THE ZERO TO ONE (Cryptocurrencies and NFTs)
First, let us discuss what cryptocurrencies are?
Cryptocurrencies are virtual currencies based on blockchain technology where everything is decentralised and controlled by normal people like you and me.
There is no centralised organisation controlling the cryptocurrency markets which makes it unique and equal for all people.
What are several types of cryptocurrencies?
There are many different types of cryptocurrencies from digital gold to meme coins. Every coin has its traits and uses.
Let us discuss the utilities of some cryptocurrencies
The crypto-like bitcoin is called digital gold and is used for storing wealth.
Ethereum is an open-source blockchain on which we can build apps, and tokens and place digital artwork top of it.
Solana is one of the fastest blockchains out there like Ethereum it's an open-source
Blockchain
Like this several cryptocurrencies have their utility. You can see more info about every crypto by visiting the coin market cap because discussing every coin here will take too long.
What are some important terms in the crypto industry?
First, Let’s discuss Defi. It stands for decentralised finance in common terms the financial institution is open to everyone with a crypto wallet. It's a kind of crypto bank where you can lend, borrow, stake and swap your crypto.
Here the term staking refers to when people all across the world deposit their coins in a pool and get an ROI for their deposit. It’s like a savings account deposit but the difference is in a savings account the money you put is all yours But in a staking pool, the money belongs to several people who mainly don't know each other and swapping refers to exchanging one coin in place of another.
Now, what is an altcoin?
An altcoin is called an alternative to bitcoin. Ethereum is the most famous altcoin
Most people don’t understand the difference between a coin and a token?
Here the difference is a coin is a crypto that has its blockchain whereas a token is a crypto that is deployed on the blockchain of another coin. An example of a coin is Solana and an example of a token is Raydium
Now we should discuss where we should keep our cryptocurrency
There are two types of places where we can keep our cryptocurrency which is a cold wallet and a hot wallet. Now, what's the difference? A cold wallet is a hardware wallet that is not always connected to the internet. It is only connected to the internet when you need to transfer your crypto or utilise it whereas a hot wallet is a digital wallet that is always connected to the internet. So which kind of wallet should you use?
You can use a cold wallet if you are not an everyday user of your crypto. It is ideal for long term storing your crypto as it is safe and secure but in this case, you should always keep it safe and remember the password whereas a hot wallet can be used when you are an everyday user and a trader for everyday use a cold wallet can be difficult to use. So if you are a trader you should probably use a hot wallet but always remember your seed phrase and don’t give your wallet access to sketchy websites.
Now, here comes the most important question
Can we earn money from crypto?
The answer is yes, but you need proper knowledge and guidance for yourself. There are several ways you can earn from crypto by
Mining
Staking
Trading
Investing
NFT’s
We will discuss these terms further
Let's start with
Mining
Mining crypto is the easiest way to make passive income. Mining is creating new transactions by solving complex calculations which are done by computers and require the power of either GPU or CPU so anyone who has a laptop can mine crypto
There are several ways of mining crypto
There is hardware mining where you connect your devices to a mining pool but for hardware mining, you need a mining rig that consists of GPUs and technical stuff
Then there is cloud mining where you buy mining contracts and get the reward when the contract ends
And the last is liquidity mining where you provide liquidity for a token and get rewarded on each transaction done in that pair of crypto.
You can easily make money from mining
Let's move toward staking
As I previously told you about staking. You can make money through staking by investing your money in pools with a high rate of interest. Staking can help you provide a daily income but staking a low amount of money doesn’t help you should stake at least a thousand dollars
Now investing means long term holding of various crypto assets for long term gains.
Let’s move further to NFTs
NFTs are non-fungible tokens; they can be digital images, videos or art deployed on blockchain and have a unique id and are accessible by the owner. There are several ways you can make money with NFT like trading them for a profit. NFT’s like solaverse rewards their holders. You can also buy real estate ntfs which you can rent, mine assets on it and several more things. NFTs have their own space in the crypto industry and many people made millions off NFTs this year.
Hence we discussed a lot about crypto in the first episode of Zero to one
We will end the podcast here thanks for joining
Have a great day..