Beginner

Bitcoin and crypto is an innovative payment network and a new kind of money.

Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing
transactions and the issuing of bitcoins is carried out collectively by the network. Bitcoin is
open-source; its design is public, nobody owns or controls Bitcoin and everyone can take
part. Through many of its unique properties, Bitcoin allows exciting uses that could not be
covered by any previous payment system.

Bitcoin was built with a distributed digital record in mind called a blockchain. Blockchain is a
type of public ledger -- a digital system for recording transactions and related data in multiple
places at one time. Blocks in a blockchain are units that contain data about every
transaction, including the date, time, value, buyer and seller, and an identifying code for each
exchange.
Blockchain is designed to make it extremely difficult to hack the system or forge the data
stored on it, thereby making it secure and immutable. Each computer in a blockchain
network has a copy of the ledger to prevent single points of failure. If one block is changed,
then all the other blocks in the distributed ledger must be changed. Blockchain is a
decentralized technology, meaning it is not controlled by any one organization. In addition,
identifying codes make it difficult to fraudulently produce blocks.

Bitcoin is stored in a digital wallet application on a computer or smartphone. Cryptocurrency

wallets are among one of the best ways to keep bitcoin secure. There are also multiple types
of wallets. Software wallets enable users to keep only a small amount of bitcoin on a
computer or mobile phone for everyday use, with the balance kept in a separate offline
wallet. This safeguards the majority of a user's bitcoin from malware trying to intercept the
password used to access a wallet.
Offline wallets are wallet software that is installed on a USB or a live CD rather than on the
internet, so it can be kept physically secure. Hardware wallets, another form of offline wallet,
are physical devices such as a flash drive that store a user's private keys. Even when
connected to another device, the private keys are never exposed, as signed transactions are
completed on the device. Multisignature wallets require two or more private keys to authorize
transactions. This greatly decreases the chances of a wallet being accessed if lost or stolen.
One key is stored in a secure location as a backup, another is stored on the user's mobile
device and a third key can be stored with a multisignature provider.

People can send bitcoin to others via bitcoin wallet-to-wallet transfer. Bitcoin can be sent by
initiating a transfer request from a bitcoin address in the customer's wallet to a bitcoin
address, or alphanumeric string, in the vendor's wallet. Senders can select the amount to
transfer either as bitcoin or in their local currency. Each bitcoin transaction is charged a small
fee, which is paid to a bitcoin miner. This fee can vary, depending on factors including how
quickly the bitcoin transaction needs to be confirmed.
What is bitcoin mining?
Bitcoin mining is the process of adding new transactions into circulation. Bitcoin miners use
software that accesses their processing capacity to solve transaction-related algorithms. In
return, they are awarded a certain number of bitcoin per block. This entices cryptominers to
keep solving the transaction-related algorithms, supporting the overall system. The process
is called proof of work.

Originally, bitcoin mining was conducted on the processors, or CPUs, of individual

computers, with more cores and greater speed resulting in more profit. After this, most
bitcoin miners began using multi-graphics card systems, then field-programmable gate
arrays and application-specific integrated circuits. These moves were made in an attempt to
find more hash codes below a given target and use less electrical power.

It once was possible for anyone to mine bitcoin, but not anymore. Bitcoin code is written to
make solving its transaction-related algorithms, or puzzles, more challenging over time. This
means that solving these puzzles requires more computing resources. Access to powerful
computers and large amounts of electricity is now a must. In the malware world, one of the
more prevalent current threats is mining botnet infections, where user systems mine for
bitcoin without the owners' knowledge and the funds are channeled to the botnet owner.
Why is bitcoin valuable?
Bitcoin has value similar to other currencies because others are willing to exchange them for
goods, services and existing currencies. However, bitcoin's price has risen, fallen and risen
exponentially again multiple times since its introduction in 2009. Many consider the swings to
be volatile. The prices have risen and fallen in the stock market due to a number of factors,
including companies adopting or dropping support for the currency, and even what
celebrities are saying about it.

However, bitcoin's value is also derived from other sources. For example, for a currency to
be accepted, it should have some form of scarcity, divisibility, transportability, durability and
should not be easily counterfeited. Bitcoin has the following traits:

It is limited to 21 million.
It is divisible up to eight decimal points. The smallest unit, a satoshi, is equivalent to
0.00000001 bitcoin.
It is stored in digital wallets, making it easily transportable.
It is not physical, so it cannot be destroyed. However, it can be compromised if the
hardware, software or cryptographic key to the corresponding wallet is lost.
It is also prot
Which stablecoins should you use?

Fully fiat collateralized stablecoins are the safest.

USDC, USDT and BUSD

You're buying garbage because it's cheap

'Cheap' is unrelated to cost. It's a hallucination left over from your life as a poor person.The
psychological term is called "Unit Bias"

1. Cryptos are fractional, meaning you can buy $10 of BTC just as easily as you can buy $10
of XRP.
2. Price has no bearing on potential performance, 'Cheaper' crypto doesn't go up more.

The fact XRP is 'only 50 cents' does not make it 'cheap'.

A smarter investor would buy the tokens that have the high probable upside in percent '%'
terms, and completely ignore the token unit cost.

Intentionally looking for tokens which have low unit cost is like intentionally looking for trash.
You think they are 'cheaper', but only because there's a higher supply...
When you start out, start small.

If you can't make money with $100, then how do you expect to make money with $1000?

Especially in trading, don't start with a big sum of money. Trading is the most difficult way to
make money in existence. You will lose it.
ecomisgoated111 — 11/27/2022 7:40 PM
Crypto investing vs. crypto trading

As you learn how to buy and sell these digital assets, you need to differentiate what is
cryptocurrency trading and what is investing in cryptocurrencies. Which one is better? No
matter the differences, in the end the goal is always the same: making a profit. However, the
expected outcome times are quite different: in investing, the outcome time ranges from
medium to long term, while in trading, it ranges from the short to medium term.

Cryptocurrency investors buy and hold their assets for a long time ranging from several
months to years. On the other hand, cryptocurrency traders hold their positions ranging from
a few seconds, to several weeks.
ecomisgoated111 — 12/02/2022 3:30 PM
A - D (crypto words you must know!)

Airdrop: An event where a blockchain project distributes free tokens or coins to the
community.

Altcoin: Any cryptocurrency that is an alternative to Bitcoin.

ATH: All-Time High, the highest value reached by an asset at any point in its history.

Bag holder: A term to describe investors who are still holding certain assets that have
dropped significantly in value since their purchase price.

Bearish: When investors or traders see a bearish trend, they expect a price to decrease and
would recommend selling coins/tokens.
Bullish: When investors or traders see a bullish trend, they expect a price to increase and
would recommend buying coins/tokens.

Centralized: A system of power where a central authority has control over a project.

Decentralized: When something does not have any central control but rather operates
independently through peer-to-peer networks and algorithms instead, transactions cannot be
reversed once confirmed on blockchains that do not have any central authority or place of
residence since they are decentralized.

Dumping: The process of offloading large quantities of coins onto exchanges all at once
which drives down prices because there is more supply than demand for that particular
cryptocurrency.

DYOR: Do Your Own Research; this means that all crypto investors should do their own
research on a project before investing in it.
E-I

Etherscan/Solscan: A web tool that lets you explore transactions, wallets, and other aspects
of Ethereum's/Solana's blockchain.

Exchange: Platforms that allow users to buy, sell, or trade cryptocurrencies for other digital
currency or traditional currencies like US dollars or euros.

Fear and greed index: A indicator that measures market sentiment.

FOMO: Fear Of Missing Out; the acronym that was coined to describe a phenomenon when
investors buy or sell an asset based on others' actions, causing them to miss out on more
profitable opportunities.

FUD: Fear, Uncertainty and Doubt; People spread FUD when they are bearish on a
Project/Coin.

Futures: A contract to buy or sell an asset at a later date with the price agreed upon.

Hardware wallet: Also known as cold storage/wallet, it's essentially a USB stick that can be
used for offline transactions and keeping your private keys safe. It's considered more secure
than most other forms of wallets since they're harder to access if you lose them.
HODL: Slang for holding a cryptocurrency long term despite market volatility.

ICO: Initial Coin/ Offering: The very first offering for public purchase and sale of tokens or
digital assets for a new blockchain project.
K-Z

KYC: Know Your Customer, which refers to the process of obtaining and verifying personal
identification information from customers for business purposes before allowing them access
to services or products.

Moon: A slang term to describe a crypto price going up astronomically.

Pump and dump: The process of buying and selling a coin on the market to raise its price
and attract other users, followed by profit-taking.

Rugpull: A fraudulent cryptocurrency strategy in which crypto developers desert a project

and flee with investors' money.

Shilling: Promoting a Coin/Project

Smart contract: A piece of code that is executed on the blockchain after certain conditions
have been met.

Stablecoin: A cryptocurrency designed to minimize price volatility, usually by pegging its

value or supply against a physical asset such as fiat currencies like the US dollar.

Transaction fee: The sum of money paid to miners to confirm transactions into blocks and
add them to the Blockchain network. Ethereum gas fees cost a lot while on Solana they are
close to nothing.

Whale: Slang term for an investor who has a big amount of a specific Coin