NEWBIES TO CRYPTOCURRENCIES – Guide for investors

Cryptocurrency is a Digital currency which will eventually be the future form of money. Currency has evolved through several phases from Barter to Cryptocurrency from primitive age as summarised below:

(1) Barter: Trading of Goods & Services directly without any "Medium of Exchange"

(2) Primitive Money: Pre-Coinage and Coinage

• • • Cowry Shells, Wampum Belts, Cattle, Whale's teeth, Grain, Tobacco, Rai Stone etc
    • Physical Metal Coinage - 700 BC in Greece, 200 BC in China
    • Receipts for Metal Coinage - 900 AD in China, 1600 AD in Europe

(3) Commodity Money: Notes Redeemable in Metal

• • • 1200 AD in China
    • 1700 AD in Europe

(4) Fiat Money: Notes not Redeemable in Metal.

• • • Fiat money is a currency declared as legal tender by a government. Fiat money  does not have any intrinsic value
    • 1800 in West
    • Post 1973 Globally

(5) Cryptocurrency:

• • • In 2009 Satoshi Nakamoto launched 1st digitally encrypted money called Bitcoin using Blockchain Technology
    • Eventually, all currencies will be replaced with Cryptocurrencies

​​​A Blockchain can be briefly defined as a tamper-proof, shared digital ledger that records transactions in a decentralized peer-to-peer network. The entire history of asset exchanges that take place between the peers (participants) are stored permanently in the Blockchain network. The decentralized control of Blockchain works as a distributed Public Ledger.

The blockchain is the public record of all transactions in chronological order. Blockchain has the entire transaction ledger history showing how the assets have been transferred from one address to another over time. Following are key benefits of decentralised Blockchain Ledger

Bitcoin and most of the Cryptocurrencies uses the Blockchain technology. Blockchain Technology will revolutionise not only the core functioning of Banking but also can be utilised in several other industries. Some of the key applications of Blockchain are:

​​​​To buy Bitcoins or any other Crypto-Currencies you need to open Trading account(s) with Public Exchanges.

As part of your account creation process, please ensure you perform the following activities:

​Though Bitcoin is the preferred payment option offered by most online investments, some programs offer other payment methods. Listed below some popular payment methods. Click the respective links to create your account.

You need to verify your identity by submitting your Photo ID (i.e. Passport, Drivers Licence etc.) and Address Proof (i.e. Utility bills, Bank statements etc.) as requested by the respective payment processing organisation. Identity verification protects you from potential fraud.

1. ​Payza
   
2. advcash
   
3. Perfect Money
   
4. OKPAY
   
5. ​PAYEER
6. PAYTOO​​​​
   
7. Wirex (before E-Coin)
   
8. PayPal

Recommendations to minimise the risk of your online investments:

1. Stay away from Ponzi schemes (i.e. Programs that does not offer any tangible Product or Service)
2. Avoid High Yield Investment Programs (HYIP) or get rich quick schemes
3. Be vigilant about online offers which are too good to be true (scams) - research before investing
4. Never invest more than what you can afford to lose
5. Recover your seed money before investing more
6. Never put all your Eggs in One Basket. You should diversify and plan for multiple streams of income
7. Enable Two Factor Authentication (2FA) when offered by the investment program

ICO stands for Initial Coin Offering. ICO is similar to IPO (Initial Public Offering). ICOs and IPOs are often issued by smaller and younger companies seeking capital to expand their business. Considering the high percentage failures of ICOs, it is highly recommended to follow the 6 step process to choose an ICO:

1. Know the people behind the Project/Program
2. Understand the concept and the Problem solved by the program
3. Understand the Target Market
4. Evaluate the Technology
5. Nitpick the White Paper
6. Understand what and how the Coins are used for​

Cyber-crime and Identity Theft has become a common threat for internet users. Find below some guidelines to secure your identity:

• Choose Complex Password: Minimum 12 characters with a mix of Special Characters, Upper & Lower case letters & Numbers
• Do not use the same password for all accounts. Ensure you use a different password for every account
• Enable two factor authentication (2FA) of your registered emails and also your online accounts. All emails i.e. Microsoft Hotmail, gmail, Yahoo provides an option to enable 2FA
• Change your password regularly preferably every week
• Avoid using Yahoo email
• Use Password Management tools to generate and store encrypted passwords i.e. Lastpass
• Always use a branded and reliable antivirus software
• Avoid using public WiFi which are less secured and vulnerable
• Do not share your personal details such as name, home address, phone number and email address online
• Be cautious about suspicious and poorly worded emails. Do not click attachments, images or links from those emails, just simply delete them. It could be malware that once executed can allow attackers to access the data on your machine remotely
• Review bank statements and credit card statements regularly
• Be vigilant about online offers which are too good to be true
• Know the recipient before sending funds
• Watch out for ransomware i.e. Cryptolocker which is propagated via infected email attachments in the form of an executable file. Once activated the malware encrypts certain types of files stored on local and mounted network drives using cryptography
• Avoid storing your fiat and cryptocurrencies with an exchange even for short period due to third-party risks i.e. Fraud, Security and Financial Health. Use it only for day-to-day small amount transactions and enable 2FA
• If you are a victim of cybercrime in Australia, please report it to acorn via online at http://www.acorn.gov.au