Foundations · 01 / 86
What crypto is
A coin is a record on a network. It is not a share in a company, and it is not a promise that anyone will pay you.
The record
When people say they have a coin, they mean a network has a record their keys can move. There is no pile of metal in the app.
The price on the screen is the last trade, or the price someone is offering now. It is not a true value stamped on the coin.
The name is cheap
A name, a ticker, and a logo cost almost nothing to copy. Two coins can share a ticker. A familiar face on a site does not make the record real.
- Say which record you would be holding.
- Say which network it lives on.
- If you cannot, you are holding a story.
Check yourself
Is the price a true value?
No. It is the last trade, or an offer. Tomorrow is a different trade.
Does a matching ticker prove it is the coin you meant?
No. Tickers are cheap to copy.
After this you can say what a coin is, and distrust a name that only looks familiar.