Introduction to Tokens
1. Bitcoin
- Basic Concept: Bitcoin is a decentralized token that uses a peer-to-peer network and blockchain technology for transactions and record-keeping.
- Features: Decentralized, no need for third-party institutions, cryptocurrency production and transfer controlled by cryptographic techniques, operates globally, special privacy.
- History: Proposed by Satoshi Nakamoto in 2008, born on January 3, 2009.
- Applications: Used globally, with a few exceptions like China.
2. Ethereum
- Basic Concept: Ethereum is a blockchain-based token that uses a peer-to-peer network and smart contracts technology.
- Features: Decentralized, high transparency, supply not controlled by centralized entities, all historical transactions are traceable and auditable.
- History: White paper released by Vitalik Buterin in 2013, began sale in 2014, purchasable with Bitcoin.
- Applications: Supports decentralized finance (DeFi) and decentralized applications (dApps), built and run using the Solidity programming language.
Considerations for Token Investment
- Risks: Token prices are highly volatile, high uncertainty in legislation and regulation, suitable for investors with higher risk tolerance.
- Investment Methods: Includes purchasing physical cryptocurrencies, trading cryptocurrency futures, and trading other derivatives in the crypto market.
- Investment Advice: Prioritize investing in quality cryptocurrencies like Bitcoin and Ethereum, with attention to risk management and market trends.
