Scott Jenkins’ Cryptocurrency series takes the reader from a basic understanding of cryptocurrency to the technical infrastructure behind it, then to trading and investing, and ultimately to long-term success and wealth building. Each book builds on the previous one.
Understanding Cryptocurrency Starts with Understanding Money
One of the keys to understanding cryptocurrency in Book One is first understanding fiat, or conventional currency. If you don’t get anything else out of this first book, pay attention to how money is handled and how its value is affected by governments, banks, and financial institutions. Understanding conventional currency provides a foundation for understanding why cryptocurrency exists.
Another key concept is blockchain. It’s not necessarily easy to grasp at first, but once you begin thinking about it at its most basic level, it starts to make sense. Book one also addresses some of the difficulties cryptocurrency faces because different countries and financial institutions have different approaches to it. Some of those complications appear self-serving and may work against the original purpose behind cryptocurrency.
I particularly liked the way Book One ends with the evolution of money. We tend to think of money as something fixed because most of us have only known dollars and cents. But money has evolved: from trading to tablets and stones, to paper currency, and now to digital formats. Looking at cryptocurrency along that evolution helps bring the basic concepts together.
Going Deeper into the Technology
Book Two builds on that foundation but takes the reader deeper into the technical side, including infrastructure, networks, protocols, and architecture.
Readers without a technical background may find this more challenging. But for someone familiar with networking, architectures, and protocols, much of it should be recognizable. Networks are still networks. Things have to connect to each other and communicate. For technically inclined readers, this helps demystify how cryptocurrency actually works.
From Understanding to Participating
I would consider Book Three the point where Jenkins begins operationalizing your understanding of cryptocurrency. It starts with trading versus investing and discusses the different types of traders and investors and the mental makeup associated with each. Before getting into actual trading or investing, Jenkins helps you consider what type of participant you might be. Do you want to be a trader or an investor? Do you have the psychological makeup for one versus the other? What are the strengths and weaknesses of each?
Three things in particular stand out as things to watch out for: Fear. Greed. Impulsive decisions.
Another important distinction is timing the market versus time in the market. Timing the market means trying to jump on something at exactly the right time. Time in the market means understanding the market thoroughly enough to take advantage of its inevitable ups and downs.
Thinking Long Term
Book Four takes what you’ve learned in the previous three books and extends that knowledge toward long-term success and wealth building. That’s what I like about the progression of the series. Jenkins doesn’t start by telling you how to trade cryptocurrency. He first establishes an understanding of money and cryptocurrency, goes deeper into the technology, and then helps you think about what type of trader or investor you might be before moving toward longer-term financial considerations.
Understand the money. Understand the technology. Understand yourself as an investor. Then think about the long term.
Featured image/photo by DrawKit Illustrations on Unsplash.
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