Crypto Fundamentals: What You Need to Know Before Trading or Investing

When you hear crypto fundamentals, the basic principles that explain how cryptocurrency, blockchain, and DeFi actually work. Also known as blockchain basics, it’s not about memes or hype—it’s about understanding what gives digital assets value, security, and real use. Most people jump into trading without knowing the difference between a token with a team and one with zero code. That’s how you lose money.

DeFi, short for decentralized finance, lets you lend, borrow, and trade without banks. Also known as open finance, it’s built on blockchains like Ethereum, Base, and Solana. But DeFi isn’t magic. Projects like Alium Finance and Solana Poker look like real platforms on paper, but they have no users, no liquidity, and no updates. That’s not innovation—that’s a ghost town with a token attached. Then there’s blockchain, the public ledger that records every crypto transaction. Also known as distributed ledger technology, it’s what keeps Bitcoin secure and lets you verify ownership without a middleman. But not every chain is equal. Some, like Base, are built for speed and low fees. Others are abandoned after a single airdrop. You need to know which ones are alive and which are dead. And don’t forget crypto scams, the fake airdrops, phishing sites, and rug pulls that drain wallets every day. Also known as crypto fraud, they thrive when people don’t check liquidity, team history, or trading volume. The PEAGUY coin? $40K market cap and broken price data. BABYDB? Zero supply. These aren’t investments—they’re traps dressed up as opportunities. Real crypto fundamentals mean asking: Who built this? Is there real trading? Are the tokens locked? Is there a roadmap—or just a Twitter thread?

Some countries ban crypto entirely, like Algeria. Others, like Cuba, regulate it to bypass sanctions. Australia requires exchanges to register with AUSTRAC. Iran uses Bitcoin mining to trade globally. These aren’t random stories—they show how crypto fundamentals shape real-world economics. You can’t just chase price spikes. You need to understand the rules, the risks, and the tech behind every coin.

Below, you’ll find real breakdowns of tokens that promise everything but deliver nothing. You’ll see exchanges that are too complex for beginners, airdrops that never happened, and security flaws that cost users hundreds of thousands. This isn’t a list of hype. It’s a map of what actually works—and what’s just noise.