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***Crypto Simplified *** #Binance #CryptoSimplified What is Cryptocurrency? A digital or virtual currency. Uses cryptography for security. Operates on decentralized networks called blockchains. ***Coin Native digital currency of its own blockchain (e.g., Bitcoin, Ethereum). Used as a medium of exchange. Transactions are recorded on its specific blockchain. ***Token Created on an existing blockchain (e.g., ERC-20 tokens on Ethereum). Represents ownership, access, or utility in apps/services. Not native like coins; built using smart contracts. ***Gas Fee Fee paid to perform operations (like transactions) on a blockchain. Measured in units of "gas" (e.g., Ethereum gas). Required for running smart contracts and sending tokens. ***NFT (Non-Fungible Token) Unique digital asset representing ownership/authenticity. Cannot be divided or exchanged 1:1 like coins. Commonly used for digital art, collectibles, and virtual assets. ***Cryptocurrency Exchange Online marketplace for buying, selling, and trading cryptocurrencies. Allows crypto-to-crypto and crypto-to-fiat transactions. ***CEX (Centralized Exchange) Managed by a company or organization (e.g., Binance, Coinbase). Requires KYC (ID verification). Easier for beginners; customer support available. ****DEX (Decentralized Exchange) Peer-to-peer exchange using smart contracts (e.g., Uniswap). No central authority or customer service. More control and privacy, but best for experienced users. ***First Cryptocurrency Purchase (on Binance) 1. Create an Account 2. Verify Identity (KYC) 3. Deposit Local Currency (e.g., USD, EUR) 4. Choose the Cryptocurrency 5. Place a Market Order 6. Confirm the Order 7. Check Wallet for Purchased Crypto 8. Enable Security (2FA, anti-phishing, etc.)
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