Foundational Things About Blockchain & Crypto World
Hi Friends
My contents are about the General Things of the Blockchain & Crypto world.
Presently hot topics everywhere are — Cryptocurrencies, Blockchains, Metaverse, NFTs, Artificial Intelligence, Machine Learning, Web3.0, and a lot more …
How the Cryptocurrencies, Blockchain projects, etc. are valued?
How valuations are so high?
Why Cryptocurrencies are valued so high?
The majority of the investors or entrepreneurs have similar thoughts about the high valuations of crypto things like they think that every project with crypto coin makes them rich overnight. Believe me, practically it is not.
I think I must share my thoughts with all of you whosoever connected with this flourishing industry in one or another way. No matter whether you are an entrepreneur, investor, developer, trader, or student, I will share my thoughts while touching upon the areas of:
Cryptocurrency Investments & Trading, Blockchain — it’s implementation, Learning, Use cases, non-use cases And Metaverse, NFTs — Use cases of NFTs, Why there is a tussle between Governments Crypto Community I mean Regulations across the world, Approach of various governments towards Cryptos, the threat to traditional banks from Cryptos, Various FAQs coming to the minds of newcomers.
Let me share something about me — I am from the Finance field like ICWAI, CA, Auditing, Income Tax, etc., and International Business & Foreign Exchange Management and Tour & Travel industry. My entry into Blockchain field is quite interesting. In 2020 immediately after the lockdown, one of my friends came to me and asked about the Bitcoin that someone in his connection wanted to buy Bitcoin for a million dollars. I started searching out how it can be possible. Then I came to know about the Blockchain of Bitcoin which I found quite interesting. For the first 2 months, things were new for me & quite complicated but the more I went into the depths, then I became more attracted to Crypto & Blockchain. My previous background of Finance & Supply Chain helped me a lot to understand better & quickly about the entire ecosystem of Blockchain, Defis, Cryptos, NFTs, Metaverse & Web3.0 etc. Then only I came to realize that Blockchain can be implemented in most of the areas of our life whether with crypto or without crypto. This is how today I am a consultant to corporates for the implementation of Blockchain in their traditional projects — new or existing ones. I am also writing contents, teaching about cryptos, etc. to various people in the community.
First of all my suggestion to the newbies / students who are very curious to have a feel of the ride of this industry specially Cryptos investment & trading — ‘Just be careful’. Explore the industry with basic fundamental approach initially like — study the basic fundamental principles of investments, study the various tools being used in the crypto investments or trading, study about how to identify ‘Pump & Dump’ kind of Cryptos, join some basic Foundation Courses (https://cryptocncex.com/courses/) or study from the internet, etc. Initial two months you will find it very crucial for your basic foundation. During this phase whatever you learn that will help you to grab the things quickly at later on stages. The next two months can be spent to understand about the basics of Blockchain things. Now you will have a platter of both Crypto & Blockchain. This is the time when you set your direction like if you want to go for crypto investments & trading career or engineering of Blockchain etc.
First of all, you need to understand the meanings of the basics of Crypto investments & trading — how centralized exchanges work, how decentralized exchanges work, types of regulations prevailing in your country so that you can onboard easily at the exchange.
Study about the differences of crypto assets and currencies — why various governments are against recognising Cryptocurrencies as currencies, why majority of Governments are in favour of treating Cryptocurrencies as crypto assets. In fact, India already has given indirect recognition to Cryptos as Virtual Digital Assets and taxed them @30% in Income tax and 1% TDS.
What is CBDC (Central Bank Digital Currency)?
And how it’s going to impact the economy of the country and the world?
It’s really an interesting topic and big too.
How Blockchain technology is going to make its impact on production, supply chain, finance world, education, logistics, etc. within the country and outside the country?
Let me share a few use cases of Blockchain like Finance, Banking, Education, Logistics, Health, Hospitality, Agriculture, Medicines, Airlines, Insurance, etc.
In Finance & Banking, the Blockchain revolution will be disruptive for the industry. Transactions are processed more quickly and at lower costs. In education, the Indian Governments premier central educational agency CBSE already has announced the usage of Blockchain technology for validating the certificates being issued to the students after passing their board exams.
It’s also important to understand that you should be able to identify areas where Blockchain should not be used.
What are the NFTs?
How NFTs are valued?
Why there is a craze about NFTs?
What are the genuine use-cases of NFTs?
Let me share a few examples of NFT use-cases are Intellectual property rights, Real estate, Music industry, Film industry, advertising & modelling, the Automobile sector, etc.
What are the differences between the concepts of decentralization and centralization, private Blockchains, permissioned Blockchains, hybrid Blockchains?
You should always follow at least the top 10 Blockchains & top 10 Cryptocurrencies. Always try to be in touch with the current happenings in the Blockchain & Crypto industry.
You must understand the basic mechanism of crypto wallets with their centralized & decentralized features.
How such crypto wallets are made and work at different platforms. How you can secure such wallets?
After you become familiar with fundamentals (https://cryptocncex.com/courses/), then you should start mastering in at least two Blockchains — say it may be enterprise Blockchains like Hyperledger Fabric or Multichain Blockchain. Ethereum’s EVM is also very important.
You should be in a position to identify the areas from where money can be earned in Cryptos.
A good Blockchain architect should know about AI — artificial intelligence, machine learning, and how such things work on Blockchain. If you are very good at stats, then artificial intelligence is the best to learn for you.
FAQs :
Let me share a couple of questions coming to the minds of newbies to the industry :
Q.: I want to invest in Cryptos. How should I start?
Ans.: Explore the top 10 crypto exchanges of India (if you are in India) or abroad. Especially look for exchanges in your country where you are a resident. It will make your onboarding process easy & smooth. Follow the guidelines.
Q.: Should I become a trader or investor?
Ans.: Initially focus on investments only otherwise you won’t be able to handle the speed of price fluctuations.
Q.: Can I do trade in derivatives? It will give me financial leveraging and I can invest more with lesser money.
Ans.: Absolutely not advisable. Trading in derivatives is more tricky even than day trading.
Q.: Should I start investments from Decentralized exchanges? It will not require KYC formalities.
Ans.: Initially, Please be away from DeXs, because you need to have some experience of trading or investing in Cryptos at DeXs, and it’s better to be focused on Centralized exchange. The functioning of DeXs is complicated initially for you.
Q.: How much amount should I start with to invest?
Ans.: That depends upon your financial health and goal. Start with a low amount. Make some trial trades. But before you jump in, remember the thumb rule that invests only that much amount for which you can bear easily to lose without suffering any setback.
