FAQ

We are focusing on more specific questions here.

To learn Ethereum basics please see this great guide on Ethereum official site.

Is Ethereum interesting just because of price speculations?

How could Ethereum contribute to a better financial system?

Could this change come today?

If no one owns Ethereum, how are decisions about past and future changes to Ethereum made?

What about potentially harmful uses of this technology?

What are the risks of using DeFi?

Where do DeFi yields come from, anyway?

What is an airdrop?

Is it a good idea to do price speculations and become a trader?

Do I have to pay taxes for my crypto transactions?

What will happen to your crypto when you die?


Is Ethereum interesting just because of price speculations?
Definitely not. Prices are just a side effect. Ethereum provide many possibilities to improve things in a world.
Learn more: 1, 2

How could Ethereum contribute to a better financial system?
DeFi could improve our current financial system. Instead of centralized interventions and bailouts, DeFi works under rules of code, i.e. agreements work exactly in a way they are coded and no one can bend their rules.
Learn more: 1, 2, 3

Could this change come today?

Most probably not. Scalability of Ethereum could still be a limitation and it will take few more years to get improved enough to be able to be used by billions people in the world.
Learn more: 1, 2

If no one owns Ethereum, how are decisions about past and future changes to Ethereum made?

The changes of Ethereum protocol are a result of consensus process between various stakeholder groups (ETH holders, users, developers, node operators, validators). Disagreements can result in a chain split (fork).
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What about potentially harmful uses of this technology?

Like every other tool ever invented, it is also possible to use these tools for bad as well. We have accepted this trade-off for countless other technologies in human history, including for the internet itself. Even though some problems are not possible to be completely eliminated, only mitigated, we feel positives it could bring (e.g. more fair financial system, removing of centralized points of the web, making it more secure, private, resilient, and censorship-resistant) outweigh the negatives.
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What are the risks of using DeFi?

Most common risks are smart contract based (hacks, governance controls, admin keys) and financial based (losing control of your assets, scams).
Learn more: 1, 2

Where do DeFi yields come from, anyway?

There are four categories of where yield comes from: demand for borrowing, exchanging risk, service provisioning, and equity growth.
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What is an airdrop?

Airdrop is a native web3 marketing strategy used by DeFi protocols to distribute their token. They are turning to token airdrops to decentralize governance and reward the engagement of early users.
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Is it a good idea to do price speculations and become a trader?

Don’t do price speculations unless you learn more about it and also because most of the traders lose their money. To buy and hold ETH and learn more about DeFi opportunities may be the most clever option.
Learn more: 1, 2

Do I have to pay taxes for my crypto transactions?

In most countries in the world you have to pay taxes for doing crypto transactions. However it is good to know, that you can learn how to optimize them.
Learn more: 1, 2

What will happen to your crypto when you die?

It’s vital to develop a strategy for your assets as soon as possible, because without it your crypto is likely gone forever, locked in a digital wallet/exchange that can’t be accessed.
Learn more: 1

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Not financial or tax advice. This site is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions This post is not tax advice. Talk to your accountant. Do your own research.

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