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Crash Course Summary Notes

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60 views16 pages

Crash Course Summary Notes

Uploaded by

pika chu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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UTS

CRYPTOCURRENCY
SOCIETY

Summary
Topics
Scams in Cryptocurrency

Understanding the Blockchain

ICO's (Initial Coin Offerings)

Technical Analysis: Understating Basic market patterns and Jargon

Picking the Right investment

Token Use cases and Type

Mining

Cryptocurrencies and Real-World Use cases: An in-depth look

Analysing Sources; Determining The Truth From The FUD


Summary – Scams in Cryptocurrency
Send me “X” Crypto: Phycological scam. Individuals are tricked by false social media
accounts into sending a certain amount of Crypto to an address, in the hopes they receive a
larger amount back. The essence of the scam is that the scammer is sent large amounts of
small transactions, by tricking individuals through the fake social media account.

Phishing: Phishing is a form of fraud in which an attacker masquerades as a reputable entity


or person in email or other communication channels, Usually to obtain sensitive data (in this
case, your private key). Social engineering is used to essentially trick you into giving up
your sensitive information.

Ponzi Scams: Ponzi scams are scams which promise high rates of return with little risk to
investors. The Ponzi scheme generates returns for older investors by simply acquiring new
investors. This is similar to a pyramid scheme in that both are based on using new investors'
funds to pay the earlier backers.
Mathematically disproving Ponzi Schemes
Let's say I put 10,000$ into one of these Ponzi schemes. If I was earning 1% a day,
we can use a simple equation to demonstrate how ridiculous this claim is.
F = P(1 + I)^N
F = total value
P = starting principal
I = the profit %
N = the total amount of days, which we will assume 365
F = 10,000(1 + 1%)^ 365 = $377834.34 (increase of 3678.34% in a year!)
If the above scenario where to occur in the real world, we’d all be millionaires
in no time!
Summary – Scams in Cryptocurrency -
Continued
Pump and Dumps: Pumps and dumps are schemes which aim to unnaturally manipulate the
prices of certain Stock or Cryptocurrencies, utilising a variety of methods, the most
common being shilling. Locating these scams are easy. Look for large/rapid increases in
volume, constant shilling and unexplained rapid price increases, and you most likely have
found a pump and dump.

Exit scams: Exit scams involve a group of people, or organisation fundraising money for a
certain project/start-up. Once fundraising is complete, they disappear with the funds
collected, leaving investors with nothing.
Understanding the Blockchain
A standard Blockchain is essentially a chain of blocks, with each block containing certain
data.

Each block contains certain variables, including the previous block hash, the index, data
(containing the transaction or smart contracts), the timestamp of the blocks creation, the
current block hash and finally arbitrary string that is added on to the hash of the block,
utilised for establishing Proof-Of-Work.

A node is a full client which stores and owns the block chain on the device’s local storage.
If one node updates all other nodes, the blockchain is centralised. If any node can update the
other nodes, the blockchain is decentralised.

Nodes are used to store records of the blockchain, and is proof of all transactions that have
been executed.
ICO's (Initial Coin Offerings)
“ICO” is short for Initial Coin Offering, which basically follows a similar structure to an
“IPO” (Initial Public Offering) within the stock market.

ICO’s are used by teams/businesses/organizations in order to gain the initial capital required
to begin researching or developing the product. In some cases, the end product is already in
development, but more financial capital is required, hence, an ICO is created.

ICO’s are typically considered to be a very high risk but high reward investment. This is
mainly due to the fact that many ICO’s tend to exit scam.
Technical Analysis: Understating Basic market
patterns and Jargon – Continued
Support is used to describe the price floor of the chart, whereby the price tends not to go
below the support line whilst resistance is used to describe the price ceiling of the chart,
whereby the price tends not to go above the resistance line.

The more times the price chart bounces off the support or resistance, the stronger the line is.

If the price breaks past resistance, the resistance tends to become the new support line.
Meanwhile, if the price drops below support, the old support tends to become the new
resistance.

Trend lines show the current price trend for the chart, either an uptrend or a down trend.
Technical Analysis: Understating Basic market
patterns and Jargon – Continued
Relative Strength Index (RSI) is a momentum indicator used to depict the relative
evaluation of the price performance of a chart. RSI values range from 0 to 100, where above
70 indicated an overbought market and below 30 indicates an oversold market.

Moving Average Convergence Divergence (MACD) is Created by subtracting 26 day


Exponential Moving Average (EMA) from 12 day EMA. Note not really important to
understand how its created, its more important to know how to interpret.
Picking the Right investment
Determine the ROI (Return on Investment) of the coin you have purchased.

Consider the value of the token/Crypto at the time of buying.

Refrain from buying large bags in bull markets, as this is when most Crypto assets either reach their
ATH’s or come close.

Masternodes: Masternodes pay their respective owners in the coin the Masternode is run in, as an
incentive to keep the master node running

Staking: Staking is the reward received for supporting the network by holding certain coins and
running a node.

Mining Micro-cap coins with a low hash-rate.

Dividends: The goal here is to find a coin with a low market cap, and a good project in order to
accumulate. In the future, as the price of the coin increases, usually the price of the dividend also
increases.
Token Use cases and Type
Currency: As the term states, these types of coins are created to be used solely as a currency. Bitcoin
was the first, and is a prime example.
Asset: Tokens that are asset based represent an actual product or asset. For example a gold token is
always tied to the price of an ounce of gold.
Utility: Utility tokens give those who own it access to do something that a particular network allows
the individual to do. Ethereum is a utility token that can both code and run smart contracts while it’s
on the global blockchain.
Equity: These types of tokens provide ownership into something.
Overlap:
Powr: Equity / Utility / Asset
Monero: Utility / Currency
VeChain: Utility / Equity
Mining
Mining is validations of transaction and miners are rewarded in cryptocurrency to do this

Hash value is a numeric value of fixed length that uniquely identifies data.

Miners crack this hash with huge amounts computer resources and power.

Types of mining include GPU or ASIC.

51% attacks can be used by malicious miners to control the network, and double spend
coins.
Cryptocurrencies and Real-World Use cases:
An in-depth look
Credit Mutuel Arkea (KYC): Allows a complete view of Customer Documentation on
decentralized network.

ABM AMRO (Auditing and Compliance): Financial Auditing is currently a difficult issue
for large organizations requiring integrating large volumes of often outdated and
inconsistent data from a variety of sources. ABM AMRO is addressing the issue by creating
a shared replicated ledger that serves as the single baseline point of truth.

Supply chain management: Allows for the tracking if products and goods on the
Blockchain, providing consumers with a ledger that highlights where their products
materials etc are coming from.

Traceability: Allows for tracing different entities on the blockchain, to pinpoint and isolate
any possible threats detected.
Analysing Sources; Determining The Truth
From The FUD
Profit = Information + Capacity to act on it.

Understand how information is transferred and transformed around social networks, in order to
better understand the information that is being provided to you.

Maintaining a balance between integrity (accuracy), usefulness (value and utility of the
information), and timing (becoming aware of the information early enough to capitalize) is
important to detect accurate and useful information.

Identifying the demographics of your investment will allow you to form more accurate and up
to date decisions.

Agenda, consider the following: Motivation, Content, Audience, Perspective, Reliability and the
Usefulness of the data collected.

Network with a broad range of individuals to gather knowledge faster then others in the market.
This will allow investors to enter good positions early.
Questions!
Now feel free to ask us anything….

If you reading this online and not in the class, Or sometime in the future,

Contact us at the following and ask us anything:

Kanj Kanj - Presidents Email: [email protected]

Zaid Arain - Secretaries Email: [email protected]

Callum McMaugh - Treasurers Email: [email protected]

Andy Phung - Director of Social Medias: [email protected]

Thanks!

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