How to Learn Crypto if You're Starting Today

User avatar

Adil Kazani

In today’s free post we’ll go over how you should learn crypto to maximize your gains while minimizing time and mistakes. This post is a roadmap for anyone looking to learn crypto in 2023 quickly and efficiently.

As a reminder - this newsletter is published natively on Lens. 🌿

COLLECT NOW!

BROUGHT TO YOU BY

MILK ROAD

Daily crypto newsletter with over 250,000+ readers. News and Memes. Fun Fact: They went to grade school with Satoshi.

Join 250,000+ subscribers and get our 5 min daily newsletter on what matters in crypto.

Get Smarter About Crypto


1. Bitcoin

You might want to skip ahead to DeFi or NFTs because they sound like the next big thing while Bitcoin is over ten years old. Don’t overlook the basics. To truly understand the power of crypto as a technology, you have to start with Bitcoin.

In particular, you want to focus on the how and why behind what makes Bitcoin work.

There is a globally distributed network of computers competing to secure the Bitcoin network. The people operating these computers don’t need to talk to each other. Instead, simply by operating in their own self interest, they benefit the network. This is extremely powerful and changes the way market participants interact.

To learn Bitcoin, you must understand:

  • The Bitcoin whitepaper

  • Self custody

  • The double spending problem and how Bitcoin solves it

  • Public and private keys

  • Proof of Work

  • Distributed ledgers

  • Pseudonymity

What is Bitcoin?


2. Ethereum

Much to the chagrin of Bitcoin maximalists, new entrants to crypto will inevitably end up on Ethereum.

Why? Because the future of decentralized applications are being built on Ethereum. Ethereum enables smart contracts

To learn Ethereum, understand:

  • Similarities and differences to Bitcoin

  • Proof of Work vs. Proof of Stake

  • The Ethereum Virtual Machine

  • Ethereum accounts

  • Smart contracts

  • Scalability limitations

  • The Ethereum roadmap

What is Ethereum?


3. Stablecoins

Stablecoins support the very system crypto is intended to disrupt - the fiat banking system.

However, stablecoins are the third largest cryptoasset by market cap and one of the most useful inventions to come out of the crypto industry. Three of the top ten cryptoassets are stablecoins. The most liquid pairs on-chain are stablecoin pairs. The total market cap of stablecoins is about the same as Ethereum’s market cap.

Stablecoins are too big to ignore, and we anticipate this crypto subsector will continue to see massive growth in usage alongside the broader crypto sector.

To learn Stablecoins, understand:

  • Stablecoin use cases

  • Types of stablecoins (centralized vs. decentralized; fiat-backed vs crypto backed, etc)

  • Algostables

  • Tether and Circle

  • DAI & MakerDAO

  • Frax

What are Stablecoins?


4. History

How can you understand where we’re going if you don’t understand where we’ve been?

Luckily, you don’t have to brush off old history books from the library. Mark Bitcoin as the starting point of crypto history and get up the curve on the major events.

To learn crypto history, understand:

  • Bitcoin & Ethereum

  • History of DeFi

  • History of NFTs (e.g. CryptoKitties, CryptoPunks, etc.)

  • Bitcoin booms and busts

  • Silk Road

  • Crypto and the gambling industry

  • Mt. Gox

  • VC funding in crypto


5. Applications

Now you can start getting to the fun parts, shifting focus from the history of crypto to the future. Applications are extremely broad, and new applications are being born (or dying off!) every day.

Applications are where you’ll come across both opportunity and risk. A lot of your investing in crypto will be in tokens issued by applications.

To learn about applications, understand:

  • The largest DeFi applications (Aave, MakerDAO, Curve)

  • Tokenomics

  • A framework for evaluating crypto applications

  • Crypto gaming (the good, the bad, the ugly)


    6. Infrastructure

    Think of infrastructure as anything that enables crypto use cases and applications. Simple example would be a cross-chain bridge. Data, storage, and security also fall inside of this bucket.

    To learn about infrastructure, understand:

    • Cross-chain bridges (e.g. Synapse Protocol)

    • Dune Analytics

    • CoinGecko API

    • DeFi Llama

    • Etherscan

    • Arweave


7. Layer 2s and Scaling

Layer 2s are part of the consensus layer of crypto.

To learn about layer 2s and scaling, understand:

  • Optimism

  • Arbitrum

  • Optimistic rollups

  • ZK rollups

What are Zero-Knowledge Rollups (ZK-rollups)?


8. Security

Security is multi-faceted in crypto. There’s personal security and protocol security.

Crypto consists of complicated, open source code that secures billions of dollars in assets. Hacks are far too common, so understanding security will help you avoid getting rugged.

Crypto is also entirely self custody. That means you should be very careful about your real world and online footprints when it comes to crypto. You want to avoid being targeted by the wrong types of people who might think you have a bunch of cash under your mattress.

To learn security, understand:

  • Setting up a crypto computer

  • Enhanced VPN setup

  • How to sign transactions securely

  • Security audits

  • Coding and software

  • Common sense (don’t show off!)


9. DAOs and Communities

One of the key, society-shaping features of crypto is the ability for people to transact pseudonymously online. This allows online communities to interact in entirely new ways. One invention has been the “Decentralized Autonomous Organization”, or “DAO”. DAOs are typically (but not always) tokenized communities of distributed participants pursuing a shared objective. That can range from purchasing the constitution to building a DeFi application.

To learn about DAOs, understand:

  • How DAOs hire

  • How DAOs compensate talent

  • Unique nuances of doing business with anons

  • Why most DAOs have failed



10. Financial Knowledge

Crypto is the technology of money. It’s a new way to transact peer to peer, and also an entirely new asset class. But. That doesn’t mean the basics of economics are no longer relevant. Ponzi schemes are not suddenly sustainable under this new paradigm. Market psychology is still important.

Financial concepts you need to understand at least to a basic level:

  • Three statements (income statement, balance sheet, cash flow)

  • Interest rates

  • General capital structure concepts (debt / equity)

  • Competitive moats

  • Derivatives

  • How exchanges work

  • Portfolio construction and risk management


Learn All Web3 & Crypto Basics

I hope this was helpful!

Thank you for reading!

If you're interested in following along, feel free to subscribe!

Let’s bust some more in next article.

GET UP TO 100 USDT on BINANCE - Register NOW!

REDEEM GIFT

My Latest Blogs:

5 AI Art Generators You Can't Miss

All You Need To Know About Wrapped Ethereum (wETH) And How To Get It On MetaMask

What is a Merkle Tree?

How to Create Your Own Cryptocurrency?

If you want more, be sure to

FOLLOW ME

#crypto#today#2023
  • Loading comments...