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Crypto Start: Complete Guide, FAQ & Glossary

New to cryptocurrencies? Follow this guide for step-by-step lessons, answers to common questions, and a glossary of key terms—all on one page.

1. Blockchain in 5 Minutes

Key Concepts

  1. Chain of Blocks. Each record is immutable; to change history you’d have to rewrite the entire chain.
  2. Decentralization. The network runs across thousands of nodes—no single server controls the data.
  3. Consensus. Bitcoin uses Proof-of-Work; Ethereum uses Proof-of-Stake: the protocols that validate honest transactions.

In short, blockchain is a distributed database secured by cryptography. It powers money (BTC), smart contracts (ETH), and entire financial services (DeFi).

2. Buying Your First Crypto

Step-by-Step Process

  1. Choose an exchange (Binance, OKX, Bybit) or a P2P platform.
  2. Create an account and complete KYC (passport or ID card).
  3. Fund your account via card, bank transfer, or P2P.
  4. Purchase a stablecoin like USDT or the cryptocurrency pair (e.g., BTC/USDT).
  5. For holdings over 1–2 weeks, transfer coins to a personal wallet.
  • Minimum deposit: usually from $10 (varies by exchange).
  • Card fees are higher than P2P fees.
Open a Binance Account

*Affiliate link: 10% commission discount.

3. Trading Basics

Essentials

  1. Spot vs. Futures. Spot is real asset ownership; futures are leveraged contracts.
  2. Risk management: 1–2% of your portfolio per trade.
  3. Always set stop-loss and take-profit orders.
  4. Avoid averaging down a losing position without a clear plan.

Practice on a demo account or with small amounts (< $100) until you understand market dynamics.

4. Security & Storage

Beginner’s Checklist

  1. Enable 2FA (use Google Authenticator, not SMS).
  2. Write your seed phrase on paper; never store it in the cloud.
  3. Use a hardware wallet for amounts over $1,000.
  4. Verify URLs carefully—phishing sites mimic exchanges exactly.
5. What Is DeFi?

How It Works

  1. Connect your wallet (e.g., MetaMask) to a dApp—smart contracts manage assets instead of banks.
  2. Earnings come from DEX fees or lending protocol interest.
  3. Risks include smart-contract hacks and LP volatility.

Start with Uniswap for swaps and Aave for lending—these have the largest liquidity.

6. NFT Essentials

Key Points

  1. NFT is a ledger entry, not just a JPEG image.
  2. Value comes from community support and limited supply.
  3. Always check the team, roadmap, and trading volume on OpenSea.

Frequently Asked Questions

What is the minimum deposit amount?
Most platforms accept deposits from $10, but due to fixed card fees, $50–$100 is more practical.
Do I need to pay taxes on crypto?
Yes. In Russia it’s 13% on profits; in the EU/US rules vary—keep records and consult a tax advisor.
How many confirmations for a BTC transfer?
For amounts under 1 BTC, 1–2 confirmations (~20 min) suffice. Exchanges often require 3–6 confirmations for larger sums.
Can I reverse a mistaken transaction?
Crypto transactions are irreversible. Your only option is to ask the recipient to return the funds.
What if I lose my seed phrase?
It cannot be recovered. Always make multiple paper backups and store them separately.
Why use a hardware wallet over a software wallet?
Hardware wallets are offline, making it much harder for attackers to steal your keys.
Can I earn money by staking?
Yes, but yields depend on the coin and inflation. Compare APYs and unlocking risks.
What’s the difference between DEX and CEX?
DEX trades occur peer-to-peer via smart contracts; CEX holds your coins on centralized servers.
What is “gas” on Ethereum?
Gas is the fee for computation. Higher Gwei means miners include your transaction faster.
Can I mine on a laptop?
It’s usually unprofitable. Consider staking or DeFi farming instead.

Crypto Term Glossary

Address
Your public wallet identifier—where coins are sent.
Altcoin
Any cryptocurrency other than Bitcoin.
Bear / Bull
Market downturn / market uptrend.
DEX
Decentralized exchange (e.g., Uniswap).
DYOR
Do Your Own Research—investigate projects yourself.
Gas
Transaction fee or contract execution fee on Ethereum.
Hashrate
Total computing power of Proof-of-Work miners.
HODL
Slang: hold assets regardless of market swings.
KYC
Know Your Customer—identity verification process.
Layer 2
Secondary network (e.g., Arbitrum) to speed up and reduce fees.
Liquidity Pool
Smart contract reserve of two tokens for DEX liquidity.
Mining Pool
Group of miners sharing rewards proportionally.
NFT
Non-fungible token—a unique digital asset.
Private Key
Secret key granting full access to your funds.
Proof of Stake
Consensus where validators stake coins as collateral.
Rug Pull
Scam project that drains liquidity and disappears.
Seed Phrase
12–24 words used to recover your wallet.
Stablecoin
Coin pegged to fiat currency (e.g., USDT, USDC).
Testnet
Developer network with free coins for testing.
Whale
Large holder capable of moving the market.
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