The free course provides an introduction to the emerging world of cryptocurrencies. It’s just 3 videos of 5-7 minutes and now you have the base
Welcome to an introductory mini-course about cryptocurrencies.
At 3 free lectures, we will briefly discuss the essence of blockchain technology, as well as touch on the issues of safe purchase, storage and earning of cryptocurrencies.
In the first video, we will briefly touch on the basic concepts from the world of cryptocurrencies and explain the essence of the technology.
The first thing we will start with is the concept of blockchain. Blockchain is a digital database that reflects all completed transactions.
All records in the blockchain are presented in the form of blocks, which are interconnected by special keys. Each new block contains data about the previous one.
Blockchain allows each member of the network to have access to a distributed database. At the same time, the blockchain does not store the data itself, but records of events (transactions) in their chronological sequence.
Blockchains are classified according to the applied network consensus protocol.
Blockchain consensus is a procedure in which network participants reach agreement on the current state of data in the network. Through this, consensus algorithms establish reliability and trust in the network itself.
Consensus protocols:
PoW (Proof-of-work) — this is how bitcoin works
PoS (Proof-of-stake) — how Ethereum works
PoS + PoW (a hybrid of PoW and PoS) — this is how Dash works
Blockchain can work both in a public (open) network, to which any user has access, and in a private (closed) one.
The most famous example of a public blockchain is Bitcoin and other cryptocurrencies.
What are the top cryptocurrencies at the beginning of 2023?
Bitcoin is a cryptocurrency that is generated by networks of computers and can be used in many cases when making online payments instead of traditional currencies. It is the first cryptocurrency in the world and its current flagship with the largest capitalization. The cryptocurrency market is still largely associated with bitcoin as the main cryptocurrency that sets the direction of the entire market.
Ethereum is a blockchain platform for decentralized applications, and the second largest cryptocurrency (ETH) by capitalization. Most of the popular DeFi and NFT projects operate on the Ethereum network.
Tether (USDT) is a cryptocurrency that belongs to the stablecoin type. That is, it is backed by fiat money, due to which there is no volatility (1USDT = 1 US dollar). It also offers users stability, transparency and minimal fees. Important advantages of USDT are the absolute transparency of settlements and the high speed of transactions.
BNB is the cryptocurrency that powers the Binance Chain ecosystem. BNB is one of the most popular utility tokens in the world. Not only can you trade BNB like any other cryptocurrency, but you can also use BNB for the widest range of additional benefits, mainly related to the Binance exchange.
USD Coin (USDC) is a tokenized version of the US dollar, with a hard peg to the exchange rate of this fiat currency. This stablecoin is used for settlement and payment. It is also used to hedge risks, since the token is not as volatile as bitcoin and other altcoins. Its properties are similar to Tether (USDT)
XRP Ledger (XRPL) is an open source platform with 1500 TPS high throughput and low transaction fees. Low energy consumption per transaction processing makes this platform one of the most sustainable and environmentally friendly blockchain projects.
Binance USD (BUSD) The token is developed by the leading cryptocurrency exchange Binance. This stablecoin provides the freedom to move money between the blockchain and the traditional financial system. BUSD allows traders to save on Binance trading fees and make good money on price fluctuations of traditional cryptocurrencies. Its properties are similar to USDT and USDC
Cardano is an open source decentralized blockchain platform with proof of stake (PoS) security.
Polygon is an Ethereum token that powers the Polygon network to scale Ethereum. Polygon’s goal is to enable faster and cheaper transactions on Ethereum using layer 2 side chains, i.e. blockchains that run parallel to the main Ethereum blockchain.
In this video, we will briefly talk about types of cryptowallets, buying, and safe storage of cryptocurrencies.
Cryptocurrencies are digital assets that can be transferred without the intervention of third parties.
As a rule, there are three ways to buy cryptocurrency: crypto exchanges, brokerage services or payment services.
The safest way to buy cryptocurrency is through crypto exchanges.
The most popular cryptocurrency exchanges:
Binance. Coinbase Exchange. Kraken. KuCoin. Bitstamp. Bitfinex. OKX. Binance US. Bybit. Bithumb
What are cryptocurrency wallets?
A crypto wallet is a special program that allows you to account, store and perform other actions with cryptocurrency. With it, you can make transactions and receive funds.
Cryptocurrency wallets are divided into two main types:
Hot wallets
Cold wallets
A hot wallet involves storing assets on the network — on various exchanges, through special extensions or mobile applications. For example, Trust Wallet, MetaMask
A cold wallet means that your assets are stored directly on a hard drive or removable device. For example, Ledger, Trezor, SafePal
What is the safest way to store cryptocurrencies?
If you do not plan to transfer cryptocurrencies often, then the most secure types of wallets are cold wallets (Ledger, Trezor)
Ledger has two cold storage wallets on the market: the Ledger Nano S Plus which costs $79 and the more expensive Ledger Nano X.
It supports over 5500 types of cryptocurrencies.
The Trezor has an entry-level model that costs $72, as well as a T model that costs $213.
The $213 Cold Storage Wallet is similar to the Ledger Nano X, except it doesn’t have Bluetooth connectivity.
If you plan to use cryptocurrencies often, then it is better to have a hot wallet. It is less safe than cold, but it is more convenient to work with it.
MetaMask — Supports storage and transfer of cryptocurrencies and NFTs issued on Ethereum or EVM compatible blockchains. It also contains a cryptocurrency swap service.
Trust Wallet is a secure cryptocurrency wallet that supports multiple blockchains. It allows you to send, receive, exchange and store digital assets (cryptocurrencies and NFTs).
Want to know more? We talk more about how to buy and store cryptocurrencies, types of exchanges and wallets on our Easy Crypto Start course. Link in description
And our next free lecture is devoted to ways to make money on cryptocurrencies. Waiting for you!
As part of the mini-course, we will consider the following main ways to make money on cryptocurrencies:
Trading
Investing
Farming and landing
Mining and staking
Participation in ICO
Testnets and ambassador programs
Earnings on NFT
Earnings on crypto games
Earning on cryptocurrency is not just a trend. This is a real opportunity to increase capital or even secure your main source of income.
Of course, there are quite a few risks, since cryptocurrencies are a highly volatile asset. But volatility can also be an advantage in both the long and short term.
What are the ways and how to make money on cryptocurrency without investments and with investments?
Cryptocurrency trading is a type of trading, the essence of which is to earn money by changing the rates of virtual coins. Trader is a participant in the financial market who makes a profit by making speculative transactions with digital currency.
Investing is an activity aimed at buying and holding assets in order to make a profit in the long term.
The most popular ways to invest in cryptocurrencies are: buy and hold coins, invest in crypto companies, invest in funds.
Farming is a type of cryptocurrency investment where you put your coins in a liquidity pool or lend to others.
Cryptocurrency landing is a private lending method. The method involves the issuance of loans by some investors to other investors.
Mining is the process of extracting cryptocurrency using special equipment. Its essence is to create new structural units to ensure the functioning of cryptocurrency platforms.
Staking is a mechanism that rewards users for locking up their coins or tokens for a period of time, thereby ensuring the security of the network and validating transactions.
P2E (Play-to-Earn) games are a new class of blockchain games. The player earns tokens listed on the cryptocurrency exchange for completing tasks
Earnings on NFT
There are several ways to earn NFT:
Create your NFT
Resell NFTs
Participate in NFT Giveaways
NFT Games
Testnets are the testing of a new crypto project with or without rewards. In the first case, test participants receive a guaranteed prize in the form of NFTs, tokens, or a guaranteed allocation to the ICO, and in the second case, users participate in the testnet and do not know what reward awaits them at the end and whether it will be at all.
ICO is an initial offer of a certain amount of a new cryptocurrency in order to attract investments. Participation in promising ICOs allows funds and private investors to make huge profits on the difference between their purchase price and the retail price of coins, as well as on the growth of the exchange rate. However, 98% of projects do not survive even a couple of years, so the risks are also huge.
Want to know more? As part of our Easy Crypto Start course, we cover the presented methods in more detail and show additional ones. Link below
Thank you for viewing our mini-course! We hope we have opened the door to the world of cryptocurrencies for you!