New to the crypto world and feel like they’re speaking in another language? Don’t worry, here are 5 key concepts that will save you from more than one scare—and maybe even a scam.
1. Blockchain
It's like a public ledger that records every transaction made, but decentralized and protected with cryptography. No one can delete what's on the chain, so it serves as irrefutable proof of 'who gave whom' and when.
2. Wallet: Hot wallet and cold wallet 💼
Think of the wallet as your digital wallet.
Hot wallet (connected to the internet): super convenient for quick operations, but if you're not careful, a hacker could sneak in.
Cold wallet (offline): safer than your bank vault. Ideal for long-term storage.
3. Stablecoin 🏦
They are tokens pegged to the value of a stable currency like the dollar (1:1). Their mission: to give you peace of mind when the market is like a roller coaster. Examples: USDT, USDC, BUSD.
4. Proof of Work vs. Proof of Stake 🔄
Proof of Work (PoW): miners solve mathematical puzzles to validate transactions and earn rewards (like Bitcoin). It's secure but consumes a lot of energy.
Proof of Stake (PoS): instead of mining, you validate based on how much you have staked. Much more efficient and eco-friendly.
5. Halving ⏳
It occurs approximately every 4 years in Bitcoin: the reward for mining a block is halved. This controls BTC inflation and usually gains media attention because the price tends to rise afterward.
Bonus: 'HODL' 🚀
No, it’s not a typo: it means 'Hold On for Dear Life'. Basically, buy, hold, and don’t sell even if the market trembles. Many crypto pioneers follow it as a long-term strategy.
Final advice: start by mastering these concepts and you'll be flying. Once you master them, the crypto world will be less 'wild' and more yours.
