#DeFi 101 for normies
Today we're going to talk about Bridging
This was inspired by my homie @DeFi_naly who put together an excellent newb-friendly thread on LPs.
And also by @0xLosingMoney who tweeted yesterday about how hard it was to explain bridging to a friend.
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@DeFi_naly@0xLosingMoney OK, let's get into it.
This thread is for you to send to your grandma or other normie fam who just don't understand DeFi concepts.
Bridging...WTH is THAT?
DeFi natives know this is when you take an asset from one chain to another.
Each blockchain is like another country with it's own native currency.
Now lets say you got your hands on some Euros.
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@DeFi_naly@0xLosingMoney Maybe you did a job for someone in Europe. Who knows how you got it. The point is, you have some Euros, but let's say you live in the US.
You can't spend those Euros in the US. So how you gonna access the value of your money?
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@DeFi_naly@0xLosingMoney You have to exchange the Euros for USD at a designated exchange station.
This is an imperfect illustration of Bridging. If you have $AVAX on the #Avalanche chain, for example, and you want to have it on the #Fantom chain, you need to bridge it over.
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@DeFi_naly@0xLosingMoney Just like Euros in America, your $AVAX cannot be used on the #Fantom network until you bridge it (convert it into a usable currency on that network).
This turns your $AVAX into Wrapped $AVAX and allows it to be usable on the #Fantom network.
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@DeFi_naly@0xLosingMoney Ok, so bridging a crypto from one chain to the next "wraps" it, effectively turning it into a usable currency on that chain, just like exchanging one country's dollar for another country's dollar allows you to spend your money abroad.
Got it.....but why? Why do this?
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@DeFi_naly@0xLosingMoney If you want to explore a new chain, just like you want to explore a new country, you have to have a currency that you can use there.
If you have one type of crypto (dollar) you need to be able to use it on the new chain (country) so you gotta change it.
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@DeFi_naly@0xLosingMoney The problem is, unlike with foreign currencies, you can't just swap your $AVAX dollars for $FTM.
That's because assets on one chain cannot be used on another. The technologies aren't compatible (in most cases).
So you have to wrap the crypto up in a compatible wrapper.
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@DeFi_naly@0xLosingMoney Once your crypto from one chain is wrapped in a compatible wrapper for another chain, THEN it is usable, just like a foreign currency, on that chain.
You can go to exchanges and trade that wrapped currency for other cryptos.
Now let's talk about a couple of actual strategies. Here's a thread (31 tweets) on using charting indicators for scalping.
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First, I want to discuss a couple of my ground rules. 1. I don't do leverage (right now). 2. I don't short (right now).
This means I'm only looking for upward momentum so I can buy.
So I preface this by saying that in bear markets this can be more challenging.
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So step one, I'm looking at the daily chart to determine the overall trend. I really want an obvious upward trajectory, but a solid rebound from a downturn works too.
What that means is, NO TRADING CHARTS THAT LOOK LIKE THIS! ⬇️
In it he discovered the function in question: boostRewards.
Before this, it was likely that most non-devs wouldn't have known this was suspicious
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One thing that sticks out to me though is that this was an OnlyOwner function.
So, I'd like to suggest to anyone looking at getting into a new protocol...consider looking at the contract and search for all of the "Only" functions.
Hey newbs.
Quick question.
You've heard the phrase "not your keys, not your crypto" right?
But do you know what that really means?
Let's talk about it.
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Obvi the phrase refers to your private keys to your crypto. And if you don't have them, or own them, then you don't own the crypto. Right?
Kinda like how when you buy #crypto on Robinhood or PayPal, you can't transfer it out. You can only buy and sell.
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Well that's part of it, yes.
But it doesn't just refer to those specific instances.
When you keep your crypto in a CEX, you don't have sole access to it either.
I mean, sure, you can send it out, but if it's in there, the CEX can bar access to it...
My attempt at humor in the dark times.
What kind of #cryptotrader are you?
Everybody invests differently, but there are some common themes among trader personalities. Do you fit in any of these?
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- the tech analyst
”I’ll place an entry as soon as the stochastic crosses the MACD line and hits a Fibb level on the third Gann line”
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- the fundamentalist
“Your magic #TA 8-ball couldn’t predict this, but fed is raising rates tomorrow and if Powell scratches his nose it means six more months of low crop yields so SELL NOW”