đź“š How to Crypto Investor | BASIC: Terms
So ladies and gentlemen, let's begin. At first, you must know basic terms about crypto and tokensales. Also, you'll have to install a crypto-wallet in your browser.
âś…BASIC TERMS
Cryptocurrency: a kind of digital currency, the accounting of internal units provided by a decentralized payment system (there is no internal or external administrator or any of its analogs), operating in a fully automatic mode. Example: BTC, ETH, BNB.
Token is a unit of account that is not a cryptocurrency, designed to represent a digital balance in a certain asset. In other words, it serves as a "substitute for securities" in the digital world.
Blockchain or Network: continuous sequential chain of blocks (linked list), built according to certain rules, containing information.
There are many blockchains, some of the most famous: Ethereum, Binance Smart Chain, and Polygon. Each network has its own “native token”, with the help of which pay for any transactions and actions that occur. In the Ethereum network, this is ether (ETH), in BSC - BNB, in Polygon - MATIC, etc.
Transaction and blocks of transactions - in any network, your action or interaction must be recorded in the blockchain and confirmed by a transaction. Each transaction and what actions are recorded can be viewed in the blockchain using the explorer. For example, on the BSC network, this is the bscscan.com explorer.
Cryptocurrency wallet - is a software wallet for cryptocurrency used to interact with networks (blockchains). It allows users to access their wallets through a browser extension or mobile app, which can then be used to interact with decentralized applications (Dapps), which are essentially launchpads and DEXs (decentralized exchanges).
The MetaMask wallet is the standard in DeFi (decentralised finance) and the most popular wallet due to its versatility (one address for all supported networks).
СEX (Centralised Exchange). All assets are stored on the exchange itself and its wallets. Each of your actions on the exchange must be performed by placing an order. Examples of CEX: Binance, Kucoin, Hotbit
DEX (Decentralised Exchanger). All your assets are stored on a personal (non-custodial) wallet, and to make an exchange (buy-sell), each of your actions or interactions must be confirmed by a transaction.
Each network uses its own exchanges. Some of them can work in several networks at the same time. But a specific exchange will only be performed within one network. DEX examples: PancakeSwap, QuickSwap, UniSwap.
To transfer tokens between networks, special bridges are used (usually these are stablecoins, such as USDC, USDT, DAI ...)