All lessons

Understand crypto before trading

1What is crypto trading? 2Blockchains, ledgers and consensus 3Bitcoin, Ethereum, coins and tokens 4Build a safe practice plan

Wallets and personal security

5Wallets, keys and custody 6Recovery phrases and backups 7Networks, addresses and transfers 8Phishing, approvals and scams

Understand the trading venue

9Centralized and decentralized venues 10Pairs, order books and spreads 11Spot orders and execution 12Fees, slippage and liquidity

Risk before returns

13Size a spot position 14Portfolio concentration and correlations 15Drawdown, R multiples and expectancy 16Stablecoins and counterparty risk

Read crypto market structure

17Candles and an around-the-clock market 18Trends, ranges and price levels 19Breakouts, volume and confirmation 20Indicators and volatility

Apply chart frameworks to crypto

21Dow-style structure: what would change your view? 22Wyckoff in spot crypto: read the range carefully 23Elliott counts: keep an alternative on the page 24Liquidity sweeps: separate the wick from the story 25FVG and OTE: transfer the rules, not the promises

Understand asset economics

26Supply, market cap and FDV 27Token unlocks and distribution 28Network activity and on-chain data 29Research a project critically

Understand derivatives before considering them

30Spot, futures and perpetual contracts 31Funding, basis and mark price 32Margin, leverage and liquidation 33Open interest and liquidation data

Derivatives through paper examples

34Linear perpetual P&L: calculate the money, not the excitement 35Collateral and liquidation: a deliberately simplified worksheet 36Funding carry: count what you keep 37Dated futures: follow both sides of the hedge 38Calls and puts: payoff is not profit

Explore DeFi with caution

39Smart contracts and applications 40AMM pools and price impact 41Liquidity provision and changing asset value 42Staking, lending and bridges

Understand ecosystem risks

43Constant-product AMMs: calculate the moving price 44LP divergence loss: choose the right comparison 45Reorgs, bridges and L2s: what is actually final? 46MEV and arbitrage: subtract the competition 47DEX approvals: inspect before you sign

Build and test market hypotheses

48Market context and catalysts 49Write a setup rulebook 50Profiles, order flow and SMC limits 51Backtest crypto data honestly

Research, allocation and review

52Token vesting: size the unlock, then ask why 53On-chain metrics: count activity, not stories 54Stablecoin depeg: map access, not just reserves 55Rebalancing: weights change even when you do nothing 56Advanced crypto capstone: defend the whole plan

Practice, review and stay informed

57Paper trade and keep a journal 58FOMO and decision routines 59Records, local rules and changing information 60Capstone: research and risk plan

2 / 60

Blockchains, ledgers and consensus

3 min read

Imagine many computers keeping a shared record. The interesting part is how they agree which update to accept.

Here is what we will figure out

Explain why a shared transaction record needs agreement rules.

A ledger records changes in ownership or account state. A blockchain groups accepted records into linked blocks. Many participants can verify the history, but copying a database alone does not decide which competing transactions should count.

Consensus rules help participants agree on a valid ordering. Bitcoin uses proof of work; Ethereum uses proof of stake. Their security assumptions, resource requirements and confirmation behavior differ. There is no single mechanism shared by every crypto network.

A node checks rules, while block producers propose additions. Agreement can be delayed, and temporary competing histories may occur. Finality describes the confidence or protocol conditions under which a record will not be reversed. A transaction display and final settlement are different stages.

Let’s use numbers · hypothetical example

Hypothetical: a user tries to spend the same 10 units twice. Two recipients seeing a message is insufficient; network validation and ordering determine which spend can become part of the accepted history.

Keep in mind

A blockchain record can faithfully preserve false off-chain information supplied to it.

Your turn

Draw three steps: a transaction is proposed, validated, then included. Mark where a receiving service might require additional confirmations.

A quick check before we move on

What problem does consensus address?

Guaranteed token profits
Automatic truth of outside information
Agreement on valid transaction history

Check answer

Agreement on valid transaction history Consensus coordinates a record under specified rules; it does not guarantee prices or external facts.

Sources and further reading

Content reviewed: 29 October 2026