What is blockchain technology, what is Bitcoin and how does Bitcoin work

How to invest in cryptocurrencies and decentralized finance (DeFi): An introduction (Part 1)
How to invest in cryptocurrencies and decentralized finance (DeFi): An introduction (Part 1)
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This is part 1 of an introductory series about investing in cryptocurrencies and DeFi.

A good first step in understanding how something works is usually to understand its building blocks, when and how they came together and the terminology used to refer to the different components of the system.

So lets start by shedding some light on what is blockchain technology, what is Bitcoin, how it came to be, the meaning of Bitcoin value today, and why Bitcoin goes up.

We can start putting the puzzle together by…


What is Bitcoin mining and how is it different from staking crypto

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This is part 3 of an introductory series about investing in cryptocurrencies and DeFi.

In part 1 and part 2, we covered some fundamentals about what is blockchain, what is Bitcoin, and what is Ethereum.

Now, even though I don’t want to scare you away by getting too technical, I should elaborate a bit on how Bitcoin works since you will need to understand a few general ideas if you want to make sense of other important concepts later.

So far, the idea is pretty basic: a blockchain…


What is Ethereum and what are smart contracts

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This is part 2 of an introductory series about investing in cryptocurrencies and DeFi.

In part 1 of the series we covered what is blockchain and elaborated on other blockchain concepts, as well as on some specific features of the Bitcoin blockchain.

We mentioned that the sole purpose of Bitcoin is to store and transfer Bitcoin native tokens (BTC), making it a digital cash of sorts.

Bitcoin was the first blockchain and is probably the cryptocurrency that most people have heard about. But there is another blockchain that is also among the…


Setup your cold and hot crypto wallets and learn how to invest in bitcoin now!

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This is part 8 of an introductory series about investing in cryptocurrencies and DeFi.

Hopefully by now you have a few waterproof notebooks with identical copies of several BIP39 mnemonic seed phrases and an extra secure BIP39 passphrase. If you don’t, you can find a link to buy your notebooks in part 4, the instructions to generate your BIP39 mnemonic seed phrases in part 6, and how to create your own BIP39 passphrase in part 7.

Once you have decided which seed phrases you want…


Create an extra secure secret bitcoin wallet using a BIP39 passphrase

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This is part 7 of an introductory series about investing in cryptocurrencies and DeFi.

We mentioned in part 4 that a 24-word seed phrase is practically impossible to guess. It would be more probable that you pick one specific atom from the entire universe in one try.

But there is a way to reduce those chances even more and make the security of your crypto wallet stronger yet.

A BIP39 passphrase is an optional parameter used by the function that translates your 24 words into your wallet’s private key…


Learn how to generate your own private keys and understand the difference between hot wallets and cold wallets

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This is part 6 of an introductory series about investing in cryptocurrencies and DeFi.

DISCLAIMER: Towards the end of this article, I have included a link to the Ledger official site. The link contains my Ledger affiliate ID and if you purchase a ledger device using my link, I will receive a commission for your purchase.

In part 5 we clarified the different uses given to the word ‘wallet’ and talked about how wallet apps use your 24-word seed phrase to manage…


Your smartphone wallet app is not the same as your Bitcoin wallet

How to invest in cryptocurrencies and decentralized finance (DeFi): Crypto Wallet vs Wallet App (Part 3)
How to invest in cryptocurrencies and decentralized finance (DeFi): Crypto Wallet vs Wallet App (Part 3)
Photo by Benjamin Dada on Unsplash

This is part 5 of an introductory series about investing in cryptocurrencies and DeFi.

DISCLAIMER: I added links to the Ledger and Trezor official sites in this article. The links contain my affiliate ID and if you purchase a hardware wallet using my links, I will receive a commission for your purchase.

In part 4 we went over what is a crypto wallet and how it relates to other things in the blockchain like addresses and tokens.

You will find many things on the internet that people call…


What is a crypto wallet, what are private keys, and how is a Bitcoin wallet different from an Ethereum wallet?

How to invest in cryptocurrencies and decentralized finance (DeFi): Crypto Wallet & Private Keys (Part 2)
How to invest in cryptocurrencies and decentralized finance (DeFi): Crypto Wallet & Private Keys (Part 2)
Photo by Max Saeling on Unsplash

This is part 4 of an introductory series about investing in cryptocurrencies and DeFi.

DISCLAIMER: At the end of this article, I have included links to buy several items on amazon in different countries. The links contain my amazon affiliate ID and if you purchase the items using my link, I will receive a commission for your purchase.

By now you should understand what is blockchain, what is Bitcoin, and what is Ethereum.

In parts 1, 2 and 3, we…

DrRodriX

Mathematician, physicist, engineer, software developer and crypto coach writing about tech, DeFi, and other random topics

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