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Chapter 7:  Trading & Investing

Where Can You Trade Cryptocurrencies?

Interesting Fact:
Did you know that one of the ways to trade crypto is by meeting in real life?
medium
10 minutes

In this section, you're going to find out where to trade cryptocurrencies!

Trading cryptocurrencies sounds simple. Everyone’s talking about it, which makes you think that anyone could do it! And that’s true. But for a beginner, it’s easy to get lost, real quick. In some of the previous sections of this Crypto 101 Handbook, you can find explanations of what cryptocurrencies are. Understanding them and actually knowing where to trade crypto, however, are two very different things.

The difference between places where you can trade crypto is a source for a heated debate. After getting to know every one of them, you’ll see what I mean. And, believe me - the last one will make you raise some eyebrows!

In this section, I’ll cover where to trade cryptocurrencies, how to do so, what are the advantages and disadvantages of different types of platforms, and what is the best choice for beginners.

Let’s dive into it!

Where to Trade Crypto: 3 Best Approaches Explained (Animated)

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Video Explainer: Where Can You Trade Cryptocurrencies?

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Where to Trade Crypto: 3 Best Approaches Explained (Animated)

Where to Trade Crypto: 3 Best Approaches Explained (Animated) Where to Trade Crypto: 3 Best Approaches Explained (Animated)

What’s So Special About Trading Cryptocurrencies?

Crypto trading refers to the buying and selling of virtual or digital assets. As you know by now, these are usually coins or tokens, such as Bitcoin, Ethereum, Litecoin, and others. In most cases, the aim of crypto trading is to make a profit from price fluctuations.

Many best crypto trading platforms that provide their clients with the ability to get together and trade their crypto assets seek profits, as well. It’s a service, after all! Companies that offer such services are called centralized exchanges, otherwise known as CEXs. Let’s start with them.

Centralized Exchanges (CEX)

In addition to the best platform to trade crypto, cryptocurrency trading requires knowledge, intuition, and understanding of such factors as market demand, regulatory developments, technological advancements, and so on.

This goes without even mentioning the technical part of setting up all that’s necessary to actually be able to buy, sell, and trade crypto. It can get complicated! That’s where CEXs come in. They make life easier, especially for beginners, since they provide a simple answer to the question - where to trade crypto?

Where to trade crypto: Centralized exchanges.

It’s the most user-friendly and intuitive way of trading crypto assets. Here’s a way to look at it.

Think of a centralized exchange as a supermarket, but for crypto. Just like in a regular supermarket, a CEX is a place where users can buy and sell cryptocurrencies using not only other cryptos, but traditional, fiat money as well.

If you’re new to crypto and don’t have any cryptocurrencies yet, how else can you acquire crypto if not paying for it with dollars, euros, and other fiat currencies, on a crypto trading platform? That’s why most crypto journeys begin on centralized exchanges.

Centralized exchanges are ‘centralized’ because they operate under a set authority that builds, develops, and maintains the platform in question. This means that the exchange holds control over funds and manages transactions, as well as controls the assets of their users, matches buyers and sellers, and facilitates trades. In other words - makes things less complicated for the trader.

Users don’t have to worry about making sure that a particular crypto asset that they’re after is actually available, just like they don’t have to actively look for a buyer or a seller of the asset they want to obtain. The CEX organizes all of this for them.

That’s a service. And by doing so, the company makes a profit. The platform applies a transaction fee to every trade that takes place on it.

Among the best crypto trading platforms are such CEXs as Binance, Kraken, Coinbase, and others. As time went by, these companies expanded the list of services they provide, so they could stay relevant and stand out from the crowd of competitors, providing their clients not only with a place where to trade crypto, but with a variety of additional features, as well.

Where to trade crypto: Benefits of centralized exchanges.

In order to become more accessible for newcomers, CEXs have made sure they have a user-friendly interface, easy-to-follow instructions and tutorials, as well as various payment options.

They apply the so-called KYC procedures. “KYC” stands for “Know Your Customer”. It’s a measure employed to make sure people use their real identities to reduce the risk of fraudulent behavior. So, after you create an account and get verified, you can literally go and buy $20 worth of Bitcoin in a matter of minutes. It’s that easy!

Besides that, CEXs have more safety guarantees for inexperienced users. These include more robust security measures, insurance for user funds, and, often, support teams that can assist with any issues that may arise.

So, basically, CEXs are intuitive, user-friendly, and reduce the chances of losing one’s assets due to inexperience. That’s why they’re often considered to be the best crypto exchanges for day trading and investing.

Once the traders level up, they often opt for something way more complex, yet more independent and wild. Instead of a centralized crypto exchange, they go for a decentralized exchange (DEX).

Decentralized Exchanges (DEX)

Now, this is where things get interesting.

Earlier in this “where to trade crypto?” section, centralized exchanges were compared to supermarkets. Trading on CEXs is like buying groceries at Walmart: you receive a check, there are surveillance cameras, and you know that the cashier has no intentions of scamming you. They’re just performing a function within a system that’s set up, monitored, and implemented by an upper authority - the store owners.

DEXs have none of this. You can look at them as, say, street vendors. The street is the blockchain, and various street vendors use it for their own good. They stand on their own, and you either find what you’re after, or you don’t. Not being scammed, and finding what you need, is entirely up to you.

Where to trade crypto: Decentralized exchanges.

But just like CEXs, some DEXs are often considered to be the best crypto trading platforms, too.

Unlike CEXs, however, decentralized exchanges are not controlled by a central entity. They run on a decentralized network of computers.

DEXs employ smart contracts to execute trades directly between users. If you feel like you need a reminder of what smart contracts are, be sure to check this section!

Users’ assets are not held on the exchange, and it’s thanks to smart contracts that the trades (or, swaps) are executed without the intervention of the service provider. Users participate in trades directly using their wallets.

Let’s illustrate this with an example. If a fire broke out in a single shop in a mall, the entire building would be evacuated, and a fire hazard would be announced. Everyone and everything within the supermarket would depend on the safety and the current state of the main platform. Be it a supermarket, or a CEX.

That’s not the case with DEXs, though. There is no single platform, or a coin vault, or database that attackers could attempt to break in. It just doesn’t exist. The blockchain operates all over the place, all at once. Nevertheless, it’s important to keep in mind that hackers find other ways of intervening. For example, they may trick the oracle, and outplay the smart contracts. There is a section about oracles, as well - make sure to check it out!

To add to that, as it was stated earlier, centralized exchanges conduct KYC procedures - they verify the identities of their users, and gather their personal & financial data to prevent fraud and malicious activities. Not everyone likes that.

On DEXs, people who are looking at where to trade crypto don’t have to share their personal info in order to participate in trades.

Where to trade crypto: KYC.

Yet, when it comes to DEXs, there’s one essential drawback. They are difficult to use and navigate. Beginners would simply not understand what’s going on. And that’s not something people want to feel when dealing with money.

This results in DEXs having lower trading volumes or slower processing times, since they’re not as popular as, say, platforms such as Binance.

Another issue is the availability of various assets. Since the trading volumes are lower, chances are that a particular amount of specific crypto that a trader might be after could simply not be available on the exchange, due to the lack of its supply. This is where liquidity pools come in, but that’s a different topic, altogether.

So, by now, we’ve established that, when it comes to the best platforms to trade crypto, there are two main places to participate in cryptocurrency trading. Specifically, centralized and decentralized exchanges. There’s an alternative option, altogether, though. Something that’s often seen as more intense, dangerous, and unpredictable.

Meetings In Real Life & P2P

We’ve talked about CEXs as supermarkets, about DEXs as street vendors, so now, let’s talk about buying stuff from a guy whose listing you saw on Craigslist.

Just like one-on-one deals happen through Facebook Marketplace, Craigslist, and other similar places, crypto trading can happen the same way.

Where to trade crypto: Face-to-face trading.

Traders sometimes get in touch with each other online, meet in real life, and seal the deal. One person hands over the cash, while another transfers the agreed amount of crypto into their wallet right there, on the spot.

If the deal is large, no one guarantees the trader won’t get jumped and robbed. There’s no safety net, everything relies on trust. Therefore, such deals mostly happen between people who are either connected, know each other, or belong to the same social circles, because otherwise, it’s just dangerous.

Thus, an alternative was created. It’s called P2P trading. “P2P” stands for ‘’Peer-to-Peer”. Such platforms are websites or apps that allow users to trade crypto directly with each other, without the involvement of a middleman or centralized exchange.

What they do is match buyers and sellers, facilitate the transfer of funds, and act as a trusted third party to hold the funds in escrow until the transaction is complete.

Where to trade crypto: P2P trading.

Sounds a lot like a CEX, doesn’t it? The main difference is that users don’t have to transfer their crypto to a centralized exchange throughout the process of the trade. Having this in mind, sometimes, it’s the centralized exchanges themselves that provide P2P platforms, as a further emphasis on the idea that it’s the best place to trade crypto, feature variety-wise. An example could be the Binance P2P Exchange.

Final Thoughts

So, to sum up, centralized exchanges, decentralized exchanges, and P2P deals are where cryptocurrency trading takes place. Each of these options have their own pros and cons, as well as each of them vary in their level of security, anonymity, or accessibility.

The bottom line is this. If you’re a beginner, centralized exchanges should be the obvious choice. Low risk and security - financial, and physical - are the main priorities for every cautious trader.

Bitcoin for mere cents 10 years ago, and held on to it. Today, they are millionaires.<\/p>\n<p>But they wouldn't be if they didn't follow that one, essential principle of smart crypto investing. It's known as \"HODL.\" The expression was accidentally created in 2013, in a Bitcoin forum, where an enthusiastic crypto trader made a typo while trying to spell out HOLD. The funny mistake became part of the community's lingo, and today is known as the acronym for \"Hold On for Dear Life.\"<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to invest in crypto: HODLing.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-invest-in-crypto-02.jpg/" alt=\"How to invest in crypto: HODLing.\" width=\"1000\" height=\"557\" \/><\/p>\n<p><strong>HODLing has become a term used to describe the strategy of holding onto a particular cryptocurrency for a long period of time, rather than selling it.<\/strong> HODLing gets difficult when the price of a coin falls drastically. Most people run to sell it, while HODLers refuse to do so, hoping that, in the long term, the price will recover, and increase.<\/p>\n<p>Sometimes it&rsquo;s irrational, sometimes, it doesn&rsquo;t work out. It&rsquo;s a bet, after all. But sometimes it works - just like someone was HODLing on that first edition of the Harry Potter book until its value skyrocketed, so do crypto investors HODL on particular coins, hoping to make a profit one day.<\/p>\n<h3>Mining<\/h3>\n<p>Moving on, let's take a look at mining, as a method of how to invest in cryptocurrencies.<\/p>\n<p><strong>Mining is the process of validating transactions on a blockchain<\/strong>, and earning rewards in the form of cryptocurrency for doing so. Mining requires specialized computer hardware for its computational power, and naturally, it uses a lot of energy. The nitty-gritty of the technical side of it would require an entire section to cover.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to invest in crypto: Mining.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-invest-in-crypto-04.jpg/" alt=\"How to invest in crypto: Mining.\" width=\"1000\" height=\"515\" \/><\/p>\n<p>In its very essence, though, <strong>mining is a costly way of investing in crypto<\/strong>. Even though blockchains and their verification mechanisms differ, becoming a crypto miner is not something most people could afford. Therefore, various solutions were introduced, such as cloud mining.<\/p>\n<p><strong>Cloud mining<\/strong> is hiring a mining company to do the mining for you. You pay the company for their service, but in exchange, you give them an agreed-upon amount of the mined resources. Instead of buying and maintaining your own equipment, you simply rent hash power from a mining farm, and they do the job for you.<\/p>\n<p>It's important to note that this only applies to coins that are native to blockchains that run on the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-proof-of-work-pow/">Proof-of-Work consensus mechanism. There are others, such as Ethereum's <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-proof-of-stake-pos/">Proof-of-Stake, and this brings us to another way of investing in crypto &ndash; staking.<\/p>\n<h3>Staking<\/h3>\n<p>For crypto freshmen, staking immediately gives off confusion, but for more advanced investors, it is something they don't ignore.<\/p>\n<p>Staking is rather similar to depositing money into banks. Sometimes, banks promise interest rates for those who are willing to deposit large amounts of money into them. It&rsquo;s similar when it comes to staking. But it has a different purpose.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to invest in crypto: Staking.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-invest-in-crypto-06.jpg/" alt=\"How to invest in crypto: Staking.\" width=\"1000\" height=\"537\" \/><\/p>\n<p>In the context of crypto, <strong>staking refers to locking up a certain amount of coins inside a blockchain<\/strong>, so that it could be used as collateral to support the operations of the network. It's a rather complex mechanism, and it differs from blockchain to blockchain. Nevertheless, its purpose is to help secure the network.<\/p>\n<p>This is achieved by the fact that <strong>stakers are the ones who receive the rights to validate transactions and compete to add new blocks to the blockchain<\/strong>. After having staked a required amount, stakers become the validators.<\/p>\n<p>For validating transactions, they receive rewards. Staking also works as a deterrent for malicious behavior. If a validator decided to engage in some shady business, they would be punished, as their staked assets would be confiscated.<\/p>\n<p>So, if you're doing good, you get rewards. Just don't get any funny ideas.<\/p>\n<h3>Decentralized Finance (DeFi)<\/h3>\n<p>The next stop on the &lsquo;how to invest in crypto&rsquo; train is Decentralized Finance, or DeFi. It sounds so broad, that it looks like you could cover all ways of investing in crypto under this blanket-term. Yet, DeFi in itself is an emerging ecosystem of financial applications that provide new, less conventional ways of getting into crypto.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to invest in crypto: Lending and borrowing.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-invest-in-crypto-07.jpg/" alt=\"How to invest in crypto: Lending and borrowing.\" width=\"1000\" height=\"604\" \/><\/p>\n<p>Among smart crypto investing opportunities, I shall emphasize <strong>lending and borrowing<\/strong> first. It's literally what it sounds like - DeFi lending and borrowing allow investors to lend crypto to others and earn interest, or - the opposite - borrow crypto and pay interest. Platforms like <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//aave/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Aave<\/strong><\/a>, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//compound-finance/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Compound<\/strong><\/a>, and many others are offering these services.<\/p>\n<p>Another way of investing in crypto within the DeFi world is known as <strong>providing liquidity<\/strong>.&nbsp;It's thanks to liquidity providers that DEXs are a thing. When you're trading, swapping, or buying crypto on decentralized exchanges, the assets you're after don't just fall from the sky. They come from <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-liquidity-pool/">liquidity pools<\/strong><\/a> that exist thanks to those who decided to put their coins into them.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to invest in crypto: Providing liquidity.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-invest-in-crypto-08.jpg/" alt=\"How to invest in crypto: Providing liquidity.\" width=\"1000\" height=\"626\" \/><\/p>\n<p>The richer the liquidity pools, the higher the volume of trades that can be executed, and by doing so, investors earn a fee from each trade that happens, thanks to the liquidity they provide.<\/p>\n<p>But liquidity could be provided not only to liquidity pools. Another method that includes gaining passive income from a similar tactic is called <strong>yield farming<\/strong>. It's similar to liquidity providing. Investors deposit their money into a DeFi protocol's liquidity pool, and earn money from all the trades that were possible thanks to this pool.<\/p>\n<p>But here, investors can also gain financial rewards in the form of newly issued tokens that are distributed to liquidity providers as a reward for their contribution.&nbsp;<\/p>\n<h3>Non-Fungible Tokens (NFTs)<\/h3>\n<p>The next method of how to invest in crypto are the famous NFTs, or Non-Fungible Tokens. <strong>NFTs are a type of digital asset that represents ownership of a unique item or piece of content, such as art, music, or any collectibles, in general<\/strong>. Even real estate or unique passes to events and community gatherings can also come in the form of NFTs. They can be bought, sold, and traded on various NFT marketplaces such as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//opensea/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>OpenSea<\/strong><\/a>, Blur, Magic Eden, and others.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to invest in crypto: NFTs.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-invest-in-crypto-10.jpg/" alt=\"How to invest in crypto: NFTs.\" width=\"1000\" height=\"563\" \/><\/p>\n<p>NFTs offer a new way to invest in digital art and other unique digital assets, and the investment part here looks <strong>very similar to investing in crypto coins<\/strong>. You try to buy low, and then wait for an opportunity to sell high.<\/p>\n<p>There's a term for short-term profit strategies when it comes to NFTs, and it's called <strong>flipping<\/strong>. Flipping refers to buying an NFT and then immediately selling it for a higher price. This can be a quick way to make a profit, but it's also a high-risk strategy, as the value of an NFT can be highly volatile.<\/p>\n<p>The opposite of flipping is hodling. I&rsquo;ve already explained how hodling works earlier in this section. When it comes to NFTs, hodling means the same thing. Note that if you want to understand NFTs in-depth, there is a separate section about them - <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-nfts/">check it out<\/strong><\/a>!<\/p>\n<h3>GameFi<\/h3>\n<p>And, finally, finishing off our list of the best crypto investing strategies, we've got one of the latest trends - GameFi. In a few words, <strong>it allows you to earn cryptocurrency by gaming<\/strong>. One of the most famous examples is <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//axie-infinity-axs-price/">Axie Infinity<\/strong><\/a>. However, GameFi goes deeper than that.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to invest in crypto: GameFi.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-invest-in-crypto-13.jpg/" alt=\"How to invest in crypto: GameFi.\" width=\"1000\" height=\"572\" \/><\/p>\n<p>If you really believe in a particular game, you can obtain, unlock, or buy NFTs of in-game items, which you can either sell later for a bigger price, or even rent out to someone else. Just like NFTs, but in-game.<\/p>\n<p>GameFi is still in its early stage. This industry could be the very next thing, or it could take a while until the gaming culture adapts to what Web3 can bring them. Therefore, it's safe to say that, when it comes to investing in GameFi, the risk is pretty high, and the future is yet to be clear.<\/p>\n<h2>Wrapping Up<\/h2>\n<p>As you can see, when it comes to different verified crypto investing strategies, you find yourself with a rather wide variety of choices, yet with no clear, single answer to how to invest in crypto. Yes, it's confusing at first, but that's not a bad thing. No matter what type of investor you might be, crypto offers many different possibilities that are likely to suit everyone's taste, skills, and character.<\/p>\n<p>Lastly, note that the aforementioned ways of investing in crypto differ in their technical complexity, the required level of knowledge, or simply, the amount of funds necessary in order to be able to participate in them.<\/p>","definition":"Did you know that buying fungible and non-fungible tokens, mining, staking, or participating in GameFi and DeFi are all ways to invest in crypto?","status":"published","meta_title":"How to Invest in Crypto? Different Investing Strategies","meta_description":"Do you see the potential in cryptocurrencies and are wondering how to invest in crypto? You'll find all crypto investing strategies here!","meta_keywords":"how to invest in crypto, crypto investing, crypto investing strategies, crypto investing for beginners, how to invest in crypto currency, smart crypto investing, verified crypto investing, how to invest in crypto currencies, best crypto investing strategy","modified_content":"<p>In this section, we're going to talk about all the <strong>different ways of how to invest in crypto<\/strong>!<\/p>\n<p>Investing in crypto is a wide topic. It's constantly evolving, as new opportunities, strategies, and risks appear every now and then. There are different sections in this Crypto 101 Handbook which concentrate on particular methods of crypto investment, such as staking or mining. In this section, though, I&rsquo;ll touch on them all, so you could have the full picture of this fascinating topic.<\/p>\n<p>The question of how to invest in crypto is an interesting one, since there are many answers. It's enough to take a glimpse into the online crypto space, and you'll instantly notice how polarizing this debate can be! So, before forming your own opinion, you gotta get to know what these different ways are. It can get complex and confusing, but fear no more &ndash; that's what I'm here for!<\/p>\n<p>In this section, we're going to discuss different ways of how to invest in cryptocurrencies. <strong>These include<\/strong> <strong>buying, mining, staking, the perks of Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), and finally, investing in GameFi<\/strong>. I'll describe each of them as we'll look into what makes them so different, on their own. Eventually, you'll see that, no matter your level of experience, crypto investing for beginners is also a thing!<\/p>\n<p><em>Now, let's get to it!<\/em><\/p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 suggested-comparisons pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//images//compare-crypto-exchanges.gif/"/n alt=\"How to Invest in Crypto: 6 Rewarding Strategies (Animated)\"\n title=\"How to Invest in Crypto: 6 Rewarding Strategies (Animated)\" class=\"border-0\">\n <p>Video Explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: Investing in Crypto: What Investing Options Do You Have?<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"Investing in Crypto: What Investing Options Do You Have?\" video explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"position-relative youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"RExzpm9Pbpc\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">How to Invest in Crypto: 6 Rewarding Strategies (Animated)<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/how-to-invest-in-crypto-6-rewarding-strategies-animated.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/how-to-invest-in-crypto-6-rewarding-strategies-animated.jpg?tr=w-760 1000w\"\n alt=\"How to Invest in Crypto: 6 Rewarding Strategies (Animated)\"\n title=\"How to Invest in Crypto: 6 Rewarding Strategies (Animated)\"\n class=\"p-0 lazyload\">\n <img class=\"play-button lazyload\" data-target=\"#video-modal\"\n data-src=\"https:\/\/assets.bitdegree.org\/crypto\/assets\/video-button.png?tr=w-85\"\n alt=\"How to Invest in Crypto: 6 Rewarding Strategies (Animated)\">\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener noindex\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"><\/i>\n <\/div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE<\/h4>\n <span>ON YOUTUBE<\/span>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"><\/i>\n <\/button>\n <div id=\"iframe\"><\/div>\n <\/div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener noindex\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//crypto-subscribe.jpg/" alt=\"Subscribe\">\n <\/div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE<\/span>\n <\/p>\n <\/div>\n <\/div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease<\/h4>\n <span>New explainer videos every week!<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n<\/div>\n<h2>Options of Investing in Crypto<\/h2>\n<p>Investing in crypto is like a Swiss army knife. It can have many shapes and forms, but it all boils down to expectations of generating a return on investment. The most popular form of it - purchasing digital coins - is only the tip of the iceberg, since there are many more ways to achieve this goal.<\/p>\n<p>But let's begin with the classics - first on the list is simply buying and hodling crypto.<\/p>\n<h3>Buying Cryptocurrency &amp; HODLing<\/h3>\n<p>In technical terms, buying crypto refers to acquiring a specific digital coin (or token) by buying it for traditional fiat currency, be it dollars, euros, or something else, or exchanging other cryptocurrencies for it.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to invest in crypto: Buying crypto from exchanges.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-invest-in-crypto-01.jpg/" alt=\"How to invest in crypto: Buying crypto from exchanges.\" width=\"1000\" height=\"540\" \/><\/p>\n<p>You can buy cryptocurrency on a CEX, a centralized exchange, like <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//binance/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Binance<\/strong><\/a>, or a DEX, a decentralized exchange, like <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//uniswap/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Uniswap<\/strong><\/a>. Keep in mind that, unlike centralized exchanges, you can't buy crypto for fiat money on decentralized platforms. But that's a different topic, so if you want to learn more, be sure to check out this section.<\/p>\n<p>So, essentially, investing in cryptocurrency by acquiring crypto is self-explanatory. <strong>You literally invest in a coin with the hopes that its price will increase over time<\/strong>, which will allow you to sell it and end up pocketing some profit. This is very similar to investing in companies in their early stages by buying their stocks and being able to sell them once the company makes it big.<\/p>\n<p>Or, to make it more simple, it's like obtaining an object just after it comes out and selling it later, when it becomes a rarity. A perfect example would be the first edition of Harry Potter. In 2021, a copy of the first edition of Philosopher's Stone sold for $471,000. Its value increased over time, and the owner was able to make a profit by selling it. The same applies to everyone who bought their <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-bitcoin-btc/">Bitcoin for mere cents 10 years ago, and held on to it. Today, they are millionaires.<\/p>\n<p>But they wouldn't be if they didn't follow that one, essential principle of smart crypto investing. It's known as \"HODL.\" The expression was accidentally created in 2013, in a Bitcoin forum, where an enthusiastic crypto trader made a typo while trying to spell out HOLD. The funny mistake became part of the community's lingo, and today is known as the acronym for \"Hold On for Dear Life.\"<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to invest in crypto: HODLing.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-invest-in-crypto-02.jpg/" alt=\"How to invest in crypto: HODLing.\" width=\"1000\" height=\"557\" \/><\/p>\n<p><strong>HODLing has become a term used to describe the strategy of holding onto a particular cryptocurrency for a long period of time, rather than selling it.<\/strong> HODLing gets difficult when the price of a coin falls drastically. Most people run to sell it, while HODLers refuse to do so, hoping that, in the long term, the price will recover, and increase.<\/p>\n<p>Sometimes it&rsquo;s irrational, sometimes, it doesn&rsquo;t work out. It&rsquo;s a bet, after all. But sometimes it works - just like someone was HODLing on that first edition of the Harry Potter book until its value skyrocketed, so do crypto investors HODL on particular coins, hoping to make a profit one day.<\/p>\n<h3>Mining<\/h3>\n<p>Moving on, let's take a look at mining, as a method of how to invest in cryptocurrencies.<\/p>\n<p><strong>Mining is the process of validating transactions on a blockchain<\/strong>, and earning rewards in the form of cryptocurrency for doing so. Mining requires specialized computer hardware for its computational power, and naturally, it uses a lot of energy. The nitty-gritty of the technical side of it would require an entire section to cover.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to invest in crypto: Mining.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-invest-in-crypto-04.jpg/" alt=\"How to invest in crypto: Mining.\" width=\"1000\" height=\"515\" \/><\/p>\n<p>In its very essence, though, <strong>mining is a costly way of investing in crypto<\/strong>. Even though blockchains and their verification mechanisms differ, becoming a crypto miner is not something most people could afford. Therefore, various solutions were introduced, such as cloud mining.<\/p>\n<p><strong>Cloud mining<\/strong> is hiring a mining company to do the mining for you. You pay the company for their service, but in exchange, you give them an agreed-upon amount of the mined resources. Instead of buying and maintaining your own equipment, you simply rent hash power from a mining farm, and they do the job for you.<\/p>\n<p>It's important to note that this only applies to coins that are native to blockchains that run on the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-proof-of-work-pow/">Proof-of-Work consensus mechanism. There are others, such as Ethereum's <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-proof-of-stake-pos/">Proof-of-Stake, and this brings us to another way of investing in crypto &ndash; staking.<\/p>\n<h3>Staking<\/h3>\n<p>For crypto freshmen, staking immediately gives off confusion, but for more advanced investors, it is something they don't ignore.<\/p>\n<p>Staking is rather similar to depositing money into banks. Sometimes, banks promise interest rates for those who are willing to deposit large amounts of money into them. It&rsquo;s similar when it comes to staking. But it has a different purpose.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to invest in crypto: Staking.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-invest-in-crypto-06.jpg/" alt=\"How to invest in crypto: Staking.\" width=\"1000\" height=\"537\" \/><\/p>\n<p>In the context of crypto, <strong>staking refers to locking up a certain amount of coins inside a blockchain<\/strong>, so that it could be used as collateral to support the operations of the network. It's a rather complex mechanism, and it differs from blockchain to blockchain. Nevertheless, its purpose is to help secure the network.<\/p>\n<p>This is achieved by the fact that <strong>stakers are the ones who receive the rights to validate transactions and compete to add new blocks to the blockchain<\/strong>. After having staked a required amount, stakers become the validators.<\/p>\n<p>For validating transactions, they receive rewards. Staking also works as a deterrent for malicious behavior. If a validator decided to engage in some shady business, they would be punished, as their staked assets would be confiscated.<\/p>\n<p>So, if you're doing good, you get rewards. Just don't get any funny ideas.<\/p>\n<h3>Decentralized Finance (DeFi)<\/h3>\n<p>The next stop on the &lsquo;how to invest in crypto&rsquo; train is Decentralized Finance, or DeFi. It sounds so broad, that it looks like you could cover all ways of investing in crypto under this blanket-term. Yet, DeFi in itself is an emerging ecosystem of financial applications that provide new, less conventional ways of getting into crypto.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to invest in crypto: Lending and borrowing.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-invest-in-crypto-07.jpg/" alt=\"How to invest in crypto: Lending and borrowing.\" width=\"1000\" height=\"604\" \/><\/p>\n<p>Among smart crypto investing opportunities, I shall emphasize <strong>lending and borrowing<\/strong> first. It's literally what it sounds like - DeFi lending and borrowing allow investors to lend crypto to others and earn interest, or - the opposite - borrow crypto and pay interest. Platforms like <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//aave/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Aave<\/strong><\/a>, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//compound-finance/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Compound<\/strong><\/a>, and many others are offering these services.<\/p>\n<p>Another way of investing in crypto within the DeFi world is known as <strong>providing liquidity<\/strong>.&nbsp;It's thanks to liquidity providers that DEXs are a thing. When you're trading, swapping, or buying crypto on decentralized exchanges, the assets you're after don't just fall from the sky. They come from <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-liquidity-pool/">liquidity pools<\/strong><\/a> that exist thanks to those who decided to put their coins into them.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to invest in crypto: Providing liquidity.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-invest-in-crypto-08.jpg/" alt=\"How to invest in crypto: Providing liquidity.\" width=\"1000\" height=\"626\" \/><\/p>\n<p>The richer the liquidity pools, the higher the volume of trades that can be executed, and by doing so, investors earn a fee from each trade that happens, thanks to the liquidity they provide.<\/p>\n<p>But liquidity could be provided not only to liquidity pools. Another method that includes gaining passive income from a similar tactic is called <strong>yield farming<\/strong>. It's similar to liquidity providing. Investors deposit their money into a DeFi protocol's liquidity pool, and earn money from all the trades that were possible thanks to this pool.<\/p>\n<p>But here, investors can also gain financial rewards in the form of newly issued tokens that are distributed to liquidity providers as a reward for their contribution.&nbsp;<\/p>\n<h3>Non-Fungible Tokens (NFTs)<\/h3>\n<p>The next method of how to invest in crypto are the famous NFTs, or Non-Fungible Tokens. <strong>NFTs are a type of digital asset that represents ownership of a unique item or piece of content, such as art, music, or any collectibles, in general<\/strong>. Even real estate or unique passes to events and community gatherings can also come in the form of NFTs. They can be bought, sold, and traded on various NFT marketplaces such as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//opensea/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>OpenSea<\/strong><\/a>, Blur, Magic Eden, and others.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to invest in crypto: NFTs.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-invest-in-crypto-10.jpg/" alt=\"How to invest in crypto: NFTs.\" width=\"1000\" height=\"563\" \/><\/p>\n<p>NFTs offer a new way to invest in digital art and other unique digital assets, and the investment part here looks <strong>very similar to investing in crypto coins<\/strong>. You try to buy low, and then wait for an opportunity to sell high.<\/p>\n<p>There's a term for short-term profit strategies when it comes to NFTs, and it's called <strong>flipping<\/strong>. Flipping refers to buying an NFT and then immediately selling it for a higher price. This can be a quick way to make a profit, but it's also a high-risk strategy, as the value of an NFT can be highly volatile.<\/p>\n<p>The opposite of flipping is hodling. I&rsquo;ve already explained how hodling works earlier in this section. When it comes to NFTs, hodling means the same thing. Note that if you want to understand NFTs in-depth, there is a separate section about them - <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-nfts/">check it out<\/strong><\/a>!<\/p>\n<h3>GameFi<\/h3>\n<p>And, finally, finishing off our list of the best crypto investing strategies, we've got one of the latest trends - GameFi. In a few words, <strong>it allows you to earn cryptocurrency by gaming<\/strong>. One of the most famous examples is <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//axie-infinity-axs-price/">Axie Infinity<\/strong><\/a>. However, GameFi goes deeper than that.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to invest in crypto: GameFi.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-invest-in-crypto-13.jpg/" alt=\"How to invest in crypto: GameFi.\" width=\"1000\" height=\"572\" \/><\/p>\n<p>If you really believe in a particular game, you can obtain, unlock, or buy NFTs of in-game items, which you can either sell later for a bigger price, or even rent out to someone else. Just like NFTs, but in-game.<\/p>\n<p>GameFi is still in its early stage. This industry could be the very next thing, or it could take a while until the gaming culture adapts to what Web3 can bring them. Therefore, it's safe to say that, when it comes to investing in GameFi, the risk is pretty high, and the future is yet to be clear.<\/p>\n<h2>Wrapping Up<\/h2>\n<p>As you can see, when it comes to different verified crypto investing strategies, you find yourself with a rather wide variety of choices, yet with no clear, single answer to how to invest in crypto. Yes, it's confusing at first, but that's not a bad thing. No matter what type of investor you might be, crypto offers many different possibilities that are likely to suit everyone's taste, skills, and character.<\/p>\n<p>Lastly, note that the aforementioned ways of investing in crypto differ in their technical complexity, the required level of knowledge, or simply, the amount of funds necessary in order to be able to participate in them.<\/p>","youtube_video":{"id":58,"channel_id":1,"sort":40,"video_title":"How to Invest in Crypto: 6 Rewarding Strategies (Animated)","description":"How to invest in cryptocurrency?\n\nCrypto investing comes in many shapes and sizes. Crypto investing strategies vary from buying cryptocurrencies, to mining, staking, or flipping NFTs. At the end of the day, it all boils down to one thing - expecting to generate a return on your investment.\n\nIn this video, I will explain how to invest in crypto, what are the most common ways of investing in crypto, how different these methods are, how they work, and what risks are associated with them. By touching on all of them separately, you\u2019ll be able to understand what opportunities the DeFi ecosystem offers for anyone who\u2019s willing to learn.\n\nDo you have a preferred way of investing in crypto? Make sure to let me know, in the comments below!\n\nVideo Time Table:\n0:00 Introduction to How to Invest in Crypto\n1:24 What Does Investing in Crypto Mean?\n1:43 HODLING \n4:08 Mining\n5:18 Staking\n6:27 Decentralized Finance (DeFi)\n8:05 NFTs\n9:13 GameFi\n10:00 Wrap-up: How to Invest in Crypto\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained\n\n#HowToInvestInCrypto #hodl #defi","video_id":"RExzpm9Pbpc","duration":652,"view_count":205,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/how-to-invest-in-crypto-6-rewarding-strategies-animated.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2023-04-24T14:19:46.000000Z","created_at":"2023-04-24T23:00:05.000000Z","updated_at":"2024-01-09T23:00:04.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}}}" :prev-section="{"id":3,"chapter_id":6,"order":14,"featured_image_id":3036,"youtube_video_id":9,"author_id":1,"created_at":"2022-05-02T08:03:23.000000Z","updated_at":"2023-11-21T12:00:59.000000Z","slug":"what-is-the-metaverse","title":"Metaverse: A New Perception of Reality","content":"<p>Ever since <strong>Mark Zuckerberg<\/strong> - <strong>the CEO of Facebook<\/strong> - announced his company&rsquo;s expansion into the realm of <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-metaverse/">metaverses back in October of 2021, the concept has seemingly not left the lips of many people around the world. And YES, you might be surprised to find out that metaverses were a standalone concept long before Zuckerberg&rsquo;s announcement - specifically, since the early 90s, and today I&rsquo;ll explain to you what Metaverse is, the whole concept literally on my five fingers!<\/p>\n<p>In this section, I&rsquo;ll tell you all about the metaverse - <strong>what it is, what it has to do with crypto, and how is Mark Zuckerberg involved in all of this, in the first place<\/strong>. Let&rsquo;s jump right into it!<\/p>\n<p>So, then, first things first - let&rsquo;s define the concept of a metaverse, shall we?<\/p>\n<h2>What is the Metaverse?<\/h2>\n<p>Now, admittedly, you&rsquo;ll find many different definitions of the metaverse online. There are multiple explanations that are much more confusing than helpful!<\/p>\n<p><strong>The term itself came from the science fiction novel \"Snow Crash\" by the American writer Neal Stephenson in 1992.&nbsp;<\/strong><\/p>\n<p>Indeed, Mark wasn&rsquo;t the first genius who came up with it!&nbsp;<\/p>\n<p>Even in those days, <strong>Neil described the Metaverse as a virtual world, with virtual real estate - even the connection to it was made via special goggles, as we call them now,<\/strong> <strong>VR glasses<\/strong>! He was describing the whole subculture of &ldquo;avatars&rdquo; who choose to remain connected to Metaverse for-life, by wearing portable terminals. And you know what? Today this seems to me like the upcoming reality, not fiction.<\/p>\n<p>By the way, it is a great, old book, I really recommend it to break your imagination!<\/p>\n<p>So, to put it simply, a Metaverse is a digital world. The most common examples given revolve around some of the more popular video games today, such as <strong>Animal Crossing or Second Life<\/strong>. Within this digital world, you have your own avatar and are able to interact with the terrain, items, and other people&rsquo;s avatars around you.<\/p>\n<p>When someone talks about metaverses, most individuals will imagine a person with a VR headset on their head. This is because VR tools allow you to be more immersed in the aforementioned digital worlds - in other words, you are able to <strong>experience them in 3D<\/strong>.<\/p>\n<p style=\"text-align: center;\"><img title=\"What is a Metaverse: Concept of a Metaverse.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-the-metaverse-1.o.jpg/" alt=\"What is a Metaverse: Concept of a Metaverse.\" width=\"1000\" height=\"600\" \/><\/p>\n<p>Notice how I use the plural version of the term - metaverses. That&rsquo;s because, honestly, <strong>there can be multiple metaverses out there<\/strong>! This is not something that&rsquo;s limited to a one, single project or design.<\/p>\n<p>Let&rsquo;s go over what users can actually DO in a metaverse, and why do we need it?<\/p>\n<p>For starters, many individuals imagine metaverses as spaces for new-generation gaming. Today, there are already multiple VR-powered gaming options - different activities such as VR Saber or mountain climbing, and even cooperative games to play with friends.<\/p>\n<p>There&rsquo;s widespread speculation that, in the future, metaverse users will be able <strong>to virtually improve their working spaces, arrange meetings with friends or colleagues, visit digital meet-up hubs, travel to distant and alien lands, and do so much more<\/strong>. It probably wouldn&rsquo;t be too surprising if, in 10 years' time, many of our daily activities (shopping, playing games, meeting friends) would be transferred to the metaverse, into a new illusive dimension or reality?<\/p>\n<p style=\"text-align: center;\"><img title=\"What is a Metaverse: What can you do in a Metaverse?\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-the-metaverse-2.o.jpg/" alt=\"What is a Metaverse: What can you do in a Metaverse?\" width=\"1000\" height=\"600\" \/><\/p>\n<p>That being said, however, when people say &ldquo;the metaverse&rdquo; today, another concept that they are often referring to is a digital world built on blockchain technology. Let&rsquo;s break that down, shall we?<\/p>\n<p>A &ldquo;<a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-blockchain/">blockchain&rdquo; is an information storage area, you can call it &ldquo;<strong>the new age database<\/strong>&rdquo;. Just like you would store your family&rsquo;s photos in an album, blockchains store information. Most of the time, this information relates to cryptocurrency <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-transaction-tx/">transactions - that&rsquo;s because many blockchains have their own, native cryptocurrencies associated with them.<\/p>\n<p>Now, I can already hear you asking - what in the world do blockchains have to do with the metaverse? This is so confusing!<\/p>\n<p>I can understand your frustration. Worry not, though - things are actually much simpler than you&rsquo;d think!<\/p>\n<p>When I say that the metaverse would be built on blockchain technology, it simply means three things:<\/p>\n<ul>\n<li><strong>The metaverse would be decentralized, at least in some form;<\/strong><\/li>\n<li><strong>The metaverse would allow you to transact with cryptocurrencies;<\/strong><\/li>\n<li><strong>Your profile information would be stored on the blockchain - the new generation database.<\/strong><\/li>\n<\/ul>\n<p>Most blockchains are <strong>decentralized<\/strong>. What this means is that there is no one central authority overseeing them. The simplest way to imagine it is this: when you go visit a social media platform, your experience will depend on the owners of that platform. The company behind the platform will moderate what you can and can&rsquo;t see, what you can and can&rsquo;t say, how you interact with others, and so on.<\/p>\n<p style=\"text-align: center;\"><img title=\"What is the Metaverse: Metaverse on a blockchain.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-the-metaverse-3.o.jpg/" alt=\"What is the Metaverse: Metaverse on a blockchain.\" width=\"1000\" height=\"350\" \/><\/p>\n<p>A decentralized version of such a social media platform wouldn&rsquo;t have any of the aforementioned restrictions, if the community would decide to not impose them. In other words, decentralized platforms don&rsquo;t have a single ruling authority behind them, and depend on the communities to be <strong>the decision-makers<\/strong>.<\/p>\n<p>Within a decentralized metaverse, you would be able to make decisions with the rest of the community, in the form of democratic votes. The well-being of the metaverse would depend on each individual and not some central authority - how cool is that?<\/p>\n<p>Now, let&rsquo;s move on to the cryptocurrency transaction question in our new Metaverse world.<\/p>\n<p style=\"text-align: center;\"><img title=\"What is the Metaverse: Metaverse on a blockchain.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-the-metaverse-4.o.jpg/" alt=\"What is the Metaverse: Metaverse on a blockchain.\" width=\"1000\" height=\"500\" \/><\/p>\n<p>As I&rsquo;ve mentioned earlier, most blockchains have their native cryptocurrency - think of <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin, <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">Ethereum, and the like. If a metaverse would be created with the help of blockchain technology, <strong>users would be able to pay for services with the native currency of that blockchain<\/strong>.<\/p>\n<p>The simplest way to think of this is the way that you transact with the United States dollar. No matter which US state you might be located in, you will be able to use the same USD with all of your purchases - this is actually even true in many other parts of the world, as well!<\/p>\n<p>Now, the popular opinion states that Ethereum is the most suitable blockchain for metaverse development. This is because this network is often described as &ldquo;<strong>the global computer<\/strong>&rdquo; on which many large projects have already been developed and created.<\/p>\n<p style=\"text-align: center;\"><img title=\"What is the Metaverse: Metaverse on a blockchain.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-the-metaverse-5.o.jpg/" alt=\"What is the Metaverse: Metaverse on a blockchain.\" width=\"1000\" height=\"550\" \/><\/p>\n<p>On that note, Ethereum is also often thought to be the foundational network behind <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-web-3-0/">Web 3.0<\/strong><\/a>, a new form of a decentralized internet. If you&rsquo;re interested to learn more about this topic, I highly encourage you to check out another explanatory section by me on what <a href=https://www.bitdegree.org/"//crypto//learn//what-is-web-3-0/">Web 3.0<\/strong><\/a> is!<\/p>\n<p><strong>Before we continue, why is Ethereum better than any other blockchain, though?&nbsp;<\/strong><\/p>\n<p>Well, it&rsquo;s scalable, stable, reliable, and most importantly, it was the first blockchain to implement <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//tutorials//what-is-a-smart-contract/">Smart Contracts<\/strong><\/a> - special automated processes, or an automated logic, that allows people to make agreements with one another, without having to trust if the other party will hold up their part of the deal. Everything is processed under the openly seen, coded logic and <strong>no third parties can affect it from outside after it was launched<\/strong>. In most cases, even its initial developers can&rsquo;t!<\/p>\n<p>Smart contracts allow for fast, safe, and decentralized transactions to happen on the network. Implemented into the metaverse, they would act in the background - <strong>whether you launch a game or pay for a virtual plot of land, smart contracts would be involved, without you even noticing it<\/strong>!<\/p>\n<p style=\"text-align: center;\"><img title=\"What is the Metaverse: Why is Ethereum the most suitable blockchain for Metaverse?\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-the-metaverse-6.o.jpg/" alt=\"What is the Metaverse: Why is Ethereum the most suitable blockchain for Metaverse?\" width=\"1000\" height=\"300\" \/><\/p>\n<p>Lastly, let&rsquo;s take a look at the third point - your metaverse personality, a profile of information being stored on the blockchain.<\/p>\n<p>Imagine that you&rsquo;d be able to remain anonymous within the metaverse, thanks to blockchain tech. You&rsquo;d probably still want to create some sort of profile, though, right? Well, same as you can create a character in a video game, you would also be able to do so within the metaverse, <strong>with the help of crypto, as well - your profile would be anonymous, yet tied to your account.<\/strong><\/p>\n<p>Say, you&rsquo;ve created a digital painting that has become very popular within the metaverse. How do you prove that YOU were the one who made it? Simple - no matter who owns it NOW, if it was created, also known as <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-minting/">minted, on your profile, you will forever be listed as the creator! Thanks to the blockchain technology behind the metaverse!<\/p>\n<p>Moving on, up to this point, we&rsquo;ve discussed what the metaverse is, and what <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-cryptocurrency/">cryptocurrencies and blockchain tech have to do with the concept. That&rsquo;s a lot of information to wrap your head around, I&rsquo;ll admit! One big question still remains unanswered - <strong>what does the CEO of Facebook, Mark Zuckerberg, have to do with all of this?<\/strong><\/p>\n<p>As I&rsquo;ve mentioned at the beginning of this explanation, towards the end of October of this year, Zuckerberg announced that Facebook would be rebranding to &ldquo;<strong>Meta<\/strong>&rdquo;, and would start developing its own iteration of the metaverse - a digital world where you could connect with other people, work, exchange information, spend time with friends, and do all sorts of other cool activities.<\/p>\n<p style=\"text-align: center;\"><img title=\"What is the Metaverse: Metaverse on a blockchain.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-the-metaverse-7.o.jpg/" alt=\"What is the Metaverse: Metaverse on a blockchain.\" width=\"1000\" height=\"600\" \/><\/p>\n<p>This was a huge announcement since it was the first time that a large, that a global brand would delve into the metaverse technology, in such a straightforward manner. Following this, the general public&rsquo;s interest in the concept of metaverses spiked, quite noticeably!<\/p>\n<p>Some people are very excited about trying out this new form of technology and communication. Others, on the flip side, are very skeptical, especially since this is a concept explored by Facebook - a brand that, let&rsquo;s just say,<strong> doesn't have the best track<\/strong> record when it comes to user data collection and keeping users' best interests in mind.<\/p>\n<p>No matter which camp you fall into, one thing seems to be certain - the metaverse will be <strong>an industry-changing innovation that will affect all of our lives<\/strong>. With crypto technology being intertwined with the idea of metaverses, this becomes an even more interesting concept to explore and familiarize yourself with!<\/p>\n<p style=\"text-align: center;\"><img title=\"What is the Metaverse: How is Mark Zuckerberg involved?\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-the-metaverse-8.o.jpg/" alt=\"What is the Metaverse: How is Mark Zuckerberg involved?\" width=\"1000\" height=\"550\" \/><\/p>\n<p>So, I hope that now you have a better understanding of what the Metaverse is! If you wish to learn about the world of crypto, even more, check out the other section - \"<a href=https://www.bitdegree.org/"//crypto//learn//what-is-blockchain/">What is the Blockchain?<\/strong><\/a>\".<\/p>","definition":"Did you know that the term \"Metaverse\" originated from a science fiction novel called \"Snow Crash\" in 1992?","status":"published","meta_title":"What is the Metaverse: A Completely New World?","meta_description":"Find out what is the Metaverse, how it works, & what does Mark Zuckerberg have to do with it? See what this virtual world will offer!","meta_keywords":"what is the metaverse, what does metaverse mean, what is metaverse in crypto","modified_content":"<p>Ever since <strong>Mark Zuckerberg<\/strong> - <strong>the CEO of Facebook<\/strong> - announced his company&rsquo;s expansion into the realm of <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-metaverse/">metaverses back in October of 2021, the concept has seemingly not left the lips of many people around the world. And YES, you might be surprised to find out that metaverses were a standalone concept long before Zuckerberg&rsquo;s announcement - specifically, since the early 90s, and today I&rsquo;ll explain to you what Metaverse is, the whole concept literally on my five fingers!<\/p>\n<p>In this section, I&rsquo;ll tell you all about the metaverse - <strong>what it is, what it has to do with crypto, and how is Mark Zuckerberg involved in all of this, in the first place<\/strong>. Let&rsquo;s jump right into it!<\/p>\n<p>So, then, first things first - let&rsquo;s define the concept of a metaverse, shall we?<\/p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 suggested-comparisons pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//images//compare-crypto-exchanges.gif/"/n alt=\"What is the Metaverse? (Meaning + Animated Examples)\"\n title=\"What is the Metaverse? (Meaning + Animated Examples)\" class=\"border-0\">\n <p>Video Explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: Metaverse: A New Perception of Reality<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"Metaverse: A New Perception of Reality\" video explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"position-relative youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"UdVidrZUIuE\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">What is the Metaverse? (Meaning + Animated Examples)<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-the-metaverse-meaning-animated-examples.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-the-metaverse-meaning-animated-examples.jpg?tr=w-760 1000w\"\n alt=\"What is the Metaverse? (Meaning + Animated Examples)\"\n title=\"What is the Metaverse? (Meaning + Animated Examples)\"\n class=\"p-0 lazyload\">\n <img class=\"play-button lazyload\" data-target=\"#video-modal\"\n data-src=\"https:\/\/assets.bitdegree.org\/crypto\/assets\/video-button.png?tr=w-85\"\n alt=\"What is the Metaverse? (Meaning + Animated Examples)\">\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener noindex\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"><\/i>\n <\/div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE<\/h4>\n <span>ON YOUTUBE<\/span>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"><\/i>\n <\/button>\n <div id=\"iframe\"><\/div>\n <\/div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener noindex\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//crypto-subscribe.jpg/" alt=\"Subscribe\">\n <\/div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE<\/span>\n <\/p>\n <\/div>\n <\/div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease<\/h4>\n <span>New explainer videos every week!<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n<\/div>\n<h2>What is the Metaverse?<\/h2>\n<p>Now, admittedly, you&rsquo;ll find many different definitions of the metaverse online. There are multiple explanations that are much more confusing than helpful!<\/p>\n<p><strong>The term itself came from the science fiction novel \"Snow Crash\" by the American writer Neal Stephenson in 1992.&nbsp;<\/strong><\/p>\n<p>Indeed, Mark wasn&rsquo;t the first genius who came up with it!&nbsp;<\/p>\n<p>Even in those days, <strong>Neil described the Metaverse as a virtual world, with virtual real estate - even the connection to it was made via special goggles, as we call them now,<\/strong> <strong>VR glasses<\/strong>! He was describing the whole subculture of &ldquo;avatars&rdquo; who choose to remain connected to Metaverse for-life, by wearing portable terminals. And you know what? Today this seems to me like the upcoming reality, not fiction.<\/p>\n<p>By the way, it is a great, old book, I really recommend it to break your imagination!<\/p>\n<p>So, to put it simply, a Metaverse is a digital world. The most common examples given revolve around some of the more popular video games today, such as <strong>Animal Crossing or Second Life<\/strong>. Within this digital world, you have your own avatar and are able to interact with the terrain, items, and other people&rsquo;s avatars around you.<\/p>\n<p>When someone talks about metaverses, most individuals will imagine a person with a VR headset on their head. This is because VR tools allow you to be more immersed in the aforementioned digital worlds - in other words, you are able to <strong>experience them in 3D<\/strong>.<\/p>\n<p style=\"text-align: center;\"><img title=\"What is a Metaverse: Concept of a Metaverse.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-the-metaverse-1.o.jpg/" alt=\"What is a Metaverse: Concept of a Metaverse.\" width=\"1000\" height=\"600\" \/><\/p>\n<p>Notice how I use the plural version of the term - metaverses. That&rsquo;s because, honestly, <strong>there can be multiple metaverses out there<\/strong>! This is not something that&rsquo;s limited to a one, single project or design.<\/p>\n<p>Let&rsquo;s go over what users can actually DO in a metaverse, and why do we need it?<\/p>\n<p>For starters, many individuals imagine metaverses as spaces for new-generation gaming. Today, there are already multiple VR-powered gaming options - different activities such as VR Saber or mountain climbing, and even cooperative games to play with friends.<\/p>\n<p>There&rsquo;s widespread speculation that, in the future, metaverse users will be able <strong>to virtually improve their working spaces, arrange meetings with friends or colleagues, visit digital meet-up hubs, travel to distant and alien lands, and do so much more<\/strong>. It probably wouldn&rsquo;t be too surprising if, in 10 years' time, many of our daily activities (shopping, playing games, meeting friends) would be transferred to the metaverse, into a new illusive dimension or reality?<\/p>\n<p style=\"text-align: center;\"><img title=\"What is a Metaverse: What can you do in a Metaverse?\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-the-metaverse-2.o.jpg/" alt=\"What is a Metaverse: What can you do in a Metaverse?\" width=\"1000\" height=\"600\" \/><\/p>\n<p>That being said, however, when people say &ldquo;the metaverse&rdquo; today, another concept that they are often referring to is a digital world built on blockchain technology. Let&rsquo;s break that down, shall we?<\/p>\n<p>A &ldquo;<a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-blockchain/">blockchain&rdquo; is an information storage area, you can call it &ldquo;<strong>the new age database<\/strong>&rdquo;. Just like you would store your family&rsquo;s photos in an album, blockchains store information. Most of the time, this information relates to cryptocurrency <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-transaction-tx/">transactions - that&rsquo;s because many blockchains have their own, native cryptocurrencies associated with them.<\/p>\n<p>Now, I can already hear you asking - what in the world do blockchains have to do with the metaverse? This is so confusing!<\/p>\n<p>I can understand your frustration. Worry not, though - things are actually much simpler than you&rsquo;d think!<\/p>\n<p>When I say that the metaverse would be built on blockchain technology, it simply means three things:<\/p>\n<ul>\n<li><strong>The metaverse would be decentralized, at least in some form;<\/strong><\/li>\n<li><strong>The metaverse would allow you to transact with cryptocurrencies;<\/strong><\/li>\n<li><strong>Your profile information would be stored on the blockchain - the new generation database.<\/strong><\/li>\n<\/ul>\n<p>Most blockchains are <strong>decentralized<\/strong>. What this means is that there is no one central authority overseeing them. The simplest way to imagine it is this: when you go visit a social media platform, your experience will depend on the owners of that platform. The company behind the platform will moderate what you can and can&rsquo;t see, what you can and can&rsquo;t say, how you interact with others, and so on.<\/p>\n<p style=\"text-align: center;\"><img title=\"What is the Metaverse: Metaverse on a blockchain.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-the-metaverse-3.o.jpg/" alt=\"What is the Metaverse: Metaverse on a blockchain.\" width=\"1000\" height=\"350\" \/><\/p>\n<p>A decentralized version of such a social media platform wouldn&rsquo;t have any of the aforementioned restrictions, if the community would decide to not impose them. In other words, decentralized platforms don&rsquo;t have a single ruling authority behind them, and depend on the communities to be <strong>the decision-makers<\/strong>.<\/p>\n<p>Within a decentralized metaverse, you would be able to make decisions with the rest of the community, in the form of democratic votes. The well-being of the metaverse would depend on each individual and not some central authority - how cool is that?<\/p>\n<p>Now, let&rsquo;s move on to the cryptocurrency transaction question in our new Metaverse world.<\/p>\n<p style=\"text-align: center;\"><img title=\"What is the Metaverse: Metaverse on a blockchain.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-the-metaverse-4.o.jpg/" alt=\"What is the Metaverse: Metaverse on a blockchain.\" width=\"1000\" height=\"500\" \/><\/p>\n<p>As I&rsquo;ve mentioned earlier, most blockchains have their native cryptocurrency - think of <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin, <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">Ethereum, and the like. If a metaverse would be created with the help of blockchain technology, <strong>users would be able to pay for services with the native currency of that blockchain<\/strong>.<\/p>\n<p>The simplest way to think of this is the way that you transact with the United States dollar. No matter which US state you might be located in, you will be able to use the same USD with all of your purchases - this is actually even true in many other parts of the world, as well!<\/p>\n<p>Now, the popular opinion states that Ethereum is the most suitable blockchain for metaverse development. This is because this network is often described as &ldquo;<strong>the global computer<\/strong>&rdquo; on which many large projects have already been developed and created.<\/p>\n<p style=\"text-align: center;\"><img title=\"What is the Metaverse: Metaverse on a blockchain.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-the-metaverse-5.o.jpg/" alt=\"What is the Metaverse: Metaverse on a blockchain.\" width=\"1000\" height=\"550\" \/><\/p>\n<p>On that note, Ethereum is also often thought to be the foundational network behind <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-web-3-0/">Web 3.0<\/strong><\/a>, a new form of a decentralized internet. If you&rsquo;re interested to learn more about this topic, I highly encourage you to check out another explanatory section by me on what <a href=https://www.bitdegree.org/"//crypto//learn//what-is-web-3-0/">Web 3.0<\/strong><\/a> is!<\/p>\n<p><strong>Before we continue, why is Ethereum better than any other blockchain, though?&nbsp;<\/strong><\/p>\n<p>Well, it&rsquo;s scalable, stable, reliable, and most importantly, it was the first blockchain to implement <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//tutorials//what-is-a-smart-contract/">Smart Contracts<\/strong><\/a> - special automated processes, or an automated logic, that allows people to make agreements with one another, without having to trust if the other party will hold up their part of the deal. Everything is processed under the openly seen, coded logic and <strong>no third parties can affect it from outside after it was launched<\/strong>. In most cases, even its initial developers can&rsquo;t!<\/p>\n<p>Smart contracts allow for fast, safe, and decentralized transactions to happen on the network. Implemented into the metaverse, they would act in the background - <strong>whether you launch a game or pay for a virtual plot of land, smart contracts would be involved, without you even noticing it<\/strong>!<\/p>\n<p style=\"text-align: center;\"><img title=\"What is the Metaverse: Why is Ethereum the most suitable blockchain for Metaverse?\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-the-metaverse-6.o.jpg/" alt=\"What is the Metaverse: Why is Ethereum the most suitable blockchain for Metaverse?\" width=\"1000\" height=\"300\" \/><\/p>\n<p>Lastly, let&rsquo;s take a look at the third point - your metaverse personality, a profile of information being stored on the blockchain.<\/p>\n<p>Imagine that you&rsquo;d be able to remain anonymous within the metaverse, thanks to blockchain tech. You&rsquo;d probably still want to create some sort of profile, though, right? Well, same as you can create a character in a video game, you would also be able to do so within the metaverse, <strong>with the help of crypto, as well - your profile would be anonymous, yet tied to your account.<\/strong><\/p>\n<p>Say, you&rsquo;ve created a digital painting that has become very popular within the metaverse. How do you prove that YOU were the one who made it? Simple - no matter who owns it NOW, if it was created, also known as <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-minting/">minted, on your profile, you will forever be listed as the creator! Thanks to the blockchain technology behind the metaverse!<\/p>\n<p>Moving on, up to this point, we&rsquo;ve discussed what the metaverse is, and what <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-cryptocurrency/">cryptocurrencies and blockchain tech have to do with the concept. That&rsquo;s a lot of information to wrap your head around, I&rsquo;ll admit! One big question still remains unanswered - <strong>what does the CEO of Facebook, Mark Zuckerberg, have to do with all of this?<\/strong><\/p>\n<p>As I&rsquo;ve mentioned at the beginning of this explanation, towards the end of October of this year, Zuckerberg announced that Facebook would be rebranding to &ldquo;<strong>Meta<\/strong>&rdquo;, and would start developing its own iteration of the metaverse - a digital world where you could connect with other people, work, exchange information, spend time with friends, and do all sorts of other cool activities.<\/p>\n<p style=\"text-align: center;\"><img title=\"What is the Metaverse: Metaverse on a blockchain.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-the-metaverse-7.o.jpg/" alt=\"What is the Metaverse: Metaverse on a blockchain.\" width=\"1000\" height=\"600\" \/><\/p>\n<p>This was a huge announcement since it was the first time that a large, that a global brand would delve into the metaverse technology, in such a straightforward manner. Following this, the general public&rsquo;s interest in the concept of metaverses spiked, quite noticeably!<\/p>\n<p>Some people are very excited about trying out this new form of technology and communication. Others, on the flip side, are very skeptical, especially since this is a concept explored by Facebook - a brand that, let&rsquo;s just say,<strong> doesn't have the best track<\/strong> record when it comes to user data collection and keeping users' best interests in mind.<\/p>\n<p>No matter which camp you fall into, one thing seems to be certain - the metaverse will be <strong>an industry-changing innovation that will affect all of our lives<\/strong>. With crypto technology being intertwined with the idea of metaverses, this becomes an even more interesting concept to explore and familiarize yourself with!<\/p>\n<p style=\"text-align: center;\"><img title=\"What is the Metaverse: How is Mark Zuckerberg involved?\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//media//what-is-the-metaverse-8.o.jpg/" alt=\"What is the Metaverse: How is Mark Zuckerberg involved?\" width=\"1000\" height=\"550\" \/><\/p>\n<p>So, I hope that now you have a better understanding of what the Metaverse is! If you wish to learn about the world of crypto, even more, check out the other section - \"<a href=https://www.bitdegree.org/"//crypto//learn//what-is-blockchain/">What is the Blockchain?<\/strong><\/a>\".<\/p>","youtube_video":{"id":9,"channel_id":1,"sort":93,"video_title":"What is the Metaverse? (Meaning + Animated Examples)","description":"What is the Metaverse (Meaning + Animated Examples)\nThe Metaverse, to put it simply, is a digital world that is often considered to be the future of gaming. However, some speculate it will revolutionize how we interact with our peers and daily lives, altogether!\n\nThe Metaverse is expected to be a multiple-industry-changing innovation that will inevitably affect all of our lives, starting with connecting with our friends, and ending with how we will be doing our grocery shopping. In this video, you will find everything you need to know about the metaverse explained with simple-to-grasp terms, so you would understand what roles Mark Zuckerberg and the blockchain play in all of this in no time!\n\nAre you excited, or are you skeptical about the metaverse? Sound off in the comment section!\n\nVideo Time Table:\n\n0:00 What is The Metaverse?\n0:56 The Concept of Metaverse\n2:41 What Can You Do In A Metaverse?\n3:33 Metaverse On A Blockchain\n6:14 Why Is Etherium Most Suitable?\n7:48 Your Metaverse Profile\n8:51 Mark Zuckerberg & The Metaverse\n10:11 Wrap-up: What is The Metaverse?\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained\n\n#WhatIsMetaverse #MetaverseCrypto #Metaverse #Blockchain #MetaverseExplained","video_id":"UdVidrZUIuE","duration":626,"view_count":733,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-the-metaverse-meaning-animated-examples.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2022-01-25T14:41:12.000000Z","created_at":"2022-02-21T13:20:28.000000Z","updated_at":"2024-01-09T23:00:04.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}}}" :model="{"id":472,"chapter_id":7,"order":1,"featured_image_id":3086,"youtube_video_id":57,"author_id":1,"created_at":"2023-03-15T08:04:06.000000Z","updated_at":"2023-12-17T12:58:15.000000Z","slug":"where-to-trade-crypto","title":"Where Can You Trade Cryptocurrencies?","content":"<p>In this section, you're going to find out <strong>where to trade cryptocurrencies<\/strong>!<\/p>\n<p>Trading cryptocurrencies sounds simple. Everyone&rsquo;s talking about it, which makes you think that anyone could do it! And that&rsquo;s true. But for a beginner, it&rsquo;s easy to get lost, real quick. In some of the previous sections of this Crypto 101 Handbook, you can find explanations of what <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-a-cryptocurrency/">cryptocurrencies are. Understanding them and actually knowing where to trade crypto, however, are two very different things.<\/p>\n<p>The difference between places where you can trade crypto is a source for a heated debate. After getting to know every one of them, you&rsquo;ll see what I mean. And, believe me - the last one will make you raise some eyebrows!<\/p>\n<p>In this section, I&rsquo;ll cover where to trade cryptocurrencies, how to do so, what are the advantages and disadvantages of different types of platforms, and what is the best choice for beginners.<\/p>\n<p><em>Let&rsquo;s dive into it!<\/em><\/p>\n<h2>What&rsquo;s So Special About Trading Cryptocurrencies?<\/h2>\n<p>Crypto trading refers to the buying and selling of virtual or digital assets. As you know by now, these are usually coins or tokens, such as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-bitcoin-btc/">Bitcoin, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-ethereum-eth/">Ethereum, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-litecoin-ltc/">Litecoin, and others. In most cases, the aim of crypto trading is to make a profit from price fluctuations.<\/p>\n<p>Many best crypto trading platforms that provide their clients with the ability to get together and trade their crypto assets seek profits, as well. It&rsquo;s a service, after all! Companies that offer such services are called centralized exchanges, otherwise known as CEXs. Let&rsquo;s start with them.<\/p>\n<h2>Centralized Exchanges (CEX)<\/h2>\n<p>In addition to the best platform to trade crypto, cryptocurrency trading requires knowledge, intuition, and understanding of such factors as market demand, regulatory developments, technological advancements, and so on.<\/p>\n<p>This goes without even mentioning the technical part of setting up all that&rsquo;s necessary to actually be able to buy, sell, and trade crypto. It can get complicated! That&rsquo;s where CEXs come in. They make life easier, especially for beginners, since they provide a simple answer to the question - where to trade crypto?<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Where to trade crypto: Centralized exchanges.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//where-to-trade-cryptocurrencies-01.jpg/" alt=\"Where to trade crypto: Centralized exchanges.\" width=\"1000\" height=\"518\" \/><\/p>\n<p><strong>It&rsquo;s the most user-friendly and intuitive way of trading crypto assets. <\/strong>Here&rsquo;s a way to look at it.<\/p>\n<p>Think of a centralized exchange as a supermarket, but for crypto. Just like in a regular supermarket, a CEX is a place where users can buy and sell cryptocurrencies using not only other cryptos, but traditional, fiat money as well.<\/p>\n<p>If you&rsquo;re new to crypto and don&rsquo;t have any cryptocurrencies yet, how else can you acquire crypto if not paying for it with dollars, euros, and other fiat currencies, on a crypto trading platform? That&rsquo;s why most crypto journeys begin on centralized exchanges.<\/p>\n<p>Centralized exchanges are &lsquo;centralized&rsquo; because <strong>they operate under a set authority that builds, develops, and maintains the platform in question<\/strong>. This means that the exchange holds control over funds and manages transactions, as well as controls the assets of their users, matches buyers and sellers, and facilitates trades. In other words - makes things less complicated for the trader.<\/p>\n<p>Users don&rsquo;t have to worry about making sure that a particular crypto asset that they&rsquo;re after is actually available, just like they don&rsquo;t have to actively look for a buyer or a seller of the asset they want to obtain. The CEX organizes all of this for them.<\/p>\n<p>That&rsquo;s a service. And by doing so, the company makes a profit. The platform applies a transaction fee to every trade that takes place on it.<\/p>\n<p>Among the best crypto trading platforms are such CEXs as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//binance/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Binance<\/strong><\/a>, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//kraken/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Kraken<\/strong><\/a>, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//coinbase/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Coinbase<\/strong><\/a>, and others. As time went by, these companies expanded the list of services they provide, so they could stay relevant and stand out from the crowd of competitors, providing their clients not only with a place where to trade crypto, but with a variety of additional features, as well.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Where to trade crypto: Benefits of centralized exchanges.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//where-to-trade-cryptocurrencies-03.jpg/" alt=\"Where to trade crypto: Benefits of centralized exchanges.\" width=\"1000\" height=\"618\" \/><\/p>\n<p>In order to become more accessible for newcomers, CEXs have made sure they have a user-friendly interface, easy-to-follow instructions and tutorials, as well as various payment options.<\/p>\n<p>They apply the so-called KYC procedures. <strong>&ldquo;KYC&rdquo; stands for &ldquo;Know Your Customer&rdquo;.<\/strong> It&rsquo;s a measure employed to make sure people use their real identities to reduce the risk of fraudulent behavior. So, after you create an account and get verified, you can literally go and buy $20 worth of Bitcoin in a matter of minutes. It&rsquo;s that easy!<\/p>\n<p>Besides that, CEXs have more safety guarantees for inexperienced users. These include more robust security measures, insurance for user funds, and, often, support teams that can assist with any issues that may arise.<\/p>\n<p>So, basically, CEXs are intuitive, user-friendly, and reduce the chances of losing one&rsquo;s assets due to inexperience. That&rsquo;s why they&rsquo;re often considered to be the <strong>best crypto exchanges for day trading and investing<\/strong>.<\/p>\n<p>Once the traders level up, they often opt for something way more complex, yet more independent and wild. Instead of a centralized crypto exchange, they go for a decentralized exchange (DEX).<\/p>\n<h2>Decentralized Exchanges (DEX)<\/h2>\n<p>Now, this is where things get interesting.<\/p>\n<p>Earlier in this &ldquo;where to trade crypto?&rdquo; section, centralized exchanges were compared to supermarkets. Trading on CEXs is like buying groceries at Walmart: you receive a check, there are surveillance cameras, and you know that the cashier has no intentions of scamming you. They&rsquo;re just performing a function within a system that&rsquo;s set up, monitored, and implemented by an upper authority - the store owners.<\/p>\n<p>DEXs have none of this. You can look at them as, say, street vendors. The street is the blockchain, and various street vendors use it for their own good. They stand on their own, and you either find what you&rsquo;re after, or you don&rsquo;t. Not being scammed, and finding what you need, is entirely up to you.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Where to trade crypto: Decentralized exchanges.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//where-to-trade-cryptocurrencies-05-6412bb9bc1a11.jpg/" alt=\"Where to trade crypto: Decentralized exchanges.\" width=\"1000\" height=\"583\" \/><\/p>\n<p>But just like CEXs, some DEXs are often considered to be the best crypto trading platforms, too.<\/p>\n<p>Unlike CEXs, however, <strong>decentralized exchanges are not controlled by a central entity<\/strong>. They run on a decentralized network of computers.<\/p>\n<p>DEXs employ smart contracts to execute trades directly between users. If you feel like you need a reminder of what smart contracts are, be sure to check <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-smart-contracts/">this section<\/strong><\/a>!<\/p>\n<p>Users&rsquo; assets are not held on the exchange, and it&rsquo;s thanks to smart contracts that the trades (or, swaps) are executed without the intervention of the service provider. <strong>Users participate in trades directly using their wallets.<\/strong><\/p>\n<p>Let&rsquo;s illustrate this with an example. If a fire broke out in a single shop in a mall, the entire building would be evacuated, and a fire hazard would be announced. Everyone and everything within the supermarket would depend on the safety and the current state of the main platform. Be it a supermarket, or a CEX.<\/p>\n<p>That&rsquo;s not the case with DEXs, though. There is no single platform, or a coin vault, or database that attackers could attempt to break in. It just doesn&rsquo;t exist. <strong>The blockchain operates all over the place, all at once.<\/strong> Nevertheless, it&rsquo;s important to keep in mind that hackers find other ways of intervening. For example, they may trick the oracle, and outplay the smart contracts. There is a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-an-oracle-in-crypto/">section about oracles<\/strong><\/a>, as well - make sure to check it out!<\/p>\n<p>To add to that, as it was stated earlier, centralized exchanges conduct KYC procedures - they verify the identities of their users, and gather their personal &amp; financial data to prevent fraud and malicious activities. Not everyone likes that.<\/p>\n<p>On DEXs, people who are looking at where to trade crypto don&rsquo;t have to share their personal info in order to participate in trades.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Where to trade crypto: KYC.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//where-to-trade-cryptocurrencies-08.jpg/" alt=\"Where to trade crypto: KYC.\" width=\"1000\" height=\"487\" \/><\/p>\n<p>Yet, when it comes to DEXs, there&rsquo;s one essential drawback. <strong>They are difficult to use and navigate.<\/strong> Beginners would simply not understand what&rsquo;s going on. And that&rsquo;s not something people want to feel when dealing with money.<\/p>\n<p>This results in DEXs having lower trading volumes or slower processing times, since they&rsquo;re not as popular as, say, platforms such as Binance.<\/p>\n<p><strong>Another issue is the availability of various assets.<\/strong> Since the trading volumes are lower, chances are that a particular amount of specific crypto that a trader might be after could simply not be available on the exchange, due to the lack of its supply. This is where <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-liquidity-pool/">liquidity pools<\/strong><\/a> come in, but that&rsquo;s a different topic, altogether.<\/p>\n<p>So, by now, we&rsquo;ve established that, when it comes to the best platforms to trade crypto, there are two main places to participate in cryptocurrency trading. Specifically, centralized and decentralized exchanges. There&rsquo;s an alternative option, altogether, though. Something that&rsquo;s often seen as more intense, dangerous, and unpredictable.<\/p>\n<h2>Meetings In Real Life &amp; P2P<\/h2>\n<p>We&rsquo;ve talked about CEXs as supermarkets, about DEXs as street vendors, so now, let&rsquo;s talk about buying stuff from a guy whose listing you saw on Craigslist.<\/p>\n<p><strong>Just like one-on-one deals happen through Facebook Marketplace, Craigslist, and other similar places, crypto trading can happen the same way.<\/strong><\/p>\n<p><strong><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Where to trade crypto: Face-to-face trading.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//where-to-trade-cryptocurrencies-09.jpg/" alt=\"Where to trade crypto: Face-to-face trading.\" width=\"1000\" height=\"626\" \/><\/strong><\/p>\n<p>Traders sometimes get in touch with each other online, meet in real life, and seal the deal. One person hands over the cash, while another transfers the agreed amount of crypto into their wallet right there, on the spot.<\/p>\n<p>If the deal is large, no one guarantees the trader won&rsquo;t get jumped and robbed. There&rsquo;s no safety net, everything relies on trust. Therefore, such deals mostly happen between people who are either connected, know each other, or belong to the same social circles, because otherwise, it&rsquo;s just dangerous.<\/p>\n<p>Thus, an alternative was created. It&rsquo;s called <strong>P2P trading. <\/strong>&ldquo;P2P&rdquo; stands for &lsquo;&rsquo;Peer-to-Peer&rdquo;. Such platforms are websites or apps that allow users to trade crypto directly with each other, without the involvement of a middleman or centralized exchange.<\/p>\n<p>What they do is match buyers and sellers, facilitate the transfer of funds, and act as a trusted third party to hold the funds in <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-escrow/">escrow until the transaction is complete.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Where to trade crypto: P2P trading.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//where-to-trade-cryptocurrencies-10.jpg/" alt=\"Where to trade crypto: P2P trading.\" width=\"1156\" height=\"787\" \/><\/p>\n<p>Sounds a lot like a CEX, doesn&rsquo;t it? The main difference is that <strong>users don&rsquo;t have to transfer their crypto to a centralized exchange throughout the process of the trade<\/strong>. Having this in mind, sometimes, it&rsquo;s the centralized exchanges themselves that provide P2P platforms, as a further emphasis on the idea that it&rsquo;s the best place to trade crypto, feature variety-wise. An example could be the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//binance-p2p/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Binance P2P Exchange<\/strong><\/a>.<\/p>\n<h2>Final Thoughts<\/h2>\n<p>So, to sum up, centralized exchanges, decentralized exchanges, and P2P deals are where cryptocurrency trading takes place. Each of these options have their own pros and cons, as well as each of them vary in their level of security, anonymity, or accessibility.<\/p>\n<p>The bottom line is this. <strong>If you&rsquo;re a beginner, centralized exchanges should be the obvious choice.<\/strong> Low risk and security - financial, and physical - are the main priorities for every cautious trader.<\/p>","definition":"Did you know that one of the ways to trade crypto is by meeting in real life?","status":"published","meta_title":"Where to Trade Crypto? Best Crypto Trading Platforms","meta_description":"Are you wondering where to trade crypto assets? If you are, you're in luck because you'll find the best crypto trading platforms right here!","meta_keywords":"where to trade crypto, crypto trading platforms, best crypto trading platform, best platform to trade crypto, crypto trading platform, best place to trade crypto, best crypto exchange for day trading, best crypto exchange","modified_content":"<p>In this section, you're going to find out <strong>where to trade cryptocurrencies<\/strong>!<\/p>\n<p>Trading cryptocurrencies sounds simple. Everyone&rsquo;s talking about it, which makes you think that anyone could do it! And that&rsquo;s true. But for a beginner, it&rsquo;s easy to get lost, real quick. In some of the previous sections of this Crypto 101 Handbook, you can find explanations of what <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-a-cryptocurrency/">cryptocurrencies are. Understanding them and actually knowing where to trade crypto, however, are two very different things.<\/p>\n<p>The difference between places where you can trade crypto is a source for a heated debate. After getting to know every one of them, you&rsquo;ll see what I mean. And, believe me - the last one will make you raise some eyebrows!<\/p>\n<p>In this section, I&rsquo;ll cover where to trade cryptocurrencies, how to do so, what are the advantages and disadvantages of different types of platforms, and what is the best choice for beginners.<\/p>\n<p><em>Let&rsquo;s dive into it!<\/em><\/p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 suggested-comparisons pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//images//compare-crypto-exchanges.gif/"/n alt=\"Where to Trade Crypto: 3 Best Approaches Explained (Animated)\"\n title=\"Where to Trade Crypto: 3 Best Approaches Explained (Animated)\" class=\"border-0\">\n <p>Video Explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: Where Can You Trade Cryptocurrencies?<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"Where Can You Trade Cryptocurrencies?\" video explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"position-relative youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"LAQkWsx45gc\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">Where to Trade Crypto: 3 Best Approaches Explained (Animated)<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/where-to-trade-crypto-3-best-approaches-explained-animated.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/where-to-trade-crypto-3-best-approaches-explained-animated.jpg?tr=w-760 1000w\"\n alt=\"Where to Trade Crypto: 3 Best Approaches Explained (Animated)\"\n title=\"Where to Trade Crypto: 3 Best Approaches Explained (Animated)\"\n class=\"p-0 lazyload\">\n <img class=\"play-button lazyload\" data-target=\"#video-modal\"\n data-src=\"https:\/\/assets.bitdegree.org\/crypto\/assets\/video-button.png?tr=w-85\"\n alt=\"Where to Trade Crypto: 3 Best Approaches Explained (Animated)\">\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener noindex\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"><\/i>\n <\/div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE<\/h4>\n <span>ON YOUTUBE<\/span>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"><\/i>\n <\/button>\n <div id=\"iframe\"><\/div>\n <\/div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener noindex\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//crypto-subscribe.jpg/" alt=\"Subscribe\">\n <\/div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE<\/span>\n <\/p>\n <\/div>\n <\/div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease<\/h4>\n <span>New explainer videos every week!<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n<\/div>\n<h2>What&rsquo;s So Special About Trading Cryptocurrencies?<\/h2>\n<p>Crypto trading refers to the buying and selling of virtual or digital assets. As you know by now, these are usually coins or tokens, such as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-bitcoin-btc/">Bitcoin, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-ethereum-eth/">Ethereum, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-litecoin-ltc/">Litecoin, and others. In most cases, the aim of crypto trading is to make a profit from price fluctuations.<\/p>\n<p>Many best crypto trading platforms that provide their clients with the ability to get together and trade their crypto assets seek profits, as well. It&rsquo;s a service, after all! Companies that offer such services are called centralized exchanges, otherwise known as CEXs. Let&rsquo;s start with them.<\/p>\n<h2>Centralized Exchanges (CEX)<\/h2>\n<p>In addition to the best platform to trade crypto, cryptocurrency trading requires knowledge, intuition, and understanding of such factors as market demand, regulatory developments, technological advancements, and so on.<\/p>\n<p>This goes without even mentioning the technical part of setting up all that&rsquo;s necessary to actually be able to buy, sell, and trade crypto. It can get complicated! That&rsquo;s where CEXs come in. They make life easier, especially for beginners, since they provide a simple answer to the question - where to trade crypto?<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Where to trade crypto: Centralized exchanges.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//where-to-trade-cryptocurrencies-01.jpg/" alt=\"Where to trade crypto: Centralized exchanges.\" width=\"1000\" height=\"518\" \/><\/p>\n<p><strong>It&rsquo;s the most user-friendly and intuitive way of trading crypto assets. <\/strong>Here&rsquo;s a way to look at it.<\/p>\n<p>Think of a centralized exchange as a supermarket, but for crypto. Just like in a regular supermarket, a CEX is a place where users can buy and sell cryptocurrencies using not only other cryptos, but traditional, fiat money as well.<\/p>\n<p>If you&rsquo;re new to crypto and don&rsquo;t have any cryptocurrencies yet, how else can you acquire crypto if not paying for it with dollars, euros, and other fiat currencies, on a crypto trading platform? That&rsquo;s why most crypto journeys begin on centralized exchanges.<\/p>\n<p>Centralized exchanges are &lsquo;centralized&rsquo; because <strong>they operate under a set authority that builds, develops, and maintains the platform in question<\/strong>. This means that the exchange holds control over funds and manages transactions, as well as controls the assets of their users, matches buyers and sellers, and facilitates trades. In other words - makes things less complicated for the trader.<\/p>\n<p>Users don&rsquo;t have to worry about making sure that a particular crypto asset that they&rsquo;re after is actually available, just like they don&rsquo;t have to actively look for a buyer or a seller of the asset they want to obtain. The CEX organizes all of this for them.<\/p>\n<p>That&rsquo;s a service. And by doing so, the company makes a profit. The platform applies a transaction fee to every trade that takes place on it.<\/p>\n<p>Among the best crypto trading platforms are such CEXs as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//binance/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Binance<\/strong><\/a>, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//kraken/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Kraken<\/strong><\/a>, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//coinbase/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Coinbase<\/strong><\/a>, and others. As time went by, these companies expanded the list of services they provide, so they could stay relevant and stand out from the crowd of competitors, providing their clients not only with a place where to trade crypto, but with a variety of additional features, as well.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Where to trade crypto: Benefits of centralized exchanges.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//where-to-trade-cryptocurrencies-03.jpg/" alt=\"Where to trade crypto: Benefits of centralized exchanges.\" width=\"1000\" height=\"618\" \/><\/p>\n<p>In order to become more accessible for newcomers, CEXs have made sure they have a user-friendly interface, easy-to-follow instructions and tutorials, as well as various payment options.<\/p>\n<p>They apply the so-called KYC procedures. <strong>&ldquo;KYC&rdquo; stands for &ldquo;Know Your Customer&rdquo;.<\/strong> It&rsquo;s a measure employed to make sure people use their real identities to reduce the risk of fraudulent behavior. So, after you create an account and get verified, you can literally go and buy $20 worth of Bitcoin in a matter of minutes. It&rsquo;s that easy!<\/p>\n<p>Besides that, CEXs have more safety guarantees for inexperienced users. These include more robust security measures, insurance for user funds, and, often, support teams that can assist with any issues that may arise.<\/p>\n<p>So, basically, CEXs are intuitive, user-friendly, and reduce the chances of losing one&rsquo;s assets due to inexperience. That&rsquo;s why they&rsquo;re often considered to be the <strong>best crypto exchanges for day trading and investing<\/strong>.<\/p>\n<p>Once the traders level up, they often opt for something way more complex, yet more independent and wild. Instead of a centralized crypto exchange, they go for a decentralized exchange (DEX).<\/p>\n<h2>Decentralized Exchanges (DEX)<\/h2>\n<p>Now, this is where things get interesting.<\/p>\n<p>Earlier in this &ldquo;where to trade crypto?&rdquo; section, centralized exchanges were compared to supermarkets. Trading on CEXs is like buying groceries at Walmart: you receive a check, there are surveillance cameras, and you know that the cashier has no intentions of scamming you. They&rsquo;re just performing a function within a system that&rsquo;s set up, monitored, and implemented by an upper authority - the store owners.<\/p>\n<p>DEXs have none of this. You can look at them as, say, street vendors. The street is the blockchain, and various street vendors use it for their own good. They stand on their own, and you either find what you&rsquo;re after, or you don&rsquo;t. Not being scammed, and finding what you need, is entirely up to you.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Where to trade crypto: Decentralized exchanges.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//where-to-trade-cryptocurrencies-05-6412bb9bc1a11.jpg/" alt=\"Where to trade crypto: Decentralized exchanges.\" width=\"1000\" height=\"583\" \/><\/p>\n<p>But just like CEXs, some DEXs are often considered to be the best crypto trading platforms, too.<\/p>\n<p>Unlike CEXs, however, <strong>decentralized exchanges are not controlled by a central entity<\/strong>. They run on a decentralized network of computers.<\/p>\n<p>DEXs employ smart contracts to execute trades directly between users. If you feel like you need a reminder of what smart contracts are, be sure to check <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-smart-contracts/">this section<\/strong><\/a>!<\/p>\n<p>Users&rsquo; assets are not held on the exchange, and it&rsquo;s thanks to smart contracts that the trades (or, swaps) are executed without the intervention of the service provider. <strong>Users participate in trades directly using their wallets.<\/strong><\/p>\n<p>Let&rsquo;s illustrate this with an example. If a fire broke out in a single shop in a mall, the entire building would be evacuated, and a fire hazard would be announced. Everyone and everything within the supermarket would depend on the safety and the current state of the main platform. Be it a supermarket, or a CEX.<\/p>\n<p>That&rsquo;s not the case with DEXs, though. There is no single platform, or a coin vault, or database that attackers could attempt to break in. It just doesn&rsquo;t exist. <strong>The blockchain operates all over the place, all at once.<\/strong> Nevertheless, it&rsquo;s important to keep in mind that hackers find other ways of intervening. For example, they may trick the oracle, and outplay the smart contracts. There is a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-an-oracle-in-crypto/">section about oracles<\/strong><\/a>, as well - make sure to check it out!<\/p>\n<p>To add to that, as it was stated earlier, centralized exchanges conduct KYC procedures - they verify the identities of their users, and gather their personal &amp; financial data to prevent fraud and malicious activities. Not everyone likes that.<\/p>\n<p>On DEXs, people who are looking at where to trade crypto don&rsquo;t have to share their personal info in order to participate in trades.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Where to trade crypto: KYC.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//where-to-trade-cryptocurrencies-08.jpg/" alt=\"Where to trade crypto: KYC.\" width=\"1000\" height=\"487\" \/><\/p>\n<p>Yet, when it comes to DEXs, there&rsquo;s one essential drawback. <strong>They are difficult to use and navigate.<\/strong> Beginners would simply not understand what&rsquo;s going on. And that&rsquo;s not something people want to feel when dealing with money.<\/p>\n<p>This results in DEXs having lower trading volumes or slower processing times, since they&rsquo;re not as popular as, say, platforms such as Binance.<\/p>\n<p><strong>Another issue is the availability of various assets.<\/strong> Since the trading volumes are lower, chances are that a particular amount of specific crypto that a trader might be after could simply not be available on the exchange, due to the lack of its supply. This is where <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-liquidity-pool/">liquidity pools<\/strong><\/a> come in, but that&rsquo;s a different topic, altogether.<\/p>\n<p>So, by now, we&rsquo;ve established that, when it comes to the best platforms to trade crypto, there are two main places to participate in cryptocurrency trading. Specifically, centralized and decentralized exchanges. There&rsquo;s an alternative option, altogether, though. Something that&rsquo;s often seen as more intense, dangerous, and unpredictable.<\/p>\n<h2>Meetings In Real Life &amp; P2P<\/h2>\n<p>We&rsquo;ve talked about CEXs as supermarkets, about DEXs as street vendors, so now, let&rsquo;s talk about buying stuff from a guy whose listing you saw on Craigslist.<\/p>\n<p><strong>Just like one-on-one deals happen through Facebook Marketplace, Craigslist, and other similar places, crypto trading can happen the same way.<\/strong><\/p>\n<p><strong><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Where to trade crypto: Face-to-face trading.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//where-to-trade-cryptocurrencies-09.jpg/" alt=\"Where to trade crypto: Face-to-face trading.\" width=\"1000\" height=\"626\" \/><\/strong><\/p>\n<p>Traders sometimes get in touch with each other online, meet in real life, and seal the deal. One person hands over the cash, while another transfers the agreed amount of crypto into their wallet right there, on the spot.<\/p>\n<p>If the deal is large, no one guarantees the trader won&rsquo;t get jumped and robbed. There&rsquo;s no safety net, everything relies on trust. Therefore, such deals mostly happen between people who are either connected, know each other, or belong to the same social circles, because otherwise, it&rsquo;s just dangerous.<\/p>\n<p>Thus, an alternative was created. It&rsquo;s called <strong>P2P trading. <\/strong>&ldquo;P2P&rdquo; stands for &lsquo;&rsquo;Peer-to-Peer&rdquo;. Such platforms are websites or apps that allow users to trade crypto directly with each other, without the involvement of a middleman or centralized exchange.<\/p>\n<p>What they do is match buyers and sellers, facilitate the transfer of funds, and act as a trusted third party to hold the funds in <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-escrow/">escrow until the transaction is complete.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Where to trade crypto: P2P trading.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//where-to-trade-cryptocurrencies-10.jpg/" alt=\"Where to trade crypto: P2P trading.\" width=\"1156\" height=\"787\" \/><\/p>\n<p>Sounds a lot like a CEX, doesn&rsquo;t it? The main difference is that <strong>users don&rsquo;t have to transfer their crypto to a centralized exchange throughout the process of the trade<\/strong>. Having this in mind, sometimes, it&rsquo;s the centralized exchanges themselves that provide P2P platforms, as a further emphasis on the idea that it&rsquo;s the best place to trade crypto, feature variety-wise. An example could be the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//binance-p2p/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Binance P2P Exchange<\/strong><\/a>.<\/p>\n<h2>Final Thoughts<\/h2>\n<p>So, to sum up, centralized exchanges, decentralized exchanges, and P2P deals are where cryptocurrency trading takes place. Each of these options have their own pros and cons, as well as each of them vary in their level of security, anonymity, or accessibility.<\/p>\n<p>The bottom line is this. <strong>If you&rsquo;re a beginner, centralized exchanges should be the obvious choice.<\/strong> Low risk and security - financial, and physical - are the main priorities for every cautious trader.<\/p>","youtube_video":{"id":57,"channel_id":1,"sort":41,"video_title":"Where to Trade Crypto: 3 Best Approaches Explained (Animated)","description":"Where to trade cryptocurrencies?\n\n*How* to trade crypto and *where* to trade crypto are two very different questions. However, understanding what crypto exchanges are, and how they differ (CEXs VS DEXs) is an essential step in anyone\u2019s crypto journey.\n\nIn this video, I will explain where most crypto trades take place, how different the trading platforms can be, and what are their main advantages and disadvantages! By learning the fundamental definitions, differences, and practical use applications, you\u2019ll no longer be confused by all of the seemingly-difficult technical terms that are unavoidable in this space.\n\nDo you have a favorite platform where you trade cryptocurrencies? Do share it, in the comments below!\n\nVideo Time Table:\n0:00 Introduction to Where to Trade Crypto\n0:57 What is Crypto Trading?\n1:27 CEXs Explained\n4:17 DEXs Explained\n7:38 P2P Trading Explained\n9:08 Wrap-up: Where to Trade Cryptocurrencies?\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained\n\n#WhereToTradeCrypto #Binance #CEX","video_id":"LAQkWsx45gc","duration":595,"view_count":345,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/where-to-trade-crypto-3-best-approaches-explained-animated.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2023-04-06T14:15:02.000000Z","created_at":"2023-04-06T23:00:14.000000Z","updated_at":"2024-01-09T23:00:04.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}},"featured_image":{"id":3086,"uuid":"1142af18-f2b0-4a8f-b3dc-0d0a93dd184d","name":"where-to-trade-crypto-featured-image.jpg","url":"https:\/\/assets.bitdegree.org\/crypto\/storage\/optimized\/where-to-trade-crypto-featured-image.jpg","path":"crypto\/storage\/optimized\/where-to-trade-crypto-featured-image.jpg","mime_type":"image\/jpeg","disk":"digitalOceanSpaces","size":88028,"width":1024,"height":576,"custom_properties":null,"created_at":"2023-06-19T06:58:40.000000Z","updated_at":"2023-06-19T06:58:40.000000Z"}}" :chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? The Pros & Cons","status":"published","modified_content":null},{"chapter_id":2,"order":4,"slug":"coin-vs-token","title":"Coin VS Token: How Do They Differ?","status":"published","modified_content":null},{"chapter_id":2,"order":5,"slug":"what-are-stablecoins","title":"What are Stablecoins, Altcoins & Wrapped Coins?","status":"published","modified_content":null},{"chapter_id":2,"order":6,"slug":"what-is-a-bitcoin","title":"Bitcoin: the Pioneer of the Crypto World","status":"published","modified_content":null},{"chapter_id":2,"order":7,"slug":"what-is-ethereum","title":"The Ultimate Blockchain for dApp Creation: Ethereum","status":"published","modified_content":null},{"chapter_id":2,"order":8,"slug":"what-is-cardano-in-crypto","title":"What is Cardano and What is It Used For?","status":"published","modified_content":null},{"chapter_id":2,"order":9,"slug":"what-is-shiba-inu-coin","title":"Shiba Inu: the Dogecoin Killer","status":"published","modified_content":null},{"chapter_id":2,"order":10,"slug":"what-is-solana-in-crypto","title":"Is Solana an Improved Version of Ethereum?","status":"published","modified_content":null},{"chapter_id":2,"order":11,"slug":"what-is-polkadot-in-crypto","title":"The Bridge Between Blockchains: Polkadot","status":"published","modified_content":null},{"chapter_id":2,"order":12,"slug":"what-is-polygon-in-crypto","title":"Polygon: the Essential Scaling Solution for Ethereum","status":"published","modified_content":null},{"chapter_id":2,"order":13,"slug":"what-is-luna-crypto","title":"The Bumpy Road of Terra (LUNA)","status":"published","modified_content":null},{"chapter_id":2,"order":14,"slug":"what-is-fantom-crypto","title":"Is Fantom (FTM) Yet Another Ethereum Killer?","status":"published","modified_content":null},{"chapter_id":2,"order":15,"slug":"what-is-aave-crypto","title":"Aave: Crypto Lending Trailblazer","status":"published","modified_content":null},{"chapter_id":2,"order":16,"slug":"what-is-algorand-crypto","title":"Did Algorand Truly Solve the Blockchain Trilemma?","status":"published","modified_content":null},{"chapter_id":2,"order":17,"slug":"what-is-olympus-dao","title":"Does Olympus DAO Have Anything to Do With Mythology?","status":"published","modified_content":null},{"chapter_id":2,"order":18,"slug":"what-is-avax","title":"Is Avalanche Network (AVAX) Rightfully Called the Future of DeFi?","status":"published","modified_content":null},{"chapter_id":2,"order":19,"slug":"what-is-monero-coin","title":"Monero: Where Cryptocurrency Meets Cryptography","status":"published","modified_content":null},{"chapter_id":2,"order":20,"slug":"what-is-ripple-xrp","title":"Is Ripple \"it\" When it Comes to Cross-Border Transactions?","status":"published","modified_content":null},{"chapter_id":2,"order":21,"slug":"practical-use-of-cryptocurrencies","title":"The Practical Use of Crypto","status":"published","modified_content":null}]},{"id":3,"title":"Crypto Exchanges","slug":"crypto-exchanges","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-exchanges.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-exchanges-101.jpg","rating":80,"sections":[{"chapter_id":3,"order":1,"slug":"how-do-cryptocurrency-exchanges-work","title":"How do Cryptocurrency Exchanges Work?","status":"published","modified_content":null},{"chapter_id":3,"order":2,"slug":"dex-vs-cex","title":"DEX VS CEX: Two Sides of the Crypto Exchange Industry","status":"published","modified_content":null},{"chapter_id":3,"order":3,"slug":"crypto-day-trading","title":"Crypto Day Trading: The Difference Between Buying, Trading, and Swapping","status":"published","modified_content":null},{"chapter_id":3,"order":4,"slug":"kyc-crypto","title":"KYC & AML: The Key to Complying With Legal Industry Standards","status":"published","modified_content":null},{"chapter_id":3,"order":5,"slug":"how-to-buy-crypto","title":"From Fiat to Crypto: How to Buy Crypto for the First Time","status":"published","modified_content":null},{"chapter_id":3,"order":6,"slug":"fiat-to-crypto","title":"Taking Profits: Turning Crypto Into Fiat","status":"published","modified_content":null},{"chapter_id":3,"order":7,"slug":"how-to-use-crypto","title":"You\u2019ve Got Crypto: What Can You Do With It?","status":"published","modified_content":null}]},{"id":4,"title":"Crypto Wallets","slug":"crypto-wallets","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-wallets.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-wallets-101.jpg","rating":80,"sections":[{"chapter_id":4,"order":1,"slug":"what-is-a-crypto-wallet","title":"What is a Crypto Wallet?","status":"published","modified_content":null},{"chapter_id":4,"order":2,"slug":"hot-wallet-vs-cold-wallet","title":"Hot Wallet VS Cold Wallet: Which One to Pick?","status":"published","modified_content":null},{"chapter_id":4,"order":3,"slug":"non-custodial-wallet","title":"What are Non-Custodial Crypto Wallets?","status":"published","modified_content":null},{"chapter_id":4,"order":4,"slug":"what-is-metamask","title":"Metamask: The Leading Non-Custodial Wallet","status":"published","modified_content":null},{"chapter_id":4,"order":37,"slug":"how-safe-is-cryptocurrency","title":"The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?","status":"published","modified_content":null}]},{"id":5,"title":"NFTs","slug":"nfts","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-nfts.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/nfts-101.jpg","rating":100,"sections":[{"chapter_id":5,"order":2,"slug":"how-to-trade-nfts","title":"NFT Trading: The Ins and Outs","status":"published","modified_content":null},{"chapter_id":5,"order":3,"slug":"buying-nft","title":"Tips and Tricks of Choosing the Right NFTs","status":"published","modified_content":null},{"chapter_id":5,"order":4,"slug":"how-to-store-nft","title":"How to Store NFTs: Best Practices","status":"published","modified_content":null},{"chapter_id":5,"order":5,"slug":"how-to-create-an-nft","title":"How to Create Your Own NFTs?","status":"published","modified_content":null},{"chapter_id":5,"order":6,"slug":"how-to-make-passive-money-with-nft","title":"Making Passive Money with NFTs","status":"published","modified_content":null}]},{"id":6,"title":"dApps & Defi","slug":"dapps-and-defi","updated":true,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-dapps.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/dapps-defi-101.jpg","rating":80,"sections":[{"chapter_id":6,"order":1,"slug":"what-are-nfts","title":"What are Non-Fungible Tokens (NFTs)?","status":"published","modified_content":null},{"chapter_id":6,"order":1,"slug":"what-is-defi","title":"What is Decentralized Finance (DeFi)?","status":"published","modified_content":null},{"chapter_id":6,"order":2,"slug":"what-is-defi-2-0","title":"DeFi 2.0: The New Version of Decentralized Finance","status":"published","modified_content":null},{"chapter_id":6,"order":3,"slug":"what-are-dapps-in-crypto","title":"What Are dApps and How Do They Work?","status":"published","modified_content":null},{"chapter_id":6,"order":4,"slug":"defi-dapps","title":"Picking the Right dApps: Dos and Don'ts","status":"published","modified_content":null},{"chapter_id":6,"order":5,"slug":"what-is-web-3-0","title":"Web 3.0: The Future of the Internet","status":"published","modified_content":null},{"chapter_id":6,"order":6,"slug":"what-are-smart-contracts","title":"What is the Core Purpose of Smart Contracts?","status":"published","modified_content":null},{"chapter_id":6,"order":7,"slug":"what-is-a-dao-in-crypto","title":"The Notion of a Decentralized Autonomous Ogranization (DAO)","status":"published","modified_content":null},{"chapter_id":6,"order":8,"slug":"what-is-staking-in-crypto","title":"What is the Goal of Staking Crypto Assets?","status":"published","modified_content":null},{"chapter_id":6,"order":9,"slug":"what-is-liquidity-pool-in-crypto","title":"What is a Liquidity Pool and How Does It Work?","status":"published","modified_content":null},{"chapter_id":6,"order":10,"slug":"what-is-automated-market-maker","title":"Automated Market Maker: the Cornerstone of the Decentralized Crypto Exchange Industry","status":"published","modified_content":null},{"chapter_id":6,"order":11,"slug":"what-is-yield-farming-in-crypto","title":"The Main Yield Farming Techniques","status":"published","modified_content":null},{"chapter_id":6,"order":12,"slug":"what-is-an-oracle-in-crypto","title":"Crypto Oracles: The Link Between Blockchain and Outside World Data","status":"published","modified_content":null},{"chapter_id":6,"order":13,"slug":"crypto-gambling","title":"The Peculiarities of Decentralized Crypto Gambling","status":"published","modified_content":null},{"chapter_id":6,"order":14,"slug":"what-is-the-metaverse","title":"Metaverse: A New Perception of Reality","status":"published","modified_content":null}]},{"id":7,"title":"Trading & Investing","slug":"trading-and-investing","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-trading.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-trading-101.jpg","rating":80,"sections":[{"chapter_id":7,"order":1,"slug":"where-to-trade-crypto","title":"Where Can You Trade Cryptocurrencies?","status":"published","modified_content":null},{"chapter_id":7,"order":2,"slug":"how-to-invest-in-crypto","title":"Investing in Crypto: What Investing Options Do You Have?","status":"published","modified_content":null},{"chapter_id":7,"order":3,"slug":"ico-vs-ido","title":"ICO vs IDO vs IEO: Which One is the One?","status":"published","modified_content":null},{"chapter_id":7,"order":4,"slug":"what-is-an-airdrop","title":"What are Crypto Airdrops and How to Get Them?","status":"published","modified_content":null},{"chapter_id":7,"order":5,"slug":"how-to-get-free-crypto","title":"How to Get Free Crypto Assets?","status":"published","modified_content":null},{"chapter_id":7,"order":6,"slug":"how-to-arbitrage-crypto","title":"What is Crypto Arbitrage: The Main Principles","status":"published","modified_content":null},{"chapter_id":7,"order":7,"slug":"what-is-a-perpetual-contract","title":"Perpetual Contracts: Futures Contracts Without an Expiration 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current-section="where-to-trade-crypto">