Cryptocurrency Basics

The absolute basics

Cryptocurrencies are computerized currencies that use complicated mathematical algorithms to verify the possession or transfer of a digital currency. This allows extremely low transfer fees relative to credit cards or paypal. This distributes responsibility for proving ownership and makes no one person too powerful (democracy wins). This is because on most crypto systems a multitude of computers that serve as a distributed set of nodes need to be in agreement that a problem was solved correctly and a transfer is legit. This democratic principle means that tracking is distributed and therefore not controlled by a single central entity (in most cases).

The original crypto was and will always be: Bitcoin. Watch the video below for a great explanation and see how Bitcoin works. This is not our video, but it is one of the best explanations because of its accessibility and simplicity.

What is Bitcoin? Bitcoin is a digital currency, also known as a cryptocurrency, that was created in 2009 by an unknown person using the name Satoshi Nakamoto. Unlike traditional currencies, Bitcoin is decentralized, which means it is not controlled by any government or financial institution. Instead, it uses a technology called blockchain to record transactions and maintain its security.

How does Bitcoin work? Bitcoin transactions are processed through a network of computers, which are connected to the internet. These computers use complex mathematical algorithms to verify and process transactions, and then record them on a public ledger known as the blockchain. The blockchain is a distributed ledger that stores all Bitcoin transactions and is maintained by a network of computers around the world.

When a user sends Bitcoin to another user, the transaction is broadcast to the network, where it is verified by other computers on the network. Once the transaction is confirmed, it is added to the blockchain and the user’s account is updated to reflect the transaction.

One of the key features of Bitcoin is that it has a limited supply. There will only ever be 21 million bitcoins in existence, and once all of them have been mined, no more will be created. This is intended to prevent inflation and maintain the value of the currency over time.

How do altcoins spin off from Bitcoin? Altcoins are alternative cryptocurrencies that have spun off from Bitcoin. While Bitcoin was the first cryptocurrency to gain widespread adoption, it was not the only one. Over time, developers have created new cryptocurrencies based on Bitcoin’s underlying technology, but with different features and properties.

Some altcoins, such as Litecoin and Bitcoin Cash, were created by forking the Bitcoin blockchain. This means that a new blockchain was created, based on the Bitcoin code, but with modifications to its properties. Other altcoins, such as Ethereum, were created from scratch, with new code and features.

Altcoins can be used for many of the same purposes as Bitcoin, such as online purchases, but they may offer different features or advantages. For example, some altcoins may have faster transaction times or lower fees than Bitcoin. However, like all cryptocurrencies, altcoins are subject to volatility and may experience fluctuations in value.

Here’s an explanation of Ethereum for a beginner:

What is Ethereum? Ethereum is a decentralized open-source blockchain platform that enables developers to build and deploy decentralized applications (dApps). It was created in 2015 by Vitalik Buterin, a young programmer who recognized the limitations of Bitcoin and wanted to create a more flexible and versatile platform.

How does Ethereum work? Like Bitcoin, Ethereum uses a blockchain to record transactions and maintain its security. However, Ethereum’s blockchain is designed to do more than just enable financial transactions. It also has the ability to run smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. Smart contracts can be used to automate complex financial transactions, such as insurance payouts or supply chain management.

In addition to smart contracts, Ethereum also has its own cryptocurrency called Ether (ETH), which is used to pay for transaction fees on the network. ETH can also be used to purchase goods and services, just like Bitcoin.

One of the unique features of Ethereum is that it has its own programming language, called Solidity, which allows developers to create custom smart contracts and decentralized applications on the Ethereum network. This has led to the development of a wide range of dApps, including decentralized exchanges, prediction markets, and gaming platforms.

How is Ethereum different from Bitcoin? While both Ethereum and Bitcoin are based on blockchain technology, they have some key differences. Bitcoin’s blockchain is designed primarily for financial transactions, while Ethereum’s blockchain is designed for a wider range of use cases, including smart contracts and decentralized applications.

Another major difference is that while Bitcoin’s scripting language is limited to basic transactions, Ethereum’s Solidity language allows developers to create more complex programs that can execute automatically when certain conditions are met.

In addition, Ethereum has a different consensus algorithm than Bitcoin. Bitcoin uses a proof-of-work (PoW) algorithm, which involves solving complex mathematical problems to validate transactions and create new blocks. Ethereum initially used a PoW algorithm as well, but it has since transitioned to a proof-of-stake (PoS) algorithm, which uses a different mechanism to validate transactions and create new blocks.

Why are there so many altcoins based on Ethereum? Ethereum’s flexibility and programmability have made it an attractive platform for developers to build decentralized applications and create their own cryptocurrencies, known as ERC-20 tokens. These tokens are created on the Ethereum blockchain and can be used for a variety of purposes, such as crowdfunding or creating loyalty programs.

The ERC-20 standard has become one of the most popular token standards in the crypto industry, and many altcoins have been created using this standard. This has led to a vibrant ecosystem of projects and tokens built on top of the Ethereum network.

How to securely use a cryptocurrency wallet on your phone:

1. Choose a reputable wallet: Before you start using a cryptocurrency wallet on your phone, make sure you choose a reputable wallet that is well-known and has a good reputation for security. Examples of popular wallets include MetaMask and Trust Wallet, which are both available for download on the App Store or Google Play Store. More on this below.
2. Create a strong password: When setting up your wallet, make sure you create a strong and unique password. Avoid using passwords that are easy to guess or that you’ve used for other accounts. Use a mix of upper and lowercase letters, numbers, and special characters.
3. Enable two-factor authentication (2FA): Two-factor authentication adds an extra layer of security to your wallet. This means that in addition to your password, you’ll need to provide a second form of authentication, such as a code sent to your phone or email, to access your wallet. Make sure to enable 2FA if your wallet supports it.
4. Backup your wallet: It’s important to backup your wallet in case your phone is lost, stolen, or damaged. Most wallets will provide you with a seed phrase, which is a series of 12 or 24 words that can be used to restore your wallet. Write down your seed phrase and keep it in a secure location, such as a safe or a lockbox.
5. Don’t share your password or seed phrase: Never share your password or seed phrase with anyone, even if they claim to be from the wallet provider. Scammers may try to trick you into giving away your password or seed phrase, so be vigilant and don’t trust third parties.
6. Keep your phone secure: Your phone is a valuable asset and should be kept secure. Make sure to enable a passcode or fingerprint lock on your phone, and don’t leave your phone unattended in public places.
7. Don’t trust third parties: Be wary of third-party websites or apps that claim to offer free cryptocurrency or other incentives. These are often scams designed to steal your cryptocurrency or personal information.

By following these best practices, you can securely use a cryptocurrency wallet on your phone and protect your assets from potential threats. Remember, security should always be your top priority when it comes to cryptocurrency.

Here are some ways that people make money with cryptocurrencies:

1. Trading: One of the most common ways people make money with cryptocurrencies is by trading them. This involves buying and selling cryptocurrencies on an exchange, with the goal of making a profit from the price fluctuations. Traders often use technical analysis and charting tools to identify patterns and trends in the market.
2. Mining: Another way to make money with cryptocurrencies is by mining them. Mining involves using specialized computer hardware to solve complex mathematical algorithms, which are used to validate transactions and add new blocks to the blockchain. Miners are rewarded with new cryptocurrency coins for their efforts, which can then be sold on an exchange.
3. Staking: Staking is a process in which users hold cryptocurrency in a wallet or on an exchange, and earn rewards for validating transactions on the blockchain. This process helps to secure the network and maintain the integrity of the blockchain.
4. Investing: Similar to trading, investing in cryptocurrencies involves buying and holding them for a longer period of time, with the goal of making a profit from their increasing value over time. This strategy requires a longer-term perspective and a willingness to ride out price fluctuations and volatility.
5. Participating in ICOs: ICOs (Initial Coin Offerings) are similar to IPOs (Initial Public Offerings) in the traditional stock market, in that they are a way for companies to raise capital by issuing new cryptocurrency tokens. Investors can participate in ICOs by purchasing these new tokens, with the hope that their value will increase in the future.
6. Accepting payments in cryptocurrencies: If you are a merchant or service provider, you can also make money by accepting payments in cryptocurrencies. This can be a good way to attract customers who prefer to use cryptocurrencies for their transactions.

These are just a few examples of how people make money with cryptocurrencies. It’s important to note that investing in cryptocurrencies can be risky and requires careful consideration of the risks and potential rewards involved. It’s important to do your own research and consult with a financial advisor before making any investment decisions.

Cryptocurrency faucets and advertiser-paid programs are also a way to earn cryptocurrency, although they are not as commonly used as the methods mentioned above.

Cryptocurrency faucets are websites or apps that reward users with small amounts of cryptocurrency for completing simple tasks, such as solving captchas or watching ads. The rewards are usually very small, and it can take a long time to accumulate a significant amount of cryptocurrency. Faucets can be a good way to learn about cryptocurrencies and blockchain technology, but they are not a reliable source of income.

Advertiser-paid programs, also known as pay-per-click (PPC) programs, are another way to earn cryptocurrency. These programs pay users in cryptocurrency for clicking on ads or performing other tasks, such as completing surveys or downloading apps. The rewards for these programs are usually higher than cryptocurrency faucets, but they still require a significant amount of time and effort to earn a substantial amount of cryptocurrency.

It’s important to be cautious when using cryptocurrency faucets and advertiser-paid programs, as some of them may be scams or fraudulent. Be sure to do your research and read reviews before using these programs, and don’t invest more time or money than you can afford to lose. In general, these methods are not a reliable way to earn a significant amount of cryptocurrency, and it’s important to explore other options for earning cryptocurrency, such as trading or investing.

Crypto Wallets to Choose?

So, MakeMoneyWhileYouPoop does not endorse a particular wallet solution. It is important that you do your own research; however, what is used by those of us here: Trust Wallet and MetaMask. These are two wallets that seem trustworthy and are widely used for storing crypto.

Trust Wallet and MetaMask are two widely recognized and trusted wallets in the cryptocurrency space. With their robust security features, user-friendly interfaces, and extensive support for various cryptocurrencies, these wallets have gained popularity among cryptocurrency enthusiasts. This article explores the key reasons why Trust Wallet and MetaMask are considered excellent choices for storing and managing digital assets securely.

1. Security: Trust Wallet and MetaMask prioritize the security of users’ funds. They employ advanced encryption methods and offer features like two-factor authentication (2FA) to protect against unauthorized access. Both wallets allow users to control their private keys, which are securely stored on the user’s device. This ensures that users have full ownership and control over their cryptocurrency holdings, reducing the risk of funds being compromised.
2. Multi-Currency Support: One of the standout features of Trust Wallet and MetaMask is their extensive support for multiple cryptocurrencies. Trust Wallet supports a wide range of digital assets, including Bitcoin, Ethereum, Binance Coin, and numerous ERC-20 tokens. Similarly, MetaMask is renowned for its compatibility with Ethereum and various Ethereum-based tokens. This broad support enables users to store, send, and receive various cryptocurrencies conveniently within a single wallet interface.
3. User-Friendly Interfaces: Both Trust Wallet and MetaMask offer intuitive and user-friendly interfaces, making them accessible to users with varying levels of technical expertise. These wallets prioritize simplicity without compromising functionality, allowing users to manage their digital assets with ease. From creating new wallets to initiating transactions, the user interfaces are designed to streamline the user experience and provide a seamless interaction with the wallets.
4. Mobile and Desktop Compatibility: Trust Wallet and MetaMask cater to different platforms, ensuring compatibility across various devices. Trust Wallet is specifically designed for mobile devices and is available for both Android and iOS, providing users with the flexibility to manage their funds on the go. On the other hand, MetaMask is a browser extension wallet compatible with popular desktop browsers like Chrome and Firefox. This versatility allows users to access their wallets from different devices, enhancing convenience and accessibility.
5. DApp Integration: Both Trust Wallet and MetaMask offer integration with decentralized applications (DApps), opening doors to the vast world of DeFi (Decentralized Finance) and other blockchain-based applications. Users can interact with various DApps, such as decentralized exchanges, lending platforms, and NFT marketplaces, directly from within the wallets. This seamless integration simplifies the process of utilizing decentralized services, making Trust Wallet and MetaMask go-to choices for engaging with the expanding DeFi ecosystem.

Conclusion: Trust Wallet and MetaMask have established themselves as reliable and feature-rich wallets for storing and managing cryptocurrencies. Their focus on security, extensive coin support, user-friendly interfaces, and compatibility with multiple platforms make them popular choices among cryptocurrency enthusiasts. Whether you prefer a mobile wallet like Trust Wallet or a browser extension like MetaMask, both wallets offer a secure and convenient solution for safely storing and interacting with your digital assets.

Disclaimer: When using any cryptocurrency wallet, it is important to conduct thorough research, follow security best practices, and exercise caution to protect your funds.

Installing Trust Wallet:

Android:

1. Open the Google Play Store on your Android phone.
2. Search for “Trust Wallet” in the search bar.
3. Tap on the Trust Wallet app from the search results.
4. Click on the “Install” button.
5. Wait for the installation to complete.
6. Once installed, open Trust Wallet.
7. Follow the on-screen instructions to set up your wallet, including creating a secure passphrase or PIN.

iOS (iPhone):

1. Open the App Store on your iPhone.
2. Search for “Trust Wallet” in the search bar.
3. Tap on the Trust Wallet app from the search results.
4. Tap on the “Get” button and authenticate using your Apple ID if required.
5. Wait for the installation to complete.
6. Once installed, open Trust Wallet.
7. Follow the on-screen instructions to set up your wallet, including creating a secure passphrase or PIN.

Windows PC:

1. Open a web browser on your Windows PC.
2. Go to the official Trust Wallet website: https://trustwallet.com/.
3. Click on the “Download” button.
4. Select “Windows” as your operating system.
5. Wait for the download to complete.
6. Locate the downloaded file and run the installer.
7. Follow the on-screen instructions to install Trust Wallet on your Windows PC.

You can download Trust Wallet for Android and iPhone from the official app stores, or for Windows PC from the official Trust Wallet website.

Now, let’s move on to MetaMask.

Installing MetaMask:

Android:

1. Open the Google Play Store on your Android phone.
2. Search for “MetaMask” in the search bar.
3. Tap on the MetaMask app from the search results.
4. Click on the “Install” button.
5. Wait for the installation to complete.
6. Once installed, open MetaMask.
7. Follow the on-screen instructions to set up your wallet, including creating a secure passphrase or PIN.

iOS (iPhone):

1. Open the App Store on your iPhone.
2. Search for “MetaMask” in the search bar.
3. Tap on the MetaMask app from the search results.
4. Tap on the “Get” button and authenticate using your Apple ID if required.
5. Wait for the installation to complete.
6. Once installed, open MetaMask.
7. Follow the on-screen instructions to set up your wallet, including creating a secure passphrase or PIN.

Windows PC:

1. Open a web browser on your Windows PC.
2. Go to the official MetaMask website: https://metamask.io/.
3. Click on the “Get Chrome Extension” button.
4. You will be redirected to the Chrome Web Store.
5. Click on the “Add to Chrome” button to install the MetaMask extension.
6. Once installed, a MetaMask icon will appear in your browser’s toolbar.
7. Click on the MetaMask icon and follow the on-screen instructions to set up your wallet.

You can download MetaMask for Android and iPhone from the official app stores, or for Windows PC as a browser extension from the official MetaMask website.

Remember to always download wallet applications from official sources, such as app stores or official websites, to ensure the security of your funds. Be cautious of unofficial or third-party sources.

I hope this guide helps you install Trust Wallet and MetaMask securely!

The information provided on this page and site is for educational and informational purposes only. It should not be considered financial or legal advice, and it should not be relied upon as a substitute for professional financial or legal advice.

While we strive to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the information provided. Any reliance you place on such information is therefore strictly at your own risk.

It is important to seek the advice of a qualified financial or legal professional before making any decisions based on the information provided. We disclaim any liability for any direct, indirect, or consequential loss or damage arising from the use or reliance on the information provided on this page and/or site.

There are lots of opportunities to learn about crypto currencies. We want you to succeed in making real money by using this new technology. It takes some skill to master exchanges and their layouts. Beginners should learn as much as they can, accumulate some crypto and play around with it. Buy something, trade something, learn exactly how that crypto works, possibly even help the development or promotional team. There are lots of opportunities that exist in many unique crypto communities. Make Money While You Poop aims to help new users get some easy crypto, learn about it, and learn to make passive income through crypto. Using our simple lists and a bit of time, you can start making real money with maximum revenue beginning at a mere 100 days (or less depending on the faucet).

Want to Learn More?

to learn more about cryptocurrencies. Reach out on Twitter or post your question to the cryptotwitter community (there are lots of us that will answer basic questions).