSHI INU
5. BABY DOGE COIN

{Financial Advice}
Investors are advice to Invest on what they can afford to loose in
any shitcoin project. No one will be held responsible if you lose
your money.
HOW TO SPOT A SHITCONS
1. They provide has big promises, but has no defined
functionalities.
2. Anyone Can come up with impressive sounding goals and
promises, However not just anyone can provide the road Map as
to how these objectives will be accomplished. If a project avoids
defining the functionalities. Itʼs not that trustworthy.

The Developers Are Mysterious

The People behind a project should be trustworthy not a random
group of strangers using fake names you shouldnʼt invest in
stock from an anonymous group.
Check the Number of Holders
Experts say any new coin worth investing in should have 200 to
300 holders at a minimum. Any coin that doesn't meet that
minimum isnʼt worth investing in similarly. Any healthy new coin
should have 5 seconds transaction.

CONSIDER THE LIQUIDITY POOL

The liquidity pool is considered as the backbone of most
decentralized exchange if the protect you're investing in doesn't
have at least 30,000 dollars it likely a shitcoin low number like
hundred or a few thousand should be a warning sign.

DEFINITION OF ALTCOIN
The term Altcoin is shorthand for "ALTERNATIVE COIN” and
simply means crypto currencies other than Bitcoin. After Bitcoin,
the nine most popular crypto currency.
THE CURRENCIES ARE AS FOLLOWS.
• ETHEREUM
• RIPPLE
• TETHER
• CARDANO
• POLKA DOT
• STELLAR
• USD COIN
• CHAIN LINK
• UNISWAP

The was updated in Now 3rd 2021

Expert caution that bitcoin is highly speculative and altcoin are
even more so Ethreum, the most widely heart- about altcoin, has
grown significantly since its launch.

TIPPRO
Altcoin came in different Categories altcoin. Some can even
belong to more than one term.

TYPES OF ALTCOINS
These are a few different ways to categorize altcoin. Some can
even be included in more than one and Category due to how
now Crypto currency is in general categorize are ever evolving.
How Some of THE MAJOR CURRENT BUCKETS ALTCOINS CAN
Fall Into
A stable coin is a type of crypto currency with a value that is
pegged to another lesson volatile asset. Most Commonly people
refers to as stable com as linked to a fiat currency.

DEFINITION OF CENTRALIZED EXCHANGES.

A Centralized exchange are platforms which facilitate the
buying and selling of crypto currency, either by fiat Currencies,
like us done, or digital by fist Like BTC and ETH.
They function as trusted in trades, they often act as custodians
by storing and protecting your fund. In another term
Centralization refers to the of a middle man or third party to help
Conduct transactions.
A centralized Crypto Exchange (CCX) is a business that provide
you with aptitude of services such as crypto trading plat- forms
(buy and sell transaction) account services account funding
and withdrawal), costumes support services.

EXAMPLE OF CENTRALIZED EXCHAGES

Binance, coinbase, Bybit, Gemini and kucoin
Three primary Roles of CEX Exchange
1. Order Matching
2. Clearing counter party
3. Custodian

ORDER MATCHING
In a Crypto exchange, buyers and sellers transact with each
other. This means that you buy crypto from another user in the
exchange rather than from the exchange itself.
The exchange itself provides a place for people. Who wants to
buy crypto and for people who want to sell their crypto. It
matchers buyers and sellers.
Clearing Counter-Party
The exchange also act as the Central clearing count expiry. The
CEX handles the entire process of the transaction and ensures
that are obligations are met between buyer and Seller and that
the transaction actually completes.
Money is transferred to the severs account and the coin to
transferred to your account (wallet).
You canʼt Just take the coin and disappear, and seller Cant-take
your money and disappear
CUSTODIAL
The exchange also acts as a Custodian for any cash or crypto
held in account.
Some exchange allow you to deposit fiat Currencies, such as us
dollar or euros. While others only allow you deposit crypto
currencies like bitcoin (BTC) or ether (Eth)
Whether it's fat or Crypto Once deposited, they are under the
custody of the exchange. This means that you now trust the
exchange to keep four funds safe the same way you'd trust a
bank value to hold your money

DISADVANTAGE OF CENTRALIZED EXCHANGE

1. HACKING RISK:
Centralized exchange are operated by companies that are
responsible for holding of their customers large exchanges
usually hold billions dollarsʼ with of bitcoin, making them a
target for hacker and theft.

An example of such an incident is Mt. Cox, which was once the

words largest Crypto currency exchange Company before it
reported the theft of 850,000 bit coin, leading to its collapse.

2. TRANSACTION FEES:
Unlike peer-to-peer transactions centralized Often charge high
transaction. Fees for services and convenience, which can be
especially high- When trading in large Amounts.

3. CUSTODY OF DIGITAL ASSETS AND RISK OF FRAUD

Lastly and most importantly, most CEXS will hold beat your
digital asset as a custodian in their own digital wallet rather
than allow you to store your private keys on your own digital
wallet.
 While more convenient when you want to trade, there are
draw backs, namely the risk of the Centralized Crypto
Currency exchange fairing and fraud.
Recent example include the failure of the 50 USD billion
algorithmic stable coin. Terra USD and sister token Luna, and
the sudden collapse of Fix.
We all know about Terra luna low it crashed in the year 2022)

ADVANTAGES OF CENTRALIZED CRYTO CURRENCY

1. USER-FRIENDLY
Centralized exchange offer extra layer of security and reliability
when it comes to transaction and trading and investing in
Crypto. As opposed to using Crypto wallets and Peer to peer
transaction which can be complex, user of centralized
exchanges can log into their account, new their account
balances, makes transactions through application and websites.

2. RELIABLE
Centralized exchange offer gut extra layer of Security and
reliability when it comes to transaction and trading. By
facilitating the transaction through a developed, centralized
platform, centralized exchange Offer higher level of Comport.

3. LEVERAGE
ONE of the Other benefits of Certain (EXS is the Option to
leverage your investments using borrowed money from. he
exchange called margin trading It allows Investors to reap higher
returns but losses can also be amplified.

DECENTRALIZED EXCHANGE (DEXs)

A decentralized exchange is another type of exchange that
allow peer to peer transactions directly from your directly from
your digital wallet without going through an immediately.
Examples of DEXs includes: Uniswap, Pancake Swap dydx.
There decentralized exchange relies on Smart contracts, self-
executing pieces of codes on block Chain. These Smart
Contracts allow for more. Privacy and loss slippage (another
term for transaction coast) than a Centralized crypto currency
exchange.

On the hand, even though smart Contracts are never bred the
lack of an intermediary third Party means that the user is left to
their own, of Dexs are meant for sophisticated investor.

Disadvantage of Decentralized Exchange

1. COMPLEXITY
Users of decentralized exchange must remember the Keys and
password to their assets Crypto wallets, or their assets give
Cost forever and cannot be recoverable.
They required the user to learn and get familiar with the perform
and the process unlike centralized exchanges which offer a
more convenient and lover-friendly process...

2. LACK OF FLAT PAYMENTS

DEXS are best for investors looking to switch from one digital
assets to another and not well suited for someone cooking to
buy or sell digital assets with fiats currency called on and off-
ramping. It makes them less convenient for users that do not
already hold Crypto currency lives.

3. LIQUIDITY STRUCIGLES
Some 99% of Crypto transactions are facilitated Centralized
exchanges, which suggest that they are accountable for the
majority of the trading volume. Due to the lack that the Volume,
decentralized exchanges often. Due to the lack of volume,
decentralized exchange often lack liquidity, and it can be
difficult It to find buyers and sellers when trading volumes are
low.

ADVANTAGE OF CENTRALIZED EXCHANGE.

1. CUSTODY.
Users of decentralized exchanges don't need to trans- for their
assets to a third party. Therefore, there's no of a company or
Organization being hacked, and user are assured of greater.
Safety from hacking feature, fraud or theft.

2. PREVENTING MARKET MANIPULATION.

Dye to their nature of allowing for the peer to peer exchange of
Crypto Currencies, decentralized exchange prevent market
manipulation protecting users from face trading and wash
trading.

3 .LESS CENSORSHIP.
Decasualized exchanges don't require Costumers to fill out
know-your- Customer (KYC) form offering privacy and
anonymity to users Shee Dexs don't exercise Censorship more
Crypto currencies and digitals assets are available than through
(CEXs) As a matter of facts many Alt case are available on
(DEXs)