Understanding Cryptocurrency Trading: A Comprehensive Guide

[Music] hello everyone so today we're going to talk about

cryptocurrency trading so people who've been following my channel will know that i posted a series of video about

share trading you know if you have never done share trading i started from the basic and explain how you can do share

trading and how you can be profitable in share trading and what are the strategies to follow so

posted about seven or eight uh videos and a lot of people had asked me about crypto trading as well and i had been

telling them that i'm trying to get the content ready so today i think i have the content the

first part of the content at least ready to explain about what is cryptocurrency trading so uh as

a precursor i've posted what is bitcoin and what is blockchain all about so that is like a fundamental basic knowledge of

you know what bitcoin is i have posted already a video and if you haven't seen it

um you can watch that and you'll have a better idea of this content once you have seen the bitcoin video so

today i will be looking at um how to do crypto creating or what crypto trading actually means

and what are the benefits of crypto trading so let's look into the video so like most of my videos i've prepared

a content for explaining what is crypto trading and we'll use this content to go through this

video so let's get into it so the obvious question is you know why should someone do crypto trading i mean

i've explained about share trading what kind of benefits what kind of profits you can make and there are

several kind of investments right so why should one do crypto trading so as an example as a headline statement um

i had invested about 20 pounds in one of the cryptos in june 2020. in about 60 days in august um the value

of that cryptocoin had increased so much which is probably the reason why i'm making this video so

in 60 days that 20 pounds that i had put which is about roughly 2 000 rupees in indian value became 3792 pounds which is

roughly around 3.6 lakhs 2000 rupees became 3.6 lakhs and was about an 18 000 percent growth

which was unimaginable with any other kind of investment even with uh the highest uh uh i mean even with the

best shares out there this is probably unimaginable um other than shares this is probably

within this span of time this kind of growth is unimaginable that's probably why

we need to look at cryptocurrency trading and that's probably why this video is important and

this is not blind luck so if you understand the whole video you need to spend the time

i'm going to spend the time to explain all that i know about crypto trading only if you understand all of these

concepts you can be successful like in share trading about crypto trading so i'll explain what that

cryptocurrency was you know what that what is the cryptocurrency i bought and when did i

buy it and when did i sell it in the end of the video um but the big question or the elephant in

the room for everyone right because a lot of people had been asking this question

um is cryptocurrency banned in india is the is it illegal to do uh trading of bitcoin or any other digital

currency in india so the uh short answer is no it is it has never been illegal it is not illegal

however in april 2018 uh the reserve bank of india issued a circular for the financial institutions especially the

banks to say that they cannot provide services to any uh bodies that are

dealing with cryptocurrency which effectively means that you can't use your debit card or your internet banking

to purchase digital currency so any uh wallet or any exchange that is offering

you to buy or sell cryptocurrency you can't transact with them because all the banks have been

banned from dealing with the cryptocurrency but there was still work around people were

still managing to get their funds into the exchange and do cryptocurrency trading because

the cryptocurrency itself bitcoin itself wasn't made illegal or banned in uh

so there were several institutions that actually uh went to the court against it uh they filed a uh suit and in march

2020 supreme court actually ruled that the rbi ban was unconstitutional in a democratic country

they cannot do a unilateral ban on something that is technologically advancing throughout the

world so uh i'll give you the link to the the full uh

supreme court verdict and the news articles related to that in the description box

so you can also go and validate it so that's a that's the main thing because a lot of people are in india and some of

the share trading examples that are given uh you're not able to go and trade it

because you know they are more available in uk and europe and u.s so whereas crypto is

concerned any crypto that we are talking about you can actually trade from india uh not just bitcoin all of the cryptos

that we're talking about you can trade from india as well there are a lot of exchanges that are uh available in india

today and you can go and trade those uh those uh

cryptocurrencies so first of all what is cryptocurrency trading so just like shares right so if you

if you've all followed my share trading video the examples and the demos that i had given about online investments

you can basically buy and sell shares and similar to that cryptocurrency is also very very

similar you can buy a cryptocurrency and if the price goes up and down then you can sell it when

the price goes is going up and you can do it instantly like a share and the value of the cryptocurrency like

bitcoin for example it goes up and down against the dollar value which effectively means that it goes up

and down against the pound value and the indian rupees and just like share trading apps like

hnl uh free trade in india for example zero the other accounts there are many ballots and

exchanges where you can actually use the um wallet to purchase cryptocurrency and you can sell the cryptocurrency as

well and you can withdraw money from some of the wallets as well so it's it's more like a shared trading

account um there are about roughly today's uh market there are about 8 000 new 8000 crypto coins and

every day new cryptocurrencies are getting created now this sounds very similar to share

trading so what are the main differences uh crypto values are extremely volatile like how i said about the 60 days

every day it goes up and down and sometimes it could lose half its value in on the same days it's extremely

volatile unlike share trading um in shared trading there's a lot of rational like

you know when if you followed my videos you would know that if if you follow the company

and the company is doing well if the fundamentals are strong strong then the share value keeps going

up you know it doesn't fluctuate too much if there is no bad news

or if there is no good news it doesn't go up unless and until there is a reason for it

however crypto values can go up and go down without any rational you know it can fluctuate

for no reason at all unlike share trading people use charts and candles in share trading but 95 percent

of the time i have not seen any of these charts and candles to be accurate even close to being accurate so um you

know in my opinion they are they're practical of no use in crypto trading from

from a chart perspective so the risk and reward both are higher like you know it could go up

50 on on one day and it can come back 50 in like couple of minutes as well so the volatility is there and the risk and

reward is is both higher it could happen in minutes in chat in cryptocurrency unlike share

trading so share trading is only what the difference is shot rating is only about eight and a half hours right

that's trading hours monday to friday only during that time the shy value goes up and down only

during the time you can buy and sell but crypto trading is like 24 by seven all days of the week uh it doesn't stop

at all even in the middle of the night 2 a.m it could go up for a few minutes and if you

have missed that window by the time you get up um it could have come down drastically

so you you might have missed the peak point on all-time high when you're sleeping so it

is 24 by 7 so it need to be a lot more vigilant throughout the the week

and uh in in sha trading you know if a share doubles or triples in a day it's very

very rare i mean there have been shares which have doubled or tripled in a day especially aim shares but um that's kind

of rare in in terms of shard rating but in crypto trading almost on a daily basis some

crypto or the other because like i said new cryptos keep coming up and some of the crypto values are like

less than one piece like point zero zero zero one pn it is easy for them to double or triple

in in one day and so some shares even go up by nearly you know thousand percent in just one day

and it's very common in crypto trading which is why i said the risk and reward is is very high

um sha trading as such the the market is fundamentally protected and it's it's all legally protected and it's

very secure if you buy if you bought a share you've bought a share basically nobody

can take it away from you nobody can say that no that doesn't belong to you but as crypto um even though the concept

of blockchain is very secure from an iit perspective from a technology perspective

the exchanges are not that reliable there are exchanges that could go bust or they could basically take your money

and go away and that's done nothing legally stopping them from doing that there is not much

security in terms of the wallets or the exchanges out there so uh you need to be all the more

careful in terms of which wallets you use which exchanges you use which apps you use

for your crypto trading so that's that's all the more important more than share trading not just the fees and not just

the usability perspective and there are two important factors to consider uh

from a value of the cryptocurrency perspective obviously there's a lot of reasons why the cryptocurrency value

goes up and down but fundamentally uh two of these factors uh which is market capital and

available supply or total supply these two factors determine how much can a cryptocurrency go up or how much can a

cryptocurrency go down by so i'll just use a very simple example not a cryptocurrency example but i'll

use a real life example to just explain these concepts to you so assume there is a village where there's

about 100 people right and half of them buy fruits rest of them don't indulge in fruits

they basically just go with their staple diet rice or whatever so only half of them buy fruits

which is 50 people and each of them decide to spend only about 20 pounds in in fruits

so which means that the total money available to buy fruits is only thousand pounds that's the money that is out

there that the people are willing to spend so assume there are four fruits being sold

right different vendor selling fruits and apple orange banana and grapes and the

cost of each fruit is like this the apple is ten pounds and oranges five pounds two pounds banana and twenty

pence for the grapes and uh there are about 40 apples that are being sold 50 oranges and so on

right so which means that the total value of apples being sold is around 400 pounds

and if you add up all of them together the total value is about thousand pounds which is

what the village can afford so if you sell more it will be unsold and you can't sell more so which is

basically the amount of money that people are willing to spend needs to be

kind of equal to the amount of money that the values out there which is basically what determines the

market capital so the more the people are able to spend money the more the market capital goes up by

and uh the the less people are able to spend the market capital goes down by so it kind of fluctuates

the the cost of the fruit goes up and down and sometimes the supply also goes up and down depending on how the uh

fruits are being dealt with so that's how the market capital and supply impact the

price of the the fruits in this scenario right and this is similar concept in bitcoin

as well now assume that a new fruit seller wants to come and sell watermelon right

to sell watermelon um there needs to be money which means there are four things either one of these four things could

happen in general right uh either more people should be willing to buy fruits like more than the 50

people who are willing uh like 10 more people if they're willing to buy fruits so each of them spend 20

pounds just 200 pounds more available for buying the watermelon or people who are spending for the fruits

need to spend more money not just the 20 pound they probably increase it to let's say 30 pound which means that

another 10 pounds is being available by 50 people another 500 pounds come to the market so either that or some of the

existing fruit prices should be reduced like for example apple should reduce from 10 pounds to 8 pounds

which means that now um you know for the for the 40 apples it's only about 320 pounds 80

pound is available which watermelon seller can use and get the uh get this product sold or the supply of a

fruit should reduce like for example instead of selling 500 grapes now grape seller is saying i only have 250

which means that 50 pounds is available so either one of these four things should happen

supply should decrease or the price should decrease or more people should be willing to put their money in

which is when another fruit can enter the market and they can start selling because that's when

more money will be available um alternatively if the if the apple seller wants to increase

his price right again there needs to be more money available so either more people need to

buy or people need to spend more among the people who are buying fruits

otherwise the one of the the other fruits should reduce the price this also we saw in the previous example

now apple themselves can decide i mean the people selling apple themselves can decide to increase the price of apple

without these three things by just reducing the quantity of apple available that's the available supply

so instead of 40 apples if they say only we're going to sell only 20 apples no new fruit has entered

but we're going to increase our we could try and increase our price to about 20 pounds

this is another scenario where the available supply goes down as a result of which the price can go up so

the market capital is what the people are willing to spend the supplied also determines how much

price it could be all of these factors play a critical role in terms of how much

uh cryptos value could be and what is the share of each of these cryptos market capital

that determines their price ultimately that kind of it's one of the reasons or one of the um

things to consider when you're buying or selling a cryptocurrency so we'll come back to this market

capital and available supply uh towards the end with uh with a real world example but for now

let's look at what has changed right so um i have explained in bitcoin you know what

uh how blockchain concept was originally used for the purposes of creating um the world's

first cryptocurrency which is uh bitcoin and that was the only cryptocurrency at that point of

time and that was probably the only implementation of blockchain at that point of time

today uh however there are several new versions of the blockchain protocol the blockchain is a

concept and there are several new protocols that have come up there is ethereum protocol there's so many

protocols that have come up and um earlier cryptocurrency was being created only for the purpose of

cryptocurrency there's no other value to it no other reason for it to exist so if you if you decide not to use it as

a cryptocurrency there's no reason for it to exist but today uh the cryptocurrency they are

being fundamentally backed up by usage um some of them are utility tokens some of them are reward tokens for example

and these are changing the cryptocurrency industry so example being right so

utility token for example xrp again i think i briefly mentioned about that in my

bitcoin video is a token by a corporation called ripple which is uh changing the world in terms of its ultra

quick cross border transactions cross border monetary transactions if somebody wanted to send money from

u.s to india then us dollars to indian rupees then earlier they were using concepts

like swift which used to take either days or now it takes about hours so if you send it to the morning by

by evening or by two or three hours it will be available in india and that's because

the technology is very very slow and the technology is very old and ripple is bringing up a new concept

where the money is converted into xrp tokens and the xrp tokens is converted to the destination currency

all within a span of like three or four seconds which means that if you send money from us or anywhere in the world

in any currency uh you can send it to any other country in that destination currency in a few

seconds that's how the the xrp is providing utility for this concept

and so xrp as a token has a value it's about 20 pence now it's roughly about 19 rupees

on on 13th of september when we are shooting this video the other is a reward token so reward

token is basically um you are you are doing something and you're getting instead of money

you're accepting um a reward in terms of a token like for example uh storej is a token

which allows users across the world to lend their ideal storage devices like for a home computer if i have a

nas storage device i can lend my storage to be used by people in the world connected to the internet

and for lending my storage i'm getting paid in form of storage coins which is

basically a cryptocurrency so one storage a coin is about 40 pence or about 37 rupees and again you know if

you if you landed for like maybe 10 days you might get one storage or two storage

depending upon how the usage is being monitored at that point of time but that's basically a concept

allowing people who are sitting who are having resources across this world to lend their

resources or lend the time and you are rewarding them for the time and um storage space

or whatever resources that they're giving so this is a reward token so concepts like these when they change

the usage of cryptocurrency there is a uh there's a real need for it now you can't

overnight you can't just replace reward tokens or you can't replace your clitty tokens

because the mechanism is built and it's like a bridge you can't just replace the bridge

you need to have a sustainable replacement before you can do it big replacement

replace the reward token or a utility token unlike cryptocurrencies like bitcoin which has

only usa just to serve as a cryptocurrency so now how do i um transact with crypto right you know

all this said and done you know but how easy or difficult it is but it's practically as simple as you know buying

something and selling something it's like a share like you can basically um you know can i can i directly go and

buy with a bitcoin yes you can but the most simpler option is basically you sell it instantly the money comes into

your bank or into your account and you can use the money to buy whatever you want like gold right you

can go and sell it in a pawn shop and you can get the money for it um

or there are some crypto wallets that are available like a revolution example there is a multi-currency multi-country

wallet which uh it's like paypal but it gives you a visa card or a debit card or a card that you can use to transact so

if you have money in it it's like a bank account but uh it's it's a it's a digital wallet bank

account so you can traditionally keep money in it and you can go and spend the money

with our uh visa card but what happens is if you don't have money and if you have crypto

in your wallet the crypto is instantly converted when you go to a grocery shop or any shop and

you touch your you use your visa card for example i actually went to one of the grocery shops and it didn't

have money in my wallet but i had crypto and when i actually touched it in that card reader um

instantly and within a second it sold my crypto in market rate converted into the currency that was

needed in that place and it actually worked it actually i didn't even realize that it was happening only when i came

back i realized that it had all done it in like fraction of a second so um though that's also possible in

today's world and there are some marketplaces where you can buy um

services with the cryptocurrencies like bat for example brave award token and there are some game purchases like

you know people who use mobile games they know that they can buy things and the in-game purchases in the mobile

and samsung backed engine coin as an example where it's again a cryptocurrency

which you can buy and sell online but um that is used behind the scenes for buying

and selling services within the game so in-game purchases can also be done using cryptocurrencies um

a lot of people had asked me about bitcoin mining you know uh we've heard about bitcoin mining what is it so

when the concept of bitcoin started the computers were needed across the world so individual computers were

needed across the world to run what is called as a blockchain node which is basically a proof of concept to

support the infrastructure needed for all of this digital currency because it's all decentralized processing that

is happening which means every computer that is connected to this whole exchange that's

actually processing the transactions because you are helping to process the transaction like we talked about storage

right people were rewarded with bitcoin so 10 years back if you had a home computer

you can run a bitcoin node it's like a software that you can run and you will basically set aside the

computer just for running the bitcoin node and uh as a reward you will be given

some bitcoins it could be a fraction of a bitcoin but over the period of time a lot of

corporations have got involved a lot of firms have got involved and they are doing this with thousands and thousands

of computers which means today it is really competitive and and with a with a home computer is virtually

impossible or it's not viable even if you're able to do it it's not

economically viable to do mining with our home pcs because when the cost of electricity involved

you need to run it probably about 100 days before you could get even a fraction of bitcoin

and the value of the bitcoin if it's let's say a hundred rupees you would have spent nearly thousand

rupees in electricity alone and the computing power that is required you need the best of the best processes

and actually today's mining operations require more gpu power than the cpu power and the graphics

cards are the latest graphics cards are required and like i said today big firms are

doing it in powerful machines in arrays in hundreds and hundreds of computers in firms specifically where

the electricity costs are low and they are um they're doing it much much faster and it's really difficult for our home

computers to cope up with it so mining is really not viable at this point of time

for famous coins like bitcoin if it's a really obscure digital currency you can probably try it

but again in all of these challenges are even even there for those things as well the cost of electricity

is a big downer on that on the concept of mining with a home computer so

having said that you know are there any free crypto earning options there are some

genuine free crypto earning options where it's not just a concept but the crypto has some value which you can earn

and you can actually pay you can actually sell it for money or you can use it for something else um

i will be covering it in detail in some of my next videos so keep watching so the series is going to be like seven or

eight videos long and i need to basically take this is going to be a long video in terms of the concept that

i'm explaining and for these free crypto mining and what to sell whatever i'm going to

explain it in the next videos in detail because it needs time to um

be explained and be understood as well so now i've understood what is bitcoin

mining what i mean what is bitcoin selling what is the exchange you know how you can make profit sellers just go

and buy a bitcoin simple answer is no if you go and buy a bitcoin today it's like it's

equivalent to going and buying a google share not not really but i mean roughly equivalent to going and buying a google

share at tesla the risk is much much higher because you know a couple of weeks back tesla

had a huge fall and google share i explained it was about 1 500 pounds and it swung to about 1000 pounds

a few days back as well so the swing is is enormous and the the money that he could lose is also

enormous so bitcoin price for example in december 2017 touched about 15 600 pounds or about 15

lakhs uh in in couple of months time by february it lost nearly 70 percent of it

value and it went down to about 6000 pounds so had people bought it um they would

have lost nearly 10 lakhs in a span of two months and uh it has never reached that that

price point again that 15 lakh price point again and it's probably crossed about 10 000

pounds a few times but it has never gone back to that peak value of 15 lakhs again so if

you're buying bitcoin today again you know that's the huge risk you could lose

money very very quickly and it's also very highly priced it's already gone to a big point

having said that you know what's the market capital um we spoke about market capital and

available volume and all that right that's when it comes into uh perspective so there are about like i said that

about 8 000 cryptocurrencies and roughly the whole market capital all of these cryptocurrencies put together

is about 250 to 300 billion pounds it goes up and down every minute so it's it's really tough to put a

single number out there but it's let's say for arguments like if 250 billion pounds

which is huge amount of money but uh more than 58 of the entire market capital is

controlled by bitcoin today so even though there's only about 115 million bitcoin available

out there um 145 billion pounds is the market capital of bitcoin and number two is ethereum which was

probably one of the more prominent coins which came next to bitcoin as a result it is also enjoying the

number two spots about 35 billion pounds so roughly uh 13 of the entire crypto market so roughly these two

make up about 71 70 of the entire crypto market which means all of the other 8000 crypto

currencies out there they make up about 29 now what did what does it mean

it actually means that those 8 000 cryptocurrencies have an opportunity to capture this 70 of the cryptocurrency

market or if more money comes in uh it makes more sense for either of those 8 000 cryptocurrencies to capture that

new market rather than these two getting more market as well so i'm not saying bitcoin

or ethereum cannot capture the new money that is coming that's also possible

but the chances are more for these new currencies new cryptos to capture the market which we probably

look at a couple of more examples why that's uh that's uh having a lot more opportunity than bitcoin or

ethereum for example can bitcoin go to zero or you know can it go to a hundred thousand points both

of these can happen like i said right bitcoin has really no purpose other than serving a

monetary value and is actually controlled by you know less than one percent of the population very

small amount of population use today if majority of the population decide that

okay we're not even going to consider bitcoin right nobody is going to use bitcoin like you know for example

platinum if somebody turns around and says that platinum you know we're not going to consider it as

an ornamental jewel so that's it practical might lose its value argument's sake right so like

like that uh bitcoin can also lose its entire value people just collectively decide saying that okay

i'm not going to use bitcoin i'm going to use ethereum from today onwards we're not going nobody's going to use

bitcoin we're not going to accept bitcoin the value will become zero because

the only purpose for bitcoin is to be used as a monetary transaction however some of the utility tokens and

reward tokens because they serve a purpose today they need to exist you can't just

replace it because fundamentally they are serving another purpose on top of being a

cryptocurrency so even though they are as volatile as compared to bitcoin

they are comparatively safer because the usage cannot be replaced overnight again we are stressing on the same point

so what is the strategy i mean people who've been following my share trading videos you will know that um

i don't pick uh shares that have already reached their peaks i pick a company which is in its growing

stages we call it finishes and they have a solid business plan solid management team solid growth

potential and most of the shares that i've picked if you have watched my august video in

july video i've been giving examples of the share that i picked in april or may and made a

video of and what is the value today most of the shares are sitting at 80 to 100 sometimes even 200 percent

so that's the kind of crypto that you need to pick that's the same strategy that you need to apply

where um you're picking a a crypto that has a growth potential that has a solid

business plan a solid team behind it and a management team behind it and as a result

there is a there is an opportunity for it to grow a lot more higher in value than the other cryptos so um

obviously there's a there's a lesser guarantee than shattering chart trading you can say that if you picked all of

these give it time and with enough time you will never make a loss you will always

make a profit and that's what i've been explaining in my share trading videos as well that

once you have gone into that kind of investment you have spent enough time to read into

a company and understood the growth potential with enough patience you will always

make a profit in shared rating but in crypto we don't have that much of a guarantee you know there's much lesser

guarantee anything can happen new cryptos can come so there's less guarantees but we could pretty much

apply the same strategy for krypton which is what i did um which i explained at the beginning of the video

about my return of investment so what do you look for you know um when we say that we are

looking for these factors what do you look for so obviously the utility values we've

spoken about it quite a lot now um the available supply the market capital for example

xrp is about 100 billion um coins are available um you know from an available supply

which means that even if the coin goes to about three or four pounds that's like 400 billion pounds

which is exceeding the entire market capital of crypto or entire um money that is available in crypto so

it's technically it's probably uh really impossible unless until more money come into the market

so the market capital is is very important uh in conjunction with the available supply

whereas if you look at uh uh bitcoin for example ethereum for example the available supply is in millions

which means that they can afford to go to thousand pounds or ten thousand pounds

which is still less than 100 billion pounds or 200 billion pounds um and again the prior peak buys price

gives you an indication like bitcoin has reached let's say um you know ten thousand pounds or

fifteen thousand pounds and if it has fallen to it felt about three thousand pounds a

couple of uh um months back or a few months back for example and when it was three thousand

pounds people always were saying that okay the prior peak price was fifteen thousand

pounds so there is every opportunity for it to go up and people bought it at three thousand points

and you know today it is setting about eight thousand nine thousand pounds so um that that's the kind of prediction

that you can make and again the team behind it the future usage behind it the future usage is what is probably

more important in terms of spending time reading about it and doing enough research about it so

there are two uh or three hot new concepts that are out there and i'll explain couple of uh hot new concepts in

layman's term so you will hear if you are in cryptocurrency you will hear this term called oracle

so what is oracle in terms of you know what oracle is outside the blockchain industry outside the cryptocurrency

industry but in cryptocurrency uh in blockchain oracle is basically a concept where

the blockchain cannot directly deal with external data once it starts processing it doesn't know about the external data

so for example if there is a fluctuation exchange rate if there's a war going on in another

country the blockchain cannot take decisions based on external data because it can't

interact with external data on their own oracle is a mechanism that is built for this blockchain to interact with the

external data in real time and some of the concepts that are coming up new are chain link

protocol which is the link is the coin that is used for the chain link protocol zap protocol which zap is the coin that

is used for the zap protocol and band protocol these are kind of the the more popular

oracle base crypto so to use this mechanism um they are asked to buy this link from them which is when

the value of link or zap or band is created so when you want to use the oracle

mechanism oracle blockchain they are asking that the blockchain concept to basically buy the crypto and

that's how the the value is created for this again uh another hot uh term that you would

hear in the crypto industry is decentralized finance this is practically

the most disruptive fintech concept of the decade the reason being today if if there needs

to be a monetary agreement like if you want to have a personal or a home loan or any other

financial agreement right you need to have a bank involved or a lawyer involved you need to have the stamp

papers there are so many things that you need to do and it takes time it takes like

two or three days before you can have the agreement in place some of the loan documents are

online now but still it takes all of the legal concepts to be in place and what smart contracts what the

decentralized finance is doing is creating a concept called smart contracts which are automatically

created enforceable uh digital contracts that are backed up by a cryptocurrency

so for example um you know if somebody wants to have a loan in place or two parties need to have a financial

contract in place there is a collateral that is involved in the form of a digital currency and a

smart contract is automatically created within like few seconds so what used to take days and what used to be

costing them a lot of money now is being done in like a few seconds with a fraction of the cost

that was involved and no wonder it is called as the most disruptive fintech concept of the decade and two of the

most popular fintech defy concepts are compound which is using comp as the

digital currency in av which is using lend as the digital currency so you can basically

go and take a loan and use lend as a collateral you can get money within a few seconds um there is a smart

contract that gets created they are they are enforceable agreements that's the main thing

so why is this better and why is this more important like i said it's growing exponentially like two

years back in 2017 2018 the value of total smart contracts people were using smart contracts even

then right but the value of smart contracts was about 1.5 million pounds but 15

crore rupees in indian value today in like less than 20 months you know the the total value

enabled by the smart contract is worth 5.5 billion pounds which is like nearly 55 000 crores

so from 1.5 million pounds to 5.5 billion crores it's like almost you know 3 000 4000 times growth

in just a span of two years so 55 000 crores is not a mean amount at all

and this is growing exponentially every day so tomorrow's world you may never have to

deal with stand papers or with you know normal conventional financial agreements everything could be replaced

by a smart contract concept and which means that the digital currency behind it

could grow exponentially as well so um like we spoke about uh the oracles right so all the data that

is being provided in terms of the oracle the data is being tokenized so if you want to access the

data then you need to pay a token or buy a token for link or zap so i will sell you this data only for zap so today

for example our private data is used by corporations like google and facebook

and they make money out of it they sell our data they use our data they market our data

and they make money out of it we get nothing tomorrow this could change with these oracles because you know

people will say that okay if i'm going to use my data i need to be paid this digital currency before they are allowed

to use my data my data is tied to a blockchain and anybody using my data i

can get to know that they're using my data because it i can trace it using a

blockchain so that's how much the the disruption that is possible in terms of tokenizing the data that is available

and that's what oracle's like link and zap are doing and

which brings me to the point you know what did i buy so i bought zap zap is the oracle that we spoke about

when i bought it um it was about one uh less than one pence it was point zero zero one

uh pounds which is like less than one pence which is in indian rupees it's about 10

p 10 paisa i would say and i bought it for about 20 pounds and i got 20 000 coins and i didn't know it was going to

grow until june 2020 it was about that range you know it was probably going up and

down maybe a couple of pence but it was it was in that range and within a span of 60 days on 9th of

august it's reached about 19 pence roughly about 18 rupees in indian rupees which means that the 20 000 coins that i

had bought for 20 pounds was worth now 3700 pounds or roughly 3.6 lakhs it's an 18

18 000 um increase in terms of the value that i had for the uh 20 pounds of worth of coins so today

again you know when we are speaking on 13th of february of september it's sitting around um

eight pence or about eight rupees which is still roughly about 1 600 pounds about

800 times 80 times the investment that i had made so this is again

volatile it's about lost half its value in a span of one month again it went up and it had also come down in

a span of one month so like i said this gives you again an example of a digital currency being

volatile now here is an important part now i i said i bought it in june but

i was explaining that to to give you the perspective that how much it can quickly jump

the reason i'm i'm explaining or i'm mentioning this point is for the patients that uh

like share trading you need to have patients when you're buying digital currency so i didn't buy it in june

actually bought it in jan 2020 when not many people are you heard about the concept calls up so my

brother is basically a much more knowledged and digital currency and he had explained about

some of these concepts to me at that time at that time nobody knew about zap and it was very difficult to

buy zap so we did we still did go and find out how to buy it where to buy it and we bought 20 pounds of it

and i completely forgot about it i didn't even remember that i had bought it

and we were just patiently waiting for it i mean it was it was 20 pounds is not worth a lot of money in uk so likewise

right in india two thousand rupees if you're spending if you're earning well you don't really um think that this is a

big amount and i had not even thought about it and suddenly uh from june when

the adoption became more popular it started growing in value very rapidly so that's what could happen to any other

digital currency even to zap it could go up much much higher if the adoption is

much more higher so that's that's the that's kind of giving you an indication of the room for growth that is out there

depending upon the usage of the new concepts of digital currency so big question is you know what to buy

uh where to buy so you know some of the cryptos for example zap is not available to buy in all the

exchanges and not every exchange has the same fee structure some of them if you're buying

10 pounds worth of digital currency you probably end up spending like eight nine pounds in fees

alone which means that you're spending more than the amount that you're spending to buy

it in terms of fees alone so it's not worth it and uh some of the exchanges do not allow you to withdraw

it does cash and it's it's no point buying it in that exchange because or in that wallet because then

you can't take the money out regardless how much the the value goes up and some exchanges are just not

trustworthy at all i mean they could basically take your money and run away with it

if you choose the wrong exchange for that matter so it's again a huge topic and this

video is already lengthy so i'm going to actually make a specific video about all of these

points where to buy and you know what are the cryptocurrencies i am buying for example so all of these

are probably going to be coming up in my next video so um again i'm not going to do a

recommendation but i'm going to share like i did in the shared trading video right i'm not a financial expert i'm not

a expert in investment as well but i'm going to explain

what is my investment portfolio giving you an idea and you can basically use it for information and you can do your own

research and also i'll be sharing some of the ways to on free crypto like i said

and it is really difficult um in short trading you know you will have one um exchange app or one app in which uh

you can buy and sell zeroth for example it clearly show you what is the profit or loss whereas in cryptocurrency

because it's spread across wallets and exchanges really difficult to track the profit and loss so i'll explain that as

well also explain what is the difference between a wallet ledger and exchange

you know fundamentally what do they mean why do they differ so finally a big warning huge warning

right share trading is only profitable if you do a lot of research and if you do a lot

of reading and because you're investing your money you have to invest something that is

more costlier than money which is your time unless and until you are investing your

time and reading about it and understanding about it you will not have uh you will not make profits a lot of

people say that i lost a lot of money in shattering because you would have gone and bought

oil companies or you've gone about airline companies which makes no sense absolutely you need

to actually invest a lot of time before you invest your money um that is only way you can be successful in

in trading in chat rating and the same applies to crypto trading as well but crypto trading is a lot more riskier

if it's not disposable money if it's not a money that you don't you need it for

the next few months then don't don't use it only use the money that you don't need for a few

months that you can afford to live without never use your essential funds for

trading because that that would mean that you would probably lose the money and

you won't have the opportunity to wait for a few months like i did which means that uh you know you will

consider it a loss you would probably sell it at a loss there is no guarantee like shares in

crypto trading it can go up quite rapidly the reward is huge but the risk is also huge

you know xrp before that matter went up to three pound in 2017 it has not touched anywhere near the

price has been sitting at 40 pence it's nearly like you know six or seven times lower than

what the peak value that it was finally always do your own research just don't go by my video alone

i'm giving you a foundation i'm giving you all the concepts if you had to go and read all these concepts would have

taken you hours and hours but in 40 minutes i've kind of condensed this this content

so that you can have a head start in terms of you know what cryptocurrency trading is and you can go and

do your own research but i will also be posting more videos explaining some of these concepts in

with a demonstration and where to buy it and how to buy it so keep watching

hopefully this video was useful to you if you found it useful please do post your comments

until next time thanks bye you