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Answers to important questions:
What is an ERC20 token?
ERC20 tokens are a major innovation in the code base among many major cryptocurrencies. They are all based on ethereum’s ecosystem, which has some huge advantages. Essentially, the way some cryptocurrencies work is that each coin, or token uses their own coding format to store, and securely facilitate transactions. The older formats presented some major problems that effected the viability, and interoperability of early cryptocurrencies., as creators, and network engineers had to work collaboratively to encode the ability to exchange between. This obstacle was a major limiting factor in the utility, and ease of use.
Today more and more cryptocurrencies, including AlphaGems (AGEM) are built using the standardized ethereum ERC-20 format, which allows them to easily be converted, and transferred to, and from any other coin base that runs on ERC20. This means that more currencies can be acquired, exchanged, and liquidated simply, and securely through your crypto wallet without relying on cross currency project partnerships to facilitate this. This innovation protects crypto holdings from being stranded in one currency, or another in isolated crypto networks. Capitalizing on the ease of conversion, and popularity of ethereum ERC20 tokens puts (AGEM) safely on the leading edge of innovation, and design within the global crypto market.There are currently over 200,000 ERC-20 tokens that can all be converted among each other, and into, and out of ethereum (ETH) with ease.
What are cryptocurrency ecosystems?
All legitimate cryptocurrencies are composed of systems of miners, algorithmic programming, blockchains, and subsequent
exchanges, and clearing houses
that work together to create large cooperative, decentralized, and secure networks that facilitate the secure storage, conversion, and spending of cryptocurrencies. The other major component that comes into play are places, websites,
and platforms that cooperate to form ways that cryptocurrency holders can access services, content, and goods using their holdings.
One of the most important considerations involved in making a sound cryptocurrency acquisition has to do with the ecosystem behind each crypto. If you are looking to use a cryptocurrency to buy, sell, and trade for goods and
services – the leading types offer the most utility in terms of use. Bitcoin, and ethereum, for example, are both widely accepted on digital markets, have massive support structures backing them. The benefits of a crypto with
a well developed ecosystem means that you can use your holdings in more ways, more easily vs. cryptocurrencies that are under supported, and have not prioritized forming ecosystem partners, or back end support. We recommend exploring
cryptocurrencies in depth before acquiring, and keeping in mind your motive for acquiring – if you are seeking to use the crpyto as payment for goods, services, and content, then you may want to veer away from small, new, or
non-networked currencies because they offer few ways for you to use them. If you are seeking to acquire in hopes that a crypto will inflate in value – it is still important to look at what development is going on for each
one. A cryptocurrency with an ecosystem, or that is built upon an existing ecosystem (ex. ERC 20 Tokens) is going to be more useful than one that is not being developed within, or upon it’s own ecosystem.
services – the leading types offer the most utility in terms of use. Bitcoin, and ethereum, for example, are both widely accepted on digital markets, have massive support structures backing them. The benefits of a crypto with
a well developed ecosystem means that you can use your holdings in more ways, more easily vs. cryptocurrencies that are under supported, and have not prioritized forming ecosystem partners, or back end support. We recommend exploring
cryptocurrencies in depth before acquiring, and keeping in mind your motive for acquiring – if you are seeking to use the crpyto as payment for goods, services, and content, then you may want to veer away from small, new, or
non-networked currencies because they offer few ways for you to use them. If you are seeking to acquire in hopes that a crypto will inflate in value – it is still important to look at what development is going on for each
one. A cryptocurrency with an ecosystem, or that is built upon an existing ecosystem (ex. ERC 20 Tokens) is going to be more useful than one that is not being developed within, or upon it’s own ecosystem.
Do I need to report digital assets when I do my taxes?
Cryptocurrencies, including AlphaGems (AGEM) are legitimate cryptocurrency assets, meet regulatory requirements, and can be exchanged for fiat currencies. The laws, regulations, and reporting requirements vary widely depending upon which country you are a citizen in, or where you are conducting your transactions, or conversions. For example, in the United States whichever clearing house you choose to convert (AGEM) tokens will be regulated for taxation. We recommend that all holders of cryptocurrencies, or those interested in acquiring research, and ascertain what tax laws, and regulations are in place in your locality. In the United States there is a section on most annual tax forms where individuals are asked to report any digital assets, however these assets are unlikely to be taxed at this point, but they do want to know if you hold any. If you are asked to report – we believe you should be truthful because the safest way to protect yourself, and your wealth is to be in compliance with any laws that you fall under.
What is the role of a crpyto exchange?
A cryptocurrency exchange is much like it sounds – they are similar to stock exchanges, but the only things being bought, and sold are cryptocurrencies. They may be a little challenging for beginners to understand, so here are the basics: you will normally find panels of graphs showing the fluctuating value of various cryptocurrencies. Much like traditional currency markets – they are designed to help traders see the averages, 7-day, and full history of the values. Exchanges have lists of buy-sell orders, and allow individuals to post, and purchase from, and to their cryptowallets as a service to support transactions. Like all other financial service products, or venues we highly suggest that you conduct your own thorough research before sighing up, and trusting any of them with your wealth. Look for articles, and forums – even videos that discuss the legitimacy, and viability before your trust in any of them. Additionally, there is information available on how to use crypto exchanges, and it is widely available on the web. Take a look, get educated, and manage the risks by testing these services with small values first.
How do I keep my crypto wallet safe?
Instead of having to worry about bank robbers, or invest in a home vault – any localized crypto wallet that you invest in should be encrypted, and require a passphrase, code, or key to enter, and transact. This means that you MUST keep any codes, keys, or phrases safe, secure, and confidential. Consider who you inform about your wallet. Keep your internet security system up-to-date, think about purchasing enhanced digital security, or even learning how to safely encrypt, and backup your hard drive.
Do not allow yourself to misplace your logon information. Check to see if the method you are using allows you to make backups, and if so, seek a place that is extremely safe for storing any backup information that you can use to access your wallet. Some wallets facilitate access by providing a phrase to memorize – consider recording your phrase on a piece of paper, or on a secure isolated digital network, and spend ample time memorizing, and challenging your ability to accurately recall, and make absolutely certain that you won’t forget your access codes.
Choose a very secure location for storing any login info, especially if you have only one set. Conventional safety deposit boxes in banks, fireproof home safes, and buildings that are resistant to environmental damage, or acute catastrophe, such as fires, floods, and earthquakes are the best recommended locations for storing this highly sensitive information. If your only key, phrase, or code is lost there is only one way to recover the stranded funds in your wallet, and that is to hire a specialist to hack into the wallet. This, however, is increasingly expensive, and lengthy due to improvements in modern encryption technology, and typically requires an individual to invest in running time on high power computer networks, and pay a specialist’s fees just to even attempt to regain access.
Remember, it is up to you to protect your digital wealth.
What is an ICO, and why do I need to be very careful before investing in one?
Our most important advice if you are interested in an Initial Coin Offering (ICO) is to be wary of new cryptocurrencies, and verify all values before you plan to make an acquisition. ICO’s are very similar to Initial Public Offerings (IPO) that companies offer when they are raising funds by selling shares in their company. This is inherently risky because you are placing your trust in the creators to not simply take your money, and abandon the currency project. The way to invest intelligently in ICO’s is to research them thoroughly – questions like, “who is involved in creating the crypto? Have they been involved in successful activities previously? Is the crypto going to be based on a preexisting ecosystem, like ERC20?” are good questions to guide your investigation. Another good indicator of whether an ICO is legitimate is if it has a publicly available ‘
Whitepaper.’
How do I convert digital wealth into traditional currency?
The term given to the last stop to “cash out” cryptocurrency is called a “clearing house.” A clearing house, just like a cryptocurrency exchange, must be in compliance with any governmental regulations that may apply to it – if any apply. The role of
clearing houses are to convert cryptocurrency into traditional fiat currency, like the USD. Many clearing houses offer fully integrated services that safely, and securely connect with a personal bank account so that they can manage the conversion, and transfer in a streamlined way that is used friendly, and secure. Do the research, and use the
test-transfer method: send a small amount through a clearing house first, before you send a large amount in order to verify that the clearing house, and the receiving account are compatible with, and function as promised. If you send a large value first, and it vanishes – there is next to nothing you can do to get it back, so the method we recommend involves testing a clearing house first to make sure that it functions, safely, securely, and as promised. After a test transfer you will be able to determine if you want to trust them with a larger transfer.
What is a Whitepaper?
White papers are essentially when the creators are transparent with investors by showing what the architecture of the crypto is going to be based on, how it works, and what preexisting innovations it will utilize. If a whitepaper is unavailable it usually means that an ICO may be poorly prepared, under structured, or dishonest.
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