๐งต THREAD: 5 Crypto Terms Every Beginner Thinks They Knowโฆ But Get Wrong ๐ฎ๐
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Most new crypto traders throw around terms like "HODL" and "DeFi" without really understanding them.
Letโs fix that.
Here are 5 misunderstood terms โ explained the right way ๐ง ๐
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๐ 1. HODL โ Hold Forever
Originally a typo, HODL now means holding through volatility.
But HODLing doesnโt mean never selling.
It means strategic conviction, not blind faith.
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๐ 2. DeFi โ Just Earning Yield
DeFi (Decentralized Finance) isnโt just staking for 20% APY.
Itโs about cutting out banks and enabling peer-to-peer finance:
Lending
Borrowing
Trading
Insurance โ no middlemen.
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๐ 3. Layer 1 vs Layer 2
โข Layer 1 (L1) = Base blockchains like Bitcoin, Ethereum, Solana.
โข Layer 2 (L2) = Built on top of L1s to make them faster/cheaper (e.g., Arbitrum, Optimism).
Donโt confuse them.
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๐ 4. Gas Fees โ Scam
Gas is the cost of using blockchain.
Youโre paying for decentralized compute power.
Complaining about gas is like complaining about paying rent to stay in your own house.
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๐ 5. Market Cap โ Value
A coin with a $10B market cap isnโt automatically "safe."
If it's illiquid or manipulated, that number means nothing.
Always check:
โข Liquidity
โข Tokenomics
โข Who holds the supply
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โ
Final Thought
If you want to survive in crypto, stop just watching price charts.
Understand the system.
The winners donโt just trade โ they study.
โ
๐ง Drop a ๐ if you learned something.
Follow for clear, real crypto education.
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