LEVEL I
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LEVEL I -
BM Academy
Crypto Basics
“The Lower You Scroll, The Higher The Difficulty”
A crypto exchange, also known as a cryptocurrency exchange, is a digital platform that facilitates the buying, selling, and trading of various cryptocurrencies, such as Bitcoin, Ethereum, and Cardano. It acts as an intermediary that allows users to exchange one cryptocurrency for another, or to trade cryptocurrencies with traditional fiat currencies, such as USD, EUR, or GBP.
At a crypto exchange, users can create accounts, deposit funds, and place buy and sell orders for cryptocurrencies. The exchange matches these orders, and the transactions are executed accordingly. Some crypto exchanges also provide additional features, such as margin trading, staking, and lending, which allow users to leverage their investments and earn interest on their holdings.
Crypto exchanges play a crucial role in the financial markets, providing liquidity and price discovery for cryptocurrencies. They serve as a primary gateway for individuals, investors, and institutions to participate in the global cryptocurrency market. As the demand for cryptocurrencies continues to grow, crypto exchanges have become an integral part of the global financial ecosystem.
Exchanges
A crypto whitepaper is a comprehensive and authoritative document that outlines the technical, economic, and philosophical aspects of a cryptocurrency or blockchain project. A whitepaper can be referred to as a cryptocurrency documentation and a blockchain project overview.
It serves as a fundamental source of information that provides a detailed overview of the project's vision, goals, technology, use cases, token economics, team, and other essential details.
The whitepaper acts as a roadmap, providing insights into the project's underlying technology, consensus mechanism, security features, and potential applications. It also outlines the problem the project aims to solve, the value proposition it offers, and the potential benefits it brings to its intended audience.
A well-crafted whitepaper is crucial in gaining trust and credibility among potential investors, partners, and community members. It provides a transparent and thorough analysis of the project's viability, potential risks, and anticipated outcomes, enabling stakeholders to make informed decisions.
Whitepaper
IPO
An Initial Public Offering (IPO) is a significant event that allows a private company to go public and offer shares to the general public on a stock exchange. It is a regulated process governed by securities laws and regulatory authorities, through which a company can raise capital by selling ownership stakes in the company to external investors.
As a financial milestone, an IPO typically involves thorough preparation, including financial audits, regulatory compliance, and engagement with investment banks and legal advisors. The company's financials, business model, risks, and opportunities are disclosed in a prospectus, which is filed with the relevant regulatory authorities and made available to potential investors.
During an IPO, the company's shares are listed on a stock exchange, providing liquidity to shareholders and enabling trading of the shares in the public markets. This can provide the company with increased access to capital for growth opportunities, as well as enhance its visibility and credibility in the financial markets.
Investors, including institutional and individual investors, can participate in an IPO by purchasing shares of the company's stock at the offer price. The offer price is determined through a process of bookbuilding, where demand for the shares is assessed and the price is set accordingly. Once the shares are listed, their prices may fluctuate based on market demand and other factors.
Staking
Crypto staking is a process where cryptocurrency holders participate in the proof-of-stake (PoS) consensus mechanism of a blockchain network by locking up a certain amount of their cryptocurrency as collateral. In return for this collateral, these holders, also known as "validators" or "stakers," are rewarded with additional cryptocurrency tokens as an incentive for maintaining the network's integrity and validating transactions.
Crypto staking is an important aspect of many PoS-based blockchain networks, as it helps secure the network and maintain its efficiency and security. By staking their cryptocurrency, users contribute to the block validation process and participate in the network's governance decisions.
At its core, crypto staking involves "staking" or "locking up" a certain amount of cryptocurrency for a specific period of time, during which the cryptocurrency cannot be accessed or withdrawn. In return for this collateral, stakers are typically rewarded with additional cryptocurrency tokens, which can be used as a form of passive income or reinvested into the network.
Staking can be done through specialized wallets or platforms that support staking, and the process may vary depending on the specific blockchain network and cryptocurrency being staked. It's important for users to carefully research and understand the risks, rewards, and requirements of staking before participating, as it involves locking up funds and may be subject to risks such as price volatility, slashing penalties for improper behavior, and changes in network dynamics.
Wallets
Crypto wallets, also known as cryptocurrency wallets, are digital software or hardware tools that securely store, manage, and interact with cryptocurrencies. They provide users with a way to store and access their cryptocurrencies, make transactions, and monitor their balances.
Crypto wallets come in different forms, including software wallets that can be downloaded and installed on a computer, mobile device, or web browser, as well as hardware wallets that are physical devices specifically designed to securely store cryptocurrencies offline. Some wallets are provided by cryptocurrency exchanges, while others are standalone applications or devices developed by third-party companies or open-source projects.
Crypto wallets typically utilize public and private keys to secure the user's cryptocurrency holdings. The public key is used to receive funds, while the private key is used to access and transfer the funds. The private key must be kept secure and confidential, as it provides access to the user's cryptocurrencies. Wallets also often include features such as transaction history, address management, and sometimes, support for multiple cryptocurrencies.
It's important to note that crypto wallets do not actually "store" cryptocurrencies, but rather store the private keys that allow users to access and manage their cryptocurrencies on the blockchain. The cryptocurrencies themselves are stored on the decentralised blockchain network, and the wallet simply provides a user-friendly interface to interact with the blockchain.
LEVEL II
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LEVEL II -
Mining
Crypto wallets, also known as cryptocurrency wallets, are digital software or hardware tools that securely store, manage, and interact with cryptocurrencies. They provide users with a way to store and access their cryptocurrencies, make transactions, and monitor their balances.
Crypto wallets come in different forms, including software wallets that can be downloaded and installed on a computer, mobile device, or web browser, as well as hardware wallets that are physical devices specifically designed to securely store cryptocurrencies offline. Some wallets are provided by cryptocurrency exchanges, while others are standalone applications or devices developed by third-party companies or open-source projects.
Crypto wallets typically utilise public and private keys to secure the user's cryptocurrency holdings. The public key is used to receive funds, while the private key is used to access and transfer the funds. The private key must be kept secure and confidential, as it provides access to the user's cryptocurrencies. Wallets also often include features such as transaction history, address management, and sometimes, support for multiple cryptocurrencies.
It's important to note that crypto wallets do not actually "store" cryptocurrencies, but rather store the private keys that allow users to access and manage their cryptocurrencies on the blockchain. The cryptocurrencies themselves are stored on the decentralised blockchain network, and the wallet simply provides a user-friendly interface to interact with the blockchain.
Blockchain
A blockchain is a decentralised and distributed digital ledger that securely records transactions and data across a network of computers, known as nodes. Each transaction or data entry, known as a block, is verified and added to the chain in a chronological and immutable manner, creating a transparent and tamper-proof history of all transactions or data entries.
Blockchains use advanced cryptography and consensus mechanisms to ensure the integrity, security, and transparency of the data stored on the network. Transactions or data entries on a blockchain are validated by the network of nodes through a consensus process, where a majority of the nodes must agree on the validity of the transaction or data entry before it is added to the blockchain.
Blockchains have gained widespread attention due to their potential for various applications beyond cryptocurrencies, such as supply chain management, digital identity verification, smart contracts, voting systems, and more. They are often categorised into two main types: public blockchains, which are open and accessible to anyone, and private blockchains, which are restricted to a select group of participants.
