From: thepipeline_xyz
For individuals new to the crypto space without a finance or software engineering background, several steps and precautions can be taken to safely get involved [00:53:46].
Initial Steps for New Users
- Utilize Educational Resources: Platforms like Coinbase offer valuable tutorials and information specifically designed for new users [00:54:36].
- Acquire a Hardware Wallet: The first recommended step is to purchase a hardware wallet, such as Trezor or Lattice [00:54:50]. A hardware wallet securely stores crypto, acting like a personal bank account for digital assets, and is considered the most secure way to hold cryptocurrency compared to browser extensions [00:55:06]. This aligns with best practices for wallet security in crypto.
- Engage with Crypto Twitter: Becoming active on Crypto Twitter is recommended, as it contains a wealth of information [00:55:22].
- Collaborate with Friends: To avoid feeling overwhelmed by the amount of information, it’s advisable to engage with crypto alongside a group of friends. This makes it easier to discuss and understand new concepts [00:55:32].
- Set up an Exchange Account: Create an account on a reputable exchange like Coinbase [00:55:56].
- Start Small and Experiment: Begin by purchasing a small amount of crypto and start experimenting with various applications [00:56:01].
Exploring Crypto Applications
While a technical background isn’t strictly necessary to use most crypto applications, understanding the underlying trade-offs can be beneficial [00:56:50].
Examples of applications for new users:
- Drip House (Solana): A free NFT platform where artists release art weekly. It utilizes Solana’s compressed NFTs, allowing millions of NFTs to be minted very cheaply. Drip House has been effective in onboarding new users to Solana, with many going on to use other DeFi applications on the chain [00:56:11].
- MarginFi: Users can deposit funds to earn yield by lending out Solana or stablecoins to borrowers [00:56:18].
- Decentralized Exchanges (DEXs): For trading, platforms like Drift or Zeta can be used, and Jupiter is useful for swaps between different protocols [00:56:29].
- NFT Marketplaces: Tensor is an example of a platform for trading NFTs [00:56:38].
Safety and Best Practices
A key piece of best practices for crypto security is managing risk. Users should always consider the security implications of interacting with decentralized applications (dApps) and exchanges.
“The first thing you want to do before you if you have no like background experience in crypto first thing you do go get a hardware wallet… like most secure way to your crypto” [00:54:46]
This emphasis on hardware wallets is crucial for beginners to protect their assets from online threats. The crypto market often sees wild speculation and the potential for scams, which can be amplified by “social signaling” where assets are priced much higher than their fundamental value due to community hype [00:17:16]. This highlights the need for vigilance and relying on reliable sources.
For those interested in understanding the fundamental value of crypto projects, many podcasts, such as Blockworks, offer interviews with founders explaining their project’s importance [00:57:04].
It’s important to differentiate between applications designed for seasoned crypto users (“degens”) and those aimed at broader adoption [00:50:51]. The shift towards more user-friendly and functionally superior applications is expected to drive the next wave of adoption [00:29:25].
The crypto industry is still in its early stages of development, particularly concerning consumer-facing applications that can handle millions of daily active users [00:25:51]. This means new users are joining a market that is still evolving and finding its true product-market fit beyond pure DeFi [00:26:16].