INTRODUCTION TO

CRYPTOCURRENCY
Crypto trading simplified
WHAT IS CRYPTOCURRENCY? DAY1
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COURSE OUTLINE:
● MODULE1: A Dive into Cryptocurrency Ecosystem
Lesson1.1: What is Cryptocurrency
Lesson1.2: History of Cryptocurrency
Lesson1.3: Salient Features of Cryptocurrencies
Lesson1.4: How Cryptocurrencies work

● MODULE2: Major Cryptocurrencies

Lesson2.1: Bitcoin
Lesson2.2: Altcoins
Lesson 2.3:Key Altcoins
Lesson2.4: Coin Vs Tokens
COURSE OUTLINE:
● MODULE3: Getting Started with Cryptocurrency
Lesson3.1: Crypto Wallet
Lesson3.2: Crypto Wallet/dex vs Crypto Exchange/cex
Lesson3.3: Types of Crypto Currency Wallet
Lesson3.4: Buying and Selling Cryptocurrencies

● MODULE4: Using cryptocurrencies

Lesson4.1: Spending and Receiving Crytpos
Lesson4.2: Storing and Managing Cryptocurrencies
COURSE OUTLINE:
● MODULE5: Risks and Challenges
Lesson5.1: Volatility and Price Fluctuation
Lesson5.2: Regulatory Landscape

● MODULE6: Trends and Developments

Lesson6.1: Challenges and Opportunities

● CONCLUSSION: Beyond the Basics

Module 1: Understanding Cryptocurrency
Lesson 1.1: What is Cryptocurrency?

Cryptocurrency is a form of digital or virtual currency that uses cryptography for security.

Unlike traditional currencies issued by governments and central banks, cryptocurrencies

operate on decentralized networks based on blockchain technology. A blockchain is a

distributed ledger that records all transactions across a network of computers. In any event,

Cryptocurrency relies on advanced computer science and mathematics for its security.

So, Instead of being controlled by a central authority like a government or bank, it

operates on a decentralized network of computers.

Lesson 1.2: History of Cryptocurrencies

Bitcoin, created in 2009 by an unknown person or group using the pseudonym Satoshi

Nakamoto, was the first and remains the most well-known cryptocurrency. Since then,

thousands of other cryptocurrencies have been created, each with its own unique features and

use cases. Examples include Ethereum, Ripple (XRP), Litecoin, and many others.

People use cryptocurrencies for various purposes, including as a medium of exchange, store

of value, and investment. However, the cryptocurrency market is known for its volatility,

regulatory challenges, and ongoing technological developments. It's essential for individuals

to conduct thorough research and exercise caution when dealing with cryptocurrencies.
Lesson1.3: Salient Features of Cryptocurrencies

Decentralization: Cryptocurrencies operate on decentralized networks,

meaning they are not controlled by any single entity, such as a government or
financial institution. This decentralization is achieved through the use of
blockchain technology.

Cryptography: Cryptocurrencies use cryptographic techniques to secure

transactions and control the creation of new units. Public and private keys are
used to facilitate secure transactions between participants.

Limited Supply: Many cryptocurrencies have a capped supply, meaning there

is a maximum number of units that can ever be created. For example, the total
supply of Bitcoin is capped at 21 million coins.
Lesson1.3: Salient Features of Cryptocurrencies

Anonymity: While transactions are recorded on the blockchain, the identities of

the participants are often pseudonymous. Users are identified by cryptographic
addresses rather than personal information.

Global Accessibility: Cryptocurrencies can be accessed and transacted

globally, providing a borderless form of currency. This can be particularly
advantageous for international transactions.
 Lesson1.4: How Cryptocurrencies work

Cryptocurrencies work through a technology called blockchain. Think of it as a

shared, unchangeable digital ledger that records all transactions. Cryptography

ensures that transactions are secure, and a consensus mechanism ensures that

everyone in the network agrees on the state of the ledger.

● MODULE2: Major Cryptocurrencies
Lesson2.1: Bitcoin

Bitcoin is the first and most well-known cryptocurrency. It was created as a digital

form of money, and its unique feature is a capped supply, meaning there will only

ever be a certain number of bitcoins. Bitcoin transactions are verified through a

process called mining.

● MODULE2: Major Cryptocurrencies
Lesson2.2: Altcoins

Altcoins are alternative cryptocurrencies to Bitcoin. They have different features and purposes.

Ethereum, for example, is known for its ability to execute smart contracts, while Ripple focuses

on facilitating fast and low-cost international transactions.

STABLE vs VOLATILE COINS: In the Altcoin Family, there are basically Volatile and stable

coins. Whereas Volatile coins have unstable prices, stable coins maintain stable a price, and

are usually pegged to the US Dollar at 1:1 Ratio. They are used as a store value in the Crypto

Space. Since their Price is usually fixed, stable coins do not have price surge. So, traders don’t

hold them for future gains. Major stable coins include, USDT, USDC & DAI. Major Volatile coins

include BTC ETH XRP, ADA, DOT, LTC, MATIC, DOT, etc
SOME KEY ALTCOINS:

Ethereum (ETH): While often considered a major cryptocurrency, Ethereum is technically an

altcoin. It's known for its smart contract functionality, allowing decentralized applications
(DApps) to be built on its blockchain.

Ripple (XRP): Designed for fast and affordable cross-border payments, Ripple aims to
facilitate transactions between financial institutions.

Litecoin (LTC): Created as the "silver to Bitcoin's gold," Litecoin is a peer-to-peer cryptocurrency
that offers faster block generation times and a different hashing algorithm.

Cardano (ADA): Known for its focus on security and scalability, Cardano aims to provide a
more sustainable and scalable blockchain and smart contract platform.

Polkadot (DOT): Developed by one of Ethereum's co-founders, Polkadot is designed to connect

different blockchains, allowing them to transfer messages and value in a trust-free fashion.
 Lesson2.4: Coin Vs Tokens
Coins:

1. Native Cryptocurrencies: Typically, native cryptocurrencies that run on their own

blockchain are referred to as coins. As an illustration, consider Litecoin (LTC), Ethereum
(ETH), and Bitcoin (BTC). Inside their individual networks, these coins are utilised as a
unit of account, a store of value, and a medium of trade
2. Independent Blockchains: Coins run on their own network architecture since they each
have their own independent blockchain. For instance, the Bitcoin blockchain is where
transactions for Bitcoin take place.
3. Blockchain Security: Coins validate and protect transactions using their own native
blockchain security features like proof-of-work (for Bitcoin) or proof-of-stake (for
Ethereum 2.0).

Proof-of-stake means consensus algorithm in which Validators (block producers) build

blocks using their own cryptocurrency. Proof-of-work refers to a process whereby
TMinners must solve problems, in order to validate transactions and generate new
blocks.
Tokens:

1. Built on Existing Platforms: Tokens, on the other hand, are assets created on existing
blockchain platforms. The most common platform for token creation is Ethereum, but other
blockchains, such as Binance Smart Chain and Solana, also support token creation.
2. Smart Contracts: Tokens are often created through the use of smart contracts, which are
self-executing contracts with the terms of the agreement directly written into code. Ethereum,
for instance, allows the creation of tokens through its ERC-20 and ERC-721 standards.
3. Diverse Use Cases: Tokens can represent a wide range of assets and have various use cases.
They can represent ownership of real-world assets (security tokens), voting rights in a
decentralized organization, access to a specific application or service, or even unique digital
assets like non-fungible tokens (NFTs).
4. Dependence on Underlying Blockchain: Tokens rely on the security and infrastructure of the
blockchain on which they are built. For example, ERC-20 tokens are dependent on the Ethereum
blockchain's security.

Whereas Tokens are built on pre-existing blockchain platforms and depend on the infrastructure and
security of those platforms, Coins run on their own native blockchains. They both reflect value and
can be traded. However, the programmability made possible by smart contracts gives tokens a wider
range of applications.
● MODULE3: Getting Started with Cryptocurrency
Lesson3.1: Crypto Wallet
A cryptocurrency wallet is a digital tool that allows you to store and manage your
cryptocurrencies. There are different types of wallets, each with its own level of security.
Your wallet comes with cryptographic keys - a public one for receiving funds and a private
one for authorizing outgoing transactions.

Lesson3.2: Crypto Wallet/dex vs Crypto Exchange/cex

Crypto wallet stores private keys, while exchange facilitates buying, selling, and
trading cryptocurrencies, providing a platform for transactions. Crypto wallet are
Decentralised Platforms, Whereas Exchanges are centralised Platforms. To use a
crypto wallet, all you do is download the App, Create a wallet and copy your
Mnemonic Phrases. No Identity Verification is Required. In the case of centralised
exchanges, you have to complete Identity verification, before using the Platform.
Examples of Crypto wallet: Trust Wallet, METAMASK, etc
Examples of Crypto Exchanges: Binance, Kucoin, Coinbase, Huobi, Mexc, etc
 Lesson3.3: Types of Crypto Currency Wallet:
There are two major Categories of Wallet in Crypto, Viz;
● Hardware Wallets: Physical devices that securely store private keys offline,
providing enhanced security. Examples include Ledger Nano S and Trezor. To
Purchase Trezor Hardware wallet, visit www.trezor.io. To purchase Ledger
Hardware Wallet, visit www.ledger.com. Note That trezor has more security than
Ledger, and is also more expensive compared to Ledger Wallet.

● Software Wallets: Applications or software programs that run on devices such as

computers, smartphones, or tablets.

Software Wallets can be further categorized into:

● Desktop Wallets: Installed on a computer, e.g., METAMASK, Exodus,

Electrum, Binance Wallet, Unisat, etc
● Mobile Wallets: Apps for smartphones, e.g., Trust Wallet, METAMASK, etc.
● Online/Web Wallets: Accessible through a web browser, e.g., Coinbase,
Blockchain.info.
 Lesson3.4: Buying and Selling Cryptocurrencies:
Cryptocurrency exchanges are platforms where you can buy and sell cryptocurrencies.
To do this, you place orders specifying the amount and price you're willing to pay. It's
essential to choose reputable exchanges and follow security best practices.
● MODULE4: Using cryptocurrencies
Lesson4.1: Spending and Receiving Crytpos
You can use cryptocurrencies to buy goods and services from merchants who accept them.

Transactions are facilitated through your wallet address or QR codes. Peer-to-peer

transactions also allow you to exchange cryptocurrencies directly with others.

Lesson4.2: Storing and Managing Cryptocurrencies

Storing cryptocurrencies can be done in hot wallets (connected to the internet) or cold

storage (offline for increased security). It's crucial to follow best practices like regularly

backing up your wallet to ensure the safety of your digital assets.

● MODULE5: Risks and Challenges

Lesson5.1: Volatility and Price Fluctuation

The value of cryptocurrencies can be highly volatile, meaning their prices can change
rapidly. Investors should be aware of this and consider risk management strategies to
protect their investments.

Lesson5.2: Regulatory Landscape

Cryptocurrencies operate in a regulatory environment that varies by country.
Understanding and adhering to regulations is crucial to avoiding legal issues and
ensuring the legitimacy of cryptocurrency activities.
● MODULE6: Trends and Developments

Lesson6.1: Challenges and Opportunities

The cryptocurrency space is continually evolving. Keeping an eye on potential
challenges and opportunities, such as regulatory developments and technological
advancements, is essential for staying informed and making informed decisions.

● CONCLUSSION: Beyond the Basics

In conclusion, this introductory course has provided an overview of cryptocurrency, its
underlying technology, major players, practical usage, and associated risks. As you
continue your journey in the world of cryptocurrency, stay informed, practice security
measures, and be open to exploring the ever-changing landscape.
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