The Essential Crypto Guide

A.M. Singer

Newbie
4 1
This is the guide that I created to help people understand crypto financially. It is the core of what crypto actually is.

There is also some great info like security and how to deal with exchanges with links to helpful places.

The digital guide is on my site (as well as reports and proof):

https://www.amsinger.org/ecg


Summary:

This guide provides a clear financial understanding of crypto. It identifies the natural market forces affecting the price of crypto as a commodity. This information allows buyers and sellers to identify the risk of any crypto investment.


Chapter 1 - How to understand crypto as a commodity:

The Creation Cost is the industrial cost of a crypto coin. The Creation Cost represents the fundamental infrastructure buy-point into crypto.

Crypto acts as a bond, a stock, and a currency:

  • Creation cost is the bond price.
  • Market price is the stock price.
  • The storage and transfer capacity is the currency use.


By analyzing the infrastructural size of each coin you can identify the financial fundamentals of each coin (active investment value, cash flow, industry profit).

In order for core crypto coins to function there is a static inflation rate.

For Bitcoin, currently 900 new coins are created per day. In order for the price to remain stable, new investment must equal the new bitcoin. If the bitcoin price is at $10,000 then $9,000,000 of new investment must flow in.

Crypto is inherently public and these numbers can be found by analyzing the hash rate and other public information.

The only coins that can be measured as commodities are coins that have a stable infrastructure and an inflation rate. All other coins are considered high risk venture capital.

Crypto is a unique commodity because as a digital asset it has virtually zero storage or movement costs compared to conventional commodities (it is much more difficult to store or transfer gold or wheat). This new commodity requires this new type of analysis.


Chapter 2 - Fundamental Analysis of Crypto:

The Fundamental Crypto Report presents the fundamental analysis of available crypto coins.

Fundamental Analysis covers:

  • Creation Cost – Cost to create each coin
  • Asset Value – Total real world investment in each coin
  • Cash Flow – Daily costs needed to maintain the core functions of each coin
  • Industry Profit/Loss – The profit or loss that each coin experiences over a period
Fundamental analysis is the basis for understanding crypto. It compares the creation cost (bond price) vs the market price (stock price) of each crypto. It is the only way to identify if a crypto coin’s price is inflated or deflated, logical or illogical.



It is only suggested to purchase crypto at a price near the creation cost. Purchasing crypto near the creation cost (bond price) is lower risk than purchasing it high above the creation cost.

When the price of a crypto coin reaches the creation cost the invested parties have 2 choices:

  • Turn off their machines and utilize remaining variable funds to purchase coins on the market for less than cost
  • Continue creating coins at a loss, selling smaller portions and storing coins for later sale once the market recovers.


When the price of a crypto coin is near the creation cost, larger buyers become active, and begin to lower the risk of investment into these coins. New crypto investors can either spend $10,000,000 to buy machines, set up server farms, and pay electricity costs in order to get χ amount of coins over time, or they can spend $10,000,000 to get χ amount of coins upfront at a known price.

Fundamental analysis effectively predicts long term trends in crypto. By understanding the total asset values behind these coins, true investment and financial trends can be identified. Long term in crypto is generally 6+ months, crypto operates on a shorter financial cycle than conventional markets currently.


Chapter 3 - How to safely invest in crypto:

3A – Password management and wallets

The most important aspect of investing in crypto is password management and safety, and to avoid keeping large amounts of funds on exchanges or away from your own wallets.


Safe personal passwords are actually quite simple to make. My method is to take personal thoughts that I would never tell anyone and convert them into passwords, for example:

  • IwetthebeduntilIwas14
  • OnMay11Stevegavemeicecream

It is highly suggested to write down any crypto password and seed phrase and place the paper in a safety deposit box. It is not suggested to store crypto passwords on keychain applications.


The Fundamental Crypto Report has 6 coins Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Dash (DASH), and Monero (XMR).

You will find links to the wallets for these coins below:

Bitcoin Wallet - https://electrum.org/#home

Ethereum Wallet - https://www.myetherwallet.com/

Bitcoin Cash Wallet - https://electroncash.org/

Litecoin Wallet - https://electrum-ltc.org/

Dash Wallet - https://www.dash.org/downloads/

Monero Wallet - https://www.getmonero.org/downloads/


Multi-wallets (less secure, but simpler to use):

Coinomi - https://www.coinomi.com/en/

Exodus - https://www.exodus.io/

Jaxx - https://jaxx.io/



Hardware Wallets:

Ledger - https://www.ledger.com/

Trezor - https://trezor.io/


3B – Utilizing exchanges

Crypto exchanges are not supposed to be used as wallets and holders of funds. It is highly suggested to hold the majority of your funds in your personal wallet and only keep the funds that you want to actively trade stored at any exchange.



Utilizing these methods will keep your funds safe. The Fundamental Crypto Report is designed to keep the value of your funds safe.

If you would like to ask me a question about personal OPSEC (Operational Security) feel free here: [email protected]. If you need enterprise grade OPSEC email me there as well and I would be happy to consult.

P.S. I use encrypted file containers to store my encrypted wallets. This allows me to store copies safely on cloud servers for backup. Veracrypt is the gold standard of file encryption like this. https://www.veracrypt.fr/en/Home.html


Chapter 4 - How to understand the Fundamental Crypto Report:

The Fundamental Crypto Report is a weekly report published for clients that contains a complete commodity analysis for 6 coins. It presents all the data explained in this guide including creation cost, commodity assets, industrial profit/loss and various other analyses for the coins (volatility, core data, etc).

Personal Clients gain access to the report and are welcome to contact me for general or specific questions.

I have spent 8 years watching, investing, and making mistakes in crypto. My purpose with this business is to allow other people and organizations smooth and experienced utilization of crypto. Replicate the successes; avoid the mistakes. To do that you must understand crypto for what it is: a highly manipulated commodity.

Find more info on my website here:

https://www.amsinger.org/

Aaron
 
 
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