Understanding The World Of Crypto, NFTs, Dapps, DeFi, DEX, And Blockchains

Bitcoin, Blockchain, Crypto, Cryptocurrency, Coin

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Crypto prices and NFTs are hogging the headlines, but they are just the most visible components of a rapidly growing decentralized financial system (DeFi) that has the potential to significantly challenge how we buy, sell, and trade just about everything.

Blockchain and cryptocurrency may seem like a new thing, but they have been around for over 10 years. The problem is that the world of crypto can be very confusing with all the jargon, acronyms, and other unfamiliar words. This brief overview will introduce you to some of the basic areas through a series of links to the most prominent organizations, platforms, and toolsets. My full resource page can be found here.

Crypto

Cryptocurrencies (a.k.a., “tokens”) such as Ethereum (ETH-X) or bitcoin (BITCOMP) are created (“mined”) when a miner completes a certain amount of computations used to verify transactions that are added to a specific blockchain. The miner is rewarded for this effort with a small amount of cryptocurrency.

In theory, every ETH or BTC is fungible. Said differently, my 10 BTC or my 50 ETH are worth exactly what your 10 BTC or 50 ETH are worth, and they are interchangeable. There are hundreds of cryptocurrencies that are actively trading on hundreds of exchanges worldwide.

NFTs

NFTs are created (“minted”) when a unique, standardized token and associated smart contract are recorded on a blockchain. In theory, NFTs are non-fungible. Said differently, the NFT of Nyan Cat (which sold at auction for $510,945) is unique and not interchangeable with other versions of the same file. 

Crypto Exchanges

Cryptocurrency exchanges act as an intermediary between a buyer and a seller, making money through commissions. You can buy, sell, or trade your crypto for other crypto or fiat currencies. Not all exchanges offer access to all currencies. Choose your exchange carefully to ensure it meets your risk profile, your regulatory requirements, and your trading style.

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Disclaimer: The information provided has been gathered for your convenience; it should not be considered financial advice of any kind. We do not endorse any of the companies listed herein. We ...

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