What I Wish I Knew Before I Got Into Crypto

Before I could understand how people made millions in crypto — or lost them overnight — I had to understand the basics.

Not just “what is Bitcoin,” but how the system actually works.

Because without that, I was just pressing buttons and hoping for magic.

Let’s start with the first and most famous coin in the game.

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Bitcoin — The Beginning of It All

Bitcoin was launched in 2009 by someone using the name Satoshi Nakamoto.

Nobody knows who that really is — and that mystery is part of its legend.

Bitcoin’s purpose was simple:

To create a kind of money that didn’t rely on banks.

It runs on a system called the blockchain — an open, digital ledger that records every transaction.

No edits. No cheats. No middlemen.

There’s a limited supply: 21 million coins. No more can ever be created.

That’s why people call it digital gold — it’s scarce, simple, and intentionally slow.

But Bitcoin wasn’t built for apps, games, or flexible smart systems.

It was made to store value and transfer money securely.

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Ethereum — The Blockchain That Does More

Ethereum arrived in 2015, and it changed everything.

It wasn’t just digital money — it was a platform for building.

Think of Ethereum like a giant computer that everyone can use at the same time.

You can build apps on it.

You can create your own tokens.

You can launch smart contracts — code that runs automatically without needing permission or approval.

Smart contracts allow people to interact directly — without platforms, banks, or middlemen.

They’re used to build games, financial tools, digital art platforms, and voting systems.

Ethereum became the foundation of Web3.

But it came with issues: high fees, slower speeds, and heavy demand.

So developers built on top of it — and that’s where layers come in.

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The Layers: 1, 2, and Now 3

To make crypto usable at scale, the system evolved into layers — like building floors.

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Layer 1 — The Foundation

Bitcoin and Ethereum are both Layer 1 blockchains.

They are secure, decentralised, and transparent.

But they can also be slow and expensive.

Everything happens directly on-chain.

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Layer 2 — The Speed Boost

Layer 2 blockchains are built on top of Layer 1 to make things faster and cheaper.

They process transactions separately, then post a summary back to the main chain.

Examples include Polygon, Arbitrum, and Optimism.

Using Layer 2 is like taking a side road instead of sitting in traffic — you still get to the same destination, just faster.

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Layer 3 — Where the Magic Happens

Layer 3 is where things start to feel normal again.

Apps become easy to use.

Interfaces are clean and simple.

Most of the technical complexity disappears.

You don’t see seed phrases, gas fees, or blockchain code.

You just use the product — like any normal app on your phone.

That’s the vision: crypto without friction.

One day, using Web3 will feel as natural as tapping your phone to pay at a shop.

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What I Learned

Bitcoin taught me about scarcity and security.

Ethereum taught me that blockchain could be programmable.

Layer 2 made crypto faster.

Layer 3 is what will finally make it accessible to everyone.

Once I understood these layers, the crypto world made more sense.

And I stopped investing blindly — and started making informed decisions.