Crypto News | Lessons

Starting to interact with crypto assets, it is necessary to understand such concepts as blockchain networks and native tokens. There is more than one network based on blockchain technology, and each has its own characteristics and algorithms. Therefore, the sender and recipient addresses must be on the same network - this is important! A native coin is a digital asset that is part of its network. Native coins pay network (miner) commissions for transactions. List of blockchain networks and their native tokens: Bitcoin - BTC, Ethereum - ETH, Binance Smart Chain - BNB, Solana - SOL, Polygon - MATIC, Tron - TRX, Cosmos - ATOM, Polkadot - DOT, Avalanche - AVAX, Fantom - FTM, Cardano - ADA, Algorand - ALGO, etc. For example, sending USDT stablecoin on the Ethereum (ERC20) network will be charged in ETH, on the Tron (TRC20) network - in TRX, on the Binance Smart Chain (BEP20, BEP2) - in BNB. These are the most popular networks for buying and selling USDT. @CryptoNews_Lessons✅️

Bitcoin and altcoins are volatile coins, i.e. their rate is constantly changing (like stocks). Therefore, there was a need for a cryptocurrency with a stable exchange rate. Stablecoins are coins with a fixed exchange rate that are pegged to and backed by some other asset. Most of them are now pegged to the dollar. The first stablecoin was USDT (Tether). Then USDC, BUSD, DAI, USDP and others appeared. USDT still holds the lead in terms of popularity. After several years of observing cryptocurrencies, some governments are considering issuing their own central bank regulated stablecoins pegged to their national fiat currencies. Governments are interested in creating their own stablecoins, as they are easier to control and regulate. In the future, competition between existing stablecoins and "state" ones is possible. @CryptoNews_Lessons✅️

You can buy cryptocurrency on exchanges: centralized (CEX) or decentralized (DEX). CEX exchanges are run by organizations that oversee all transactions and provide maintenance and security. User tokens are stored on exchange wallets. There is a commission for trading. When registering, you need to confirm your phone number and email. For work, as a rule - pass KYC / verification: confirm your identity with a passport / international passport / driver's license. Many of these exchanges make it possible to buy tokens for fiat (rubles). DEX exchanges work differently. They exchange coins without intermediaries. There is a fee for the exchange. Registration is not required here, to use it you need to connect your wallet (click connect wallet and enter the wallet password). Coins will be transferred from wallet to wallet. With each transaction, the wallet will ask for permission to confirm the operation. DEX is harder to use. @CryptoNews_Lessons✅️

The crypto wallet does not store the tokens themselves (cryptocurrency), they are stored in the blockchain. The wallet gives access to tokens using public and private keys. There are wallets: browser, hardware, paper, desktop, mobile. Browser - provided by the developers of the cryptocurrency and works through the browser. Account data can be stored in the browser memory, which makes the wallet vulnerable to a hacker attack. Hardware - often looks like a flash drive and is designed to store access keys to the user's personal account. The wallet can be used on any computer equipped with a USB port. This is the most secure wallet. Paper - just a sheet of paper with a printed wallet address and a key. Desktop - the corresponding application for the computer. When using, do not forget about the observance of safety principles. Mobile - application for mobile devices. @CryptoNews_Lessons✅️

To buy and store cryptocurrencies, you need a wallet. A wallet is a program that generates pairs of private and public keys. Each of the keys has the form of a unique character set of letters and numbers. The public key is the address to which digital money is sent and can be seen by other users. With the help of a private key, an electronic digital signature is created in the blockchain. This is a way to confirm your right to make transactions. The address in the blockchain belongs to the one who knows the private key from it. If the private key is lost, the wallet owner will lose access to their funds. It is important to protect the private key from outsiders, since, with the help of this key, they will be able to transfer all crypto assets from the corresponding address to themselves. Private and public keys work together: without the public key, the sender will not be able to start the transaction, without the private key, the recipient will not be able to decrypt the transfer. @CryptoNews_Lessons✅️

To buy and store cryptocurrencies, you need a wallet. A wallet is a program that generates pairs of private and public keys. Each of the keys has the form of a unique character set of letters and numbers. The public key is the address to which digital money is sent and can be seen by other users. With the help of a private key, an electronic digital signature is created in the blockchain. This is a way to confirm your right to make transactions. The address in the blockchain belongs to the one who knows the private key from it. If the private key is lost, the wallet owner will lose access to their funds. It is important to protect the private key from outsiders, since, with the help of this key, they will be able to transfer all crypto assets from the corresponding address to themselves. Private and public keys work together: without the public key, the sender will not be able to start the transaction, without the private key, the recipient will not be able to decrypt the transfer. @Cryptominddx

Where does cryptocurrency come from? Take bitcoin, it consists of blocks, which are equations. A reward is given for solving each equation. But only a machine can solve this equation: a processor or a video card. People who buy cryptocurrency mining equipment are called miners. Other cryptocurrencies are mined according to a similar principle. Bitcoin (BTC) is the first and most famous cryptocurrency in the world. The second most important digital cryptocurrency is Ether (ETH/Ethereum). There is a difference between bitcoin and ethereum. Bitcoin is a peer-to-peer payment system, while Ether is a digital currency and a platform that allows you to create and run smart contracts and decentralized applications (dApps). The Ethereum network also allows the creation of other cryptocurrencies using the Ethereum protocol (BTC and ETH operate on separate protocols and their processes are not connected to each other). @CryptoNews_Lessons✅️

Cryptocurrencies are a variety of alternative currencies and a peer-to-peer (P2P) tool that allows users to sell goods to each other without intermediaries. In order for a cryptocurrency to function independently of a centralized intermediary, all participants in the process need to have a way to record and store transactions. For this purpose, a blockchain is used - a chain of blocks with transaction records that are interconnected and protected by cryptography. A transaction occurs only after it is included in a block and the block is added to the chain. Once added to the blockchain, blocks cannot be changed without losing data. Until a transaction is added to a block, it is not considered confirmed. Blockchain users interact with each other using asymmetric encryption. It consists in using two keys: public (analogues - bank card number, safe box number) and private (pin code for the card, cipher for the safe). @CryptoNews_Lessons✅️

The birth date of bitcoin is considered October 31, 2008, when the article “Bitcoin: A Peer-to-Peer Electronic Cash System” was published, in which Satoshi Nakamoto first spoke about digital signature protection, payments without the participation of a third party, sanity checks, blockchain and about digital currency. Bitcoin is the first cryptocurrency, but not the only one today. Altcoins are all cryptocurrencies that appeared after Bitcoin. Most cryptocurrencies provide pseudonymity - all transactions between all addresses are public, but there is no data about the owners of the addresses. Cryptocurrency is a kind of digital currency, accounting for the internal units of account of which is provided by a decentralized payment system operating in a fully automatic mode. The transfer of cryptocurrencies is irreversible - no one can cancel, block, challenge or force (without a private key) a transaction. @CryptoNews_Lessons✅️

✅Cryptocurrency Wallets 👉Unlike the US Dollar, cryptocurrencies don’t have a physical form. You can’t hold Bitcoin or Solana in your hands. They are digital assets that are transferred over the Internet. A digital or cryptocurrency wallet is a storage facility for your crypto holdings. Technically, cryptocurrency wallets don’t store your crypto funds. They store your private keys. A private key is a password that proves ownership of your crypto holdings and is used to initiate transactions. Since your crypto lives on the blockchain, the private keys are required to provide access to the digital assets. #how_crypto_work_part3 @CryptoNews_Lessons✅️