Crypto for Beginners: Asset Class vs World Changing Technology

We are all going to be hearing a lot?more?about?#cryptocurrencies?and their related technologies.

This article will cover common terms and link to their definitions for anyone interested in learning more.

Do you invest in crypto? (Do you plan on it?)

Tal Lifshitz's?recent post?got me thinking about cryptocurrencies and how more people will be drawn to "#crypto" over the coming weeks, likely more than ever.

This isn't anything new for those of us who stay up to date, invest in, and are already passionate about cryptocurrencies and?distributed ledger technologies?(DLTs).

We are used to seeing crypto news cycles, complete with their?FUD, and even accustomed to answering questions from friends and family to whom it may be "news."

This write-up is geared more towards the crypto-naive.

Tal's Post:

Well said, Tal; I agree entirely.

#Crypto will remain a hot topic in the media, especially with?#BTC's recent all-time high?and other projects taking off.

And, for the types who will invest?without doing adequate research, you may be in for a bumpier ride, more so than you've ever seen in traditional asset classes.

This is why many traders advocate for?buying the dip?or?dollar-cost-averaging (DCA)?for crypto, two common strategies, each with their own pros and cons.

A common term is "HODL." Or to "hold" your coins as long as possible. The misplacement of the "D" and "L" was a typo on?an early Bitcoin forum?that has since?become its own term.

Volatility is the status quo in this world.

If you have been "sleeping on crypto,"?now is probably a good time to become more familiar with the #technology, even if you have no interest in #investing.

If you are interested in investing, find a qualified resource with experience in cryptocurrencies. Do not trust every youtube video and #CryptoBro or bull who tells you about the 'next best coin..." If it sounds too good to be true,?it probably is. (Common Scams, also see "What is a?Sh!tCoin?" )

Regardless of one's experience level with #cryptocurrencies or?distributed ledger technologies?(#DLTs), it is critical to consider the differences between:

"crypto as an asset class vs crypto as a potentially world changing technology." -?Tal Lifshitz

They are two different things, and the more one learns about cryptocurrencies and DLTs, the more they realize they are different things.

It is worthwhile to understand the differences between "blockchain," other DLTs, and?cryptocurrencies. Anyone using this technology or investing should also understand the differences between?public?and?private?keys and how they are used, along with the basics about?the SHA-256 algorithm. Finally,?proof of work?vs?proof of stake?is basic info even those who only invest for profit should know. There is much more, however, it takes time to digest, and, like blockchain, each piece of information must build off the last bit of information...

So, while the front-end experience and ease of use for beginners will likely increase exponentially with these technologies, those who adapt early may be rewarded more than solely financially.

For example, while today one need not be a coding expert or even understand the basics of code to use or even make a website; at first, decades ago, only those with more advanced knowledge could navigate and fully utilize the internet. Still today, the more one knows, the more they can do and the easier it is to accomplish basic tasks online.

With cryptocurrencies and DLT, I imagine it will be similar.

Right now, it isn't super-easy to navigate, especially without taking the time to learn what you can and can not do. Mistakes in crypto can be costly and discouraging.

But, this will change with time. There is already a lot of "mainstream" cryptocurrency and DLT uses all around us.

Those with a basic understanding are setting themselves up for success long-term... I believe in a way close to those who were early adopters of the internet, and other world changing technologies.

*I'm sure I missed some significant key terms- let me know in the comments what you would have included and what you want to see in future editions.

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