What is crypto?
Very often I hear whether it is worth buying $BTC at the current price and how best to do it. Most often, these are people not from the crypto, of course, people from the sphere usually do not have such questions. But I think that it is best to understand the area where you invest and know the base. Therefore, let's start with what is the same crypt.
A person who has been in the field of crypto for a short time might think that transactions are very slow, but this is not so. Imagine you need to urgently send it to your foreign friend who has a bank card of another country, in which case the transfer will take place in 4 days at best. In the case of crypto, this transfer will take up to 10 minutes and up to $1 commission. Unlike a bank, the commission for a foreign bank payment will require much more funds.
Crypto is decentralized money that you cannot touch, but only see on your screen. Built on blockchain technology, which is the killer feature of the financial industry.
Since I have already mentioned that crypto is decentralized money. What is this money and what are they? There are three types of the same money in the crypt: Coin, Token, Stablecoin. And now we will go over each.
A COIN is the main money in the blockchain, there is no significant difference between a coin and a token. Only that a coin is a blockchain coin, which is the number one in the ecosystem of this blockchain. For example, Bitcoin - $BTC or Ethereum - $ETH.
Whereas a TOKEN can be issued by an application built on the blockchain. For example, a decentralized exchange can be built on the Ethereum blockchain - UNISWAP($UNI), and now its coin serves only to protect and governance the protocol itself, but not the chain.
A STABLECOIN is a coin that is pegged to a fiat currency and backed by real assets, most often the fiat that the coin represents, but there can also be stocks. Coins always come with a 1 to 1 peg. That is, one USDT will always be 1 USD. This particular coin is not fully backed by the fiat dollar, but in large quantities by it.
In addition to coins, a lot of tokens complement the work of a coin. In a generalized version, many projects built on the blockchain help it to function.
But also my friend, in addition to this concept, the crypto has one more thing. It is decentralization, I am sure you know about the Binance platform, where you can trade, borrow, and so on. This concept refers to CEX(centralized exchange). At the moment when the above-mentioned Uniswap is built on the Ethereum blockchain, DEX(decentralized exchange) is.
To use the centralized habitat, you simply need to create an account. In the case of decentralization, for those who do not understand, this implies that you do not trust the funds to a third party, as with Binance. To do this, you need to create a wallet, the most popular multi-chain wallet is MetaMask. To create, you will need to save the seed phrase, usually it is from 12 or 24 sets of unrelated words. The loss of this set is a complete loss of the wallet and the inability to restore it.
With your wallet and funds on them, you can make exchanges, borrow funds, lend them, stake and much more. All this is done on decentralized platforms built on blockchains. For example, I mentioned the UNISWAP platform above - this is a decentralized platform where you can at least exchange funds, and your money does not fall into the hands of third parties. In fact, you can do more on it than just the exchange, but that's not now.
I understand that one small article cannot contain the completeness of the concept of what a crypt is. Since each area has tons of information, like trading, many books have been written on it. There are also books on DeFi that can't fit in an article. Therefore, this was an introductory article about the crypt, I have not said much yet, but with further publications of my articles, you will realize more and more. And when I form all my dozens, maybe hundreds of articles and tell you that you know everything or almost everything about the crypt and are able to become a confident market participant, only then will you be able to understand what a crypt is to the fullest. This is a concept that cannot be fully described in two lines, as I did at the very beginning. I wrote a generalized value, but under it the depths of the world's oceans are hidden, so I will be glad to write the next article for you.