Basic Knowledge of Cryptocurrency

Beginner's Guide to Cryptocurrency 🌐

I. Basic Concepts

🔹 **Blockchain**

- Decentralized digital ledger, data is transparent and immutable (e.g., the Bitcoin network records a block every 10 minutes)

🔹 **Cryptocurrency (Crypto)**

- Digital assets based on blockchain technology, representing:

✅ Bitcoin (BTC): The first digital currency, total supply of 21 million coins

✅ Ethereum (ETH): A blockchain platform that supports smart contracts

🔹 **Token**

- Digital rights certificates issued based on existing blockchains

- Types: Stablecoins (USDT/USDC), Governance tokens (UNI), MEME coins (DOGE), etc.

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II. Core Ecosystem Components

🛠️ **Infrastructure**

- Public chains (Solana/BNB Chain)

- Layer 2 scaling solutions (Arbitrum/Base)

- Cross-chain bridges (Polygon Bridge)

💸 **Financial System**

- CEX centralized exchanges (Binance/OKX)

- DEX decentralized exchanges (Uniswap/PancakeSwap)

- Lending protocols (Aave/Compound)

🎮 **Application Scenarios**

- NFT digital collectibles (BAYC Bored Apes)

- GameFi blockchain games (Axie Infinity)

- Metaverse virtual land (Decentraland)

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III. Essential Tools

🔐 **Wallets**

- Hot wallets (MetaMask/Trust Wallet)

- Cold wallets (Ledger/Trezor hardware devices)

📊 **Data Platforms**

- CoinGecko (Token market cap query)

- Dune Analytics (On-chain data analysis)

- DeFiLlama (DeFi project tracking)

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IV. Risk Warning ❗

⚠️ 24/7 extreme volatility (daily fluctuations may exceed 50%)

⚠️ High risk of contract leverage (extremely high liquidation risk)

⚠️ Frequent project scams/exit scams (DYOR principle: Do Your Own Research)

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V. Learning Path

1️⃣ Understand the Bitcoin white paper

2️⃣ Experience wallet creation and transfers

3️⃣ Participate in mainstream coin trading with a small amount

4️⃣ Follow industry media (Coindesk/BlockBeats)