Learning about crypto can sometimes be like drinking from a fire hose. The torrent of information is endless, and you may accidentally miss the off (zhuan) key (qian) information.
01 Your coins are not in your wallet.
02 Cryptocurrency is not a stock market. Not all cryptocurrencies are or want to be currencies. Most cryptocurrencies are non-anonymous and provide very transparent reporting of financial transactions. This is a big selling point of DLT (distributed ledger), or using a public blockchain to record transactions. Also, Bitcoin and Ethereum are not currencies, they are infrastructure. They're proving to be a store of value in the same way that cables are a common and important part of a communication system and you have a length of fiber optics.
03 The best alphas are earned on governance forums (alpha - early investment advice or information that puts you ahead of market returns).
04 Your coins are on the blockchain, not in your wallet. You are 100% responsible for your actions in cryptocurrency, no one will pay for your mistakes Absolutely no refunds! Transactions cannot be changed. You can look at the recent example of BNB being hacked, suspending operations, and stopping the BNB Chain (BNB Chain is one of the smart contract blockchains with the most daily active users) when transactions were not completed .
05 NFT does not refer to "something", they are proof of ownership and authenticity of "things".
NFT is just a token, just like ordinary tokens issued by smart contracts. The difference is that NFT is unique. The uniqueness of the NFT is proved by the number embedded in it, which is unique. For example, when you have something like a picture, the NFT holds an address, kind of like a link, to where the metadata and content that the NFT represents is stored. Most of the time, this will be a decentralized storage solution, like Filecoin and IPFS. (Filecoin is an open-source peer-to-peer network for storing files on the Internet based on the IPFS network protocol. IPFS is a content-addressable, versioned, peer-to-peer hypermedia transmission protocol. It is a protocol for storing and accessing files, websites, A distributed system of applications and data, with the goal of creating a more open, fast, and secure Internet.)
So NFT is very much like a certificate, which says "this person owns the ownership of this thing", "what attributes does this thing have", etc., you can find this information on it. More precisely, an NFT is a token that you own that points to a "thing". Apps like opensea can track the pointing of NFT, extract the content (picture) and metadata (properties) and display it on the page in an intuitive way. When you look on a platform like opensea, what you see is not "something", but the "ownership certificate" of this "thing", which tells you where to find the "thing".
06 You can't dismiss the concept of cryptocurrencies just because you don't have any problems with your local banking or financial system. Billions of people around the world have very legitimate questions and concerns about their banking and financial systems. We try to keep an open mind, maybe one day you will find that cryptocurrency has a valuable application for you.
07 Most people don't know that even if your account ownership is anonymous or "pseudonymous", your trading activities are 100% public. In other words: if we don't care about privacy, we're just creating the greatest financial surveillance tool in history.
08 Seed phrase + wallet security + management + Token Allowance, 99% of scams are carried out with this smart contract method. (seed phrase is the mnemonic phrase that we are often asked to back up when we create a wallet)
09 Unlike most traditional stock trading accounts, cryptocurrencies do not have a stop loss function through self-custody or on a CEX (centralized exchange). Therefore, unless profits are made, large losses are inevitable.
10 Blockchain is the best technological medium for transferring money invented by human beings.
11 Making money is not the only reason to be in crypto, you have to give back to the ecosystem. Be with the right people, follow the right people on Crypto Twitter. Bear markets are the best time to build and learn. As you start your crypto journey, learn the basics and then focus on a chain. We are still very early in this journey. The world belongs to "nerds" who love to learn!
12 Understand Token Economics. High yields are usually only seen on tokens with very high inflation rates. Before entering encryption, DYOR (Do Your Own Research), especially when the yield looks too good, take a look before making a decision.
13 Web2 = Software is eating the world. Web3 = blockchain is eating software.
14 The mass adoption of most chains is a marketing-driven hype rather than an absolutely innovative technology. For example, Solana is very centralized and relies on Amazon Web Services to stay online, Cardano is backed by Hoskinson, but no one understands how it works.
Most chains/projects are copy-pasting code from open-source projects like Bitcoin, Ethereum, etc., with little change. For example, zero-knowledge proof rolls (zk rollups) were introduced by Zcash, and then acquired by Polygon and Starkware and developed into a large-scale business (most of these projects have invested a lot of money by venture capital institutions).
15 In the encrypted space, you will not be bothered by advertisements (Web2).
16 When buying cryptocurrencies, you need to think in terms of decades and take the long view.
17 When you stop to analyze the damage done by the "hack", it is logical that the prime suspect is the sysadmin/programmer with the highest security clearance on the project. Unless these companies have a tight chain of command, with checks and balances on access levels, it's only a matter of time before things go wrong and they get robbed. The integrity of any organization dealing with instruments of financial value is directly related to its leadership. Even with oversight, people are held accountable for these things.
It seems to me that one day this fact will motivate or require experienced and influential leaders in the crypto community to band together as a seasoned group and join forces to develop some type of technical security program association. One has the power to enforce security protocols (both financial and end-user privacy) through voting by the "crypto community" as a whole. I know that's the basics of the SEC (Securities and Exchange Commission). But I'm not talking about securities in this scenario.
Hope this concept can be realized soon. Because as someone mentioned earlier, DeFi needs to get straight and make more progress, otherwise all this will become a pervasive surveillance tool. Once too many people get hurt financially, two things happen.
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People's trust in DeFi will disappear, and people will even feel that the "old centralized way" seems to be fine.
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Those in power are being forced back to their former positions of absolute power and control.
18 Encryption is not Web3, and Web3 is not cryptography. You can have Web3 without encryption (although encryption would be helpful) and vice versa. Web3 is about decentralization and federation, with or without encryption.
If your coin loses 50% of its value, it needs more than 50% of its valuation to recover.