Altcoins an alternative currency primer

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Altcoins an alternative currency primer

  1. 1. altcoins: An alternative currency primer by N. Lamont Weaver
  2. 2. All Rights Reserved. No part of this publication may be reproduced in any form or by any means, including scanning, photocopying, or otherwise without prior written permission of the copyright holder. Copyright © 2014 N. Lamont Weaver
  3. 3. Table of Contents Chapter One- Beyond Bitcoin Chapter Two- Altcoin Internet Hangouts Chapter Three- How to Buy and Sell Altcoins Chapter Four- How to Avoid Scamcoins Chapter Five- Altcoins: the good, the bad, and the ugly Chapter Six: Trading Tips and Tricks
  4. 4. Chapter One- Beyond Bitcoin Welcome early adopter. If you are reading this book, I assume you are familiar with bitcoin, the new digital cryptocurrency. Maybe you have a nice stash of bitcoin, but are also intrigued by the additional opportunity of the exciting, new, alternative cryptocurrencies, also known as altcoins. Or, maybe you think you missed the bitcoin train and don’t want to get left behind again in the new rush into alternative cryptocurrencies that is just beginning. This book is to familiarize you with the altcoin trading world and not to teach you about bitcoin or bitcoin basics. I assume that you are familiar with wallets, the blockchain and mining. If you aren’t, I recommend you do some Internet research on bitcoin, as this book will not be covering those topics. This book is strictly about altcoins: how to get into the scene, how to buy and sell altcoins, and how to pick the right altcoins and avoid the stinkers. This book shows you how to profit from the altcoin explosion. In this book I’m going to teach you how to be a player in the brave new world beyond bitcoin, the crazy world of altcoins (alternative cryptocurrencies). What are alternative cryptocurrencies? Alternative cryptocurrencies are essentially copycats of bitcoin, the original cryptocurrency. A cryptocurrency is a digital currency based on a cryptographic protocol for secure transmission over a decentralized network. Bitcoin is a software program/algorithm that runs on a decentralized network. The software is open sourced, which means it is freely available to anyone. Developers have used the open source bitcoin software to make their own clone coins to try to mimic the success of bitcoin. These bitcoin competitors are called alternative cryptocurrencies, or, as they’re more commonly called, altcoins. Why do I want a copycat of bitcoin? Why don’t I just buy bitcoin? I recommend everyone have some bitcoin, but most people can only afford so much and bitcoin are expensive. Consequently, many people gravitate to altcoins looking for bitcoin-type returns with less outlay of hard-earned cash. In 2013, bitcoin became a worldwide phenomenon with money pouring in from all around the globe and the price skyrocketed. This trend is expected to continue into 2014 and some expect 2014 to be the year of the true bitcoin explosion. Bitcoin was the second best investment in the world in 2013, by outperforming stocks, gold, real estate, or any other investment, with an over 5000% return on investment for the year. Surprisingly, the very best investment of 2013 was not bitcoin, but an altcoin. If you had invested $100 in Litecoin in January when they were selling for around seven cents each, by December your $100 dollar investment would have grown to $30,000 dollars. This type of explosive growth is fueling the snowballing avalanche of money pouring into altcoins. That kind of spectacular investment return has attracted not only buyers from all over the world, but it has spawned competitors, lots and lots of competitors. At the time of the writing of this book, there are hundreds of bitcoin clone coins vying for attention and investors. By the end of 2014, there will probably be 365 more, as it seems there is a new coin released every day. Some think that altcoins are becoming like a new stock market that is freely available to the whole world The entire market is building itself outside of the federal reserve system or any of the world’s central banking systems,
  5. 5. like a kind of decentralized Nasdaq. The alternative cryptocurrency world is very exciting and early investors could be in for quite a ride! The rush of investors into altcoins continues to snowball and big money is flooding into these new currencies. I expect the deluge of investment into altcoins to reach a fever pitch in 2014 and some of the altcoins will provide incredible investment opportunities. The problem is, which ones? In this book, I’m going to help you separate the wheat from the chaff and the solid investment opportunities from the scams. I’m going to show you how to keep your finger on the pulse of the cryptocurrency world, and with a little luck, make a big pile of money by trading and investing in altcoins in 2014.
  6. 6. Chapter Two- Altcoin Internet Hangouts The altcoin world is new and confusing. Before you invest your money into any altcoin, take the time to do some research on the Internet and immerse yourself in the cryptocurrency corner of the Internet. If you don’t familiarize yourself with the altcoin scene, you’ll be like the big city dude from the East coming straight off of a train and walking into a saloon in the wild, wild West and then sitting down to play poker with the locals. You’re just asking to get fleeced. Here’s where I hangout to keep my finger on the pulse of the altcoin world: 1. bitcointalk.org- Bitcointalk is the premiere bitcoin forum and has a section entitled alternative currencies that is a treasure trove of information on altcoins. This is the place where most new coin releases are announced and new coin giveaways occur. The original announcement of the release of each coin, (which will always be preceded with [ANN]) on the forum thread, can grow to hundreds of pages of responses if it is a popular coin. Or, the announcement can only have a few pages of responses if the altcoin is getting no love. The [ANN] announcement forum thread is one of the most important sources of information about a particular altcoin. An easy way to find the [ANN] announcement forum thread for an altcoin is to do a Google search for [ANN] and the name of the coin. Check this forum often to keep up with the latest happenings or to research any altcoins you are thinking of investing in. Always read whatever is available about an altcoin on the bitcointalk forum before thinking about buying it. 2. Reddit.com- Reddit is one of the most active communities on the Internet and Reddit also contains one of the most active cryptocurrency communities. There are many sub-Reddits dealing with altcoins and cryptocurrencies and additionally, any popular altcoin will usually have its own sub-Reddit, which you can find by searching for the name of the altcoin on Reddit search. Reddit is a great source of information and a good way to stay on top of the fluid, fast moving altcoin space. Here are a few of the altcoin Reddits: a. Cryptomarkets http://www.reddit.com/r/CryptoMarkets b. CryptoCurrency http://www.reddit.com/r/CryptoCurrency c. Altcoin http://www.reddit.com/r/altcoin 3. Cryptocointalk.com- This forum has gained traction and contains a lot of good information. There are hours of research material available on hundreds of altcoins. Some new coin releases are announced here instead of, or in addition to, bitcointalk.org. 4. Twitter Search- https://twitter.com/search-home Twitter is the most now place on the web and using twitter search and the hashtag # function you can search for individual altcoins to see who is talking about the currency now and what they are saying. If there are lots of tweets about your altcoin, that is very good and indicative of good buzz about the coin. However, silence can speak volumes also if there are no tweets, only old tweets, or few tweets about an altcoin. Search example: input
  7. 7. #litecoin or #anycoin and enter to get the latest tweets about that coin. Twitter is especially useful if you notice a movement in the price of an altcoin and you want to check out what is happening real time. Also, get yourself a Twitter account and follow altcoin and cryptocurrency people for information. I follow many including: @coinsprint, @maxkeiser, @altcoin_invest, @cryptotipz, @crypto_trader, and @cryptoarticle. There are many, many more. 5.BTC-E.com- BTC-E is one of the top bitcoin exchanges and is based in Bulgaria. It has a live chat window that can provide some useful information about altcoins. It is mostly full of trolls trying to manipulate the market by yelling crash and sell or to the moon and buy. It can be good entertainment though, and sometimes you can pick up an interesting tidbit of information about an altcoin. Or, at the least you will see which altcoins are being talked about. 6. Crypt.la- An alternative currencies news site. 7. altcoindb.com An altcoin database with some information about many altcoins. 8. altcoins.com A blog devoted to altcoins. It’s sparse pickings at the moment, but maybe it will improve. 9. listofaltcoins.com This site seems to be under construction. Hopefully, it is completed, and it may be of use in the future. 10. virtualmining.com News of the bitcoin world. 11. bitcoinmagazine.com Bitcoin news website 12. majesti.co/cryptonerd Blog covering cryptocurrency. 13. cointrader.org- website/blog about cryptocurrencies. 14. http://altoidnerd.com/ A cryptocurrency blog. 15. Coinmarketcap.com- A well loved website in the cryptocurrency world. Coinmarketcap lists the top altcoins by market capitalization. It also lists the current price and so it is a great place to quickly check on a few of your favorites easily. 16. Cryptocoincharts.info- This website lists altcoins and provides the order book of each coin, so you can see the current number of buys and sells. Cryptocoincharts also features charts of the altcoins where you can see the historic movements of the coin and track the volume. 17. Cryptocoinsnews.com- Worldwide news coverage of bitcoin and altcoins. 18. Coindesk.com- Website that bills itself as the voice of digital currency. 19. Cryptoarticles.com- Crypto currency news site. The freshest.
  8. 8. 20. Cryptocurrency.org/tag/news- Bitcoin news from all over the planet. 21. Bitinfocharts.com- cryptocurrency statistics 22. Coinjockey.com- cryptocurrrency news 23. Cryptosource.org- cryptocurrency information and news 24. Blog.coinmkt.com- Coin market’s blog on cryptocurrency. 25. Coincafe.net- Bitcoin and cryptocurrency news. 26. Followthecoin.com- Blog on cryptocurrency.
  9. 9. Chapter Three- How to Buy and Sell Altcoins Altcoins, like bitcoins, are available for sale on Internet cryptocurrency exchanges. These exchanges are businesses that provide digital currency exchange services for a small fee. On the altcoin exchanges you can buy and sell many different alternative currencies. As of the writing of this book, most altcoin exchanges won’t allow you to buy altcoins with U.S. dollars. Currently, you must first purchase bitcoins and use bitcoins to buy altcoins on the altcoin exchanges. The exception is Crypto-trade, but it offers only limited altcoins available for trade. Cryptsy promises U.S. dollar/altcoin trading in the future and a few of the altcoins are building their own USD/altcoin exchanges, but for the foreseeable future, you will probably have to buy some bitcoin to trade for altcoins. If you are completely new to the digital currency market and don’t even have any bitcoin yet, I recommend you get an account at Coinbase (coinbase.com). The account is free and you can link the Coinbase account to your bank account and buy bitcoin. Bitcoin are expensive, but you don’t have to buy a whole bitcoin. You can buy a half, a quarter or even a tenth of a bitcoin to get started trading altcoins if you want to begin slowly. As long as your accounts are set up and active you can expand easily should you so desire later. A word of caution is in order at this time. Please don’t gamble with money you can’t afford to lose. Make no mistake; altcoin trading is gambling. It is very high risk and altcoin prices are extremely volatile. Although there are incredible gains possible, it is also possible to lose all of your investment, so don’t play with money you will miss if it’s gone. Take your time and go slowly at first until you get a feeling for the markets. There is no hurry, you are an early adopter and way ahead of the regular guy on the street who doesn’t even know about bitcoin, much less altcoins. There are already quite a few dedicated altcoin exchanges and as the altcoin scene grows, I expect many more. New exchanges seem to be popping up everyday, but I like to deal with the more established exchanges for the most part. Since the altcoin explosion has happened so rapidly, the first exchanges have struggled to keep up with the overwhelming demand. It is not uncommon for deposits to take forever or for the sites to get sluggish. The exchanges, like the entire altcoin world, are in beta; so don’t expect Amazon level service just yet. However, I have had no major problems with any of the exchanges and you will probably only encounter minor annoyances as they work through their growth problems. I recommend setting up accounts with a few of the exchanges. At times the different exchanges will have slightly different prices on individual altcoins and you may want to buy at one exchange and transfer it to another to sell to make the most profit. Although there are sometimes arbitrage opportunities available, it is hard to realize them because of the slowness of the deposits and withdrawals at the overworked exchanges.
  10. 10. Altcoin Exchanges: 1. https://cryptsy.com- Cryptsy is the number one dedicated altcoin exchange and the one I use the most. Cryptsy is growing extremely rapidly. Cryptsy has the most volume of any of the altcoin exchanges so it is easy to find buyers when you want to sell an altcoin. It offers a wide selection of altcoins that are available for trade in BTC (bitcoin), LTC (litecoin), or XPM (primecoin). You can purchase dividend-paying shares in Cryptsy from cryptostocks.com and possibly profit from their tremendous growth. 2. https://btc-e.com- BTC-E is one of the top bitcoin exchanges that also offer a very limited selection of altcoins for trade. They also feature an infamous chat room that is well followed in the cryptocurrency community. 3. https://bter.com- Bter is an exchange dedicated to altcoins with a large selection of currencies available for trade. 4. https://coinex.pw- Coinex is an exchange dedicated to altcoins with a large selection of currencies. Coinex also has a chat room that can be interesting. 5. https://coinedup.com- Coinedup is a new dedicated altcoin exchange that doesn’t charge any fees, so far. They are adding more currencies steadily and already have a good selection. I like Coinedup because it is a very simple site and it worked well for me. I’ve had no problems trading or getting deposits in or withdrawals out. I hope they continue to keep it simple and keep steadily adding more coins. Many times newly released coins seem to show up on Coinedup before any of the larger exchanges, so you can get in early if you keep an eye out for this. 6. https://www.coins-e.com Coins-E is an exchange dedicated to altcoins featuring a large selection of currencies available for trade. 7. https://btcltc.com BTCLTC is a Chinese altcoin exchange trading a selection of altcoins in Chinese Yuan. 8. https://www.btc38.com BTC38 is the largest Chinese altcoin exchange. It is useful to see which altcoins are available for trade and which altcoins get added to the site as it can sometimes increase the price of an altcoin to get added to the BTC38 exchange. 9. https://vircurex.com- Vircurex is a major bitcoin exchange that is offering an ever-expanding range of altcoin cryptocurrencies for trading. 10. https://www.crypto-trade.com- Crypto-Trade is a bitcoin exchange that offers a limited selection of altcoins for trade. 11. coinmkt.com- Coin market offers a limited but growing selection of altcoins for trade. 12. cryptocoincharts.info/v2/markets/info- Cryptocoincharts maintains a list of cryptocurrency exchanges, including many smaller exchanges that I have not mentioned.
  11. 11. Chapter Four- How to Avoid Scamcoins I wish I could tell you that the cryptocurrency world was completely different from the normal financial world and chock full of fair and honest souls trying to help each other make money, but that is unfortunately not true. No, the cryptocurrency world is full of normal people like you and me, not saints. The cryptocurrency world is fueled by greed just like the normal financial world so it is full of conmen and scam artists trying to separate you from your money just like in the normal financial world. Some of the altcoin developers have gotten very rich, very quickly and so consequently, many other people want to develop their own altcoin and get rich too. It’s easy to see the attraction and it’s not that hard to clone a coin with open source software for someone who is technically inclined. In fact, there is now a website called Coingen (coingen.io), that will automatically generate a cloned coin for a quite reasonable price. Now you understand why there is such an explosion of new altcoins. The problem is most of these new altcoins are designed to make their developer rich and then die off quickly leaving the investors holding the bag. This is likely to continue for some time although eventually the market will work itself out and calm down. But until then, there is money to be made so, you must tread cautiously and be very wary as you move through the virtual mine field of scam coins. Although it is a scary environment because of the explosion of scamcoins, it is good if it keeps you aware and cautious, but bad if it causes you to be afraid to get involved. Remember, fortune favors the bold. A ton of money is flowing into altcoins from all over the world and there are a lot of coins that are not scams. We just need to find those worth buying, while avoiding the scamcoins. Let me tell you a story. I have a friend that bragged to me that he bought a million of, lets’s call it gulliblecoin. He said, “It was so cheap, that i bought a million for almost nothing. It only has to rise a fraction of a cent and I can sell it and make good money.” While it is true that if you buy an altcoin when it’s cheap enough, you may be able to get a million of it and take advantage of even a tiny uptick in price, however, he failed to notice that there were only sell orders on the exchange and no buy orders for gulliblecoin. There is no one to buy his million gulliblecoins, so he bought a million worthless coins. He is a bag holder of a dead coin. I don’t think he has forgiven me for telling him and being such a buzzkill. I don’t want any of my readers to end up buying gulliblecoin. Let me tell you what I look for in a good altcoin and the warning signs that tell me of an altcoin to avoid. First, let me explain a little about the evolution of an altcoin. Lets look at a typical lifecycle of an altcoin. Let’s call our example altcoin, Tacocoin. Tacocoin is born when the developer of the coin makes an announcement thread on the bitcointalk.org forum under the category alternative cryptocurrencies. The official announcement thread will include a quick sales page touting the greatness of the new coin and give the technical stats of the coin, list the available mining pools, provide wallets to download in Windows, Mac and Linux formats, list the website url, and
  12. 12. essentially provide all the necessary information about Tacocoin. As part of the launch, or release, of the coin, the developer will have set up one or more servers to function as mining pools. Miners with their own computer equipment built specifically for mining will join together in these pools to mine more efficiently together. If miners like the idea of the coin either because it looks like it will be a fair launch, or it has a good name and logo, or in some way attracts the interest of miners and they think it will be profitable to mine, then they will begin mining the coin at the launch time designated by the developer in the announcement. Tacocoin, like all altcoins, is designed so that the difficulty in mining the blocks, which will release the amount of coins set by the developer for each block found, increases with the number of blocks found, so the early miners will mine more coins easier than later miners who will find it harder to mine Tacocoin as the difficulty increases. The early miners of Tacocoin will try to immediately start selling their newly mined coins, usually in the altcoin’s announcement thread of the bitcointalk forum. Early miners and early buyers of Taco coin may start a Tacocoin sub-Reddit on Reddit.com to begin talking about and promoting their coins, hoping to increase the coin’s value by attracting new buyers. Tacocoin may start to sell on the Tacocoin sub-Reddit also. The early miners and buyers will also start talking the coin up on Twitter, Facebook, and everywhere else on the web to let people know about Tacocoin. The developer may also be setting up social media accounts for Tacocoin, such as Facebook pages, Twitter accounts and Reddits also. The developer makes an official website for Tacocoin with promotional information about the coin and downloads for the wallets. The website may contain its own forum for Tacocoin or an IRC chat room. The developer, the early miners, and the early investors will all begin contacting the altcoin exchanges trying to get them to start trading Tacocoin by telling the exchanges that Tacocoin has such a large following it will make the exchange money from the large volume of trades. If the exchanges think it might be a winner they may add Tacocoin. Once Tacocoin gets on an exchange it may attract some buyers and the price may begin to rise which will attract more buyers and Tacocoin is on its way. If it gets enough traction it may end up on coinmarketcap.com and that may give Tacocoin another price boost. As novice investors, we may open a new account on Cryptsy and see that Tacocoin has good volume (the amount of BTC traded each day in the coin shown beside each altcoin on the Cryptsy trading category page). The weeklong chart and the month long charts on the Tacocoin Cryptsy trading page show that the Tacocoin price has been rising steadily despite some ups and downs since it got on the exchange. You like the name and the taco logo because you like tacos. You’re thinking about buying some Tacocoin. Is Tacocoin a good buy? How would we decide? First, we go to Google and search for [ANN] Tacocoin. That takes us to the original announcement page on bitcointalk.org forum. We notice that there are hundreds of pages of replies on the [ANN] Tacocoin thread. It looks like Tacocoin has caught some buzz. This is a good sign. We check out the developer (the OP, or original poster of the announcement thread), Juan Motime, by clicking on his name and then clicking on show his last posts. Unfortunately, we see that Juan Motime has started 3 other altcoins and checking on them we find that he has abandoned each one. Further, we
  13. 13. read the [Ann] Tacocoin thread and find that he never shows up again on the thread and people are complaining about his absence. We learn in the thread that the wallets didn’t sync or required people to add a config file (conf.) which non-tech savvy people don’t understand. This is another sign of an incompetent or lazy developer. We wonder if the cloned coin functions properly, and know that there is no developer around to fix problems that occur. We read about the huge premine ( a premine is when the developer mines coins for himself before releasing the coins to the public.) that was done by Juan Motime who bragged about an only 2% premine to be used for giveaways, bounties, and promotion. However, with 1 billion total coins scheduled for Tacocoin, 2% premine is two million Tacocoins for the developer, Juan Motime. He will try to dump his coins on any substantial price rise, which will knock the price down, sometimes enough to kill off the coin’s market. Many of the altcoins are premined to give the developer lots of coins. A legitimate premine, is not faulted if it is not overlarge and actually used for promotion, but most are just for the developer’s gain. Premining is actually mining started ahead of the public before the altcoin is officially released or launched. But, there are other ways developers enrich themselves. Instamining is designing the coin to make millions of coins the first few weeks and then slow. Some coins feature huge superblocks at the start of mining to give more coins to the early miners of which the developer is one. The developer may purposefully mess up the launch to delay the first miners where he can begin early without saying it was premined. There is all kinds of chicanery involved in releasing or launching an altcoin and that is the reason a fair launch is so prized. and premining and instamining is so hated in the altcoin community. So far, Tacocoin is not looking too good. However, upon further reading of the announcement thread we find that a real community seems to be forming for Tacocoin and a team has assembled to perform the developer’s job. A new functional wallet has been made and a more professional website has been created. There are lots of tweets on Twitter talking about Tacocoin and the sub-Reddit r/tacocoin-reddit is very active with lots of members. There is a Tacocoin Facebook group with many active members. Because Tacocoin has an active, involved community, that is a big plus. So, overall, is Tacocoin a buy? Tacocoin has, like most altcoins, some bad qualities, and some good qualities. There are few coins that are perfect in everyway. Most are flawed and risky. Altcoins are the virtual wild, wild, west. I wouldn’t consider Tacocoin a buy. I would avoid it. It is very hard to get an altcoin to gather traction and attract buyers and see a price increase that grows steadily. Tacocoin has attracted buyers and seen a steady price increase and it has an active community, so it might be a good investment, but I want an altcoin that has, at the very least, an active, competent, developer, or team of developers and an active community behind the altcoin pushing it forward. Since Tacocoin lacks a dedicated, competent developer, I would pass on it. It also has a total supply scheduled that is larger than I look for at one billion. That’s too many coins for my taste. Here is what I look for in an altcoin: A unique feature that makes the altcoin different than the other coins
  14. 14. An [ANN] announcement thread on bitcointalk.org with lots of pages. A dedicated, competent, active developer or development team. A good name and logo: good branding. Functional wallets in Windows, Linux, and Mac versions. Professional website. Source code on Github. Traded on many exchanges, the more the better. Listed on Coinmarketcap.com Developer maintains a forum. A Reddit sub-Reddit for the coin with lots of subscribers and posts. Lots of activity on Twitter search under the hashtag #nameofaltcoin. An official Twitter page with followers and developer involvement. Facebook group page with lots of members. Official Facebook page with fans. Lots of people mining the altcoin. A large network. Good volume on Cryptsy (the altcoin exchange with the most traffic). Lots of Faucets (Internet sites where the developer or big investors give away tiny amounts of the altcoin), games and gambling sites. Lots of sells of the altcoin on Ebay. Giveaways and bounties (coins offered by the developer for helping him with specific jobs) from developer or community. Merchant accounts. Places that accept the altcoin for buying goods and services. Media attention is a nice bonus. Not an overlarge total supply of coins planned. Trading on a Chinese exchange Here’s what I don’t want to see in an altcoin:
  15. 15. A developer who abandons the [ANN] announcement thread. A late launch or screwed up launch. Premining by developer. coin designed to be instamined. Superblocks at the start of mining. Non-functional wallets at launch. Pure copycat clone with no new feature or reason for being. Lame name and logo, poor branding. Few pages on [Ann] announcement thread. Poor representation on social media sites. Not represented on Reddit or poorly represented. No sense of a community promoting coin. Not listed on many exchanges. Not on Coinmarketcap.com Selling in lots of a million on Ebay.
  16. 16. Chapter Five- Altcoins: the good, the bad, and the ugly I. The Blue Chips: 1. Litecoin- LTC Scheduled Total Supply: 82 million Launched: Oct. 9, 2011 Litecoin is one of the early altcoins and the number one cryptocurrency behind bitcoin. Litecoin has a large network, a large community behind it, and it is traded on most exchanges. It has some merchant accounts accepting it for goods and services; however, the list of vendors accepting Litecoin is small. Many altcoins have been cloned using the Litecoin source code. Litecoin is the most established of the altcoins and I rate it as a buy and a must have in your portfolio of altcoins. 2. Namecoin- NMC Scheduled Total Supply: 21 million Launched: April 18, 2011 Namecoin is one of the earliest of all the altcoins. It is the first altcoin to take advantage of the flexibility of the bitcoin protocol technology. Bitcoin is more than just a currency, the blockchain is essentially a ledger system for keeping track of ownership and transactions and this new blockchain technology can be used for many different things. Namecoin was the first to use the bitcoin technology to act as a decentralized DNS (Domain Name Server). Namecoin uses the bitcoin protocol to provide an alternative to the centralized ICAAN DNS system used by the Internet today. All top level domains such as: com, net, org, etc. are registered at ICAAN, (Internet Corporation for Assigned Names and Numbers). ICAAN is in America and can be controlled by the American government. Namecoin offers a DNS system outside of government control or censorship using the .bit domain. Namecoin is traded at most exchanges and can be merged mined, (mined at the same time), along with bitcoin. I recommend Namecoin for your altcoin portfolio. 3. Peercoin- PPC Scheduled Total Supply: 21 million Launched: August 12, 2012 Peercoin is an innovative coin that, like Namecoin, is more than just a clone of bitcoin. Peercoin’s claim to fame is its energy efficiency, due to its Proof of Stake system, making it known as the green coin. Peercoin was the first coin to offer Proof of Stake and to combine it with Proof of Work. Most altcoins, including bitcoin, are built with what’s called a Proof of Work system. Mining is the Proof of Work system. The miner’s computers perform computational puzzles or
  17. 17. mathematical problems in order to release the blocks containing the coins from the software program that are then added to the blockchain. These mathematical problems are sufficiently difficult that the computer chips are taxed and draw a lot of electricity. The miners doing the computer computations verify the transactions in the system. While mining and Proof of Work makes a robust network for transactions it is an energy hog and uses lots of electricity. The Proof of Stake system is much more energy efficient. In a Proof of Stake system, blocks are generated by coins that are held by users. A certain amount of coins held for a certain amount of time will result in a block being released with no mining done and no expensive computational power used. Peercoin uses Proof of Work system in the beginning but gradually shifts over to full Proof of Stake. Peercoin’s Proof of Stake system has been copied by other altcoins who see its benefits. Peercoin has a great developer, a great community and is an innovative coin in a sea of same old, same old clone coins. It should be in your altcoin collection. 4. Primecoin- XPM Scheduled Total Supply: no set total (4 million at time of writing) Launched: July 7, 2013 Primecoin comes from the same developer as Peercoin and it is known as the scientific coin, since it does its Proof of Work using algorithms’ searching for prime number chains, which can help mathematical researchers and other scientists who work with prime numbers. It is widely available for trade at all exchanges. Primecoin had a fair launch and has a good community and developer behind it. Primecoin has a good developer, good community and a good reputation in the cryptocurrency world. I recommend Primecoin as an altcoin investment. II. Good Bets: 1. Zetacoin- ZET Scheduled Total Supply: 160 million + small yearly inflation Launched: August 3, 2013 Zetacoin had a fair launch, but has technically been instamined since most of the total supply of coins has already been mined in the first few months. Despite this, Zetacoin has garnered a good reputation and has a great community behind it. They are dedicated to buying and holding and building the coin up slowly over time. The community developers association is called ZBAD305, Zetacoin builders association District 305. Their motto is BUY/HOLD/BUILD. They have already made good progress in promoting and developing the coin. In addition to the new quality website they’ve deigned many promotional YouTube videos, They have made an android mobile app and are in process of making a USD/ZET exchange called Zetorg. Zetacoin is very cheap and I love the vibrant, creative community. Zetacoin has a broad and active social media presence. I think it is a very good bet that may have a really big payoff. 2. Digitalcoin- DGC Scheduled Total Supply: 144 million
  18. 18. Launched: May 18, 2013 Digitalcoin is a solid coin with clean record. It has a well-respected developer who has remained active and is working on plans for digitalcoin. It has a large, active community and had a fair launch. The developer is currently beta testing cryptoave.com. Cryptoave.com is their own proprietary exchange for digitalcoin, securecoin and argentum, which are all coins by the same developer. It will be a U.S. dollar to altcoin exchange. There are other major projects in the works and the developer and community are dedicated to slowly building their coin. I think digitalcoin will end up being a winner. 3. Quark- QRK Scheduled Total Supply: 247 million (designed to be mined in six months with a million per year after that) Launched: July 21, 2013 Quark was the first altcoin to get some outside of the cryptocurrency scene media exposure. It was pumped by a couple of well-known YouTube personalities with huge followings, Bill Still and Max Keiser. This led to it getting some exposure in the regular press. The rest of the bitcoin and altcoin scene became jealous of this new, little coin getting the spotlight and because Quark was designed for most of the coins to be mined in the first six months, (essentially a giant instamine), the community yelled scamcoin. It became known as a scamcoin around the altcoin community. The publicity Quark received brought a lot of buyers into the coin and it has maintained a large volume on Cryptsy over time. Quark has grown a strong, active community and is well represented across all social media. The community is actively working to promote and initiate services for the coin. They are working hard on translating their website into many languages and finding places that will accept Quark as payment. Quark is designed with security in mind with 6 different algorithms, or hashing functions, (bitcoin only uses one), and 9 rounds of hashing. Many other altcoins have been cloned using the Quark source code in order to utilize its robust security features. Quark maintains impressive volume on Cryptsy and has established itself as one of the top altcoins. I think it is a good bet for your altcoin portfolio. 4. Worldcoin- WDC Scheduled Total Supply: 265 million Launched: May 14, 2013 Worldcoin has a team of dedicated developers and a strong community promoting the coin. It has one of the largest networks. Worldcoin has exceptionally good branding with a good name and good logo. It is now beta testing Sharmbeck, its U.S. dollar/Worldcoin exchange. As one of the only altcoins with its own exchange, Worldcoin is growing behind a strong team and community backing and that is what I look for. Worldcoin is a good bet and a top altcoin. 5. Anoncoin- ANC
  19. 19. Scheduled Total Supply: 4.2 million Launched: June 6, 2013 Contrary to popular belief, bitcoin is not truly anonymous. That’s the reason that Anoncoin was born. Anoncoin is designed to be a truly anonymous coin. Support for the I2P anonymizing network is standard in Anoncoin. Anoncoin has an active developer, but also has a complete development team behind the coin. With the public learning more everyday about the outrages and abuses of the NSA and our government, I think that more people will eventually realize the need for complete anonymity in their financial transactions. For this reason, I think that Anoncoin is a good altcoin bet for the future. 6. Dogecoin- DOGE Scheduled Total Supply: 100 billion Launched: December 8, 2013 To the moon!! That is the rallying cry of the community of Doge fans. Dogecoin started as a joke using one of the most popular internet memes of 2013. It has escalated into a full-blown phenomenon. Most serious people in the altcoin community turn up their noses at Dogecoin, but it has gotten more media attention than any other altcoin and it has brought into the altcoin world a lot of new blood, especially young people. It is leading in number of transactions daily, has one of the largest networks, maintains one of the strongest volumes and arguably, has one of the most dedicated communities promoting the coin. My head tells me that no altcoin with 100 billion coins is ever going to be worth any money, but like Tom Cruise says in the movie Risky Business, sometimes you just have to say Fuck It! Dogecoin is my pick for crazy long shot bet. If an Internet miracle happens, I don’t want to miss it. Much currency, very profit, so wow! 7. Vertcoin- VERT Scheduled Total Supply: 84 million Launched: Jan 8, 2014 Vertcoin was launched in the middle of the biggest avalanche of altcoin releases in history, early January 2014. While most of the new releases didn’t get a second look and were dead on arrival, Vertcoin attracted some attention and has quickly established itself as an up and comer. Vertcoin is designed to be an ASIC, (Application Specific Integrated Circuit), resistant altcoin. In the begining, bitcoin was mined using CPU then GPU, but as it became increasingly profitable to mine bitcoin, specialized integrated circuits were designed specifically to mine bitcoin. Soon ASIC miners dominated bitcoin mining and drove the GPU miners out. Large, expensive data centers now do most of the bitcoin mining, not individuals. Litecoin was the first try to fight back against ASICs. It was designed to work with a scrypt algorithm instead of the SHA- 256 algorithm used by bitcoin and mined by ASICs. Now however, scrypt ASICs are being designed and deployed in China. It looks like they will soon flood the market and take over the mining of scrypt based altcoins, (the most common algorithm used by altcoins), just like they did SHA-256 based coins. Vertcoin is a clone of Litecoin and the developer has tweaked the software to be ASIC resistant.
  20. 20. Coming in while the news about a new scryptASICs, is fresh on everyone’s mind, Vertcoin has gotten attention from miners. They promote the coin in order to sell their mined holdings. Although Vertcoin is new, it is making great strides with lots of social media representation and some exchanges trading it and also garnering a good price quickly. It had a fair launch and no premine. I have a good feeling about this risky long shot. III. Bleeding Edge Innovators 1. Ripple- XRP Scheduled total Supply: 100 billion Launched: Spring 2013 Ripple is a payment system and currency developed by a company named Opencoin. Ripple has never been accepted or endorsed by the bitcoin community, not so much because it is a competitor, but because it is centralized and it launched closed source. The company, Opencoin, has opened the source but they have made 100 billion XRP (the ripple currency), and will keep a large percentage for themselves. The cryptocurrency community doesn’t consider Ripple to be a true altcoin, it is a sort of different animal. Although is seems to be a good financial payment system, I don’t support Ripple because it is centralized and I want to see the world become more decentralized. 2. Mastercoin- MSC Scheduled Total Supply: 619 thousand Launched: July 31, 2013 Mastercoin is designed to be a protocol layer on top of bitcoin. It is to enable more advanced features using the bitcoin blockchain technology. They are interested in making a decentralized exchange, using Mastercoin for smart contracts and other advanced features. If they are able to accomplish these innovations, I‘ll be an investor, but for now, I‘ll wait and see on Mastercoin because they are not cheap to buy. Mastercoin is definitely an altcoin to keep an eye on. Do not confuse Mastercoin MSC with another similar named altcoin Mastercoin MST, which is an unimportant, uninspired, same old clone. 3. Nextcoin- NXT Scheduled Total Supply: 100 million Launched: October 16, 2013 NXT is the first and only altcoin with proprietary code not based on bitcoin. NXT is not a clone of bitcoin or any other altcoin, the developer wrote the entire source code on his own. The source code has generously been made open source. NXT doesn’t use mining/Proof of Work, but instead uses a type of Proof of Stake system. The developer made 100 million NXT and sold them to a group of investors known as the founders. The founders sell and/or give away NXT to distribute the coin. NXT had its own small exchange, dgex.com, and that was the only place to buy NXT. However, now, NXT is available for trade on other exchanges also. Since there is no mining, and all the coins that will ever be are already in existence, NXT uses a kind
  21. 21. of Proof of Stake system. Every transaction is charged a small transaction fee and this fee is distributed to NXT holders. The larger your holding, the bigger your percentage of the transaction fee. NXT, plans to take cryptocurrency to the next level as more than just a currency. The platform technology can be used for censorship free messaging, or a DNS system such as Namecoin is attempting. NXT makes it possible for decentralized exchanges and Decentralized Autonomous Corporations. NXT holds lots of promise but is mostly vaporware at the moment, but they have a solid core team of developers and a growing community and they are cheap at the moment, so I am buying some as a long shot and to support an innovator. 4. Protoshares- PTS Scheduled Total Supply: 2 million (1% annual inflation after 2 years) Launched: November 5, 2013 Protoshares gets overlooked by a lot of investors because it is confusing and many don’t understand the concept behind the altcoin. Protoshares are trying to develop Destributed Autonomous Corporations. These can be thought of as a decentralized IPO, a way for a company to issue shares using the bitcoin blockchain technology as kind of IPO generator. If you buy a Protoshare, you are getting a small percentage of shares of any DAC’s they launch. Protoshares has a team of ambitious developers trying to realize their goal. If they turn out to be the decentralized version of NASDAQ, early investors will be very happy. Protoshares is still in the vaporware, we’re gonna, stage and they are not especially cheap to buy, so you must decide if you think they are worth the risk. Protoshares is definitely dreaming big, but is it only dreaming or will they succeed? I am very interested in Protoshares, but I’m taking a wait and see attitude on this altcoin. IV. Don’t Believe The Hype 1. Earthcoin- EAC Scheduled Total Supply: 13.5 billion Launched: December 20, 2013 Earthcoin has managed to attract some attention since its launch and has a growing community. It has a good name and logo and very attractive branding. However, it is an unremarkable clone with no redeeming features. Its only claim to fame is a stupid gimmick that fluctuates the block reward based on the Earth’s rotation. What an innovation! The developer premined 2%, which means 270 million premined coins in his pocket. I suspect that he will dump these premined coins off to unsuspecting buyers lured in by the attractive branding and hype, then he will take their money and run off to his next con. This altcoin is the classic premine, then pump and dump. Stay away! 2. Megacoin- MEC Scheduled Total Supply: 42 million
  22. 22. Launched: May 29, 2013 Megacoin is an attempt to steal the Mega brand of legendary Internet personality, Kim Dotcom. The developer is based in New Zealand, as Kim Dotcom is, and calls himself Kimoto trying to make people think he is secretly Kim Dotcom and that Megacoin is being released by Kim Dotcom. This blatant brand heist puts me off from this altcoin. In addition the launch was dodgy as well. The developer didn’t release the source code at launch so miners avoided the coin. This left the developer as the only one mining the coin for the first week until he released the code and other miners joined in. It is suspected by some that this was a deliberately botched launch so the developer could claim no premine, when in fact he alone probably mined about 6 million coins after the botched launch. Megacoin seems shady to me and I think it has already seen its best days. I expect the price to fall, not appreciate. 3. Terracoin- TRC Scheduled Total Supply: 42 million Launched: May 13, 2013 Terracoin is basically a straight bitcoin copy with double the scheduled total supply. It uses the same SHA- 256 algorithm as bitcoin. Terracoin has been a very unlucky coin. Hackers have heavily attacked Terracoin numerous times. Hackers have broken the coin, taken money from wallets and exchanges and caused constant problems for the developers to fix. Most likely, bitcoin developers are behind the attacks on Terracoin. Since it is such a close clone to bitcoin, they are trying to destroy Terracoin to learn how to improve bitcoin. This is good for bitcoin but bad for Terracoin investors. Besides being a hacker target, Terracoin had such a low difficulty set at launch that the early miners have outsize holdings of the coin and that makes me worry about manipulation by insiders. I recommend avoiding Terracoin. The altcoin may not experience any more hacks but it may remain a target of bitcoin developer experiments. I think it is safer to stay away. 4. Feathercoin-FTC Scheduled total Supply: 336 million Launched: April 13, 2013 Feathercoin was cloned from Litecoin. As a clone of a clone it brings absolutely nothing new to the table and adds no value to the altcoin world. The developer of this coin was not technically competent, but he was good at marketing and Feathercoin is one of the better known altcoins. Feathercoin was heavily instamined in the first few weeks after it was launched becuse the difficulty was set so low that the early miners gathered huge holdings of Feathercoin. In fact, almost 50% of the total supply of Feathercoin was mined in the first 24 hours. Consequently, there are a lot of insiders with tons of Feathercoin that they use to manipulate the market. Feathercoins best claim to fame is that
  23. 23. it is on the BTC-E exchange, but it is alleged that they bribed their way on to the exchange. There are many people holding Feathercoin because of the effective marketing. Most of these bag holders are looking to sell to the next buyer. I don’t suggest you to be the next buyer of Feathercoin, I think its glory days are behind it. 5. Novacoin- NVC Scheduled Total Supply: 2 billion Launched: Feb 9, 2013 Novacoin is cloned from Peercoin and shares its Proof of Work/Proof Of Stake hybrid. Novacoin was secretly premined and they bribed their way on to BTC-E exchange to gain some prestige. Many people in the cryptocurrency community think that insiders heavily manipulate it. The developer holds a large portion of all existing coins. It was launched with such a low difficulty that the early miners now hold large stakes in Novacoin. Novacoin is relatively expensive and I don’t have a good feeling about it. I recommend caution when thinking about investing in Novacoin V. Rare: These altcoins are not trying to become a currency; they want to be used as stores of wealth. They are designed to have a low supply with the thinking that scarcity will bring a higher price. 1. Bitbar- BTB Scheduled total Supply: 9.272 Launched: May 3, 2013 Bitbar is another of the many coins that set a very low difficulty for the early miners, (This always includes the developer), In the case of Bitbar, almost 50% of the total supply of coins was mined in the first few hours. These kind of shenanigans by a developer who proclaims the fairness of his launch on the announcement always make me suspect of the altcoin. Bitbar has done well and gained a large price from buyers, but I’m not one of them and don’t intend to be. There are enough fair launch coins available, so I ignore altcoins with developers who practice chicanery at their launch. 2. Cryptogenic Bullion- CGB Scheduled Total Supply: 1 million (.5% annual inflation) Launched: June 28, 2013 Cryptogenic Bullion had a 1% premine, but that is not my problem with this altcoin. It just hasn’t attracted enough attention to get mine. Seems to have a community and a pretty good price, so it might be worth a look. I just don’t see any distinguishing reason to invest in this coin. 3. Diamond- DMD
  24. 24. Scheduled Total Supply: 4 million, 389 thousand Launched: July 13, 2013 Diamond was abandoned by the developer and almost became a dead coin. Then as often happens to dying coins, some of the community of investors took over the coin and formed a team to assume the developers role. Diamond has a nice name but it remains to be seen if the new regime can revive the altcoin or not. They seem to be working hard at promoting the coin and maybe they can generate some buzz for Diamond. Before investing in this altcoin, I would want to see some sign of excitement about the coin first. 4. Franko-Frk Scheduled Total Supply- 11 million Launched: May 11, 2013 Launched with accusations of premine and a botched launch that allowed the developer to instamine even more. Franko has never generated a lot of excitement. It remains boring today. There is nothing special about this Litecoin clone. I don’t expect a good future for this coin. 5. Unobtanium-UNO Scheduled Total Supply: 250 Thousand Launched: October 18, 2013 Unobtanium hasn’t generated a lot of buzz, but it hasn’t been completely ignored either and more people seem to be taking notice. It has some social media representation. I consider this altcoin to be a wait and see. 6. RonPaulcoin- RPC Scheduled Total Supply: 2 million 100 thousand Launched: December 28, 2013 RonPaulcoin was launched around the same time as the Coinye West coin and I expected that it was just a cease and desist letter from a lawyer away from doom like Coinye. However, Ron Paul appeared on a CNBC interview and talked about the coin. He didn’t seem to have a problem with it, so I think Ron Paul’s lawyers may not harass the developers of this altcoin. RonPaulcoin has generated a lot of excitement since its launch and already attained a price close to that of Litecoin, which is pretty incredible for a new altcoin. RonPaulcoin had a fair launch and has a dedicated developer and an active, (almost cult-like), community promoting the coin. Ron Paul has a super dedicated following and it seems that many of them are in the cryptocurrency scene. If they can bring in more of Ron Paul’s followers from outside the cryptocurrency scene, this coin could be a big winner. I think RonPaulcoin is worth taking a chance on. It’s a long shot that may payoff. 7. 42coin-42 Scheduled Total Supply: 42 Launched: January 5, 2014
  25. 25. 42 is taking the scarcity trend to an extreme. Only 42 coins scheduled. In Douglas Adam’s book, The Hitchhiker’s Guide to the Galaxy, the answer to life, the universe, and everything is 42. However, I doubt that 42 is the answer to what makes a successful cryptocurrency. They are selling tiny fractions like .00000001 and calling it a Dent (after Arthur Dent in the Hitchhikers Guide book, do you get how clever they are?). There was a 1% premine or .42, which is significant considering not even one full 42 has been mined yet and there are only fractions available. 42 has attracted quite a bit of attention with its gimmick. I think a lot of these buyers are going to end up as bag holders hoping for someone to buy their worthless Dents. While this is all good fun and life, the universe and everything, I am going to pass on this silliness and I recommend you stay away from 42. I invite you to instead wait for my new coin: Singlecoin- “There can be only one”. You will probably want to invest everything you have in that. They will be sold in fractions of .000000000001 to be called a nothing. VI. Meh...- Not every altcoin is shady, or has something bad about it. Sometimes there’s just no there, there. They may be perfectly fine altcoins, but there is no buzz, no excitement surrounding the coin. Most of these coins have gotten some traction and are listed on Coinmarketcap.com but they seem to be fading, not growing. I think most of these are doomed to a slow, and painful for their investors, death. 1. Datacoin- DTC I like this coin and think it’s a shame that it ends up in the Meh... category. It is one of the few truly innovative coins. Datacoin uses the blockchain for data storage. The bitcoin technology is used for file storage in addition to currency use. However, the coin is getting no love, so meh. 2. Stablecoin- SBC Stablecoin was premined and abandoned by its developer and died off, but the developer returned destroyed the premined coins and revived the coin. He promised and has been working on a mixing service incorporated into Stablecoin to make transactions anonymous. Stablecoin experienced a surge in interest after the revival, but that interest has since waned. The developer says that the mixing service is in beta testing now. I don’t care and I don’t trust that the developer won’t abandon the coin again. 3. Freicoin-FRC Freicoin has a unique twist. In an attempt to make sure that holders of Freicoin use it as a currency instead of just holding it for investment, Freicoin charges a demurrage fee of 4.9% on your holdings. This means that your money will lose value if you don’t spend it. I don’t know if this sounds like a good idea to you, but it doesn’t seem to be attracting too much interest to Freicoin, so far. 4. Devcoin- DVC Devcoin is one of the few coins that can be merged mined, (mined at the same time), with bitcoin. Devcoin is designed so that only a small percentage of the blocks mined go to the miners, while a large percentage goes to help developers of open source projects and creative commons licensed literary works. Although this may be a laudable endeavor, I don’t see this as a good investment. Other Meh... (yawn)
  26. 26. 5. Tagcoin- TAG 6. Netcoin- NTC 7. Sexcoin- SXC 8. Ixcoin- IXC 9. Mincoin-MNC 10. BBQcoin- BQC 11. Extremecoin- EXC 12. Memorycoin-MMC 13. Fastcoin- FST 14. Frozen- FZ 15. Ascicoin- ASC 16. Iocoin-IOC 17. Yacoin- Yac 18. Junkcoin- JKC 19. Florincoin- FLO 20. Grandcoin-GDC 21. QQcoin - QQC 22. Philosopher Stones- PHS 23.Bytecoin- BTE 24. eToken- ETOK 25. Globalcoin- GBC 26. Deutsche eMark- DEM 27. Grain- GRA 28. Krugercoin- KGC 29. Betacoin-BET 30. Tigercoin-TGC 31. EZcoin- EZC 32. Elacoin-ELC 34. Argentum- ARG 35. Luckycoin-LKY 36. HoboNickels- HBN 37. Casinocoin- CSC 38. Craftcoin-CRC 39. Noirbits-NRB 40. Joulecoin- XJO 41. Xivra-XIV 42. YBcoin-YBC 43. Securecoin- SRC 44. Catcoin- CAT VII. The Trouble With Tribbles- The Trouble with Tribbles was a famous Star Trek television episode. Tribbles were furry creatures everyone loved, but the trouble with them was that they reproduced so rapidly that there ended up being just too many Tribbles. No one wanted them because
  27. 27. there were too many of them. These altcoins are like Tribbles, no one wants them because there are too many of them for the price to ever rise significantly. For many of them, if they ever reached a dollar apiece they would have a market capitalization larger than any currency on earth, so significant price rises are impossible and they are bad investments. Stay away from these Tribbles. 1. Infinitecoin-IFC- 98 billion 2. Dimecoin- DMC- 460 billion 3. Tickets- TIX- 66 billion 4. Mooncoin- MOON- 384 billion 5. Fedoracoin- TIPS- 500 billion 6. Billioncoin- BIL- 10 billion 7. Colossuscoin-COL- 550 billion 8. NicholasCagecoin- CAGE- 100 billion 9. Lottocoin -LOT- 18 billion 10. Alphaomegacoin AOC- 999 billion 11. Android Tokens- ADT- 66 billion 12. Deutsche eMarks- DEM- 20 billion 13. Earthcoin-EAC- 13.5 billion 14. Fireflycoin- FFC- 700 billion 15. Graincoin- GRA- 50 billion 16. Nutcoin- NUT- 92 billion 17. Xivracoin-XIV- 8.4billion 18 Noodlyappendagecoin- NDL- 13.7 billion VIII. Oh Hell No! 1. Coinye- COYE Scheduled Total Supply: 133 billion Launched: Jan 2, 2014 Imma let you finish reading, but Coinye West is the most messed up altcoin of all time! Coinye was
  28. 28. originally launched as Coinye West coin with a likeness of the entertainer on the coin. It was the first altcoin to get media coverage even before launch. Kayne West had his lawyers send a cease and desist letter to the developers and anyone else they could target that had anything to do with the coin, including exchanges and even Amazon because some servers were on their cloud I suppose. The developers abandoned the project under duress and some of the community took over the development of the coin, but I doubt that any exchange will ever touch it again and I think it is a doomed coin. Take a cue from the developers and run away! 2. Pennies- CENT Scheduled Total Supply: one billion Launched: August 6, 2013 Pennies was scheduled to release a lot of coins, one billion of them, but the Proof of Stake system was so broken that miners were able to get many billions of them. Pennies is one of the most broken altcoins due to developer incompetence. You can buy ten million CENTs for a few dollars on Ebay. Stay away from this altcoin. 3. Goldcoin- GLD Scheduled Total Supply: 100 million Launched: May 15, 2013 Goldcoin is one of the most classic examples of a scamcoin. When it originally launched, it was instamined with low starting difficulty and superblocks for the first 200 blocks. To ensure that the developer mined the first 200 blocks the coin launch was announced in the newbie section of bitcointalk.org instead of the usual alternative currencies section. The developer mined Eight million Goldcoin in the first 24 hours. After such a scummy move, Goldcoin was declared a scam and soon died off. A comman/trader bought up all the worthless Goldcoin he could and relaunched the coin, (trying to hide its background), and sell to new buyers coming into the altcoin scene. He is still dumping his stash off on unsuspecting investors in Goldcoin. Stay away form this scamcoin. 4. Copperlark CLR Scheduled Total Supply: 27 million Launched: June 6, 2013 Copperlark is an altcoin from a Russian developer and this has been a problem for the coin as he has been unable to provide much English language support for the coin. But the main problem with Copperlark is that it was premined for 8 million of the altcoin that are called larks. That’s two big strikes and you’re out if you’re a smart investor. 5. Phenixcoin- PHX Scheduled Total Supply: 168 million Launched: May 20, 2013 Phenixcoin launched with a one million premine by the developer. They also ran an exchange that many people complained about because of not getting their withdrawals. Lately, their network is
  29. 29. shrinking as miners leave. This coin smells bad in every way and they can’t even spell phoenix. 6. Orbitcoin- ORB Scheduled Total Supply: 31 million Launched: July 13, 2013 Orbitcoin holds the distinction to be known as the most premined coin, ever. Up to 66% of the total coins were premined by the developer. He is still looking to sell to new bag holders; don’t be one of them. IX. The Walking Dead, D.O.A., and Stone-cold Dead.- Altcoins never really die , they just get ignored and unused. If you have any of these altcoins you are officially a bag holder. Don’t feel bad, it happens to the best of us. There is always the slight chance that a team of developers will rush in and take over one of these coins and promote it into popularity and profitability, but there is better chance trying to get rich with a Powerball ticket in my opinion. This list is only a tiny, partial list, a complete list would have been longer than my book, so this is just a representation to remind you that most of these altcoins will end up being worthless. Take your time, study the market, and choose your investments wisely or you could end up bag holding a bunch of one of these. 1. Valuecoin- VLC 2. Xmascoin-XMAS 3. Zccoin-ZCC 4. Gilcoin-GIL 5. Globecoin- GLB 6. Gridcoin- GRC 7. Hypercoin- HYC 8. Hotcoin-HTC 9. Icoin-ICOIN 10. Incacoin-NKA 11. Cloudcoin-CDC 12. Communitrycoin- CTC 13.Kittehcoin-MEOW 14. Dragoncoin-DGC 15. Ecocoin-ECO 16. Elephantcoin- ELP 17. Mastercoin- MST 18. Lucky7coin-LK7 19. Blakecoin-BLC 20. Nibble-NBL 21. Gamecoin-GME 22. Krugercoin-KGC 23. Americancoin- AMC 24. Fellatiocoin- BLO
  30. 30. 25. Spots-SPT 26. Onecoin-ONC 27. Alphacoin- ALF 28. Tekcoin- TEK 29. Galaxycoin-GLX 30. Chaincoin- CHC 31. Milancoin-MLC 32.Teslacoin- TES 33. Radioactivecoin-RAD 34. Leadcoin-LDC 35. eCoin - ECN 36. Batcoin-BAT 37. Fckbankscoin- FCK 38. Dieselcoin- DZL 39. Noodlyapendagecoin-NDL 40 Alphaomegacoin- AOC 41. Unioncoin-UNC 42. Solidcoin-SC 43. Tenebrix- TBX 44. Fairbrix-FBX 45. Rucoin-RUC 46 Mmmcoin- MMM 47. Giest Geld- GG 48. Coiledcoin-CLC 49. Chncoin- CNC 50. Zenithcoin-ZTC
  31. 31. Chapter Six: Trading Tips and Tricks Almost always, Buy and hold is the best strategy. It has paid off incredibly for bitcoin and litecoin investors and will continue to pay those who simply buy and don’t sell despite the ups and downs. When you make an investment that you think is in a many year uptrend, believe in it and hold. Never panic sell! Dips in prices test the weak hands that can’t hold. Weak hands will be sorry they sold. Be strong like bull, hold through the hard times, you will be rewarded in time. Don’t chase a winner. Sometimes you will see an altcoin’s price rising rapidly. You want to grab it and get some of that upward price movement. This is panic buying and should be avoided. After every significant price rise there is almost always a correction. If you see a major price rise, don’t buy at the top, wait for the inevitable correction to buy if you think the altcoin is on an uptrend. I like to buy a goodly amount of an altcoin I think has promise and then wait. Patience is key. If I get lucky and there is a price rise, I sell enough of my coins to pay back my investment and maybe even a little profit. I keep the rest of my coins as free money to let it ride for long-term gains. You can check which altcoins have the most volume daily at Coinmarketcap.com. Although they are ordered by market capitalization, if you click the volume button on the navigation headings it will list them by daily volume. This is handy to see which coins are hot and trending up. Watch the announcement section of alternative currencies on bitcointalk.org forum and look for new altcoins gaining buzz and interest. Try to buy in early as you can. If you buy on the bitcointalk.org forum be careful and only deal with Sr. members with lots of activity and good reputations. It’s risky to buy on the forums or on Reddit but sometimes it’s worth it. If you do buy on one of these venues, please use an escrow service. You will find a few escrow services on the sticky thread on the alternative currencies section of bitcointalk.org cautioning to beware when buying and selling. There are some escrow services on the web also. If someone is in a hurry to trade or rushing you, watch out. There is no reason for a rushed sale except a scammer wants to hurry. If you submit a withdrawal on Cryptsy, remember that you have to acknowledge the request for confirmation of withdrawal email they send you or nothing will happen. On my first withdrawal I waited a week and found out they were waiting for me to respond to the email before they initiated the withdrawal. Always encrypt your wallets and when you download a new wallet it may take a while before it begins syncing. This is normal, just be patient and it will usually eventually begin syncing. The initial syncing of the blockchain in your wallet can take hours sometimes. If it freezes, (this happens a lot), shut down the wallet and restart it. This will usually start it syncing again where it left off. Stop and start it as much as necessary until it is fully synced. Wallets are kind of a pain, but it is just part of the game.
  32. 32. Always use two-factor identification if it is offered by an exchange. Be careful when downloading wallets of new altcoins. There have been cases where the wallets contained malware that stole other coins from other wallets. There are a lot of thieves and scammers in the cryptocurrency scene. Don’t be the first to download things, check the forum that others have successfully downloaded and installed wallets with no problems before you try it. Be safe out there. I hope this book helps you as you enter the crazy, chaotic world of altcoins and may you be blessed with luck. May all of your coins go to the moon! In the end, it’s always better to be lucky than good, but hopefully this book will help you take your first steps to becoming a successful altcoin investor. If you think this book helped you and you’re feeling generous; donations are gladly accepted. If you’re so inclined and would be so kind: 1M1nq6PPj9JDA74vzG7HJhNxA1eqxsxFJt -BTC LQzcXhibbtydTebZ4Z39hFodP3pR3x84iT - LTC DKaYpS1PJkZH45KQNd3HiufAxceWNsxsTU - DOGE so mooch, very beg, much thanks.

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