Ethereum Education: MODERATE USER
OK – So you’ve got some ETH and/or other coins. It’s now time to put your coins to use.
It’s DApp Time!
What is a DApp? DApp is an abbreviation for decentralized application. A decentralized application (Dapp, dApp or DApp) is an application that is run by many users on a decentralized network with trustless protocols. They are designed to avoid any single point of failure. They typically require the use of coins or token to interact.
Great Article by Shaan Ray: https://towardsdatascience.com/what-is-a-dapp-a455ac5f7def
DApp Rabbit Hole Link: https://github.com/DavidJohnstonCEO/DecentralizedApplications
To interact with DApps you must first set up your wallet of choice. We recommend setting up MetaMask as it provides the best possible user interface for accessing DApps. It is seamless and works with every DApp out there.
Get Metamask here:
Warning: When you are setting up your MetaMask extension, you will get a 12-word seed. The seed is critical and should be backed up properly. It is essential if you need to re-install or recover MetaMask. Also, ensure that you don’t share it with anyone else. Anyone with your 12-word seed can easily access or copy your MetaMask wallet and access all your coins and/or tokens. (see our ‘mini-guide’ on how back up tips…)
Using CryptoKitties DApp: https://cryptocurrencyhub.io/using-dapps-quick-manual-7384f0db7fe0
And of course, Super DApps!
Coins vs. Tokens
Cryptocurrencies are digital or virtual currencies that are encrypted (secured) using cryptography. All coins or tokens are regarded as cryptocurrencies, even if most of the coins do not function as a currency or medium of exchange. Coins (i.e. Bitcoin & Ethereum) have their own open-source blockchain protocol. Tokens are a representation of a particular asset or utility, that usually resides on top of another blockchain. Tokens do not have their own native blockchain. Tokens can represent basically any assets that are fungible and tradeable, from commodities to loyalty points to even other cryptocurrencies. For additional reading visit: https://masterthecrypto.com/ a great teaching tool.
Detailed Coins vs. Tokens Guide: https://www.bitdegree.org/tutorials/token-vs-coin/
3-minute video explanation: https://www.youtube.com/watch?v=arFv4OGwxgg
So you want to buy other coins or tokens… As of Q2 2018, there are over 1800 cryptocurrencies.
Most cryptocurrencies cannot be bought using your domestic currency. Currently, domestic exchanges allow you to only buy Bitcoin, Ethereum, Bitcoin Cash and Litecoin (base currencies). Once you have purchased one of these base currencies you can then use them to trade for other coins or tokens.
Each exchange, (see Beginner Guide above for a list) lists different coins and pair them with a base coin. For example, if you wanted to purchase Golem Tokens your would need to find an exchange that trades Golem Tokens and pairs it with your base currency. It would be displayed as ETH/GNT for the trading pair Ethereum for Golem Token. The Golem Token is valued against Ethereum, not dollars or your local currency. The internet and many exchanges have great guides and videos to further explain trading pairs.
Directory of exchanges by country/region:
Warning: Please research prior to buying any coins, tokens, ICO’s or STO’s.
The cryptocurrency ecosystem is littered with dead coins and bad investments.
Ethereum mining is another popular way to get some Ethereum. But, what exactly is mining? Mining is a process by which a user lends computational power to process blockchain transaction and get rewards by successfully doing it. Mining is a complex subject and it has already been covered in many online blogs and magazine.
However, before you start digging into these guides, you need to know two things:
1. Ethereum will soon change from Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus algorithm.
2. Mining takes a lot of effort and investment.
Mining basics: https://www.fool.com/investing/2018/03/14/the-basics-of-cryptocurrency-mining-explained-in-p.aspx
Beginner’s Ethereum mining guide: https://blockonomi.com/how-to-mine-ethereum/
In-depth Ethereum mining guide: https://www.bitdegree.org/tutorials/ethereum-mining/
Video on Ethereum mining: https://www.youtube.com/watch?v=K3AVeIJPQUc
A simple video on Ethereum mining? https://www.youtube.com/watch?v=Xs6rr2NiViQ