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Could you imagine having bought Ethereum in 2016? 2019? Maybe some of you did - and if so, congratulations to you! You should be up over 2,000% if youve held since then.

Many think that the life-changing gains in crypto are gone. Part of that comes from the winner-take-all myth. Folks believe that at the end of the day, there will be 1 or 2 cryptocurrencies that everyone uses, and the rest will fail.

Wrong. You can read more about that, and other myths, HERE.

Anyhow, cryptocurrency projects are like tech companies, but in a different wrapper. They each have niches and purposes… and many collaborate together instead of competing with one another.

The winner-take-all fallacy is false. And therein lies the life-changing profits that are still to be had.

One cryptocurrency that has had tremendous success over the past few months has been Avalanche. Despite all it’s success, I think it still has room to grow.

1. What is Blockchain?

   • Think of blockchain as a digital record book. Each page in this book is a 'block' of transactions or data, linked together in a 'chain'. This digital book is stored across many computers, making it very secure and hard to alter.

2. But Why?

   • Blockchain makes tracking things easier, safer, and cheaper. existing companies and new start-ups can use the technology to track and transact easier than they could before.

3. Cryptocurrencies: Digital Money

   • Cryptocurrencies, like Bitcoin or Ethereum, are digital forms of money. They use blockchain technology for secure and transparent transactions. Blockchain needs crypto because its hard to make a blockchain that is compatible with traditional currencies. It’s easier to design a coin specifically for that blockchain. That way they can interact seamlessly. (Example: Ethereum - ETH. Bitcoin - BTC)

4. Layer 1 Blockchains (L1s): The Foundations

   • Layer 1 blockchains are the basic building blocks of the crypto world. They are like the main roads that all digital transactions travel on. Examples include Bitcoin, Ethereum, Solana, and Avalanche.

5. Altcoins: Beyond Bitcoin

   • Altcoins are essentially 'alternative coins' to Bitcoin. They might offer different features or use different technologies. Avalanche is an example of an altcoin. They’re other, smaller cryptocurrencies that have different features, purposes, and utility than Bitcoin.

6. Smart Contracts: Digital Agreements

   • These are self-executing contracts with the terms directly written into code. They run on blockchains like Ethereum and Avalanche, automating and securing complex processes. Developers combine smart contracts (pieces of code) to make complex applications, just like the ones that you have on your phone.

   • Think if _____ happens, the code will automatically execute ______.

7. Decentralization: Power to the People

   • Blockchain technology is decentralized, meaning it isn't controlled by one single entity. This gives users more control and security over their transactions and data.

   • Think of it like this: what if Facebook the company didn’t exist? Instead, the platform was built by google, twitter, amazon, rumble, oracle, microsoft, and dozens of other small companies. The code is all public, so everyone can see and contribute.

8. Token: Digital Asset

   • In the blockchain world, a token is a type of digital asset. It can represent various things, from a unit of value (like digital money), to a vote in a decentralized organization. A token is used by the apps built on a blockchain. It’s still a cryptocurrency and used usually in combination with the blockchains main asset.

   • Project "Blue Snow" is building an app on Blockchain "Temethys." In this scenario, "Temethys" is the foundational blockchain (like Ethereum or Avalanche in the real world). "Temethys" has its own native cryptocurrency, let's call it "TemCoin," used for transactions and fees on the "Temethys" network.

   • Now, "Blue Snow" is developing a unique application for digital art trading. To facilitate this, they create their own token, named "SnowToken." This token is built on the "Temethys" blockchain but is distinct from "TemCoin."

   • Users of the "Blue Snow" app will use "SnowToken" to buy, sell, or trade digital art within the app. They might need "TemCoin" for transaction fees on the "Temethys" network, but "SnowToken" is the main currency for all dealings in the "Blue Snow" ecosystem.

   • This setup allows "Blue Snow" to leverage the security and technology of "Temethys" while having a specialized token that is tailored to their specific application, providing flexibility and functionality specific to their needs

Still confused? It’s okay, that was a lot. Click HERE for some more crypto basics.

🔺 Avalanche is a blockchain platform known for its speed, efficiency, and scalability. It’s a Layer-1 blockchain. It’s also a smart-contract platform, allowing developers to build complex applications on top of the Avalanche Blockchain.

It’s native coin, AVAX, is the 10th biggest cryptocurrency at the time of writing.

It stands out in the crypto world for several reasons:

1. Speed and Scalability: Avalanche can process thousands of transactions per second, far outpacing many other blockchains.

2. Consensus Mechanism: It uses a unique consensus mechanism called "Avalanche Consensus," which allows for quick transaction finality while maintaining security.

3. Ethereum Compatibility: Avalanche is compatible with Ethereum, meaning developers can easily migrate Ethereum apps to Avalanche.

4. Decentralized Applications (DApps): The platform supports a wide range of DApps, catering to decentralized finance (DeFi), non-fungible tokens (NFTs), games, and more.

5. AVAX Token: AVAX is the native token of Avalanche. It's used for transaction fees, staking, and governance.

6. Community and Governance: Avalanche has a strong community and offers a governance model where AVAX holders can vote on key decisions.

In no particular order, here are 3 of the top projects on Avalanche:

Trader Joe

Nope, not your favorite grocery store. Have you tried the ice cream sandwiches though? Absolutely BOMB. As soon as you’re done reading this, hop in the car and grab a box.

Trader Joe on Avalanche is a one-stop decentralized trading platform on the Avalanche network. It's a decentralized cryptocurrency exchange where users maintain control of their cryptocurrency in their wallets, and trades are executed through smart contracts.

Trader Joe is the main trading platform on Avalanche . As Avalanche grows, so will Trader Joe.

The $JOE coin is used for staking and governance on the Trader Joe platform. As this app is build on Avalanche, you’ll need some $AVAX to pay transaction fees.

Here’s a great post by Thor Hartvigsen on why $JOE might be a hidden Gem. Click it to read.

Benqi Finance

Benqi is a decentralized non-custodial Algorithmic Liquidity Protocol on Avalanche. It enables users to lend, borrow, and earn interest with their digital assets.

One of their main products is Liquid staking. Liquid staking is set to be a HUGE narrative in 2024 and beyond.

Liquid staking combines the benefits of staking with increased liquidity. Here's a simple breakdown of what it is and how it works:

1. Staking: In many cryptocurrencies, staking involves locking up a certain amount of your coins to support the network. It's a bit like earning interest in a traditional bank. To do this, you lock up your coins and lose your liquidity, until you unlock them and go through the waiting period.

2. Liquidity Problem: Regular staking can tie up your assets, making them inaccessible for other uses. This is where liquid staking comes in.

3. Liquid Staking Solution: When you engage in liquid staking, you still stake your cryptocurrency, but in return, you receive a derivative token representing your staked assets. This token can be traded, sold, or used in other decentralized finance (DeFi) applications, giving you liquidity that you wouldn't have in traditional staking. If you want your original assets back, you need to return the derivative token in order to unlock them.

4. Benefits: It offers the best of both worlds - you can stake to contribute to the network's security and potentially earn staking rewards, while also maintaining access to your capital.

Benqi is the leader in Avalanche liquid staking, and one of the oldest, most proven Avalanche products. Keep an eye on them.

Shrapnel

Shrapnel is a pioneering project in the Avalanche ecosystem, marking a significant foray into the realm of blockchain-integrated gaming, specifically in the First Person Shooter (FPS) genre.

1. Blockchain Integration: Shrapnel stands out for integrating blockchain technology, allowing players to truly own, create, and trade in-game items such as guns and accessories​​.

2. Customization and Creativity: Players can design their own maps and various types of content, treating them as intellectual property within the game's community. This aspect is similar to the functionality seen in Warcraft III’s World Editor​​.

3. Subnet Advantage: Utilizing a dedicated subnet on Avalanche, Shrapnel enhances its efficiency in terms of speed and transaction costs. This integration provides customization and flexibility for its expanding projects, catering to fans of the shooting genre and offering robust player creation tools​​.

4. Gameplay Dynamics: The game features diverse classes, each with unique abilities, allowing players to tailor their characters to their preferences. Equipment can be forged from resources found on the map and used in future matches or traded on the NFT Marketplace​​​​.

5. Creation Tools and NFT Marketplace: Shrapnel introduces a Creation Tools toolkit, enabling players to design unique gun costumes and maps as NFTs. These can be exchanged and purchased on the game’s Marketplace, opening avenues for entrepreneurial expression within the gaming universe​​.

6. Curators and Landowners: The game introduces roles for Curators and Landowners. Curators curate and share content, sharing in the economic spoils of popular content, while Landowners play a pivotal role in developing the game's virtual world, receiving rewards based on the performance and popularity of their areas​​​​.

7. SHRAP Token: Shrapnel's economic ecosystem is underpinned by the SHRAP token, serving as the primary utility for gas fees and a versatile currency within the Shrapnel universe. It is used for transactions, purchases on the Marketplace, and minting player-created NFTs. SHRAP holders can also stake their tokens to become validator nodes on the Shrapnel subnet, contributing to the platform’s decentralized infrastructure​​​​​​​​.

8. Innovative Betting System: Shrapnel introduces a betting system where players can use SHRAP tokens to bet on various in-game items. This system is designed to encourage exploration and community engagement, with rewards based on the performance metrics of the items bet on​​.

Avalanche is a blossoming crypto ecosystem that has some amazing projects building on it. Stick with the main coin, $AVAX, for a bet on the ecosystem as a whole.

Looking for more upside and have a high risk tolerance? Explore some gems throughout its ecosystem and subnets.

Want to get started with Avalanche and don’t know how?

Book a 1 on 1 consulting session and start or accelerate your crypto journey. https://www.makecryptosimple.xyz/launch

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Thank you for reading Make Crypto Simple.

Sincerely,

Chris Schawel


^{The content provided in this newsletter is for entertainment purposes only and should not be construed as financial advice. All information, including but not limited to market analysis, price predictions, and investment strategies, is purely speculative in nature. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. We are not responsible for any losses incurred as a result of the information presented in this newsletter.}