There is some terms you will want to understand before going deeper into crypto. It’s okay to be confused at first, with time you will understand all of this.
Cryptocurrency: a digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by a centralized authority.
Blockchain: A large sort of digital ledger where all activity that takes place on the platform is recorded forever. There are Nodes which basically have every transaction go through it to be validated. Then it bounces to another node and after a certain amount is confirmed.
Crypto Wallet: A computer, mobile or web based application that stores all of your crypto. This is where all crypto not on exchanges is stored. Security should be your #1 concern. If bad actors get access to your keys it’s not pretty and you’ll lose everything in that wallet.
DYOR: Do your own research and don’t take financial advice from strangers. Don’t take anything I say as advice. I aim for more of an educational foundation that will allow you begin the quest that changes your life. I thought people were being snarky and rude earlier. Most people are not genuine and will screw folks over.
Fork: Not the thing you stick in food and in your mouth. This is when a new project is created from another established blockchain. There’s two types. The kind that build something new on the service or the type that hardly changes anything. The second kind are easty to spot after a little while. I will dive more into these in another post.
Exchange: A digital marketplace where you can buy and sell crypto. There are a lot out there but most are total shit. I’ll go into this and wallet in another post.
Decentralization: We are used to a system of centralized financial instructions and tech companies. This means that a central authority has total control over a system. This leaves a major single point of failure. If the bank you store your money at goes bankrupt or gets tight on money and only lets you take out a certain amount each day and not all of your funds. Decentral means that more than that one bank makes decisions on the network.
Dip: When the price goes down on a token. Some folks will be upset over -2. If you see crypto as a long term investment the day to day swings shouldn’t bother you. Some coins now literally have a tx fee that goes to all holders so any large sells make your wallet grow. It is also a great time to buy more tokens if you want to make the most amount of $ possible.
Math. assume you have token you bought at .13 cents with a 1.4mil marketcap (defi young prject) If it goes down in price to 7 cents and a 730kmcap a week later and think project is longer term hold you were just able to buy more for almost half of the price
All In — One takes all of the crypto they have and puts in 1 token that’s all in. There are projects out there that will raise a level you can’t imagine. These projects fail a lot so one better be damn sure it won’t knock them down.
Telegram: The main form of communication for the community and devs to interact with people. This can be amazing or a negative energy drain. Avoid getting into talking in the general chat if there’s a ton of people. They always turn into total cancer that is predictable.
1. post saying “is project dead” “everyone is disappointed” and getting really aggressive towards the devs. These are emotional people that come in with an unrealistic view on how crypto will be. There’s a lot of 50x and 100x memes but its extremely rare to buy into a project when it’s really small and have it even 3x
2. Post crying about how some “paper handed loser” dumped a bunch of the coin. There’s another attitude pushed in telegrams with folks getting very aggressive with other posts.
3.Most important part. Devs reactions and participation in chat. The great projects will reply to the FUD and have the devs at least posting in the chat a few times a day. There is also projects where the FUDster was completly right and you just got rug pulled or had total supply do a big ass increase so your holding worthless. I have avoided a few rugs by taking my inital out at 2x on some of the sketchier projects. I’ve since stopped buying those at all.
Just know that crypto may seem like the stock market at first. The trade is 24/7 and it’s easy to spend too much time looking at charts. I don’t think there’s anything I can say here it is a part of what makes crypto unique.
One of the final points is to never spend more than you can afford to lose. Crypto has a higher risk higher reward than your typical investment options. The market basically follows bitcoin and eth. Those are not stable assets and everything could crash oneday and whole folio is :(.