What’s basic crypto knowledge that most people don't know?
This article was adapted from Bankless with original link here
Crypto is not the stock market. Not all cryptos are money or are trying to be currency. Most cryptos are NOT anonymous but offer very transparent reporting of financial transactions. This was one of the big selling points of DLT or using public blockchains to record transactions. And my final one, Bitcoin and Ethereum are not currency, they are infrastructure. They may prove to be stores of value in the same way that if you owned a stretch of fiber optic and the cable was a commonly used and essential part of a communications system.
Your coins are not in your wallet.
You can own a fraction of a bitcoin.
Not you keys not your crypto.
Your coins are on the blockchain not in your wallet.
You are 100% responsible for your actions in crypto, no one is bailing you out.
No chargebacks. A transaction is final, well it should be. See recent example of collusion to stop the BNB chain for when a transaction is not final.
NFTs aren’t “the thing”, they’re the certificate of “the thing’s” ownership and authenticity.
Here’s the way I explain it to my friends:
An NFT is just a token, just like a regular token issued by a smart contract, the only difference is that NFTs are all unique. What makes an NFT unique (non-fungible) is a unique number embedded within it.
When you have something like a picture, for example, the NFT holds an address, kind of like a link, which points to the place where the metadata and content the NFT represents are stored. Most often this would be a decentralized storage solution like Filecoin and IPFS.
So the nft is a lot like a certificate that says, “this person owns the rights to this thing, which you can find at this location and it looks like this and that, and has attributes like so and so”
more specifically, an nft is a token you own which points to “the thing”.
apps like opensea can follow where the NFT points too, extract the content (the image for example) and metadata (attributes, etc.) and display them on a page in an intuitive way. But an NFT, with the very rare exception of on-chain art, music,etc. is not the thing you see, when you look on the platforms like opensea, it’s the “certificate of ownership and authenticity” which tells you where to look for “the thing”.
I’m struggling to find a real-life example because there probably isn’t one that’s completely one to one. I hope I explained it better. If something isn’t clear, please ask away:)
You shouldn't dismiss the notion of cryptocurrency just because YOU don't have any issues with the banking or financial systems in your world. There are billions of people around the globe who DO have very legitimate problems and concerns with their banking and financial systems and that is why this whole endeavor is important and should be allowed to develop and grow and evolve. So if you can just chill about it and realize all of *that*, and try to keep an open mind, you won't be surprised if some day you find there is an application for cryptocurrency that will be valuable to you.
Something like 95% of projects and coins will go to zero so be very careful about where you put your money.
Its not about cryptocurrencies, its about cryptoassets.
Your assets are on a/the blockchain, not your wallet. Your wallet is just used to manage public/private keys.
Crypto is not web3 and web3 is not crypto. You can have web3 without crypto (though it helps) and you can have crypto without web3. Web3 is about decentralization and federation, with or without crypto.
Its easy to make money: buy low sell high. It doesnt have to be in that order.
Fundamental analysis is nearly impossible. Technical analysis is astrology. Quantitative analysis rules.
A 50% devaluation takes more than 50% valuation to recover.
Non custodial works, just like in the real world: you dont transfer your house or your property to the banks address or to the banks ownership when you get a mortgage.
Any good resources for quantitative analysis?
Start by taking the good stuff in technical analysis: moving averages, rsi, other "hard" numbers; forget about "flags" and "pennants" and other astrology. If you wan to do that sort of analysis (ie. there's similarity and repeating patterns) you should use fractals on time series data or AI/ML pattern recognition using "candle" images, but thats not done easily.
Then add more hard numbers: you can find a lot on https://tokenterminal.com/ like price sales ratio, etc. as well as on other sites.
For predictions I like to use Facebook Prophet library. If you google for "facebook prophet crypto" you'll find a bunch of articles detailing on how to do it.
More pratical stuff on where to find hard numbers:
- I like to go to https://coinmarketcap.com/ all and use filters to discover trending assets
- there's lots of goodies at https://charts.woobull.com/
- in https://cryptoquant.com/asset/btc/ summary you'll find not only lots of indicators on several tokens but also strategies proposed by other quant traders.
Regular people don't know that while your account ownership is relatively anonymous, or "pseudonymous," your transaction activity is 100% open without privacy tools.
Translated: If we don't focus on privacy, we're just creating the greatest financial surveillance tool in history.
Making money is not the only reason to be in crypto. You must also give something back to the ecosystem.
Surround yourself with the right people and follow the right person on crypto twitter.
Bear markets are the best time to build and to learn.
When you are starting the crypto journey learn the fundamental first and focus on one chain at the time first.
We are still very very early in this journey.
The world belong to the nerds!