The Complete Idiot’s Guide to Crypto

A lot of people don’t know about cryptocurrencies, some only know Bitcoin because they’ve seen it on TV.

This guide is for you, you started to read something about blockchain and it sounded interesting to you, but you need a starting point. Well, under these lines you will find a lot of valuable information.

Blockchain

There are a lot of blockchains, like Bitcoin, Ethereum, Solana, Polygon, Binance Smart Chain (BSC), etc…there is a difference between Bitcoin (the first blockchain) which doesn’t support Smart Contracts, and the others examples, such as Ethereum or BSC can run it.

Ethereum was the first blockchain where you can run a program (smart contract) over it.

But, what’s a blockchain?

«Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system.

A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain contains many transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger.» source

And, what’s a smart contract?

«Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met. They typically are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary’s involvement or time loss. They can also automate a workflow, triggering the next action when conditions are met.» source

Wallet

If you need to interact with a blockchain you need a wallet, there are a few you can use like MetaMask, SafePal, Trust Wallet, etc.

You can download the phone’s app or the browser’s extension.

I’m using MetaMask, but any of these works the same way.

To interact with a blockchain, you need that the website is built in web3, then you can connect your wallet to the website by accepting the connection with the wallet.

Connect to the blockchain via MetaMask

Once you had set up your wallet, only need to follow the instructions of the website or on the app (the first and MOST IMPORTANT RULE is NEVER SHARE YOUR SEED PHRASE, the second one is FOLLOW ALWAYS THE FIRST RULE). Go to chainlist.org and search the blockchain you want to add to MetaMask (Ethereum appears by default), for this guide we will add the Binance Smart Chain (BSC).

The first and MOST IMPORTANT RULE is NEVER SHARE YOUR SEED PHRASE, the second one is FOLLOW ALWAYS THE FIRST RULE

Select your favorite blockchain, in this article BSC. Every blockchain has its native cryptocurrency associated to pay the fees, because every transaction (interaction) with the blockchain costs a fee, paid in the blockchain’s coin, in our case BNB.

The first step in BSC

If you want to interact with a website built on web3, as you know, you need a wallet, but in this wallet, you need to hold the native cryptocurrency for the blockchain fees (called gas). In our case, BSC, you need BNB, and the fastest and easiest way to buy it, it’s with the on-ramp’s MetaMask option. Follow the screenshots below and the instructions to buy it.

When you finish all the steps, you will receive the amount bought in BNB.

To see the ins and outs, you can go to bscscan.com where you can find all the transactions of the BSC. Copy and paste your wallet address (by clicking on the sequence of numbers and letters that begin with 0x that are below the name of the account in the left screenshot) on the bscscan, and you will see all the tokens you have in your wallet and the transactions that you made interacting with the smart contracts.

Decentralized Exchange

Once you have BNB, you can exchange or swap it for the cryptocurrency you want, for this example, we will use a decentralized exchange (aka DEX).

In the BSC we have PancakeSwap. Check the screenshots to see how to connect to the DEX.

Select the token (cryptocurrency) you want to exchange for BNB. And confirm the transaction with the blue button “confirm” (you will pay fees with BNB). In this example we swap BNB for USDC, a stablecoin pegged 1:1 with the US dollar.

NEVER exchange all your BNB, because you will need some for gas fees, I recommend leaving 0.1–0.05 BNB.

Decentralized Finance (DeFi)

The revolutionary technology of the blockchain brings us a golden opportunity called decentralized finance (known as DeFi). Stablecoins are the best option in DeFi because their price is always flat. A lot of projects use them. You have certain websites in wich you can take a look at the decentralized applications (DApps): Defillama or Dappradar.

Portfolio

I couldn’t finish this guide without writing a word about my favorite DeFi project in the BSC called Furio, I wrote a few articles about it, but this article is a guide because of this I will show how you can enter into Furio easily and what Furio will do for you.

First of all, if you followed the example, you should have an amount of USDC in your wallet. If you don’t have it, don’t worry, you can buy BNB or USDC directly on their website, in the tab “Trade Crypto”, select the amount you want to buy and follow the instructions with your credit card.

On-ramp on Furio dapp

Once you have USDC in your wallet, go to the Furswap tab and exchange USDC for $FUR, once you have your $FUR tokens, go to the Furvault tab, and make sure to add my wallet address as a referrer (see the screenshots below).

Follow the steps

This DeFi project locks your investment, but in exchange, you can earn up to 2.5% daily. When you start your daily revenue is 1.75%, once you do 28 days without a claim, you will go up to 2.5%. Remember to come to the Furio site once a day to claim or compound, I recommend compounding, this will increase your investment significantly.

Check the numbers in my other articles:

I hope this article could help a lot of people to understand the crypto space and begin in this “world”, I’m a a crypto enthusiast and I’m always looking for new projects and opportunities.

If you have any questions don’t hesitate to contact me on telegram – https://t.me/MyCryptoFan

Useful links

Nothing in this article is to be construed as investment advice. Neither the author nor the publication takes any responsibility or liability for any investments, profits, or losses you may incur as a result of this information. The article may contain affiliate links.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
MyCryptoFan

In the way to achieve financial freedom via cryptocurrencies. I try to write. Consiguiendo libertad financiera gracias a las criptomonedas. Intento escribir.