Science Learning
Zero-Knowledge Proofs Zk-rollup zk-SNARKs zk-STARKs Whitelist Wick Win Rate Wrapped Ether (WETH) Weak Subjectivity Web 1.0 Wei Whale Whiskers Vladimir Club Volatility Volume WAGMI Wallet Weak Hands Unit of Account Unspent Transaction Output (UTXO) User Interface (UI) Verification Code Virtual Machine TrueUSD (TUSD) Trustless Turing Complete Understanding CZ’s Number 4 Total Supply Total Value Locked (TVL) TradFi Transaction ID (TXID) Transactions Per Second (TPS) Token Lockup Token Sale Token Standards Tokenomics Supply Chain Support Taker Tank Ticker Token Staking Pool State Channel Store of Value Supercomputer Social Trading Source Code SPL Stablecoin Sidechains Smart Contract Snapshot Social Recovery Wallet Selfish Mining Sell Wall Sentiment Sharding Sharpe Ratio Security Audit Seed Phrase Seed Tag Segregated Witness (SegWit) Rug pull Sandwich Trading Satoshi Satoshi Nakamoto Secure Asset Fund for Users (SAFU) Securities and Exchange Commission (SEC) Relative Strength Index (RSI) Resistance Return on Investment (ROI) Roadmap Routing Attack Quantum Computing Race attack Ransomware Real World Assets (RWAs) Rekt Proposer-Builder Separation (PBS) Proto-Danksharding Pseudorandom Progressive Web application (PWA) Proof of Attendance Protocol (POAP) Proof of Reserves (PoR) Proof of Stake (PoS) Proof of Staked Authority (PoSA) Proof of Work (PoW) Price Action Prisoner's Dilemma Private Key Private Keys Private Sale Permissionless Blockchain Phishing Plasma Polkadot Crowdloan Ponzi Scheme Orphan Block Paper Wallet Passive Management Peer-to-Peer (P2P) Pegged Currency Offshore account Open-Source Software (OSS) Oracle ORC-20 Tokens Order Book Ordinals Node Non-fungible Token (NFT) Nonce OCO Order Off-chain Monitoring Tag Moon Multisignature NFT Floor Prices NFT Mystery Boxes NGMI Metaverse Mining Mining Farm Minting Monetary Policy Mempool Merged Mining Merkle Tree Metadata Market Momentum Market Order Masternode Maximum Supply Mainnet Swap Maker Malware Margin Trading Market Capitalization Liquidity Crisis Liquidity Provider Liquidity Ratios Listing Mainnet Library Lightning Network Linux Liquidity Know Your Customer (KYC) Latency Law of Demand Layer 2 Ledger Leveraged Tokens InterPlanetary File System (IPFS) IOU Isolated Margin Issuance Keccak Initial Coin Offering (ICO) Initial Exchange Offering (IEO) Initial Public Offering (IPO) Integrated Circuit (IC) Interoperability HODL Honeypot Iceberg Order Immutability Index Hash Hash Rate Hashed TimeLock Contract (HTLC) High-Frequency Trading (HFT) Hackathon Hacker Haha Money Printer Go Brrrrr Halving Hard Cap Genesis Block GitHub GM (Good Morning) Golden Cross Gossip Protocol Gwei Fungibility Futures Contract Gas Gas Limit General Public License Formal Verification Fraud Proof Fren Full Node Fundamental Analysis (FA) Flashbots Flippening Forced Liquidation Forex (FX) Fork Fiat Fill Or Kill Order (FOK) Finality First-Mover Advantage (FMA) Fiscal Policy Flappening Fakeout Falling Knife Fan Tokens Fear Of Missing Out (FOMO) Fear, Uncertainty and Doubt (FUD) ERC-721 ETF Ethereum Classic Ethereum Virtual Machine (EVM) Exchange Efficient Market Hypothesis (EMH) Encryption Enterprise Ethereum Alliance (EEA) ERC-1155 ERC-20 Divergence Diversification Do Your Own Research (DYOR) Dollar Cost Averaging (DCA) Double Spending Eclipse Attack Design Flaw Attack Diamond Hands Difficulty Difficulty Bomb Decentralized Indexes Decryption Deep Web Delisting Depeg Decentralized Application (DApp) Decentralized Autonomous Cooperative (DAC) Decentralized Autonomous Organization (DAO) Decentralized Exchange (DEX) Decentralized Finance (DeFi) Custody Daemon Danksharding Dead Cat Bounce Crypto ETFs Crypto Protocol Crypto Winter Cryptocurrency Cryptography Consumer Price Index (CPI) Contango and Backwardation Copy Trading Counterparty Risk Credentials Cross-Chain Bridges Colocation Commodity Futures Trading Commission (CFTC) Compound Interest Confirmation Time Confluence Cipher Circulating Supply Cloud Coin Collateral Central Bank Central Bank Digital Currency (CBDC) Central Processing Unit (CPU) Centralized Centralized Exchange Buy Wall Candidate Block Candlestick Capitulation Censorship-resistance Breakeven Multiple Breakout BUIDL Bull Market BNB Bollinger Bands Bounty BRC-20 Tokens Break-Even Point (BEP) Block Reward Blockchain Blockchain Charity Foundation Bloom Filter Blue-Chip Token Black Swan Event Block Block Explorer Block header Block Height Bitcoin Dominance Bitcoin Maximalists Bitcoin Pizza Binance Ecosystem Fund (BEF) Binance Labs Binancian Bitcoin Bitcoin Core Beta (Coefficient) Beta (Release) Bid Price Bid-Ask Spread Binance Community Vote Benchmark BEP-2 BEP-20 BEP-721 BEP-95 B-Tokens Bags Beacon Chain Bear Market Asynchronous Atomic Swap Attack surface Auction Automated Market Maker (AMM) Arbitrage ASIC-resistant Ask Price Asset Management Altcoin Angel Investor Anti Money Laundering (AML) Application Programming Interface (API) Application-Specific Integrated Circuit (ASIC) All-Time High (ATH) Allocation Alpha Address Airdrop Algorithm All or None Order (AON) Absolute Advantage Active Management Ad Hoc 51% Attack What is ransomware? Proof of entrusted rights and interests Detailed explanation of market placers and market takers What is a 51% attack? What is inflation? What is a dust attack? What is BNB? What is phishing? What is keylogging universal security principles Pyramids and Ponzi Schemes Explained A Beginner’s Guide to the Bitcoin Lightning Network Delayed proof of work What is a node? Moving averages explained Hard fork and soft fork The difference between blockchain and Bitcoin An explanation of liquidity The history of blockchain Byzantine Fault Tolerance What is a cryptocurrency? Burn proof explained Sybil Attack What is Proof of Stake (PoS)? What is Proof of Work (PoW)? What is token burning? What is the RSI indicator? Bollinger Bands Indicator Explanation Authoritative proof explanation What is Trust Wallet(TWT)? Binance Two-Factor Authentication (2FA) Guide What is a market order? What is a limit order? Withdrawal whitelist address What is a limit, take profit, and stop loss order? How blockchain works How to deposit money on Binance Anti-phishing code setting guide How to Withdraw Cash on Binance Convert Dust in Binance What is the blockchain consensus algorithm? Proof of Work (PoW) vs Proof of Stake (PoS) Advantages and Disadvantages of Blockchain On Game Theory and Cryptocurrency What is fiat currency? 2008 financial crisis What is Ripple? What is tulip fever? What is a multi-signature wallet? What is Ethereum Plasma? Why public Wifi is unsafe The history of cryptography What is a DoS attack? Blockchain use case: supply chain What is a replay attack? What is public key cryptography? What is an Initial Coin Offering (ICO)? What is a fractional reserve system? What is quantitative easing (QE)? Blockchain use case: charity Blockchain application case: medical insurance What is Stochastic RSI? What is hyperinflation? What ensures the security of blockchain? What is social engineering? Blockchain application cases zk-SNARKs and zk-STARKs explained Binance Chain Explorer User Guide Binance Chain: Things to avoid on the test network Detailed explanation of hybrid PoW/PoS consensus mechanism What are forward and futures contracts? MACD indicator explanation What is technical analysis? Symmetric encryption vs asymmetric encryption Blockchain application case: Internet of Things (IOT) What is symmetric encryption? Detailed explanation of Ichimoku Cloud What is an options contract? What is leveraged trading? Common scams on mobile devices What is PGP? Lease Proof of Stake (LPOS) Consensus Algorithm Blockchain use case: electronic identity Binance Margin Trading Account Setup Guide Detailed explanation of atomic swap Application cases of blockchain: government governance What is a cryptocurrency wallet? Detailed explanation of Ethereum Casper What is hashing? What is a perpetual futures contract? Device fingerprinting: How were you exposed? What is a 2-for-1 order? What is a digital signature? Blockchain application case: transfer and remittance What is Mimblewimble? Detailed explanation of financial risks Detailed explanation of Wyckoff analysis method market cycle psychology What are leading and lagging indicators? Detailed explanation of peer-to-peer network What is equity pledge? What is a smart contract? Detailed explanation of trend lines A Beginner’s Guide to Segregated Witness (SegWit) An introduction to cryptoeconomics A Brief Guide to the Parabolic Indicator The Ultimate Guide to Binance Futures Trading A risk management guide for beginners The Complete Beginner’s Guide to Decentralized Finance (DeFi) Blockchain use case: Gaming How blockchain technology will impact the banking industry The Ultimate Guide to Key Proof Day What is the difference between private chain, public chain and consortium chain? A Beginner’s Guide to Earning Passive Income Using Digital Currencies Insights from a Professional Cryptocurrency Trader - Nik Patel Quantum computers and cryptocurrencies Asset allocation and diversification explained What is an Eclipse Attack? Introduction to Dow Theory Introduction to Dark Pools Introduction to Web 3.0 and its importance Detailed explanation of double spending problem Blockchain and artificial intelligence-detailed explanation of future technologies Beginner's Guide to K-Line Charts Introduction to Confidential Transactions Introduction to Elliott Wave Theory Analyzing Bitcoin 12 types of K-line charts commonly used in technical analysis Blockchain Scalability - Sidechain Technology and Payment Channels A guide to digital currency collectibles and non-fungible tokens (NFTs) SafePal S1 – Hardware Wallet Review 2022 Trezor Model T – 2022 Hardware Wallet Review Trezor On – Hard Wallet Review 2022 Cobo Vault – Hardware Wallet Review 2022 Why you should use a hardware wallet 5 basic indicators used in technical analysis Blockchain use case: prediction markets What is Ethereum? Ledger Nano S – Hardware Wallet Review 2022 Ledger Nano X – Hardware Wallet Review 2022 KeepKey – Hardware Wallet Review 2022 CoolWallet S – Hardware Wallet Review 2022 Detailed explanation of Decentralized Autonomous Organization (DAO) What is selfish mining Token Mixing and CoinJoin Interpretation "Fibonacci Retracement Study Guide" Bitcoin and Stock-to-Flow Ratio Model Beginner’s Guide to Classic Chart Patterns How to calculate position size in trading A brief discussion on "Black Monday" and the stock market crash Detailed explanation of mining pools A Beginner’s Guide to Security Tokens Is Bitcoin a store of value? 7 simple steps to protect your Binance account Detailed explanation of dollar cost averaging (DCA) 5 Common Cryptocurrency Scams and Prevention Strategies Detailed explanation of the basic principles of support and resistance A Beginner’s Guide to Binance Leveraged Token (BLVT) Detailed explanation of volume weighted average price (VWAP) A Beginner’s Guide to Cryptocurrency Trading Strategies How to Safely Store Digital Currency 7 common mistakes in technical analysis (TA) What is fundamental analysis (FA)? How to trade delivery futures on Binance A must-read for newbies: A complete guide to cryptocurrency trading What is currency? What is the Golden Cha and the Dead Cha? Binance API Series Part I – Spot Trading with Postman Introduction to Bitcoin Script What do Schnorr signatures mean for Bitcoin? Detailed explanation of Merkel tree and Merkel root What is end-to-end encryption (E2EE)? A Beginner’s Guide to Cryptocurrency Day Trading What is a short squeeze? Introduction to ERC-20 Tokens What does short selling mean in financial markets? What is a bull market? What is a Directed Acyclic Graph (DAG) in cryptocurrency? How does the economy work? A Beginner’s Guide to Swing Trading Cryptocurrency What is a bear market? Tokenizing Bitcoin in Ethereum Explained What exactly is liquidity mining in decentralized finance (DeFi)? 12 Terms Cryptocurrency Traders Must Know What is cryptocurrency short-term trading? How to use MetaMask What are flash loans in DeFi? What is Compound Finance in Decentralized Finance (DeFi)? What is SushiSwap and how does it work? How to create technical analysis indicators on TradingView What is Uniswap? How does it work? What is risk-reward ratio and how to use it PancakeSwap Guide A Guide to Cryptocurrency Fundamental Analysis Binance Dual Currency Investing Quick Start Guide Seven indicators that decentralized finance (DeFi) investors must know What is Dogecoin? What is an automated market maker (AMM)? What is Binance Smart Chain? What are cookies? What is a decentralized exchange (DEX)? What is impermanent loss How to Calculate Return on Investment (ROI) Learn about the different order types Connect MetaMask wallet in Binance Smart Chain How to use a Bitcoin ATM How to use the Bitcoin Blockchain Explorer What is Alpha Homora in DeFi? Six Binance Smart Chain (BSC) Metrics You Must Know Introduction to Binance Bridge What is arbitrage trading? An introduction to Ethereum 2.0 and its importance Getting Started with BakerySwap What is (YFI)? What is a trading journal and how to use it What is Curve Finance in Decentralized Finance (DeFi)? BurgerSwap(BURGER) Guide How to spot a scam in decentralized finance (DeFi) What is Chainlink (LINK)? 8 common Bitcoin scams and strategies to prevent them What is backtesting? What is an elastic supply token? What is MakerDAO (DAI)? What is Taproot and how does it benefit Bitcoin? Who is Satoshi Nakamoto? What is Polkadot (DOT)? What are the liquidity pools in the DeFi field? How do they work? Detailed explanation of cryptocurrency market capitalization What is Swipe Token (SXP)? What are Spark (FLR) and Flare Network? what is interest rate What is Facebook Libra (Diem)? What is an Initial Exchange Offering (IEO)? What is Tether (USDT)? What is Aave (AAVE)? How to backtest a trading strategy What is Cardano (ADA)? What is Basic Attention Token (BAT)? What are network effects? Review of Binance Academy’s major events in 2020 What is Filecoin (FIL)? Detailed explanation of Central Bank Digital Currency (CBDC) Beginner’s Guide to Binance Finance What is a wrapped token? What is VeChain (VET)? What is Tezos (XTZ)? What is OmiseGO (OMG)? Detailed explanation of Tendermint What is spoofing in financial markets? What is a Bitcoin ETF? What are blockchain transaction fees? Getting Started Guide to BNB Smart Chain (BSC) What is Axie Infinity (AXS)? Binance Beginner’s Guide How to recover digital currency transferred to the wrong network on Binance A quick guide to staking Binance Coin on Binance Smart Chain (BSC) How to make your own NFT How to withdraw BEP-20 tokens on Binance Smart Chain The top three NFT projects on Binance Smart Chain What is BETH and how to use it How to use Binance Chain wallet How to cancel or replace a pending Ethereum transaction Bitcoin Mining Guide How to invest in Bitcoin and altcoins What are Cryptopunks? Connect Trust Wallet wallet in BNB Smart Chain (BSC) What is "Decentraland" (MANA)? 7 things you need to know about NFTs What is cryptocurrency market sentiment? What is the Ethereum London Hard Fork? "Seven Major NFT Use Cases" What is Solana (SOL)? Detailed explanation of bid-ask spread and sliding spread TradingView Beginner’s Guide Getting Started with Binance NFT Market Why is Bitcoin valuable? What is Synthetix (SNX)? What is Bitcoin Cash (BCH)? What is the Cryptocurrency Fear and Greed Index? What is Forex trading? How to use WalletConnect How is Binance Smart Chain different from Ethereum? What is Polygon (MATIC)? Comparison of custodial and non-custodial NFTs: What is the difference between the two? Best Cryptocurrency Wallets for BNB Smart Chain (BSC) How are cryptocurrencies taxed? What is the spot market and how is spot trading conducted? How to trade Bitcoin futures contracts How to Build a Balanced Cryptocurrency Portfolio How to trade cryptocurrencies responsibly Bitcoin price history overview An introduction to QuickSwap concepts and how it works What is Avalanche (AVAX)? An introduction to the concept of NFT games and their operating principles What is KYC (Know Your Customer)? What is Anti-Money Laundering (AML)? What are Binance Fan Tokens? What is Etherscan and how to use it? Why has Loot become a popular project in the NFT gaming community? What is a cryptocurrency card and how it works What is the Metaverse? How to connect Ledger Nano to Binance Smart Chain (BSC)? Introduction to NFT blind box and its operating principle How to create your own cryptocurrency? How to use Ronin wallet? Beginner’s Guide to Binance Lite What is "Play and Earn" and how to cash out? What is Illuvium (ILV)? What is Shiba Inu Coin (SHIB)? What is Cosmos (ATOM)? What is Smooth Love Potion (SLP)? What is the Ethereum Name Service (ENS)? What is Sandbox (SAND)? BscScan concept and usage analysis What is the Boring Ape Yacht Club (BAYC)? What is a memecoin? What is NFT staking and how does it work? 6 international giants who are creating the Metaverse What is Litecoin (LTC)? What is a nested trading platform? Why must we avoid it? 4 Blockchain and Cryptocurrency Projects in the Metaverse What is Audius (AUDIO)? 7 major technologies that promote the development of the Metaverse Binance Academy 2021 Year in Review An introduction to DeFi 2.0 and its importance What is a non-fungible token (NFT) virtual land in the Metaverse? What is an initial game release (IGO)? What is the Ethereum Arrow Glacier Upgrade? How to use Polygon Bridge? What is an IDO (Initial Decentralized Exchange Offering)? How to add the Avalanche consensus protocol to MetaMask? How to add Polygon to MetaMask? What is Wrapped XRP (wXRP) and how does it work? How to buy land in the Metaverse? What is BNB automatic destruction? What is a cryptocurrency airdrop? Cryptocurrency Payments Explained Cryptocurrency Lending and How It Works How to use Avalanche wallet? What is Algorand (ALGO)? What is Layer 1 in blockchain? Analysis of the concept and usage of SolScan How to create a DAO? Wrapped Ethereum (WETH): Concept and Packaging What is Porto Fan Token (PORTO)? What are Yield Guild Games (YGG)? What is the NEAR Protocol (NEAR)? What is leverage in cryptocurrency trading? What is Harmony (ONE)? What is smart contract security audit? How to trade the hammer candlestick pattern What is the difference between custodial and non-custodial wallets? What is WOO Network(WOO)? What is COTI? What is Ankr (ANKR)? What is THORChain(RUNE)? What is Immutable X(IMX)? What is ApeCoin (APE)? What is Qtum (QTUM)? The concept of GameFi and how it works The 10 most expensive NFTs sold to date How to add Arbitrum to MetaMask? Six Top Dual Currency Investment and Trading Strategies How to add Fantom to MetaMask? What is NEXO (NEXO)? What is a decentralized application (DApp)? What is a cryptocurrency faucet? What are Liquidity Pool (LP) tokens? What are governance tokens? Blockchain Layer 1 and Layer 2 expansion solutions What is the difference between cryptocurrencies and stocks? What is XRP Ledger (XRPL)? What is PAX Gold (PAXG)? What is SKALE (SKL)? What is STP (STPT)? What is an investment DAO? What is the Bitcoin (BTC) Leading Index? What is a blockchain bridge? What is Kyber Network (KNC)? What is tokenomics? Why is it important? What is Band Protocol (BAND)? What is UMA? What is Lisk (LSK)? A comprehensive introduction to the Ethereum merge and upgrade What is MANTRA (OM)? What is BitTorrent (BTTC)? What is Livepeer (LPT)? What is Soul-Bound Token (SBT)? Take-profit and stop-loss points and their calculation methods What is Lido (LDO)? What are BurgerCities (BURGER)? Can there be multiple metaverses? How to Become an NFT Artist: Getting Started with the Binance NFT Market Ethereum moves to proof-of-stake: What Ethereum holders need to know What is High Street (HIGH)? What is Metaverse Real Estate? What is BENQI (QI)? Who is NFT artist Beeple? Why the fame? What is the average amplitude indicator? Web2 vs. Web3: Which one is better? What is a cryptocurrency white paper? What is Binance Oracle? What is the relationship between blockchain and Web3? Which companies have invested in the Metaverse? A brief history of the Bitcoin Leading Index What is the blockchain ternary paradox? What is WOOFi? Cryptocurrency Mining Guide What is GMX? What is Venus Protocol? What is TrueFi (TRU)? "Five Risk Management Strategies" What is Polymesh (POLYX)? What is a behavioral bias? How to avoid behavioral biases? What is a cryptocurrency index fund? A brief history of the Metaverse and the role of cryptocurrencies What is Proof of Reserves and how does it work on Binance? Binance Academy 2022 Year in Review What is DeFi’s real rate of return? What are dynamic NFTs and how do they change? The concept of zero-knowledge proof and its impact on blockchain What is Hashflow (HFT)? What is Hooked Protocol (HOOK)? Ethereum Shanghai upgrade concept and its impact What are token standards? What is Layer 0 in blockchain? What is an API key and a guide to using it securely What is EOS? What is peer-to-peer trading and how is it used? What is the time value of money? What is Maximum Extractable Value (MEV)? How AI Impacts DeFi: Promises and Delusions What is formal verification of smart contracts? How to set and achieve personal financial goals What are permissioned and permissionless blockchains? Trading Psychology: How to Avoid Emotional Trading How do DeFi protocols bring revenue and why is it important? Four self-research methods on DeFi liquidity mining The difference between optimistic aggregation and zero-knowledge aggregation What is BNB Greenfield? How will AI affect the NFT art ecosystem? What is triangular arbitrage and how to exploit it? What are the common cross-chain bridging security vulnerabilities? What are Ordinals? Bitcoin NFT Overview What is ERC-4337, the Ethereum Account Abstraction? What is decentralized storage? What is cross-chain interoperability? What is a cryptocurrency? What are some common security issues with GameFi? How Web3 will change the worlds of sports, music and fashion How to Conduct Peer-to-Peer (C2C) Transactions Safely What is cryptocurrency mining and how does it work? What are non-fungible tokens (NFTs)? What are crypto whales and how can you spot them? What is an air gap wallet? What is a cryptocurrency gaming currency? What to consider when building your investment portfolio What is data tokenization and why is it important? What is a stablecoin? How to protect crypto assets after death and transfer them to heirs How to create an NFT What is ZkEVM and how does it enhance the Ethereum ecosystem? The difference between Bitcoin spot ETF and Bitcoin futures ETF Introduction to Isolated Margin and Cross Margin in Cryptocurrency Trading A detailed guide on how to grow your savings An introduction to NFT lending and how it works How hedging works in the cryptocurrency field and what you need to know about seven hedging strategies An introduction to cryptocurrency trading bots and how they work Comprehensive Guide to NFT Categories What is Uniswap V4? What is two-factor authentication (2FA)? What is BASE – Coinbase’s Layer 2 Network? What is EIP-7514 The thunder is loud but the rain is small, is the FTX liquidation really that scary? What is Tip Coin? Can I earn a bowl of pig's trotter rice through it? What is OpenSea What is a vampire attack What is the Cosmos v12 upgrade What is Rebase Token? What are the U.S. government Bitcoin addresses? What is Shiba Inu (SHIB): The Memecoin that strives to shed the Meme tag What is a banana gun? Can you charge? What is Restaking What is EigenLayer What is ERC-6551: The most important innovation in the NFT space after ERC-721 What is Rollbit? Why is it so popular recently? Bitcoin spot ETF application review - when will it be approved? What is order book liquidity? How to compare liquidity data of major exchanges in real time through TokenInsight? What is EIP-4844? How Cancun Upgrade Reduces Ethereum Transaction Fees? What is Sei Network What is ERC-4337 What is Account Abstraction? What is Polygon 2.0 What is PYUSD? Learn about PayPal’s new moves in Web 3.0 Can Bitcoin Spot ETF Successfully Get Approval? Bitcoin Spot ETF 2023 Application Status Bitcoin spot ETF failure case Why Bitcoin Spot ETFs Matter What are the Bitcoin spot funds? What is a Bitcoin ETF? How to become a better memecoin player How to Assess the Value of Meme Coins What is Memecoin? How to understand meme coin project risks How to discover meme coins What is the Responsible Financial Innovation Act What is the 21st Century Financial Innovation and Technology Act? Who is Arthur Hayes: Pioneer of Crypto Madness What is Bitcoin Market Capitalization Bitcoin Dominance Is Gary Gensler still worth the crypto market’s expectations? What is Pi Cycle Indicator What is NVT Ratio What is CDD and Liveliness What is Puell Multiple What is SOPR What are MVRV and NUPL What is WorldCoin What is UniswapX What are the benefits of hiNFT transactions? What is a Divisible NFT? How Fracton is revolutionizing divisible NFTs Where to trade hiNFT What is Bitcoin Cash Bitcoin Cash ($BCH) How to use Tokenlon Limit Orders Limit Orders How to use Tokenlon Instant Swap What are the characteristics of Tokenlon DEX? What is Tokenlon DEX How to value Bitcoin What is Take Profit/Stop Loss Order TP/SL Order What is a limit order? Limit Order What is a Market Order? What is Open Interest? What are U-margined and coin-margined contracts? What is Cross Margin and Isolated Margin? What is Funding Rate? What is Mark Price and Index Price? Who is SBF – From mansions and yachts to silver bracelets and iron fences How to use TokenInsight batch transfer assistant What is an FOMC meeting? Why is it important? What is Osmosis What is Appchain Appchain What is the history of Cosmos What is Cosmos Hub What is Tendermint What is Cosmos SDK What is the IBC protocol What is Cosmos What are some interesting Starknet projects? How to use StarkNet What is the relationship between StarkNet and StarkEx What is the difference between Starknet and zkSync What is Starknet What is the difference between SNARK and STARK What is Optimism Bedrock Upgrade How to use iZiSwap What is iZiSwap iPoint What is Discrete Liquidity Automated Market Maker DLAMM What is iZiSwap What is Safu What is Shill What is GM/GN What is Degen What is IYKYK What is To the Moon What is NFA What is Paper Hand? what is diamond hand What is NGMI What is WAGMI What is FUD What is DYOR What is LFG What is FOMO What are the functions of OKX wallet? How to install OKX wallet What is OKX Wallet What is BRC-20 The difference between Bitcoin NFT and Ethereum NFT What are Bitcoin NFTs? What is SyncSwap What is Mute What is Velocore How to use zkSync What is zkSync What is Rollup How to get airdrops Receive Airdrops What is TVL What is Account Model? Account Model Who is Brian Armstrong Who is Hayden Adams Who is Joseph Lubin What is Stargate What is Wormhole What is Cross-Chain Bridge? DeFi History Review Who is CZ Who is Vitalik Buterin Who is Satoshi Nakamoto? How to use cryptocurrencies Use Cryptocurrencies What is DeFi Aggregator My Risks When Buying/Holding Crypto How to Get Cryptocurrencies Get Cryptocurrencies What is Rekt What is a mnemonic phrase? Secret Recovery Phrase What is sharding? What is GMX What is dYdX What is Impermanent Loss? What is Curve What is Uniswap What is a centralized exchange CEX What is an Automated Market Maker (AMM)? What is a decentralized exchange DEX What is Flash Loan? Flash Loan What is a decentralized stablecoin? Decentralized Stablecoin What is Liquidity and LP (Pool) What is Slippage? What is Three Arrows Capital? What is DeFi What is What is Yield Farming/Liquidity Mining? What is Launchpad Launchpad What is a smart contract Smart Contract What is Euler Finance Where can I check Token information? What is Liquid Staking? What is Aave What is decentralized lending? Decentralized Lending & Borrowing What is Block Block What is Oracle What is Perpetual Contract Perp What is an exchange? What is Blockchain Blockchain What is a synthetic asset? Synthetic Asset What is Chainlink What are the four basic functions of a blockchain? Primary Functions of a Blockchain What is 51% Attack 51% Attack What is Soulbound Token? What are public keys and private keys? Public Keys and Private Keys What is Nonce What is EIP What is Shanghai Upgrade? What is Node/Validator Node/Validator What is the Difference between Cryptocurrency and Stock Difference between Cryptocurrency and Stock What is Arweave What is ICO / IEO / IDO What is Bitcoin Halving Bitcoin Halving What is Ultrasound Money What is APR / APY What is a Rug Pull scam? What is Utilization Rate? What is Pump & Dump Scam? What is Phishing Scam Phishing What is Ponzi Scheme Ponzi Scheme What is Mining What is Zero-Knowledge Proof? What is Liquidation? What is the Byzantine Generals Problem? What is Lending? What is Sybil Attack Sybil Attack What is exchange platform currency Exchange Token What is Blockchain Impossible Triangle Blockchain Trilemma What is Faucet What is UTXO What is Consensus Mechanism? What is Proof of Stake? What is Proof of Work PoW What is RPC What is plasma What is Nakamoto Coefficient What is IPFS What is a state channel? State Channel What is gas fee What is Layer 2 Network Layer 2 What is Validium What is HODL What is a fork? What is Wrapped Token? What is Fungible Token? What is ERC-20 What are Coins and Tokens What is Ethereum Virtual Machine Compatible EVM-compatible What is Ethereum Virtual Machine EVM What is Airdrop What is MEV What is DApp What is a distributed ledger? Distributed Ledger What is Wallet? What is DAO What is Stablecoin? What is Tokenomics? What is MetaMask What is whitelist Whitelist What is Metaverse What is Bitcoin Bitcoin What is Ethereum Ethereum what is (3,3) meme What is YGG What is CultDAO What is NFT
What is a cryptocurrency?
2023-11-18 22:59 Update


  1. Cryptocurrency Basics

  2. How does blockchain work?

  3. How to invest in cryptocurrencies?

  4. Cryptocurrency FAQ

Chapter 1 - Cryptocurrency Basics

Table of Contents

  • What is Cryptocurrency?

  • What is unique about cryptocurrencies?

  • Why is it called “cryptocurrency”?

  • What is public key cryptography?

  • Who invented cryptocurrency?

  • What is the difference between cryptocurrencies and tokens?

  • What is a digital currency wallet?

What Is it a cryptocurrency?

Cryptocurrency (English abbreviation "crypto") is a digital currency that individual users can use as a medium to operate in a digital environment. Transfer economic value.

You may be wondering how this system differs from PayPal or digital banking apps on your phone. On the surface, their uses seem to be the same—paying friends, shopping on favorite websites, etc. are all common use cases. However, the underlying operating principles of the two are quite different.

What is unique about cryptocurrencies?

Cryptocurrencies are unique in many ways. However, its most important function is to serve as an electronic cash system that does not belong to any party.

High-quality cryptocurrency will have the characteristics of decentralization. No central bank or subset of users can change the rules without consensus. Network participants (nodes) establish communication with other participants by running software and share information with each other.

Centralized system vs decentralized system

Comparison of centralized and decentralized trading platforms.

On the left is a system commonly used by banks. Users must communicate through a central server. The system on the right has no hierarchy: nodes are connected to each other and pass information to each other.

Cryptocurrency networks are decentralized and can effectively resist service interruptions or censorship. On the contrary, simply interrupting the main server can bring down the centralized network. If a bank's database is wiped and there are no backups, it can be difficult to determine a user's balance.

In the cryptocurrency world, nodes keep a copy of the database. Everyone can act as a server on their own and play an effective role. Each node can be offline, but its paired node can still capture information from other nodes.

Therefore, cryptocurrencies can circulate around the clock, allowing value to be transferred anytime and anywhere without the intervention of intermediaries. Therefore, we often call it permissionless: anyone can transfer money as long as they are connected to the Internet.

Why is it called "cryptocurrency"?

The term "cryptocurrency" is composed of cryptography and currency compound word. This is because cryptocurrencies extensively use encryption technology to protect transactions between users.

What is public key cryptography?

Public key cryptography lays a solid foundation for cryptocurrency networks and is the technical backing for users to send and receive funds.

In the public key cryptography scheme, you have a public key and a private key . The essence of a private key is a huge number that no one can guess. This number is often beyond imagination.

For Bitcoin, guessing the private key is equivalent to accurately predicting the outcome of 256 coin tosses. Today's computers alone will not be able to crack it even when the universe is heat dead.

As the name suggests, the private key must be kept properly no matter what. In addition, the public key can be generated from the private key. The latter can be sent safely to anyone. But the private key cannot be obtained by reverse engineering the public key.

You can also create a digital signature by signing data with your private key. This is similar to signing a document in the real world. The main difference is that anyone can compare the signature with a matching public key to determine whether the signature is valid. This way, users don't have to expose their private keys but can still prove ownership.

In the field of cryptocurrency, funds can only be spent if you get the corresponding private key. When you open a transaction, you will announce your transfer of currency to the network. The specific content will be announced through messages (i.e. transactions). The message is signed and added to the cryptocurrency database (blockchain). As mentioned above, a private key is required to create a digital signature. Additionally, since the database is completely open, anyone can verify that your transaction is valid by checking the signature.

Who invented cryptocurrency?

Various digital cash schemes have been launched over the years, with the first cryptocurrency being Bitcoin, which was launched in 2009. Its creator is a person or group of people under the pseudonym Satoshi Nakamoto. To this day, their true identities remain a mystery.

Bitcoin has spawned a large number of cryptocurrency "latecomers" - many of them competitors, and other products are trying to integrate Bitcoin Features not available. Today, in addition to conventional sending and receiving funds, many blockchains also support the use of smart contracts to run decentralized applications. Ethereum is perhaps the most popular example of this type of blockchain.

What is the difference between cryptocurrencies and tokens?

At first glance, there seems to be no difference between cryptocurrencies and tokens. Both are traded via exchanges and can be transferred between blockchain addresses.

Whether used as a medium of exchange, a means of saving value, or both, cryptocurrencies can only be used as funds . The function of each unit is homogeneous, that is, the value of the same currency is exactly the same.

Bitcoin and other early cryptocurrencies were just "money," but later blockchains tried to do more. For example, Ethereum provides more than just monetary functionality. It allows developers to run code (smart contracts) in a distributed network and create tokens for various decentralized applications.

Tokens can be used like cryptocurrencies, but with greater flexibility. You can mint millions of the same token, or choose a handful with unique properties. They can play a variety of roles, from digital receipts representing equity in a company to loyalty points.

In protocols that support smart contracts, the base currency (payment for transactions or applications) is separate from its tokens. For example, the native currency in Ethereum is Ethereum (ETH), which can only be used to create and transfer tokens within the Ethereum network. These tokens are created according to ERC-20 or ERC-721 standards.

What is a digital currency wallet?

Essentially, a cryptocurrency wallet is a vehicle for storing private keys. It can be a dedicated device (hardware wallet), an app on your computer or smartphone, or even a piece of paper.

Wallets are an integral interface for most users when interacting with cryptocurrency networks. Different types of wallets correspond to functional categories – obviously, paper wallets cannot sign transactions or display current prices in fiat currency.

If you consider convenience, software wallets (such as Trust Wallet) are undoubtedly the most suitable tool for daily payments. The security of hardware wallets is nearly unrivaled, effectively protecting private keys from prying eyes. Cryptocurrency users tend to store their funds in these two types of wallets.

Chapter 2 - How does blockchain work?


  • What is blockchain?

  • How are blocks added to the blockchain?

  • How does Ethereum mining work?

  • Can cryptocurrencies scale?

  • Who makes decisions for cryptocurrency software?

What Is it blockchain?

Blockchain is a special type of database in which data can only be added and cannot be deleted or changed. Transactions are regularly added to units called "blocks" (comprised of transaction information and other important metadata) within the blockchain.

We call this structure a "chain", and the metadata of each block contains a piece of information that connects it to The previous block is connected. Specifically, it contains the hash of the previous block, which you can think of as a unique digital fingerprint.

The probability that two pieces of data output the same value through the hash function is almost zero. So if someone changes an earlier block, its hash will change, causing a ripple effect in the hashes of subsequent blocks. On the other hand, if all subsequent blocks have changed, it can be easily inferred that the previous blocks have changed long ago.


The hash of each block is included in the next in the block. All blocks are connected into a chain to form a "blockchain".

The entire blockchain is downloaded locally by network participants. Remember how we introduced that public key cryptography can be used by anyone to verify transactions and signatures? After successfully receiving a block, the node performs several checks. Once an invalid value is found, the block will be "rejected".

If the block is valid, the node makes an exclusive copy of it and then propagates the original block to other nodes. The same operation will continue until the block is spread across the entire network. This process also applies to unconfirmed transactions – that is, the transaction has been broadcast, but has not yet entered the blockchain.

See also: The Ultimate Beginner's Guide to Blockchain Technology.

How is a block added to the blockchain?

If false financial information is accidentally entered, the integrity of the blockchain will be severely damaged. At the same time, this kind of distributed system has no administrator or person in charge to maintain the ledger, so how can we ensure that participants act with integrity?

Satoshi Nakamoto proposed a proof-of-work system in which anyone can propose a block to be added to the blockchain. In order to push blocks into the chain, users must work hard to guess the difficult problems set by the protocol at the expense of computing power.

Proof-of-work is time-tested and is undoubtedly an ideal way to reach consensus among users, but it is by no means the only solution. Developers are delving into alternatives such as proof-of-stake, and implementations are still being explored (although hybrid consensus mechanisms have been around for some time).

See also: "What is the blockchain consensus algorithm?" 》

How does Ethereum mining work?

Mining header image

The above process is called mining. If a miner finds a solution, the block constructed from it can be added to the blockchain. In return, they will be rewarded with the blockchain’s native currency.

The cryptographic puzzle that miners must solve requires repeatedly hashing data to ultimately generate a number below a certain value. Using a one-way function for hashing means that it is almost impossible to guess the "input value" when the "output value" is known. In contrast, when the "input value" is known, verifying the "output value" will be very simple. This way, all participants can verify that miners produce “correct” blocks and reject invalid blocks. Forging invalid blocks will not bring any rewards to miners and will only waste resources.

The result is some interesting game theory - fraudsters with ulterior motives waste funds and gain nothing, while honest and trustworthy miners behave properly , and ultimately made a huge profit. No malicious entity has the resources to attack a powerful network indefinitely. Therefore, in our vision, participants who hold resources will behave with integrity and receive reasonable returns on investment.

See also: "What is Cryptocurrency Mining?" 》

Can cryptocurrencies scale?

As you can see, distributed networks are inefficient. Unfortunately, cryptocurrencies can only be secure and censorship-resistant if all nodes can synchronize a copy of the blockchain. The less demanding it is to keep up, the easier it will be for new users to get involved.

Therefore, compared to adding a large block every five minutes, adding a small block every ten minutes is the ideal blockchain choose. The former requires nodes to run high-performance computers to stay in sync and pushes lower-performance devices offline sooner. This will lead to the continuous reduction of "peer nodes" in the network, leading to greater centralization.

However, the limitation of small blocks is the low transaction volume per second (TPS). During busy times, transactions may have to wait a while before being added to the blockchain. This will be inconvenient for people who want fast payments, but it is the price that must be paid for decentralization.

We call this problem the scalability dilemma. A highly scalable system can easily handle increased throughput with minimal negative impacts. Blockchains are poorly scalable - as mentioned earlier, simply increasing throughput through large blocks will seriously affect the overall operation of the distributed network.

To increase TPS without loss of network decentralization, off-chain expansion seems to be A feasible solution. It incorporates a range of centralized and decentralized solutions that allow transactions to be completed without being entered into the blockchain.

To learn more about off-chain scalability examples, please read "Blockchain Scalability: Sidechains and Payments" channel".

Who makes decisions for cryptocurrency software?

Cryptocurrency networks are optional and no one is forcing you to run software you don’t need. The code in the high-quality protocol is completely open source and supports users to verify the fairness and security of the system.

In general, anyone can contribute to the development of cryptocurrency. New features or code changes must be reviewed by the developer community before being agreed upon and officially released. Here, users can review the code themselves and choose whether to run it.

Some updates are backward compatible, that is, updated nodes can still communicate with earlier nodes. Most updates are not backward compatible. If early nodes are not updated synchronously, they can only "disappear" from the network. For more information, please read "Hard Forks and Soft Forks".

Chapter 3 - How to Invest in Cryptocurrencies?


  • Which cryptocurrency should I buy?

  • What should you learn before investing in cryptocurrencies?

  • Where to buy cryptocurrencies

    • Centralized Exchanges (CEX)

    • Decentralized Trading Platform (DEX)

    • P2P Trading Platform

  • How to Buy Cryptocurrency

    • How to Buy Cryptocurrency on Binance

    • How to Buy Cryptocurrency on Binance Decentralized Exchange

    • How to buy cryptocurrencies on Binance P2P

Which cryptocurrency should I buy?

The decision is yours - you must do your own research (DYOR) and make decisions based on your personal analysis. Still, there are many tools you can use to make more informed decisions. For example, Binance Research studies market developments year-round, publishes insightful and analytical articles, and writes comprehensive reports for independent projects.

To be able to evaluate which cryptocurrency to buy, you must first understand how Bitcoin works. That’s why we’ve launched our What is Bitcoin guide!

What you should learn before investing in cryptocurrencies content?

Where should we start? There are many different methods of analyzing financial markets, and most professional investors generally use very different strategies. From a high-level analysis, investment evaluation is mainly divided into two major schools: fundamental analysis (FA) and technical analysis (TA).

Fundamental analysis is an asset value evaluation method based on economic and financial factors. Analysts using this method consider both macro and microeconomic factors, carefully studying the state of the industry or the companies (if any) that support the asset. In the cryptocurrency space, they also keep a close eye on public blockchain data (sometimes called “on-chain metrics”).

These metrics may involve the number of transactions, addresses, top holders, network hash rate, and a wealth of other information. This analysis is designed to value an asset and compare it to current valuations, ultimately transitioning into determining whether the asset is undervalued or overvalued.

However, we must recognize that cryptocurrencies are an emerging asset class that is booming. Fundamental analysis is of little use when valuing it. In short, a standardized framework for cryptocurrency valuation has yet to emerge, and most existing models fail to serve as benchmarks. The success or failure of a cryptocurrency project can depend on many factors that no current framework can explain.

Technical analysts are taking a different approach. Unlike fundamental analysts who determine the intrinsic value of an asset, technical analysts evaluate trades and investment opportunities based on historical trading activity. They pay close attention to price movements, chart patterns, indicators and use a variety of charting tools to assess the strength of market trends. Essentially, technical analysts believe that historical changes in an asset's price are strong indicators of future price movements.

Technical analysis can be applied to almost all financial markets that provide historical data and is widely favored by cryptocurrency traders.

Which method is more effective? Since both methods have their own advantages, we might as well approach them both. Most market analysis tools are most effective when used in conjunction with other tools. No matter what the situation is, being vigilant about financial risks and doing a good job in risk management are top priorities, and personal investments should never exceed the risk tolerance range.

Where to buy cryptocurrencies

There are many ways to buy cryptocurrency. First, fiat currency needs to be exchanged for cryptocurrency. You can then choose to hold, trade other cryptocurrencies or earn interest on loans. Let’s take a look at the different types of cryptocurrency trading platforms.

Centralized Exchange (CEX)

Cryptocurrencies are usually decentralized, you may feel The concept of a “centralized exchange” is confusing. Simply put, a centralized exchange is an online platform that facilitates transactions by connecting buyers and sellers.

The specific operating principle is that users deposit fiat currency or cryptocurrency into the trading platform and trade through the internal system. If you’re familiar with how cryptocurrency wallets work, you’ll know that in this case, the cryptocurrency is hosted by the exchange. Of course, funds can also be easily transferred to a personal wallet for safekeeping as needed.

Some people prefer to store funds on the trading platform to facilitate frequent transactions or access to funds. However, if the trading platform is hacked, user funds will be at risk.

Decentralized Trading platform (DEX)

Decentralized trading platform is different, it does not involve custody services. In fact, a more accurate name would be Non-custodial trading platform.

The following is the transaction process using a decentralized trading platform. You don't need to deposit funds into the trading platform wallet, you can trade using your personal wallet. Once a deal is made, the funds are transferred directly to the blockchain via magical smart contracts.

Decentralized trading platforms do not have any entity acting as a custodian, so some users believe that their security is better than that of centralized trading platforms. Another big advantage is that most decentralized exchange platforms do not ask users to provide any personal information other than their blockchain wallet address. At the same time, self-keeping of funds requires the accumulation of certain technical knowledge, and the responsibility lies entirely with the user.

P2P trading platform

Peer-to-peer (P2P) trading platform is also a channel to connect buyers and sellers, but it is different from CEX or DEX. It itself can only create transaction opportunities for buyers and sellers and will not interfere with transaction details. Therefore, the deposit and settlement method of each transaction is determined by negotiation between the buyer and seller.

How to buy cryptocurrency

How to buy cryptocurrency on Binance

  1. Log in to your Binance account. New users please register first.

  2. Log in to the cryptocurrency buying and selling portal.

  3. Select the cryptocurrency you want to purchase and the currency you want to use for payment.

  4. Select a payment method.

  5. Follow the prompts to enter your card or bank details and complete identity verification.

  6. Done! The purchased cryptocurrency will be credited to your Binance account.

How to buy cryptocurrencies on Binance decentralized exchange

Compared to other options , the decentralized trading platform is slightly more complex.

Before starting the operation, don’t forget to prepare the following tools:

  1. A wallet that can be associated with Binance DEX (Trust Wallet is recommended).

  2. Some BNB, used to pay transaction fees.

When you are ready, follow the instructions in our detailed guide to Binance DEX:

  • "How to create a wallet on Binance DEX"

  • "Binance DEX: Interface Wizard"

  • 《Binance DEX: Access your wallet》

How to buy cryptocurrencies on Binance P2P

  1. Log in to your Binance account. New users please register first.

  2. Log in to the Binance P2P portal.

  3. Choose to buy or sell.

  4. Filter by currency, payment method, or other transaction requirements.

  5. Select a listed currency that meets your requirements or publish your own currency for sale.

Chapter 4- Cryptocurrency FAQ

Table of Contents

  • Are cryptocurrencies legal?

  • Cryptocurrency is dead?

  • Are cryptocurrencies safe?

  • Are cryptocurrencies anonymous?

  • Are cryptocurrencies valuable?

  • Are all digital currencies cryptocurrencies?

  • What is the market capitalization of cryptocurrency?

  • Why do I need to pay transaction fees?

  • If the key is accidentally lost, can I still get my funds back?

  • What is the future of cryptocurrency?

Encryption Is the currency legal?

There are very few countries that explicitly prohibit the purchase, sale or saving of cryptocurrencies. Bitcoin and other virtual currencies are completely legal in the vast majority of countries around the world. Before participating in investing or spending, you must confirm whether the use of cryptocurrency is allowed in your jurisdiction.

Please note that each country has different regulations governing cryptocurrency activities. You may not violate any tax or compliance regulations.

Cryptocurrency is dead?

is crypto dead header image

Cryptocurrency has been sentenced to death by the media hundreds of times over the past decade. However, today, it still operates and develops as it did in 2009. Of course, its volatility cannot be ignored, with prices ups and downs and frequent fluctuations. To those who are obsessed with making profits, bear markets can be frustrating.

However, “cryptocurrency is dead” is an absolute fallacy. Its user base is still expanding, and its technology and infrastructure are improving day by day.

With the continuous improvement of core technology innovation capabilities, Bitcoin and Ethereum will undoubtedly have a huge impact on the reshaping of the existing monetary system. influence and make it more consistent with actual development. Features such as immutability, censorship resistance, trustlessness, or near-instant transactions through the public currency system can completely subvert the operating mechanism of Internet economic activities.

Are cryptocurrencies safe?

Cryptocurrency carries certain risks. If you forget your bank account password, you can reset it through customer service. However, none of this will help if you forget or lose the private keys to access your cryptocurrencies. A reputable trading platform can reduce such risks - users entrust their funds to the platform and avoid the risk of losing their private keys.

Public key cryptography remains impregnable. Under the protection of advanced security measures, the chance of fund theft is significantly reduced, and online accounts frequently become victims of hacker attacks. Best practices for protecting against attacks include being aware of common scams (social engineering, phishing, etc.), always keeping private keys offline and backing them up in a safe location.

Are cryptocurrencies anonymous?

Your name is not associated with a cryptocurrency address - the latter is much like a random number and letter in the blockchain string. However, even if it is possible to become anonymous, care must be taken. Although you are acting under a pseudonym, your "on-chain identity" is still with you, but it is different from your real identity.

Through certain methods, users can associate IP addresses with activity. This virtually creates conditions for methods such as dust attacks and other analysis techniques to break anonymity. Don’t forget, the essence of blockchain is a huge public database. If you are concerned about personal privacy, you should try to avoid associating personal transactions with real names. Cryptocurrencies like Bitcoin are not private by default, but methods such as currency mixing and CoinJoin can reduce the reliability of analytical heuristics.

A handful of cryptocurrencies (called privacy coins) use methods such as confidential transactions to obfuscate the funds in transactions Source, destination address and amount. They are more private by default, but are not completely resistant to deanonymization.

Are cryptocurrencies valuable?

In the financial system, value is a shared belief. As with anything of value, value is not an inherent property of cryptocurrency itself, but is artificially assigned. In other words, the value of something comes from everyone's consensus, not the thing itself. This is true whether the object of value is a precious metal, a piece of paper, or information in a database.

Despite this, some still believe that cryptocurrencies and Bitcoin can be regarded as scarce digital commodities. Because issuance speed and monetary policy are predictable, some believe Bitcoin may function as a store of value in the future, like gold. Bitcoin has been around for just over a decade, and whether it can stand the test of time in this regard remains to be seen.

Are all digital currencies cryptocurrencies?

The answer is no. Today, many countries and central banks are developing their own versions of digital currencies. However, these products are only "digital currencies". In fact, they are often collectively referred to as Central Bank Digital Currencies (CBDC). These currencies are essentially digital versions of fiat currencies and do not offer most of the advantages of cryptocurrencies. They are legal currencies issued and declared by a central government and generally do not use distributed ledgers (such as blockchain) to save transaction records.

You may also have heard of Facebook Libra, another digital currency. The advantage of this project is that it plans to be built on an open source blockchain system. However, it will not be a permissionless currency like Bitcoin or Ethereum. Participants cannot use this digital currency with just a simple internet connection. What’s more, the project and the activities within it will be run and managed by an association of selected members.

Therefore, while also utilizing blockchain or cryptography principles, CBDC and other forms of digital currencies are not the same as cryptocurrencies such as Bitcoin. There are huge differences in currencies.

What is the market capitalization of cryptocurrency?

Price is not the only metric for measuring cryptocurrencies. Another equally important metric is how many units there are in a cryptocurrency, known as the supply.

Specifically, to assess the value of a cryptocurrency network, it is necessary to know the number of units in existence. This is called the circulating supply. Different cryptocurrencies have different issuance plans, so it is important to understand each network's issuance situation.

Market capital (or market capitalization) is equal to the unit price multiplied by the circulating supply.

Market capital = circulating supply * price

As you might imagine, the market cap of a cryptocurrency network is a better reflection of the value in the network than the unit price. A network with a lower price but a larger circulating supply is likely to generate a higher total valuation (market cap) than a network with a higher price but a smaller circulating supply. In some cases, the opposite may be true.

However, it is worth noting that market capitalization does not represent the total amount of funds entering a specific market. For example, beginners often fall into the misconception that Bitcoin market capitalization represents the total amount invested in Bitcoin. This view is wrong because market capitalization depends on price and supply.

Why do I need to pay transaction fees?

If you send one Bitcoin to another address, the actual number of Bitcoins received will be slightly less than one. A small portion of this fee is paid to miners as a reward for adding individual transactions to the blockchain.

Many cryptocurrencies use similar mechanisms to incentivize users to protect network security. In a proof-of-work system, transaction fees are often bundled with newly minted tokens (Block Subsidy) to form the block reward.

The specific handling fee can be flexibly adjusted according to the urgency of the transaction. Rational miners will always seek high returns and often prioritize transactions with higher fees. You can view your current pending transactions to see the average fees and set your personal fees accordingly.

If the key is accidentally lost, I still Can the funds be recovered?

If the key is accidentally lost, the possibility of recovering it is slim. The biggest advantage of cryptocurrencies is the elimination of custodians and middlemen who manage financial transactions. But there is also a drawback, that is, all the responsibility will be borne entirely by you. Therefore, you must be extremely careful and never lose your private keys, which are the key to keeping a firm grasp on your funds.

What is the future of cryptocurrency?

How will cryptocurrencies develop in the future? This is a matter of benevolence and wisdom. Some people believe that Bitcoin will rise in the digital age, eventually replacing gold and disrupting the existing financial system. Others believe that cryptocurrencies will always be a secondary system that cannot grow beyond niche markets. Some people firmly believe that Ethereum will evolve into a distributed computer and become the mainstay of the new Internet.

Sceptics predict the industry will eventually collapse, while enthusiasts are relieved that cryptocurrencies remain a niche currency system. The results are indeed unpredictable, and it is too early to determine what will happen a year from now. But there is no denying that cryptocurrencies have huge growth potential.