Disclaimer
The information presented in this cryptocurrency education session
is for informational purposes only and should not be construed as
financial, investment, legal, or professional advice. Cryptocurrency
markets are highly volatile and subject to significant fluctuations.
Investing in cryptocurrencies involves risk, and you should be fully
aware of the risks before making any investment decisions.
Introduction to
Cryptocurrency
Cryptocurrency is a digital form of currency that uses
cryptography for secure transactions and control of new units.
This revolutionary technology, pioneered by Satoshi Nakamoto
with the creation of Bitcoin, has transformed the way we think
about money and finance.
Rise of Cryptocurrencies
Bitcoin was the first cryptocurrency created and is now
the most valuable and well known. It was launched in
January 2009 by a computer programmer or group of
programmers using the pseudonym Satoshi
Nakamoto. Nakamoto's actual identity has never
been verified.
A 2008 white paper by Bitcoin's mysterious creator revealed the
blockchain system that would be the backbone of the cryptocurrency
market. A blockchain is a digital ledger of transactions that is
replicated and distributed across a network of computer systems to
secure information.
Bitcoin vs. Ethereum
Bitcoin Ethereum
Bitcoin is the first and Ethereum is a newer
most well-known cryptocurrency launched in
cryptocurrency, created in 2015. It extends the
2009. It uses blockchain blockchain concept,
technology to enable allowing for the creation of
secure, decentralized smart contracts and
transactions without the decentralized applications
need for a central (dApps) on its platform.
Key Differences
authority.
1. Purpose: Bitcoin is 2. Transaction Time: Bitcoin 3. Supply: Bitcoin has a
primarily a digital transactions take about fixed total supply of
currency, while 10 minutes to process, 21 million coins, while
Ethereum is a platform while Ethereum's are Ethereum has no fixed
for building faster at around 15 limit.
decentralized apps. seconds.
Understanding Blockchain Technology
• Blockchain is a Distributed ledger technology that acts as a
decentralized database, where transactions are recorded in a secure and
transparent manner. Each transaction is stored in a "block" and
connected to the previous block, forming an unbreakable chain of data.
• The blockchain network operates through a consensus mechanism, such
as Proof of Work or Proof of Stake, where nodes (computers) in
the network validate and add new transactions to the blockchain. This
ensures the integrity and security of the network without a central
• authority.
Beyond cryptocurrencies, blockchain technology has numerous
applications, including smart contracts, decentralized finance
(DeFi), and supply chain management.
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Traditional
Currencies vs.
Cryptocurrencies
Traditional currencies, like the Indian Rupee, U.S. dollar or the
Euro, are physical forms of money issued and controlled by
governments.
Cryptocurrencies, like Bitcoin and Ethereum, are digital
currencies that are decentralized and secured by cryptography.
This presentation will explore the key differences between
these two forms of currency.
Cryptography:
The Foundation of Bitcoin
Transactions.
Cryptography, the art of secure communication, is the
backbone of Bitcoin and other cryptocurrencies. It ensures the
integrity and confidentiality of digital transactions by using
complex mathematical algorithms to encrypt and decrypt data.
In Bitcoin, cryptography is essential for verifying the ownership
of funds, securing the blockchain network, and protecting user
privacy. The use of public-key cryptography, hash functions,
and digital signatures enables secure, transparent, and
tamper-resistant transactions without the need for a central
authority.
What is Whitepaper?
A crypto whitepaper is a document published by
the creators of a new cryptocurrency or blockchain
project. It explains the technology, purpose, and
mechanics of the project in detail.
It contains,
Introduction:
Technical Details
Use Cases
Tokenomics
Roadmap
Team
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Why you should be
investing in
cryptocurrency instead
of the stock market ?
1. High Potential of Returns
2. Decentralization and
Autonomy
3. 24/7 Market
4. Hedge Against Inflation
5. Widely Adoption
Benefits of Cryptocurrency
Decentralization Transparency Accessibility
Cryptocurrencies are Cryptocurrency transactions are Cryptocurrencies can be
decentralized, meaning they are recorded on a public ledger, the accessed by anyone with an
not controlled by any blockchain, making the system internet, making them more
government or central authority, more transparent and reducing inclusive and available to
providing users with greater the risk of fraud. individuals who may not have
financial freedom and access to traditional financial
independence. services.
Security Fast Transactions Global Reach
Cryptocurrencies use advanced Cryptocurrency transactions are Cryptocurrencies can be used for
cryptography to secure typically faster and more cross-border transactions,
transactions, making them less efficient than traditional bank enabling global commerce and
susceptible to hacking and fraud transfers, with some taking just reducing the costs associated
compared to traditional payment a few minutes to complete. with traditional international
methods. money transfers.
(Hacking
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How to Buy Cryptocurrency?
Choose a Crypto Set up a Wallet Fund Your Account Place a Buy Order
Exchange
Create a secure Deposit fiat Navigate the
Sign up for a cryptocurrency currency, such as exchange's trading
reputable wallet, either a USD or EUR, into interface to place a
cryptocurrency software like your exchange buy order for the
exchange platform MetaMask or account using a cryptocurrency you
like Coinbase, Trustwallet, bank transfer or want, specifying
Binance, or Kraken hardware, or online debit card to the amount and
to securely buy and wallet, to store purchase your price you're willing
sell various your digital assets. desired to pay.
cryptocurrencies. cryptocurrencies.
How to Store Cryptocurrency?
Digital Wallets Hardware Wallets Paper Wallets
• Use a software, web, or • Invest in a hardware • Generate and print a
mobile cryptocurrency wallet, a physical device paper wallet, which
wallet to securely store that stores your private contains your public
your digital assets. These keys offline, providing and private keys on a
wallets provide easy the highest level of piece of paper, offering
access and management security for your an offline, tamper-
of your cryptocurrencies. cryptocurrencies. evident storage
• Example – Metamask, • Example - Ledger Nano solution.
TrustWallet, Trezor Model S Plus, the Ledger Nano
T, Exodus, Electrum etc. X, and the Ledger Stax.
What is DeFi?
DeFi, or Decentralized Finance, is a rapidly growing
ecosystem of financial applications and services built on
blockchain technology, primarily on the Ethereum
network. DeFi aims to create a decentralized,
transparent, and accessible financial system that
operates without intermediaries.
Difference Between CeFi & DeFi
Decentralized Finance (DeFi) Centralized Finance (CeFi)
• Governed by smart contracts • Controlled by centralized entities
and decentralized protocols. such as banks and companies.
• Open access to anyone with an • Access typically restricted,
internet connection and a requiring KYC/AML procedures.
wallet. • Limited transparency, with
• Transparent transactions transaction details held privately.
recorded on public blockchains. • Security protocols managed by
• Relies on cryptographic security centralized authorities.
and consensus mechanisms. • Traditional banks, investment
• Examples : Decentralized firms, centralized exchanges like
exchanges like Uniswap & Coinbase.
Pancakeswap V3.
What is ICO ?
Initial Coin Offering (ICO) Crowdfunding for Crypto Projects
An ICO is a way for cryptocurrency ICOs allow blockchain-based projects
startups to raise funds by selling their to bypass the traditional venture
own digital tokens in exchange for capital funding process and gain
established cryptocurrencies like access to a wider pool of investors.
Bitcoin or Ethereum.
Speculative Nature Regulatory Concerns
ICOs are highly speculative, as ICOs operate in a largely unregulated
investors purchase tokens with the space, raising concerns about fraud,
hope that the project will be successful market manipulation, and lack of
and the tokens will rise in value. investor protections.
Advantages and Risk factors in ICOs
Advantages of ICOs Risks and Criticisms
Access to Capital: Allows startups to Regulatory Uncertainty: ICOs operate in
raise funds without relinquishing equity a gray regulatory area in many
or undergoing strict scrutiny and jurisdictions. This can lead to potential
regulation. legal issues if governments decide to
enforce strict regulations.
Global Reach: Investors from around the Scams and Fraud: The ICO space has
world can participate in ICOs, increasing seen its fair share of scams, where
the potential pool of funds. fundraisers disappear with investors’
funds. The lack of regulation makes it a
Liquidity: Tokens can potentially be fertile ground for fraudulent activities.
traded on cryptocurrency exchanges, High Volatility: The value of tokens
providing liquidity to investors quickly issued in ICOs can be highly volatile.
compared to traditional venture capital Some may gain value rapidly, while
investments. others can become worthless just as
quickly.
What is Airdrop and its Benefits?
Airdrop Defined Building Awareness
An airdrop is a marketing tactic in the Airdrops help crypto projects gain
cryptocurrency industry where a visibility and grow their user base by
blockchain project distributes free incentivizing people to engage with the
tokens or coins to eligible wallets. project.
Rewarding Supporters Potential for Growth
Airdrops reward early adopters and If the airdropped tokens increase in
community members who hold the value, recipients can profit, making
project's tokens, fostering loyalty and airdrops an attractive way to get free
creating a vested interest. cryptocurrency.
Token & Airdrop Total Token Opening Current All Time
Coin Date Distributed Price INR Price INR High INR
Uniswap Sept - 2020 49 Million 233.80 591.31 591.31
Growth(116,566.6%)
Apecoin Feb - 2022 150 Million 81.93 98.07 2044.3
Growth(2392%)
BNB Coin Jul - 2017 100 Million 8.35 49386.07 52933.1
Growth(662,400%)
SOLANA Mar - 2020 8 Million 18.37 12153.53 21715.13
Growth(116,566%)
Question:
If someone had invested 10,000 Indian
Rupees in Solana (SOL) at its initial price
in March 2020, what would be the rate
today in May 2024 ?
Calculation:
Initial Price of Solana (March 2020):
• Approximately $0.22 per SOL
Let's assume the exchange rate was approximately 75 INR per USD.
• Thus, 10,000 INR = 10,000 / 75 = $133.33
Amount of SOL Purchased:
• $133.33 / $0.22 = 606.05 SOL
Current Price of Solana (April 2024)
• Approximately $140 per SOL
Value of SOL in USD:
• 606.05 SOL * $140 = $84,847
Conversion to INR in May 2024
• $84,847 * 83.51 = 7085572.97 INR.
Estimated
Involvement
Rank Investment Agency
in Global
Crypto (%)
Grayscale
1 20-30 %
Investments
2 Pantera Capital 5-10 %
N/A
3 CoinShares (significant
holdings)
Andreessen Horowitz
4 5-10 %
(a16z)
5 Blockchain Capital 3-5 %
Two pizzas for Rs 5,154
crores! 14 years of the Bitcoin
Pizza Day
May 22 marks the 14th anniversary of Bitcoin
Pizza Day, a day when the cryptocurrency was
used in a real-world transaction for the first time.
In 22 May 2010 Laszlo Hanyecz paid Jeremy
Sturdivant 10,000 bitcoins (BTC) for two Papa
John's pizzas which were delivered to Hanyecz's
Investment and Trading
1 Investment Strategies
Cryptocurrency investment strategies include HODLing (holding
long-term), swing trading, and day trading, each with varying risk
profiles and time horizons.
2 Risks and Volatility
The crypto market is highly volatile, subject to market fluctuations,
regulatory uncertainty, and security concerns like exchange hacks
and wallet breaches.
3 Cryptocurrency Exchanges
Investors can access the crypto market through centralized
exchanges (CEXs), decentralized exchanges (DEXs), or peer-to-peer
platforms, each with unique features and levels of custody.
Return of Investment on Crypto till now?
Year Cryptocurrency ROI Gold ROI Stock Portfolio ROI Other Investment Portfolio ROI
2009 N/A 30% 10% 5%
2010 N/A 25% 15% 8%
2011 N/A 20% 5% 6%
2012 1000% 10% 12% 7%
2013 500% 5% 20% 9%
2014 100% -5% 8% 4%
2015 50% 10% 12% 6%
2016 200% 20% 15% 8%
2017 1000% 5%
Potential for Growth
25% 10%
2018 -80% -10% -5% 3%
2019 50% 15% 18% 7%
2020 300% 30% 10% 5%
2021 200% 10% 15% 6%
2022 100% 5% 20% 8%
2023 50% 8% 15% 7%
Regulatory Landscape
Global Compliance Navigating Regulatory
Regulatory and Taxation Regulations Uncertainty
Overview
Different Cryptocurrency Staying up-to- The lack of a
countries have traders and date with the unified global
taken varying investors must evolving regulatory
approaches to comply with KYC regulatory framework for
cryptocurrency (Know Your landscape is cryptocurrencies
regulation. Some Customer) and crucial for crypto can create
have embraced it, AML (Anti-Money enthusiasts. challenges and
while others have Laundering) Understanding uncertainties for
imposed strict regulations. and adhering to investors and
guidelines or Capital gains local laws and businesses
even banned taxes also apply guidelines can operating in the
certain crypto to crypto help mitigate crypto space.
activities. transactions in legal and financial
many risks.
Security Best Practices
Safeguarding your cryptocurrency assets is crucial. Hardware
wallets, paper wallets, and cold storage provide robust private
key management, protecting your funds from online threats like
phishing attacks and exchange hacks.
Thorough research and due diligence are vital when investing in
new cryptocurrency projects. Avoid scams by carefully
evaluating the team, and their technology, their social
handles, popularity, number of investors , holders and
roadmaps and their Whitepaper before committing your
funds.
Conclusion
Recap of Key Points Encouragement Potential for
for Further Disruption
We covered the
Learning
fundamentals of The world of Cryptocurrencies and
cryptocurrencies, the cryptocurrencies and blockchain technology
underlying blockchain blockchain is rapidly have the potential to
technology, evolving. I encourage revolutionize various
investment strategies, you to continue industries, from finance
security best exploring, researching, and supply chain
practices, and the and staying up-to-date management to digital
evolving regulatory with the latest ownership and
landscape. developments in this decentralized
exciting and applications. The future
transformative holds vast opportunities
industry. for innovation and
growth in this space.
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