The document is an introductory guide to cryptocurrency, encompassing definitions, types, technical and fundamental analysis, and investment tips. It elaborates on concepts such as tokenomics, consensus mechanisms, and various categories of cryptocurrencies including stablecoins and decentralized finance. The guide also emphasizes useful tools for market analysis, risk management strategies, and the significance of long-term investment approaches.

1. Crypto Currency 101
BRIEF INTRODUCTION TO CRYPTO CURRENCY
TYPES OF CRYPTO CURRENCIES
TECHNICAL ANALYSIS
FUNDAMENTAL ANALYSIS
USEFUL TOOLS AND TIPS
LIVE EXAMPLES

2. Introduction
 Name: Syed Ali Jawad Naqvi
 Profession: Machine Learning Engineer
with specialization in Computer Vision.
 Interests: Football, Financial Markets

3. What is Cryptocurrency?
 Cryptocurrencies are digital or virtual currencies secured by cryptography,
making them nearly impossible to counterfeit. They operate on a
technology called blockchain, a decentralized technology spread across
many computers that manages and records transactions. Part of the
appeal of this technology is its security​.
 But is it really a currency? If yes, that what type of currency this is?

4. Tokenomics
 Tokenomics involves the economics of a token, including its distribution,
supply mechanisms, and how it incentivizes behavior within the blockchain
ecosystem.
 It includes the total circulating supply, maximum supply, token unlocking,
token burning, is it inflationary or deflationary etc.

5. Terminologies
 L1 and L2: Refers to Layer 1 and Layer 2 blockchain solutions, focusing on scalability and
efficiency.
 Nodes: Essential parts of the blockchain network, validating and relaying transactions.
 Scaling: Enhancing the blockchain to handle more transactions per second.
 Token Unlock: Making previously locked tokens available for trading.
 Token Burn: Permanently removing tokens from circulation to reduce supply
 Market Cap: The total value of a cryptocurrency's circulating supply. It's calculated by
multiplying the current price of a coin by its total number of coins in circulation.
 Trading Volume: The total number of coins traded within a specific timeframe. This can
include buys, sells, and exchanges across all available markets.
 Inflationary Cryptocurrencies: These are designed with a mechanism to increase the
supply of coins over time, reducing their purchasing power. The purpose of this is to
encourage spending and investing rather than hoarding.
 Deflationary Cryptocurrencies: These have a decreasing supply mechanism, such as token
burning, which can increase the value of each token over time as the supply reduces. The
purpose of this is to create scarcity, potentially increasing the value as the demand rises
against a limited supply.

6. Terminologies Cont.
 Governance Mechanism: Governance mechanisms in blockchain involve established
rules for network decisions, like updates or protocol changes, through token holder
votes, ensuring stakeholder participation in governance.
 Incentives: Incentives, on the other hand, reward participants, like miners in Proof of
Work systems, with block rewards and fees to promote actions beneficial to the
network's health and security.
 Consensus Mechanisms:
 Proof of Work (PoW): A consensus mechanism where miners solve complex mathematical
problems to validate transactions and create new blocks. It secures the network but is energy-
intensive.
 Proof of Stake (PoS): A more energy-efficient consensus mechanism where validators are
chosen to create new blocks based on the number of coins they hold and are willing to "stake"
as collateral. It incentivizes holding coins and supporting network security.
 Proof of Ownership: While not a consensus mechanism in the traditional sense, some
blockchain projects utilize concepts similar to "proof of ownership," where users' interactions
with the network or the assets they hold grant them certain rights or privileges. This term is less
common and might be used in different contexts depending on the specific blockchain or
project.

7. Categories of Cryptos
 Stablecoins: Like USD Coin, pegged to the value of traditional currencies to minimize volatility
 DeFi (Decentralized Finance): Financial services without central authority, using smart contracts
on blockchain.
 DePIN (Decentralized Physical Infrastructure Networks): Utilizes blockchain to enhance
physical systems like energy grids and supply chain operations, offering unchangeable records of
product provenance and enabling peer-to-peer energy trading.
 DeSci (Decentralized Science): Leveraging blockchain to open up and decentralize scientific
research and funding.
 AI (Artificial Intelligence): Integrating AI technologies with blockchain to enhance capabilities or
automate decisions.
 Oracle Cryptocurrencies: Facilitates real-world data to smart contracts on the blockchain.
 Storage Cryptocurrencies: Utilizes blockchain technology for decentralized data storage
solutions.
 Meme Coins: Cryptocurrencies that originated from internet memes or have a humorous nature
 Layer 1 (L1) Protocols: The base layer of a blockchain architecture, fundamental blockchains
themselves.
 Layer 2 (L2) Solutions: Built on top of L1 blockchains to improve scalability and efficiency.
 Gaming: Blockchain and cryptocurrencies are increasingly being integrated into the gaming
industry, offering decentralized gaming ecosystems, NFTs, and digital ownership.

8. Coin Examples
 Stablecoins: Tether (USDT), USD Coin (USDC), Dai (DAI)
 DeFi (Decentralized Finance): Maker (MKR), Compound (COMP), Aave (AAVE)
 DePIN (Decentralized Physical Infrastructure Networks): Akash Network (AKT),
Bittensor (TAO), Render (RNDR)
 DeSci (Decentralized Science): Triall (TRL), Origin Trail (TRAC), ClinTex CTi (CTI)
 AI (Artificial Intelligence): SingularityNET (AGIX), Fetch.ai (FET), Ocean Protocol
(OCEAN).
 Oracle Cryptocurrencies: Chainlink (LINK), Band Protocol (BAND), API3 (API3).
 Storage Cryptocurrencies: Filecoin (FIL), Storj (STORJ), Siacoin (SC).
 Meme Coins: Dogecoin (DOGE), BONK (BONK), PEPE (PEPE)
 Layer 1 (L1) Protocols: Bitcoin (BTC), Ethereum (ETH), Cardano (ADA).
 Layer 2 (L2) Solutions: Polygon (MATIC), Arbitrum (ARB), Optimism (OP).
 Gaming: Shrapnel (SHRAP), Games for a Living (GFAL), Nakamoto Games (NAKA).

9. Fundamental Analysis
 Fundamental Analysis, as the name suggests, involves evaluating a
cryptocurrency project based on its core principles, strengths, and
weaknesses, rather than solely on chart patterns. While technical analysts
focus predominantly on candlestick patterns to make trading decisions,
fundamental analysts use charts only to time their entry and exit points;
their primary concern is the intrinsic value of the project.
 Fundamental Research can be somewhat subjective; for instance, a
person with a low-risk tolerance may seek out less risky coins.
Consequently, the factors considered during research may vary slightly.
 The significance of certain factors may vary from person to person. For
example, a predefined total supply might be crucial to one individual, while
another might not consider it as important.

10. Fundamental Analysis Contd.
1. Usecase: Understand the purpose of the coin and the problem it aims to solve. Is the use case logical to
you? Is the problem it addresses genuinely an issue?
2. Tokenomics: Consider the total market capitalization, trading volume, circulating supply, and maximum
supply.
3. GitHub: Think of it as your Facebook wall where you regularly update your project's progress. This
indicates whether the team is actively working on the project.
4. Twitter: Assess the activity on their Twitter account, the number of followers, and engagement with posts.
These metrics provide insights into the community's interest.
5. Sentiments: Analyze sentiments on Twitter to gauge community perception of the coin and its public
interest.
6. Audit/Institutional Rating: Ensure the cryptocurrency has been subject to a comprehensive security
audit. An audited cryptocurrency suggests that independent experts have examined its code for security
flaws and overall robustness.
7. Website: Explore the website to learn about their initiatives, the team or developers, partners, investors,
etc.
8. Exchanges: Familiarize yourself with the centralized (CEX) or decentralized exchanges (DEX) where the
coin is traded and available for purchase.
9. Bonus Tip: If all the relevant factors are favorable, yet the price is static or significantly below its all-time
high, it may indicate a positive opportunity.
10. Now, let's apply this checklist to an example.

11. Technical Analysis
 If you are buying for long term, always check support levels on a higher time
frame such as 1W or even 1M.
 If you are day trading, use multiple timeframes strategy. For example:
 Pick a coin with good volatility.
 Start with higher timeframes, such as 1D,4H or 1H.
 You have found a coin that is following the DOW Theory, that is there is defined
market structure/trend.
 For example there is coin that is following DOW Theory in an upward trend on
Daily or 4H Timeframe, but when you check the Lower time frame such as 15m or
5m, you see two scenarios:
 If the LTF is following the same structure as HTF, pick your entry point, set up your stop
loss and take profit and let the trade execute itself.
 If the LTF is doing the opposite of HTF, wait for the reversal on the LTF, because there will
be a reversal and because the HTF is telling you, and now you have a good solid trade.
 PLEASE NOTE THAT THIS IS AN OVERVIEW, YOU WILL HAVE TO CONSIDER RSI DIVERGENCE,
PATTERN etc IF YOU TRADE ON THAT

12. Technical Analysis Contd.
 When looking to analyze a chart for an entry point for a long-term
investment, here is what I recommend:
 Access the weekly timeframe (1W) and identify three of the strongest support
levels.
 These levels will serve as your three entry points. For example, if you plan to
invest $100 in a coin, you could allocate your orders as $20 - $20 - $60. This
strategy aims to secure the best average price through dollar-cost averaging
(DCA).
 Utilize the Fibonacci Extension to project the new all-time high, or identify
levels up to its new ATH, and plan your exit strategy accordingly.
 Consistently take substantial profits. For instance, if you've purchased a coin
and your analysis indicates a potential 10X return, consider taking out your
initial investment plus an equal amount of profit at a 4X return. Leave the
remaining gains to pursue the full 10X target. This approach ensures you've
not only safeguarded your initial capital but also realized a profit, thereby
eliminating your risk exposure.

13. Useful Tools
 CoinGecko and CoinMarketCap: For tracking prices, volumes, market
cap and portfolio management.
 TradingView: To analyze the charts and plan your entry points, stop loss
and take profits.
 Twitter: For community sentiment and updates from developers.
 CoinMarketCal: For keeping track of upcoming events and
announcements
 Excel or Google sheet: Journal or Document your research so that you
can have a record which you can refer.
 LLM (ChatGPT, Gemini): Leverage these AI tools in your research. You
can ask the summary of a coin, there tokenomics etc from these models.
This will save you a lot of time.
 Advanced Tools: DefiLlama, Token Unlock, Developerreport

14. Investment Tips
 Patience: The ability to wait for the right moment to enter or exit trades,
understanding that value growth and market corrections take time.
 Risk Management: Implementing strategies to minimize potential financial
losses, such as setting stop-loss orders and only investing what you can
afford to lose.
 Profit Booking: The process of selling a portion of your holdings when
prices are favorable to lock in gains, rather than waiting for the market peak
and risking a downturn.
 Long-Term Holding: Adopting an investment strategy focused on holding
assets for an extended period, based on the belief in their long-term
potential rather than short-term price fluctuations.
 Wallets: Always use software or hardware wallet such as Metamask or
Ledger to store your long term holdings, never ever rely on any exchange.
Always keep your day trade or short term trades like 1-2 weeks funds on
any exchange.
 Diversification: Never ever put all of your eggs in one basket, always
diversify in terms of categories, coins and risk level (High, Medium, Low).
 Dollar Cost Average (DCA): Never ever go all in once, always buy in parts
at the strongest levels to have the best buying price.

15. Bonus (Air Drops)
 You might be familiar with the term "Airdrop." It's essentially a method by
which projects distribute free tokens as a reward to users for completing
certain tasks. Some Airdrops are based on farming mechanisms and
others on different incentives.
 Farming involves completing tasks to earn new, upcoming tokens. This
usually doesn't require any investment, but there is a risk: the new project
you are farming might underperform or fail. However, the only thing you
stand to lose is your time.
 Incentivized Airdrops typically mean you will be given tasks such as
following certain social media accounts (like Twitter, Discord, and
Telegram), liking and retweeting to boost community awareness, and as a
result, receiving free tokens.
 Some upcoming projects, or existing ones with new updates, may offer you
the chance to test their network and receive free tokens as a reward for
your efforts.

16. Bonus (Air Drops) Contd.
 How to find Air Drops?
 Twitter
 Coin Market Cap
 GALXE (Life changer)

17. Bonus (Air Drops) Contd.
 How to find Air Drops?
 Twitter
 Coin Market Cap
 GALXE (Life changer)

18. Q&A
 Open for Questions