🧵 THREAD: 5 Crypto Terms Every Beginner Thinks They Know… But Get Wrong 😮📚

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Most new crypto traders throw around terms like "HODL" and "DeFi" without really understanding them.

Let’s fix that.

Here are 5 misunderstood terms — explained the right way 🧠👇

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📌 1. HODL ≠ Hold Forever

Originally a typo, HODL now means holding through volatility.

But HODLing doesn’t mean never selling.

It means strategic conviction, not blind faith.

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📌 2. DeFi ≠ Just Earning Yield

DeFi (Decentralized Finance) isn’t just staking for 20% APY.

It’s about cutting out banks and enabling peer-to-peer finance:

Lending

Borrowing

Trading

Insurance — no middlemen.

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📌 3. Layer 1 vs Layer 2

• Layer 1 (L1) = Base blockchains like Bitcoin, Ethereum, Solana.

• Layer 2 (L2) = Built on top of L1s to make them faster/cheaper (e.g., Arbitrum, Optimism).

Don’t confuse them.

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📌 4. Gas Fees ≠ Scam

Gas is the cost of using blockchain.

You’re paying for decentralized compute power.

Complaining about gas is like complaining about paying rent to stay in your own house.

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📌 5. Market Cap ≠ Value

A coin with a $10B market cap isn’t automatically "safe."

If it's illiquid or manipulated, that number means nothing.

Always check:

• Liquidity

• Tokenomics

• Who holds the supply

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✅ Final Thought

If you want to survive in crypto, stop just watching price charts.

Understand the system.

The winners don’t just trade — they study.

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