GIE Educational Material
GIE Educational Material
Until now, navigating the world of cryptocurrencies was challenging. We have simplified cryptocurrency processes with tutorial videos and educational content, from trading to investing. We do this so you can educate yourself and feel confident about what you’re doing.
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What is a Non-Fungible Token (NFT)?
Fungible assets include the USD, gold, and physical coins. The dollar holds value and can be exchanged for gold or even casino chips of the same value, meaning they are interchangeable. In addition, bitcoin and other cryptocurrencies are fungible even though they are digital.
NFTs, on the other hand, are non-fungible digital assets. NFTs are digital intellectual properties or goods that can be bought or sold. Examples of NFT include digital gaming, art, and videos, while examples of physical non-fungible assets are artwork and real estate. The value of an NFT is set by the market because the consumers create its value, just like any collectible.
The token is secured by using verifiable, unique data stored within it and is distributed through a secure database called a blockchain. NFT can be bought and sold using cryptocurrency. Because NFT relies on unique codes, the value of NFT has increased significantly.
What is a Seed Phrase?
A Seed Phrase is an individual’s or user’s phrase that gives access to their cryptocurrency wallet. Seed Phrases allow users to have maximum security over their wallets and assets.
What is a Secret Recovery Phrase?
Your Secret Recovery Phrase is a 12-word phrase that is the “master key” to your wallet and your funds
How do I save my Secret Recovery Phrase?
- Save in a password manager
- Store in a bank vault
- Store in a safe deposit box
- Write down and store in multiple secret places
Should I share my Secret Recovery Phrase?
Never, ever share your Secret Recovery Phrase, not even with GIE!
If someone asks for your recovery phrase they are likely trying to scam you and steal your wallet funds.
What is a blockchain?
Every currency operates through its blockchain network, which tracks every transaction. When users buy, sell or trade cryptocurrencies, they participate in the vetted blockchain technology. Blockchains allow trading to be secure and are constantly reverifying and tracking each transaction.
Blockchains are entirely independent of third-party control, allowing blockchains to be inclusive. This means anyone who wants to participate has access to the technology.
Sending Crypto and Purchasing with Cryptocurrency
Similar to payment and banking apps, crypto can be used as a means of payment for goods and transferred to other participants. Crypto is beyond the limitations of traditional currency in that it is global and holds the same value whether the user is in the United States or overseas. Sending crypto is as simple as transferring USD through Venmo or Cash App.
Each user has a wallet address or unique QR code that helps ensure the crypto sent through the app goes to the correct account.
What is Yield Farming?
Yield farming is an investment strategy where traders invest in specific coins or tokens with the hope of high returns using a decentralized application (dApp). A dApp includes crypto wallets and decentralized exchanges (DEX) to lend or borrow. Depending on the coin’s demand, many platforms will give a percentage back to the farmer. This amount is dictated by how much money is being exchanged through the blockchain. Yield farming and its process can be incredibly fast-paced and ever-changing. Hence, returns can be great or yield less success.
Types of Yield Farming
- Liquidity provider: Users deposit two types of coins on an exchange platform to allow trading between the two coins. The exchange platforms charge a small fee to transfer the two coins, which is then paid back to the investor. Investors can be paid through new liquidity pool (LP) tokens depending on how many participants are trading.
- Lending Coin: Investors can lend crypto to borrowers through exchange platforms, and yield interest can be paid on the loan.
- Borrowing: Investors borrow one type of coin by putting another coin as collateral. The coin used as collateral still increases in value as the farmers yield from investments with the borrowed coin.
What is Crypto Staking?
Crypto staking is another investment strategy where holders deposit coins into an account that will generate interest over a specified period.
Crypto is a global currency. Someone transferring crypto in the United States to France is as easy as using a peer-to-peer payment app such as Venmo. The value does not change depending on the person’s location and can be transferred conveniently through wireless devices.
When paying with cryptocurrency, your financial information is protected from third parties like banks and payment services because exchange applications are decentralized, and personal information is unnecessary.
Blockchain technology keeps almost all cryptocurrencies safe by tracking and verifying every transaction.
Cryptocurrency is not tied to a third party. You can utilize your cryptocurrency from your phone or your laptop any time of the day.
Every transaction with most major coins and tokens is tracked and redistributed back to all users and the public to ensure the exchanges and the users are held accountable if foul play is involved.
Cryptocurrency payments are irreversible. This means that once a payment is made, it cannot be claimed as fraud and given back to the customer.
The Future of Cryptocurrency
Your ideas about traditional banking and financial systems go out the window with cryptocurrency. Rather than a physical currency, cryptocurrency relies on the internet and digital platforms to buy and sell or use as a means for investing through a universal value that is not dictated by a central authority. Cryptocurrency uses innovative technology like the blockchain and open-source software to keep crypto users secure.
Crypto is open-access, unlike needing a high credit score when applying for a credit card. Anyone with the internet can participate; crypto is fully equitable.
By mere performance and track record, cryptocurrencies have proven to be global windows of opportunities for individuals, groups, and businesses seeking economic freedom. Thanks to these digital currencies, people living in countries with very restrictive fiscal policies and controls over citizens’ finances can circumvent border restrictions and enjoy free trade. Additionally, cryptocurrencies have shown to be the better payment and savings alternatives to fiat currencies in hyperinflation countries. The economic opportunities provided by digital currencies are limitless.
Beyond the foundational economic freedoms that cryptocurrencies offer, individuals, groups, and businesses can maximize cryptocurrency applications for investment purposes. Generally, investments could be in the form of buying and holding digital currencies like Ethereum and Bitcoin with expectations of higher returns on investment.
Alternatively, those seeking to minimize risks and enjoy stability can invest in Tether (USDT) or USD Coin (USDC) – stablecoins whose values are tied to the U.S. dollar. With this approach, a user or a group of users can effortlessly facilitate global transactions at a comparatively cheaper rate. Also, depending on a user’s country of origin, investing in USDT or USDC can translate to significant returns if their country’s fiat currency is unstable or losing against the U.S. dollar in the exchange market. Thus, making this approach an enticing alternative to transacting or saving in fiat currencies.
Aside from these two general approaches, there are many other risky and minimal-risk approaches to investing and earning with cryptocurrencies.
What is a Stablecoin?
Stablecoins are cryptocurrencies valued at the same amount as another commodity like gold or fiat currency like the US dollar.
Unlike other types of coins, such as Bitcoin, stablecoins will see less fluctuation in value. Individuals who use crypto to buy and sell goods may prefer a stablecoin over another type of coin.
What is Cryptocurrency Mining?
Cryptocurrency mining is the method many cryptocurrencies use to power the transactions that create new coins and track transactions on the public ledger. Remember, blockchains are the main security system of cryptocurrency.
To maintain the blockchains, computers all over the world are creating, verifying, and tracking every transaction. Unfortunately, the energy footprint to sustain the blockchains and create new coins is great. That’s why the computer processing that goes into mining cryptocurrency is typically done by companies or individuals with enough technology and computer power. Our GIE token is geared as a long-term investment and an investment that will give back to our communities.
How is Cryptocurrency Valued?
In June 2020, Bitcoin was valued at 9,660-9,002USD, but in June 2022, Bitcoin was valued at 21,843USD. Similar to stocks, the value of cryptocurrency fluctuates, and it depends on the market’s supply and demand. Bitcoin, for example, has increased in demand, as well as its supply, meaning its overall value has increased.
Not all cryptocurrencies have been successful, and not all will be. Understanding the reason and purpose consumers buy crypto is critical. Whether crypto is being utilized as an investment tool or as a currency to buy and sell goods will determine what cryptocurrencies an individual is buying, selling, borrowing, or lending. Each will fluctuate in value given market circumstances.
The Various Purposes for Crypto
Choosing the right coin or token can be challenging. First, it is best to understand why you want to get involved in crypto. Some coins are best for buying popular goods, while others are better for yield farming.
Possible Uses of Crypto Include:
- Donation: While GIE donates a percentage of its revenue to organizations that benefit our communities and planet, you can independently donate to nonprofits or causes that accept certain coins.
- Gift: Crypto is a great gift for anyone who wants to expand their financial freedom and can be appreciated for its many uses. If the user has a QR code, it makes sending crypto convenient and exciting.
- Traveling: Utilize crypto when traveling to cut down on exchange fees.
How Do You Store Cryptocurrency?
The GIE crypto wallet is a secure way to store and exchange your crypto while keeping your personal information safe. Users can log into their account with their SEED phrase and begin buying and selling their cryptocurrencies with their wireless devices. Users may also transfer money from their crypto wallet to a centralized bank account.
What are Token Swaps?
A token swap is a process of exchanging one type of cryptocurrency for a different kind without having to convert to a fiat currency or digital asset first. In some cases, for the user to exchange one coin for another, the user will have to convert the coin to a fiat currency and then back to the desired coin. The service fees and processing times associated with such exchanges take a lot of time and money. In addition, in-efficient coin swapping can cause frustration as the price of cryptocurrencies is ever-changing.
Essentially, a token swap occurs through an exchange platform or wallet, like the GIE wallet, to allow users to swap tokens or other crypto assets instantly, saving users time and money.
Experience is the Best Teacher
At GIE, we believe and uphold that the best way to understand truly and utilize cryptocurrencies fully is through practical experiences. Our platform is designed to be all-encompassing and fluid for crypto experts while enabling a learning pathway for crypto newbies who are enthusiastic about understanding crypto.
To get practical in your crypto learning journey, you can set aside a small amount of money to check out some DeFi apps using your GIE Wallet. We provide pointers that can help you acclimate to the applications. You can start with simple transactions such as swapping two tokens or partaking in simple investment strategies, such as depositing your stable coins to a lending protocol. With the latter, you can earn small amounts in dollars with minimal to zero risk. The excitement you feel when you start could be the push you need to dig further to learn and get the best of cryptocurrencies.
At this point, the temptation could be to go all out and start investing a lot in lending protocols, but it is the point where we encourage the most learning.
As crypto enthusiasts, we recommend extensive reading. You would have to digest a lot of information from various crypto websites. Also, we recommend having a dedicated browser for your crypto learning experience.
Is this Token a Safe Investment?
(Not sure if we are actually going to vet every token)
As a trusted decentralized wallet/exchange, we vet all the tokens offered on our platform. However, it is important that you do your own research into every token you decide to invest in. Just like stocks, not all tokens are good investments, and there is always a potential for you to lose money.