We fixed it!
We couldn’t stop jumping on the Bitcoin book trend bandwagon, especially when social media seems to be on it. However, we have no intention to impose the idea of decentralized finance on our “impressionable” kid’s heads. So, we found a solution to the problem. But first, there are a couple of things you should know.
A Bitcoin book is a compilation of essential and exciting concepts related to the crypto industry. It is like learning the ABCs of blockchain. With the DeFi space growing daily, it is heading towards creating its place in the financial sector. So, the next generation must understand its basics to make informed decisions later.
Why Should Kids Know About the Baby Bitcoin Book?
Now that we have two different sectors in the finance industry (CeFi and DeFi), it is almost crucial to teach children about both their pros and cons. The Bitcoin book is thus more of an ‘initiative’ than a ‘propaganda.’ Imparting knowledge about the sectors is like leaving them two options.
*The Bitcoin book is a representative of DeFi in this context.*
Will The Baby Bitcoin Book Create Bias?
The aim of creating DeFi was to discard the reliance on a central authority by giving people more control over their finances. It is often misunderstood as an ‘agenda’ to out rule the current authority. Educating the children would help them make informed decisions in the future and not otherwise. Thus, the only purpose of the Bitcoin book is to spread knowledge.
Now that you know why it is essential to teach kids about DeFi, let’s check out our version of the Bitcoin book.
A to Z of Crypto
A proper introduction to Crypto doesn’t mean familiarity with only the frequently used terms in the space; it also requires knowledge of the values and rules of the community. So, let’s start our first lesson on the baby Bitcoin book.
A is for ‘Altcoins’
If Bitcoin is the pack’s leader, altcoins exist to improve its aspects. But they are now creating an army of their own! The most famous altcoins in the market are ETH, USD Tether, USD Coin, Shiba Inu, Dogecoin, Cardano, etc.
A is also for ‘Awareness’ in Crypto
The crypto market is volatile, like the stock market. So, you must do proper research before investing in any digital token. It also applies to crypto projects like NFTs. Before putting your money at stake, you must know whether they are authentic, as the industry is infamous for fraudulent activities.
B is for ‘Blockchain’
Blockchain is just like Google. When you click on the ‘history’ of your web browser, you can see that it has a list of all your queries. Similarly, a blockchain records all the transactions ever done by users. The only difference is that you can delete your Google history but have no control over data stored in the blockchain.
B is also for making a ‘Bet’ in Crypto
The crypto space is still emerging and growing based on its community’s trust. So, if you want to get into Crypto, you will have to take a bet with every investment. Even trading ETH requires tracking the market at every step.
C is for ‘Capital’
In the future, if you decide to invest in a cryptocurrency, an NFT project, or any budding crypto company, you will need a lot of funds referred to as your capital.
C is also for ‘Collect’ in Crypto
When it comes to Crypto, most people will advise you to invest in this token or that. But let us tell you about the power of collecting unique digital art pieces or tokens. Digital arts are unique pieces that are sold at high prices at auctions. An NFT image called ‘The Merge’ was sold for $91.8 million.
D is for ‘Decentralization’
In the crypto community, we don’t have a boss to follow. So, we all work together as a big family, and that’s what decentralization means. It is different from the structure of centralized finance, where a central authority controls everything.
D is also for ‘Dump’ in Crypto
The dumping of cryptocurrencies is a part of the ‘pump and dump’ scheme, which is one of the nightmares of the crypto market. When the value of an asset spikes or gets pumped suddenly, people start selling or dumping it in the market. This phenomenon is usually followed by the asset’s price falling to an unexpected low, thus decreasing its overall value.
E is for ‘Ethereum’
Ethereum is the second-largest blockchain in Crypto. Imagine it like a playground behind your apartment where you can create your games or even apps.
E is also for Exit Scam in Crypto
The crypto market is full of people who are out to rob people of their money, and one of the oldest tactics in the book is the exit scam. Imagine an individual convincing you to invest in a digital token they are creating, promising you profits. But as soon as you invest, they are nowhere to be found. It is what happens during an exit scam.
Before you learn more crypto terms, you should check out some of the most common scams in the space.
F is for ‘Futures’
It is like a to-do list for tomorrow but involves a legal contract. ‘Futures’ is a contract that a seller and a buyer sign, with the latter agreeing to buy a digital asset in the future at a set price.
F is also for ‘FOMO’ in Crypto
In a space where some people make billions by selling crypto projects or trading, it is common to feel FOMO or the fear of missing out. But, it might work against you as FOMO will drive you to make quick decisions. Thus, you should take your time to research projects you are interested in investing in.
G is for ‘Gas’
It is what it means. Every blockchain needs fuel to continue its operations, just like a car. Gas is the amount of money required for the maintenance of a blockchain. Adding up the money spent on fuel for your car in a month becomes a part of the maintenance cost.
G is also for ‘Gain’ in Crypto
Same as gas, the term ‘gain’ in Crypto is what it means. So, if you can sell a digital token bought for $50 in $100, you make a profit of $50. The extra $50 you made is now called your profit or gain.
H is for ‘Halving’
When the number of a particular digital token goes down, it is called halving. For example, if the number of Bitcoins available in the market drops from 100 to 50, we will say that the digital token has halved in size. It might sound like an unfortunate event, but it is suitable for investors, as the digital token, which has halved, goes up in value.
H is also for ‘HODL’ in Crypto
HODL means ‘Hold On for Dear Life.’ It is a funny term and means that if you have a digital token of great value, you should not sell it quickly. You should follow this rule if you want to become an investor.
I am for ‘ICO’
ICO means Initial Coin Offering. You must have attended housewarming parties, where people celebrate buying a new house. ICOs are parties to introduce a new digital token in the market.
I am also for ‘ICE’ in Crypto
ICE is the short form for Intercontinental Exchange. It has a branch called Bakkt that is used for buying, selling, and trading cryptocurrencies.
J is for ‘Java’
It is a programming language that is used while developing a blockchain. So, to be a cool developer, you must also learn Java.
J is also for ‘Jargon’ in Crypto
There are a specific set of words that are used explicitly in a particular field which is called jargon. For example, a free kick is used in soccer, and GRWM (Get Ready With Me) is used in makeup. To become a crypto expert someday, you must learn all the related jargon.
K is for ‘Keys’
There are two types of keys in Crypto: public key and private key. The public key is like your email id. You can share it with others so they can send you cryptocurrencies. And the private key is like a password. You are supposed to use it during transactions to confirm your identity. It would be best if you never shared the private key with anyone.
K is also for ‘Kimchi Premium’ in Crypto
It is a phenomenon that occurs in South Korean crypto exchanges. These exchanges reflect the prices of tokens and assets higher than they are to trick investors.
L is for ‘Liquidity’
The liquidity of an asset shows how easily a digital token can be bought or sold. Bitcoin and Ethereum are the most traded tokens and are thus highly liquid.
L is also for ‘Lambo’ in Crypto
It is a term that crypto bros use to mention the type of car they will buy if they make huge gains from their token investment. It is short for ‘Lamborghini.’
M is for ‘Mining’
Crypto mining is just like real-life mining, but miners use computers to solve puzzles instead of shovels. The purpose of this is either to initiate a transaction or to add new blocks.
M is also for ‘Moon’ in Crypto
The phrase is ‘mooning’ and refers to a phenomenon when the price of a digital asset ramps up by a great rate. So, when the price of a digital asset starts rising, we say it is “going to the moon.”
N is for ‘NFT’
NFT is short for Non-fungible tokens. They are digital arts that are all different from each other and cannot be replaced by any other asset. That is why NFTs are high in value.
N is also for ‘Nodes’ in Crypto
They are like messengers in the crypto world. It is a computer part of a network that helps broadcast messages to the entire system.
O is for ‘Open-source’
The digital ecosystem believes in sharing information with everyone by maintaining 100% transparency. It helps increase reliability, and this philosophy is called open-source.
O is also for ‘Offline Storage’ in Crypto
So, a part of the digital world can also be downloaded and stored offline. So, devices and systems are available as offline storage options to store your digital assets.
P is for ‘Pair’
As per the name, pair means two cryptocurrencies that can be traded for each other. For example, some exchanges offer the trading pair BTC/ETH. It means you can trade BTC for ETH or vice versa.
P is also for ‘Peer-to-Peer’ in Crypto
The term is used to explain transactions between two or more parties without the interference of any central authority.
R is for ‘Rank’
In the crypto industry, the position of cryptocurrencies in the market is determined by their market capitalization. You can determine a token’s market cap by multiplying its volume by its current price.
R is also for ‘Rekt’ in Crypto
It is a crypto jargon that is supposed to sound like ‘wrecked.’ So, if you lose a lot of money during a trade, others will say you got ‘rekt.’
S is for ‘Satoshi’
You must already know that Satoshi Nakamoto is the anonymous founder of Bitcoin. But Satoshi or SATS refers to the smallest unit of Bitcoin. It has a value of 0.00000001 BTC.
S is also for ‘SAFU’ in Crypto
You already know how shared hacks and scams are in the crypto industry. So, to protect customers, Binance created a fund called Secret Asset Fund for Users (SAFU). The exchange holds 10% of trading fees so that it can refund the same to customers if things go otherwise.
T is for ‘Total Supply
When you open any exchange, it shows the total supply of different tokens. The number shows the total amount of digital tokens that are in circulation right now. For example, if the total supply of BTC shows 10,000, it means there are 10,000 Bitcoin tokens available for buying, selling, and trading in the crypto market.
T is also for ‘Taint’ in Crypto
When a token in the crypto industry is marked ‘tainted,’ it becomes less unacceptable to users. They are also more risky as their previous owners were possibly linked to criminal activity.
U is for ‘Utility Token’
In the crypto market, there are utility tokens that you can use only to access specific projects. Thus, they are not supposed to be used for trading. You can also use them to access a company’s goods and services.
U is also for ‘Unconfirmed’ in Crypto
Digital tokens are used the same way as fiat currencies. It means a digital token cannot be spent twice, just like you cannot spend a dollar twice. So, during a transaction, its status shows ‘unconfirmed’ as the exchange checks if the same token was involved in any other transaction.
V is for ‘Volume’
Just as the total supply of a digital token shows the total number of digital tokens in circulation, volume refers to the total number of tokens traded within a time frame.
V is also for ‘Volatility’ in Crypto
If you plan to invest in cryptocurrencies in the future, you must be aware of the volatile conditions of the market. Volatility, in simple terms, means the absence of stability. For example, a single Bitcoin may cost $38,000 today and $100 the next day. Thus, no one can predict or guarantee success in the market.
W is for ‘Wallet’
Just like how you use wallets in real life to keep your money, digital wallets are available to keep your cryptocurrencies safe. The only difference is that the latter is only available online.
W is also for ‘Wash Trade’ in Crypto
Remember how we mentioned scams and frauds are not unusual in the crypto industry? Wash trade is one of the tricks to fool people. Sometimes investors start creating fake activity in the market by buying and selling the same cryptocurrencies. They do so to increase the demand for a particular token so that its value rises, and they can then enjoy its profits.
X is for ‘XRP’
XRP is the token native to Ripple, the crypto exchange we mentioned earlier.
X is also for ‘X86’ in Crypto
It is a virtual machine that allows developers to draft smart contracts using their preferred language.
Y is for ‘Yield Farming’
It is an exciting way to earn in the crypto market. All you must do is deposit digital tokens into a dApp and earn rewards, which can also be mentioned as interest.
Y is also for ‘Yellow Paper’ in Crypto
A white paper in Crypto includes all the details about a current project. A yellow paper is similar, but the only difference is that people create it for future projects.
Z is for ‘Zero Knowledge Proof’
In Crypto, when a person has to prove that a transaction happened, they usually have to reveal private details about it. But a zero-knowledge proof allows them to prove the transaction without revealing the details.
Z is also for ‘Zero Confirmation’ in Crypto
Zero confirmation is a status when a transaction is yet to be recorded on the blockchain.
In this baby Bitcoin book, we have mentioned every crypto term or concept that you need to know about to get started with Crypto. However, it is vital that before starting to invest in digital tokens, you understand how the market works to save yourself from massive losses, scams, and fraud.