Altcoin: Any cryptocurrency other than Bitcoin.

Stablecoin: A cryptocurrency pegged to a stable asset like the US dollar, aiming to minimize price volatility. Why would anyone use a stable coin you ask? I use them to jump out of crypto projects if the value is going in the wrong direction, so I can minimize exposure to market volatility. I then sit on the sidelines and wait for a good re-entry point to the market.

Here are some examples of commonly used stablecoins:

Tether (USDT): This is the most popular and widely used stablecoin by market capitalization. It’s pegged to the US dollar at a 1:1 ratio and is backed by a reserve of assets, though the exact composition of this reserve has been a point of controversy.

USD Coin (USDC): Another prominent US dollar-backed stablecoin, USDC is issued by a consortium of companies including Circle and Coinbase. Similar to Tether, it aims to maintain a 1:1 peg with the US dollar and undergo regular audits.

Binance USD (BUSD): Issued by the Binance cryptocurrency exchange, BUSD is also pegged to the US dollar. It’s a popular choice within the Binance ecosystem and offers seamless integration with other Binance products.

TrueUSD (TUSD): Another US dollar-backed stablecoin, TrueUSD claims to be fully backed by US dollars held in reserve accounts with regulated financial institutions. It undergoes regular audits to enhance transparency.

Dai (DAI): Unlike the previous examples, Dai is not directly backed by fiat currency. Instead, it’s a crypto-backed stablecoin whose value is maintained through a system of smart contracts and other cryptocurrencies.

It’s important to remember that all stablecoins come with their own set of risks. While they aim to offer price stability compared to other cryptocurrencies, they are still subject to various factors that can impact their value and reliability. Conducting your own research and understanding the underlying mechanism of each stablecoin is crucial before making any investment decisions such as where to store your cryptocurrency when you don’t want to be in any project. Think of stablecoins as taking your car off the road and just parking up for a while so you can jump back into the race when you have had time to think about your next move. Just be careful of taxes in some countries that can make it expensive to jump in and out of cryptocurrencies too frequently.

While many stablecoins utilize a combination of approaches, here are two well-known examples of stablecoins that primarily rely on algorithms to maintain their peg:

TerraUSD (UST): This algorithmic stablecoin operates on the Terra blockchain. It utilizes a unique dual-token system, where UST is the stablecoin pegged to the US dollar, and LUNA is the volatile native token of the Terra ecosystem.

Here’s a simplified explanation of how it works:

When UST’s price falls below $1: The algorithm incentivizes users to burn UST and mint LUNA instead. This decreases the supply of UST, pushing the price back towards the peg.

When UST’s price rises above $1: The algorithm incentivizes users to burn LUNA and mint UST. This increases the supply of UST, pulling the price back down to the peg.

Rai (RAI): This stablecoin operates on the Ethereum blockchain and also employs an algorithmic approach. Unlike TerraUSD’s dual-token system, Rai uses a single token and relies on a mechanism called “seigniorage shares” to maintain its peg.

When RAI’s price falls below $1: The algorithm automatically mints new RAI tokens and sells them at a small discount. The proceeds are used to buy back existing RAI tokens, reducing the supply and pushing the price back up.

When RAI’s price rises above $1: The algorithm automatically burns existing RAI tokens, reducing the supply and pulling the price back down.

It’s important to note that algorithmic stablecoins are generally considered riskier than fiat-backed or crypto-backed stablecoins. This is because the algorithms rely on complex economic models and market dynamics, which can be unpredictable and prone to unexpected events.

DeFi (Decentralized Finance): This term encompasses financial services and applications built on blockchain technology, primarily Ethereum. Unlike CeFi (Centralized Finance), DeFi eliminates the need for intermediaries like banks or financial institutions.

Decentralization: No single entity controls the network. Transactions are governed by smart contracts, self-executing code stored on the blockchain.

Permissionless: Anyone with an internet connection can participate in DeFi protocols, promoting accessibility and inclusivity.

Transparency: All transactions are publicly viewable on the blockchain, fostering transparency and trust.

Security: Data security relies on the underlying blockchain’s security protocols.

Complexity: DeFi protocols can be relatively complex for new users to understand and navigate.

Examples: Popular DeFi protocols include Uniswap, Aave, and Compound.

1. Uniswap: A decentralized exchange (DEX) that allows users to trade cryptocurrencies directly from their wallets without the need for an intermediary. Uniswap uses an automated market maker (AMM) system to determine prices and facilitate trades based on liquidity pools.
2. Aave: A decentralized lending and borrowing platform that enables users to lend their cryptocurrencies and earn interest or borrow cryptocurrencies by providing collateral. Aave offers a variety of features, such as flash loans and stable interest rates, to enhance the lending and borrowing experience.
3. Compound: Another decentralized lending and borrowing platform that allows users to earn interest on their deposited cryptocurrencies or borrow cryptocurrencies using collateral. Compound uses a unique interest rate model that automatically adjusts based on supply and demand, ensuring competitive rates for both lenders and borrowers.

NFT (Non-Fungible Token): A unique digital asset representing ownership of a specific item, often used for art, collectibles, and in-game items.

Smart contract: A self-executing agreement on a blockchain, triggered by specific conditions being met. This was first done with Ethereum but is now far more common across a range of L1 and L2.

Centralized DeFi (CeDeFi): Platforms or services within the DeFi space that retain some elements of centralization while attempting to leverage blockchain benefits.

CeFi (Centralized Finance): This term refers to the traditional financial services and institutions adapted to facilitate the buying, selling, trading, and other functionalities related to cryptocurrencies. These services are managed by central authorities, unlike decentralized finance (DeFi) which operates on blockchain technology without intermediaries.

Centralized control: A single entity, like a cryptocurrency exchange (CEX), manages and controls the platform and its operations.

Regulation: CeFi services often comply with government regulations and KYC (Know Your Customer) practices.

User-friendliness: CeFi platforms are generally easier to use for beginners compared to DeFi protocols.

Limited control: Users surrender control of their private keys and crypto assets to the centralized entity.

Examples: Popular CeFi platforms include Coinbase, Binance, and Kraken.

Proof of work (PoW): A consensus mechanism used by crypto like Bitcoin and Kaspa to secure networks through energy-intensive mining. There is a lot of hype about proof of work systems being intensive on electrical generation resources. This narrative is widely spread by those who either have no idea what they are talking about or want to push public opinion around to serve their narrative. Each POW can be good or bad (no different from POS) so do your research and come to your own conclusion based on balanced information.

Proof of stake (PoS): An alternative consensus mechanism using coin ownership for validation, aiming for less energy consumption.

Fork: A split in a blockchain, creating two separate versions with different rules or features. Be careful when this happens. It could be for very good reasons and be a fantastic idea, or it could be the project trying to create a way to take money out of the system (that’s bad!).

HODL: A slang term for “hold on for dear life,” highlighting a long-term investment strategy. It started as a miss-type and simply stuck.

Consensus Mechanism The method a blockchain network uses to agree on the validity of transactions and maintain the ledger.

Slippage: The difference between the expected price of a trade and the actual price at which it executes. Slippage is more common in times of high volatility or with low-liquidity tokens on DEXs.

AMM (Automated Market Maker): The mechanism used by many DEXs to provide liquidity. AMMs rely on liquidity pools and algorithms to determine asset prices, instead of traditional order books.

Liquidity Pool: A collection of cryptocurrency tokens locked in a smart contract that provides liquidity for trading on a DEX. Liquidity providers earn a share of the trading fees.

Impermanent Loss: A temporary loss of value for liquidity providers due to price changes of the tokens in the liquidity pool. The loss becomes permanent if you withdraw your funds when the price difference is significant.

Yield Farming: Strategies to earn rewards by depositing or staking cryptocurrencies into DeFi protocols. Yields can be very attractive but often carry the risk of losing everything.

Flash Loans: Uncollateralized loans within DeFi, where borrowing and repayment must occur within the same blockchain transaction. Used for complex strategies like arbitrage.

Gas Fees: Transaction fees on some blockchains (especially Ethereum) are required to execute trades or interact with smart contracts on a DEX.

ICO (Initial Coin Offering): A way for projects to raise funds by selling cryptocurrency tokens.

Examples of real-world use:

1. “I’m going to HODL my Bitcoin through this dip. I have diamond hands!” This statement demonstrates the use of “HODL” (holding onto cryptocurrency despite volatility) and “diamond hands” (strong belief in the potential upside of a cryptocurrency).
2. “That new project seems like a total shitcoin. I’m steering clear.” Here, “shitcoin” is used to express the opinion that a new cryptocurrency project has little perceived value or utility.
3. “GM, fam! Ready for another day of yield farming and chasing those gains?” This example showcases the use of “GM” (good morning) as a greeting within the crypto community, as well as references to “yield farming” (strategies to earn rewards in DeFi) and the pursuit of profits.
4. “I can’t believe I missed out on that NFT drop. The FOMO is real!” In this case, “NFT” (non-fungible token) and “FOMO” (fear of missing out) are used to express regret about not participating in a specific NFT release.
5. “Did you see the latest FUD about regulations? I’m not selling, though – I’m in it for the long haul.” This statement showcases the use of “FUD” (fear, uncertainty, doubt) in the context of regulatory concerns, as well as the speaker’s commitment to holding their cryptocurrency for the long term.

By familiarizing yourself with these terms, phrases, and cultural concepts, you’ll be better equipped to engage with the crypto community, understand the nuances of discussions, and make informed decisions in your own crypto journey. Remember, always DYOR (do your own research) and stay cautious of hype and FOMO – the crypto space can be exhilarating, but it’s essential to approach it with a level head and a critical mindset.

KYC (Know Your Customer): Regulations requiring platforms to verify user identities to combat money laundering.

AML (Anti-Money Laundering): Regulations aimed at preventing using cryptocurrencies for illegal activities.

FOMO (Fear of Missing Out): Anxiety about missing a profitable investment opportunity.

FUD (Fear, Uncertainty, Doubt): Negative sentiment deliberately spreads to lower cryptocurrency prices.

REKT: Meaning “wrecked,” signifying significant financial loss.

Moon: A cryptocurrency experiencing dramatic price increases.

Whale: Individual or entity holding large amounts of a cryptocurrency, with the potential to influence prices.

Diamond Hands: Describes investors who hold through volatility with strong conviction.

Degen (from Degenerate): A risk-tolerant investor involved in speculative areas of crypto, such as DeFi.

To the Moon Expression of optimism about a cryptocurrency’s potential for drastic price increases.

Troll: Someone who deliberately posts inflammatory or off-topic content online to provoke others.

NGMI: No gonna make it, used to describe someone unlikely to succeed in the crypto space.

DYOR: Do your own research, a crucial reminder before investing in any cryptocurrency.

ATH: All-time high, the highest price a cryptocurrency has ever reached.

ATL: All-time low, the lowest price a cryptocurrency has ever reached.

WAGMI: We’re all gonna make it, expressing optimism about the future of cryptocurrency.

DAO: Decentralized Autonomous Organization, a community-driven organization on the blockchain.

NFT: Non-Fungible Token, a unique digital asset representing ownership of something.

GM: Good morning, a common greeting within the crypto community.

Digital Gold: A term often used for Bitcoin, highlighting its scarcity and perceived store-of-value potential.

Digital Silver: Sometimes used to describe Kaspa one of the upcoming decentralised high-speed coins. Litecoin, or other cryptocurrencies have been seen as alternatives to Bitcoin in the past but are quickly being drastically outpaced by the newer decentralised proof of work technology which is a far more decentralised and faster version of proof of work technologies.

Decentralization: A core principle of crypto, emphasizing community ownership and reducing reliance on central authorities.

Diamond hands: Holding onto cryptocurrency despite volatility, symbolizing strong belief in its potential.

Paper hands: Selling cryptocurrency due to fear or pressure, seen as lacking conviction.

Community: A strong sense of belonging and shared goals among many crypto enthusiasts.

Dogecoin: A meme-based cryptocurrency inspired by the Shiba Inu dog meme.

Bored Ape Yacht Club: A collection of expensive NFTs featuring cartoon apes, often used as status symbols.

Shitcoin: A derogatory term for a cryptocurrency with little perceived value or utility.

When Lambo? A humorous way of asking “When Lamborghini?”, implies the expectation of getting rich from crypto.

Troll: Someone who deliberately posts inflammatory or off-topic content online to provoke others.

Shiba Inu (SHIB): A meme-inspired cryptocurrency.

Bone Shiba Swap (BONE): Governance token of the Shiba Swap decentralized exchange.

Dogecoin (DOGE): The original meme cryptocurrency often used for tipping and microtransactions.

What is the Bored Ape Yacht Club (BAYC)?

It was a phenomenon of the last bull run. I list it here as an example of the madness that we like to call crypto hype. I take my hat off to the amazing sales & marketing teams who play to the right audience of degenerates who desire to get rich quickly obscures natural risk management. It’s a thrill to gamble occasionally with a few dollars you can afford to lose. But every ounce of dopamine that can be produced by the body is tipped like these people’s brains. It’s contagious like a common cold due to the insane overnight values that keep climbing for weeks. But don’t worry, they always crash and almost everyone except those super lucky 10% get burned back into submission.

• NFT Collection: The Bored Ape Yacht Club is a collection of 10,000 unique digital images of cartoon apes. Each ape is an NFT (non-fungible token) residing on the Ethereum blockchain, serving as proof of ownership.
• Visual Traits: These NFTs are programmatically generated, meaning each ape is created by an algorithm combining a variety of visual traits (background, clothes, expression, fur, etc.). Some traits are rarer than others, influencing the perceived value of individual apes.
• Exclusive Club: Beyond just owning a piece of digital art, BAYC ownership grants access to an exclusive online community, sometimes likened to a digital social club.
• Bored Ape Culture in Crypto
• The BAYC has become a powerful force within crypto culture, largely due to:
• Status Symbol: The high price point of owning a Bored Ape (often hundreds of thousands of dollars) has cemented them as the ultimate flex amongst crypto enthusiasts. They are a visual signal of wealth and success within the space.
• Celebrity Endorsements: Many celebrities, from Steph Curry to Eminem to Paris Hilton, own and proudly display their Bored Apes. This mainstream attention has driven a sense of desirability and solidified the cultural relevance of the collection.
• Community & Benefits: The BAYC provides more than just status. Owners have access to exclusive virtual and real-world events, merchandise, and even additional NFT airdrops (like the Mutant Ape Yacht Club collection). This adds a feeling of belonging to something larger.
• Expansion and IP: Yuga Labs, the creators of the BAYC, have expanded the Bored Ape universe into gaming, a potential metaverse known as Otherside, and their own cryptocurrency (ApeCoin). This expansion creates more ways for owners to use their apes and cements the project as a key player in the Web3 space.
• Criticisms and Considerations
• The BAYC is not without critics. Some common criticisms include:
• Elitism: The expensive nature of Bored Apes creates a barrier to entry, promoting a culture of exclusivity and potentially discouraging wider participation in the NFT space.
• Environmental Concerns: NFTs on the Ethereum blockchain have a substantial environmental impact due to high energy consumption.
• Speculative Value: Some argue that the staggering prices of Bored Apes are driven more by hype and speculation than any inherent value in the artwork.

Hot Wallet: 

A cryptocurrency wallet connected to the internet (e.g., exchange wallets, browser extensions, mobile apps). Convenient for frequent transactions but carries higher security risks. These could include Metamask, Exodus, Trust Wallet, Atomic Wallet, Coinbase Wallet, and MEXC Exchange Wallet. I will delve into these more deeply on a different blog.

The importance of Software Wallets

• Ease of Use: Perfect for beginners, these wallets offer simplified interfaces and quick setups.
• DeFi and dApp access: Interact with blockchain applications, games, and financial services.
• Frequent transactions: Well-suited for those often buying, selling, or trading cryptos.

Important Note: Always prioritize the safety of your funds. Thoroughly research wallet providers and only store the amount you’re willing to risk on a hot wallet. For substantial holdings, consider a hardware wallet (cold storage) for enhanced security.

The Importance of Cold Wallets

• Enhanced Security: By storing private keys offline, they are far less vulnerable to hacking.
• Long-term Storage (HODL): Perfect for holding significant amounts of cryptocurrency for extended periods.
• Peace of Mind: Provide an additional layer of security for those who hold substantial amounts of cryptocurrency.

Key Considerations:

• Cost: Hardware wallets come with a cost compared to free software wallets.
• Features: Choose a wallet with features that align with your needs (supported cryptocurrencies, connectivity options)
• Reputable Brand: Always select a well-established hardware wallet company with a proven track record.
• Remember, hardware wallets provide superior security for your crypto holdings, especially for larger amounts you intend to store for the long term.

Telegram

Pros:

• Large user base with dedicated crypto communities
• High levels of encryption
• Secret chats feature for enhanced privacy
• Ability to create large groups and channels

Cons:

• Not fully open source, raising some trust concerns
• Potential centralization in moderation
• Known for scams and phishing attempts

• Security: While Telegram employs encryption, be wary of the potential for social engineering attacks. Always verify the authenticity of groups and individuals you interact with by checking for official links on a project’s website or social media accounts.

Discord

Pros:

• Popular with crypto gaming projects and NFT communities
• Voice and video chat features
• Extensive server customization options
• Easy to set up and find communities

Cons:

• Historically targeted by phishing bots and malicious links
• Individual server moderation can be inconsistent
• Less privacy-focused than some alternatives
• Security: Enable two-factor authentication for your Discord account and be cautious of clicking on links or downloading files from unknown sources. Verify the authenticity of individuals or groups before engaging with them or sharing personal information.

Other Platforms

• Twitter: Not strictly a chat platform, but Twitter is a major communication hub for real-time crypto news and discussions. Beware of impersonators and only follow verified sources.
• Reddit: Many crypto projects have subreddits. Information and discussion can be valuable, but exercise caution and be wary of biased or false narratives.
• Matrix: An open-source, decentralized communication protocol gaining traction in security-focused crypto communities. It can be technically complex for beginners.
• Signal: A privacy-first messaging app with strong encryption. Less common for general crypto discussions, but useful for secure one-on-one communication.

When communicating in the crypto space, follow these secure practices to protect yourself and your assets: General Security Tips.

• Two-Factor Authentication (2FA): Enable 2FA on all your accounts but if you are worried about Cell phone SIM card attacks then consider using secure email or an authenticator app instead of text as the 2FA.
• Phishing Awareness: Be suspicious of unsolicited links, DMs, and requests for your private information.
• Email: Consider using a separate, dedicated email address and password for your crypto-related accounts.
• Official Channels: Verify official project communication channels before engaging.
• Never Share Your Seed Phrase: Your seed phrase is the key to your wallet. Never give it to anyone, no matter how legitimate they seem.
• Software: Regularly update your devices and software to ensure you have the latest security patches.

Final Note: The crypto landscape is continuously evolving. Stay updated on secure communication trends.

Seed Phrase (Recovery Phrase): 

A series of 12 to 24 random words that provides full access to a cryptocurrency wallet. It’s critical to store this phrase securely as it’s the only way to recover funds if you lose your wallet. This is the information scammers will try to get from you.

If you have a lot of crypto and you don’t want to lose your crypto then you may be interested in Metal seed storage devices as options. I have never used them as I use a Tangem (stored in multiple locations) and other storage devices, but I do see the advantage of this option:

• BlockPlate.
• Cryptosteel Capsule.
• Keystone Tablet 

Private Key: 

A long string of characters that acts as a ‘password’ to access and control funds in a cryptocurrency wallet. Must be kept secret. This is also the information scammers will try to get from you.

Public Key: 

A cryptographic identifier derived from the private key, used to receive cryptocurrency. Can be shared publicly.

VPNs encrypt your internet traffic and mask your IP address, enhancing online privacy and security. Here are some top choices: NordVPN (Nord is what I always use for my computers and cell phone), ExpressVPN, Surfshark, ProtonVPN, and CyberGhost

Why should you consider using a VPN?

• Privacy: Protect your browsing data from tracking by your internet service provider (ISP) and advertisers.
• Security: Essential for public Wi-Fi, shielding your data from potential snooping.
• Bypassing censorship: Access websites and services restricted in your region.
• Unblocking streaming content: Watch shows and movies unavailable in your current location.

Key Considerations:

• Speed: Choose a VPN with consistently fast servers to minimize the impact on your internet speeds.
• Security features: Look for strong encryption, leak protection, and a kill switch (disconnects your internet if the VPN fails).
• Server locations: Opt for a VPN with servers in the regions you need to access.
• Price: VPN services range in price, consider your budget and needs.
• Reputation: Thoroughly research the VPN provider, focusing on their privacy policy and security track record.

SIM card attacks, also known as SIM swapping or port-out scams, involve a malicious actor tricking your mobile carrier into transferring your phone number to a SIM card they control. This allows them to intercept all your calls and text messages, including those containing two-factor authentication (2FA) codes. With access to your 2FA codes, they can potentially compromise your crypto accounts, financial accounts, and other sensitive online services.

SIM card attacks – Use a security key: Physical security keys, such as YubiKey or Google Titan, provide a highly secure method of 2FA that is immune to SIM swapping attacks. These keys plug into your device and generate a unique code for authentication.

I’ve heard a helpful tip: contact your phone carrier and let them know you’re a high-value client. Request that your SIM card absolutely cannot be swapped or redirected without your physical presence and verified ID. This might trigger some extra caution within the company if someone tries a SIM swap scam. Of course, even then there’s a risk of an untrained employee or a scammer behind the desk making a mistake, but it should add a layer of difficulty.

These SIM swap scams often involve repeatedly calling the carrier and gathering bits of information about you. They use this to eventually convince the phone company to create a new SIM card and transfer your data to it. Suddenly, your phone will stop working – which might be tricky to realize if you’re busy or not using your device.

Another thing I mentioned elsewhere is to try using encrypted email for 2FA (two-factor authentication) instead of text messages. This adds an extra layer of security. Two-factor authentication (2FA) is an additional layer of security that requires users to provide two forms of identification when logging into an account. Typically, this involves something you know (like a password) and something you have (like a code sent to your phone). 2FA makes it much harder for hackers to gain unauthorized access to your accounts, even if they manage to obtain your password. By requiring a second form of authentication, such as a code sent to your phone or generated by an app, 2FA ensures that only you can access your account, even if your password is compromised.

Speaking of secure providers, I’ve heard of a company called Efani. They claim to be America’s most secure mobile service provider. I can’t say for sure if they live up to the hype, but there is no reason to say they don’t. Everything costs money, but if you’re interested in maximum security, then check out their website here:

• Efani is America’s No.1 Most Secure Mobile Service Provider

It’s crucial to understand that no phone network can offer an absolute guarantee against hacking. Security is an ongoing process, and any network claiming to be un-hackable is misleading. Here’s why

Reputable phone networks prioritize security and invest heavily in safeguarding user data. Focus on these factors:

• Strong Encryption: Look for networks that use robust encryption standards for data in transit and at rest.
• Security Updates: Choose providers with a good track record of quickly patching security holes in their systems, as well as supporting devices with timely operating system updates.
• Transparency: Companies that are transparent about their security practices and report on breaches inspire more trust.
• Privacy Policies: Review their privacy policies to understand how your data is collected, used, and protected.

Important: No matter which network you choose, always follow security best practices on your phone:

• Use strong passwords and change them regularly.
• Be cautious about what apps you install.
• Avoid clicking suspicious links.
• Keep your phone’s operating system up to date.

Link to a reputable source for more information: For readers who want to learn more about SIM card attacks and how to prevent them, here’s a helpful article from the Federal Trade Commission (FTC): “How to protect yourself against a SIM swap attack”

Think of public Wi-Fi like yelling your passwords out in a crowded room. Anyone with the right tools can hear them. That’s why I never, ever do my banking or access my crypto wallets when I’m on public Wi-Fi.

Criminals know how to exploit this – they can snatch your passwords and drain your accounts in no time. I’ve heard too many horror stories of people losing everything because of this. This is the same for banking and crypto so don’t think you are safe.

Whenever I’m out in a cafe or at work, I don’t mess around – I just don’t connect to the local Wi-Fi. I have enough data on a plan so it’s not an issue. If I absolutely need to use public Wi-Fi, I treat it like a danger zone. All my crypto and finance apps get shut down before I connect, and I make sure I don’t use anything that requires/uses sensitive information while I’m on that network and I make sure to push the option to “forget” the network when I leave so I don’t accidentally auto re-connect if I revisit the location. It’s way better to be safe than sorry, especially after hearing about people getting their accounts drained.

In airports and public places, make sure to use your battery storage and don’t use other people’s devices or use connections or USB thumb drives or cables you find around the airport (public places). These are often traps set for unsuspecting people as they can carry computer viruses and also expose your phone and laptop security to hackers in the area as soon as you plug them in. So much can be built into these innocent-looking cables and devices that it is scary how easy it is to be caught out. Use your own charge unit plugged into a power outlet to be safe. Be careful if you are using any 5v direct USB device plug power option.

If your phone starts to get hot then you either have a faulty battery or more likely you have software working hard in the background which uses a lot of processing power and generates heat. If you are not doing anything out of the normal then reboot your phone and see if it goes back to normal as this will clear all running programs unless it’s a hard-core virus. Consider running some sort of security software you you use your phone with sensitive data.

When clicking links to websites please type the address in yourself and then store that in your history if you want an easy repeat. Hackers can now use special fonts that look identical between links but the strange font can send you to a duplicate hacker’s website which looks identical to a real site you may know well and you put your passwords into it. Just be careful out there and if a website starts asking for information that seems strange. Just stop and think. Maybe type the web address in by hand, or try other safety measures to protect yourself.

A VPN definitely helps – I always have mine running (shout out to NordVPN). Even so, I don’t take unnecessary chances. The only time I’ve seen a VPN create an issue is with a planned software or work security update. That’s when I’ll pause it for a few minutes to make the necessary changes on a secure network.

Pro Tip – Navigating High-Cost Ethereum Fees and the Rise of Layer 2:

The Bottleneck: Ethereum’s popularity led to network congestion and skyrocketing gas fees, making transactions expensive, especially for smaller amounts. Layer 2 to the Rescue: Layer 2 scaling solutions (like Polygon, Arbitrum and Optimism) are built on top of Ethereum. They process transactions off the main Ethereum chain, reducing fees and boosting speed.

Benefits of L2s:

• Lower fees and faster transactions for DeFi and other dApps.
• Increased accessibility, especially for smaller investors and trades.

Despite L2s, Ethereum remains the foundation with:

• Highest liquidity: More assets and locked value = better prices, less slippage
• Established Ecosystem: Most major DeFi protocols originated on Ethereum.
• Security and Trust: Battle-tested blockchain with a large developer community.
• Key Takeaway: Ethereum’s L2 scaling solutions offer a way to enjoy the security and ecosystem of Ethereum while minimizing the pain of repeated high gas fees. Getting into L2 may still cost you.

Artificial Intelligence (AI) is a branch of computer science that focuses on creating intelligent machines that can perform tasks that typically require human intelligence. The integration of AI into the crypto space has the potential to revolutionize various aspects of the industry, from trading and security to investment strategies and market analysis. Here are some key applications of AI in crypto:

1. Trading Bots: Using AI algorithms to analyze market trends and execute trades. For example, Aurox is a platform that leverages AI to provide users with real-time market insights and automated trading strategies.
2. Fraud Detection: AI-powered systems to detect fraudulent activities and money laundering. Chainalysis, a blockchain analytics company, uses AI to help businesses and government agencies identify and prevent illicit transactions.
3. Sentiment Analysis: Using AI to gauge market sentiment from social media and news. Sentiment is a platform that employs AI to analyze social media data and provide insights into market trends and investor behaviour.
4. Portfolio Optimization: AI-driven tools to suggest optimal asset allocation. Empirica is an AI-powered platform that helps investors create personalized investment portfolios based on their risk preferences and financial goals.

Looking ahead, AI could play a significant role in the development of decentralized autonomous organizations (DAOs), which are self-governing entities that operate on blockchain networks. AI could help automate decision-making processes and optimize resource allocation within DAOs. Additionally, AI-powered prediction markets could enable more accurate forecasting of future events and trends in the crypto space.

The integration of AI into the crypto industry has the potential to drive significant innovation and growth. By automating complex tasks, enhancing security, and providing data-driven insights, AI can help make the crypto space more efficient, accessible, and profitable for participants, but only for initial movers until everyone has the same tools and knows how to use them. As technology continues to develop, we can expect to see even more evolution of AI into areas we never dreamed possible.

In the world of cryptocurrencies, the terms “coins” and “tokens” are often used interchangeably, but they actually refer to distinct types of digital assets. Understanding the differences between coins and tokens is crucial for investors, as it can help them make more informed decisions about which cryptocurrencies to invest in and how to manage their portfolios. In this article, we’ll explore the various types of coins and tokens and their unique characteristics.

Currency Coins: Designed as a medium of exchange (e.g., Bitcoin, Litecoin, Monero).

Platform Tokens: Power a specific blockchain platform and are used for transactions, fees, and powering decentralized applications (dApps) on that network (e.g., Ethereum’s Ether, Solana’s SOL).

Utility Tokens: Provide access to products or services within a specific project or ecosystem. For example, Filecoin (FIL) is used to pay for decentralized storage on the Filecoin network, while Basic Attention Token (BAT) is used to reward users for viewing ads and can be used to tip content creators on the Brave browser.

Security Tokens: Digital representations of traditional securities like stocks or bonds, offering potential benefits such as fractional ownership and increased liquidity. Examples include Blockchain Capital (BCAP), which represents an interest in a venture capital fund, and Aspen Coin (ASPD), which represents fractional ownership in a resort.

Governance Tokens: Grant holders voting rights in a decentralized project (often within DeFi protocols). For instance, MakerDAO’s MKR token allows holders to vote on changes to the Maker protocol, while Compound’s COMP token enables users to propose and vote on updates to the Compound platform.

Meme Coins: Cryptocurrencies created as a joke or inspired by internet memes, usually lacking fundamental use cases (e.g., Dogecoin, Shiba Inu).

Investing in different types of coins and tokens comes with various risks and benefits. Currency Coins and Platform Tokens are often seen as more stable investments. They are backed by established networks and have clear use cases. Utility Tokens can offer potential rewards if the associated project or ecosystem succeeds, but they also carry the risk of the project failing to deliver on its promises. Security Tokens provide exposure to traditional assets but may be subject to regulatory scrutiny. Governance Tokens allow holders to have a say in the direction of a project but are subject to the decisions of the community. Meme Coins are highly speculative and often driven by hype and sentiment rather than fundamental value. But if you get it right (Lottery type of odds against you), they can make millionaires overnight.

Understanding the differences between coins and tokens is essential for anyone looking to invest in the cryptocurrency space. Each type of coin or token has its own unique characteristics, use cases, and risk-reward profile. By researching and understanding the nature of a cryptocurrency before investing, you can make more informed decisions and potentially mitigate some of the risks.

CEXs – The Fast and Furious

Tier-one CEXs are generally considered the most trustworthy and reliable in the industry. Here’s a list of the most prominent ones: Examples are Binance (I have used the Binance exchange a lot), CoinBase, Kraken, Gemini and KuCoin. I talk about these a bit more in my next blog.

Remember: Even top-tier CEXs carry some risk. It’s always advisable to diversify your holdings and consider using a non-custodial wallet (where you control your own keys) for long-term storage of larger amounts of cryptocurrency.

The Middleman: CEXs act as intermediaries in the crypto trading world. They provide platforms where you can buy, sell, and trade cryptocurrencies using traditional currencies (like USDT) or other cryptocurrencies.

Convenience vs. Control: CEXs offer user-friendly interfaces and features like order books and charting tools. However, you don’t directly hold the private keys to your crypto – the exchange holds them on your behalf.

Regulation and Security: Reputable CEXs usually follow KYC (Know Your Customer) regulations and have security measures in place, but they remain vulnerable to hacks and potential government intervention which has happened on a semi-regular basis for many of them.

Bad Boys and Girls- FTX was an example of a high-flying crypto exchange and investment company that lived on public hype and extreme donations to a range of politicians. Darlings of the industry, but they got caught out, publically shamed and then failed dramatically taking investor funds down the toilet with them. FTX’s downfall stemmed from a combination of fraudulent practices and poor management. Specifically, FTX misused and abused customer funds for risky investments, personal gain and loans through its sister company Alameda Research, leading to a loss of trust, that led to a liquidity crisis and eventual bankruptcy.

Fee Structures: Many CEXs offer tiered fee structures that lower trading costs as your trading volume increases. This can be extremely beneficial for active traders who want to minimize transaction fees.

Margin and Leveraged Trading: Major CEXs often provide margin trading and leverage options. This allows traders to amplify their potential gains (but also their risks) by using borrowed funds for larger trades.

Sophisticated Tools: CEXs usually offer advanced order types (stop-loss, limit orders, etc.), charting tools, and technical indicators. These empower traders to implement complex strategies and make informed decisions.

The Hidden Costs: While some basic trades might have low fees, certain CEXs charge significant fees for withdrawals, margin interest, and specific order types. It’s crucial to research the full fee schedule.

Volume Limits: To protect themselves, CEXs may impose limits on trade sizes or withdrawals, especially for unverified accounts. This can be an obstacle for large-volume traders or institutions.

Account Control: Centralized exchanges ultimately maintain control over your funds. In rare cases, they can freeze accounts, impacting your access to your crypto assets.

KYC Scrutiny: Increasingly, CEXs are adhering to strict Know Your Customer (KYC) regulations. This requires submitting sensitive personal information, which some users find intrusive.

Definition: Decentralized exchanges (DEXs) are blockchain-based platforms that allow direct peer-to-peer cryptocurrency trading without the need for a centralized intermediary like a traditional exchange.

Smart Contracts: Transactions are facilitated by self-executing smart contracts, reducing the need for trust in a third party.

Maintaining Control: Users maintain control of their private keys, meaning they have full custody of their cryptocurrency assets.

Enhanced Security: By eliminating a centralized point of control, DEXs reduce the risk of large-scale hacks or asset freezes.

True Ownership: You retain complete ownership of your crypto, minimizing counterparty risk (the risk that an exchange might mismanage or lose your funds).

Censorship Resistance: DEXs are often more resistant to censorship or government intervention compared to centralized entities.

Liquidity: DEXs can have lower liquidity than major centralized exchanges, potentially leading to higher slippage (price difference) on larger trades.

User Experience: Some DEX interfaces may be less intuitive for beginners compared to the streamlined design of popular centralized exchanges.

Technical Know-How: Using DEXs often requires a basic understanding of blockchain wallets, transaction fees, and smart contract interaction.

Uniswap: (Ethereum-based) Leading DEX with vast token selection and support for ERC-20 tokens.

PancakeSwap: (Binance Smart Chain) Dominant DEX on BSC, offers BEP-20 tokens, staking, and yield farming.

SushiSwap: (Ethereum-based) Offers governance features and rewards, known for its SushiBar staking.

Curve Finance: (Ethereum-based) Specializes in low-slippage stablecoin swaps and pools.

dYdX: (Ethereum-based) Focus on derivatives, perpetual contracts, and margin trading with leverage.

Blockchain: Ensure the DEX is built on a blockchain that supports the cryptocurrencies you want to trade.

Liquidity: Research the trading volume and liquidity pools to ensure good pricing and trade execution.

Fees: Compare transaction fees and gas costs (especially on Ethereum-based DEXs).

Token Selection: Verify that the desired cryptocurrencies are listed.

Features: Consider whether you want additional features like staking or derivatives trading.

Hey there, crypto explorer! There’s an entire world of blockchain adventures waiting to be discovered. Keep digging into this space, get involved, and make those smart investment decisions. Remember, focus on the tech and narratives, not just the buzzwords and hype.

Psst!… Want to know something about how those crazy crypto prices go up and make you a ton of cash? Here’s a little secret – pay attention to the current narratives. Each token or coin has its time or season so pick the trend you are in and where you are in the lifespan of the trend. Keep a sharp eye on which coins are going to get listed on new or major exchanges as this often causes a pump in price. This is especially potent if you’re feeling like a true Degen. Of course, there are never any guarantees for anything. A sharp pump often results in a sharp dump as people take profit. Not financial advice by I have split my portfolio across Blue chip and degen plays. I don’t want to lose everything at the toss of one coin. From my personal perspective, potential blue chips like Bitcoin (the wise old veteran) and Kaspa (the rising star) are the foundation of my portfolio. More juicy secrets to follow in another blog…

Oh, and your wallet seed phrase? Guard it like your most precious treasure – it’s the ultimate key to your crypto holdings! I hope you’ll stick around and find more cool stuff on this site. And hey, if you find something awesome through one of those affiliate links, just know that it helps support all the work that goes into creating this content for you, plus you might snag some sweet discounts along the way.

Okay, crypto adventurer, you’ve mastered the essential lingo and some interesting details! Now, let’s take this knowledge a step further so I have listed some future blogs if you are interested:

Explore the Action: Feeling ready to take the plunge? Put your new knowledge to work! I recommend checking out some beginner-friendly crypto exchanges and wallets listed above. Go look at the next blog post if you want to get started.

Tools of the trade to keep you safe: I’m building various types of starter kits so you can feel safe about getting started in the crypto world.

Seeking Security: confused by hot and cold storage options? Wondering how to protect your crypto assets? My upcoming deep dive will explore the best hardware wallets, reliable VPNs, and security measures for different levels of need. We’ll cover everything from basic protection to advanced strategies for high-value holdings. (Remember, responsible financial planning extends beyond just your crypto assets!)

The Future of Crypto: Curious about how blockchain and AI are shaping the future of finance? Stay tuned for my next blog.

Do you have an Exit Strategy to hold onto your gains? Didn’t think so! Crypto’s too exciting to miss. But remember, even gravy trains have to turn around eventually. Let’s talk about this later.

“Identifying promising crypto investments. This requires careful research and understanding of the inherent risks. It’s crucial to distinguish between legitimate projects and potential scams. Everyone gets burnt on this, but you can get better by following some rules. Go look at the next posts.

Remember, this is just the beginning of your crypto adventure. Stay engaged, research diligently, and never stop learning! Be part of the conversation – join me and other crypto enthusiasts but be careful not to get sucked into the hype.

You’re ready to explore on your own! I put everything I can into these blogs so you don’t have to call me. However, if you are still feeling stuck and just need some help or guidance, shoot me an email and maybe I can help with a few extra pointers. Failing that we can hop on MS Teams or Zoom and strategize together. Warning: for one-to-one meetings, it’s not free as it becomes coaching. But let’s have some fun, payment is in crypto to force you to learn some new skills – gotta practice what we preach about learning the skills of financial freedom, right?

P.S. I’m passionate about bringing you valuable crypto knowledge. If you have found this information helpful and are considering exploring crypto exchanges, wallets, or other security tools, I encourage you to check out the resources I’ve linked throughout the post. Go looking for those discounts and deals but don’t spend a fortune on stuff you don’t need! See the next blog for the starter pack information.

😉