Crypto guides that explain the mechanics
How wallets, exchanges, DeFi, staking and stablecoins actually work — and where they fail — before anyone points you at a product. Free to read, no sign-up.
New to crypto? Read these eight in order
Each step assumes the one before it. About 78 minutes end to end.
- 1What Is a Crypto Wallet? Hot vs. Cold Storage ExplainedWhat a wallet actually storesBeginner · 9 min
- 2Custodial vs. Non-Custodial Wallets: Who Really Controls Your Crypto?Who controls your coinsBeginner · 10 min
- 3How to Set Up a Hardware Wallet Step by StepMoving funds into cold storageBeginner · 9 min
- 4How to Store Your Seed Phrase Safely (Without Losing It)Backing up a recovery phraseBeginner · 10 min
- 5What Is a Stablecoin and How Does It Stay 'Stable'?How a stablecoin holds its pegBeginner · 11 min
- 6What Is DeFi? A Beginner's Guide to Decentralized FinanceThe building blocks of DeFiBeginner · 10 min
- 7How Crypto Staking Works: Earning Rewards by Securing a NetworkEarning by securing a networkBeginner · 9 min
- 8How to Spot and Avoid Common Crypto ScamsThe scams that take the most moneyBeginner · 10 min
Wallets & security12 guides
What a wallet stores, who controls the keys, and what the scams look like.
Intermediate · 8 minAir-Gapped Signing: What QR Wallets Actually Protect AgainstNo USB, no Bluetooth, no network. The device signs and shows you a QR code, and the only thing crossing the gap is data you can inspect.- Recovering From a Compromised Wallet: The First HourThe order of operations decides how much you keep. Most people revoke first, which is the step that loses them the rest.
- Seed Phrase Backup Beyond Paper: Steel, Shamir and MultisigMore crypto has been lost to bad backups than to attackers. The backup, not the wallet, is where self-custody usually fails.
- Wallet Drainers: How the Signature That Empties You WorksNothing is hacked. You approve a transaction whose real meaning is hidden behind a wallet prompt that says almost nothing.
- Multisig vs MPC vs Single Key: Choosing a Custody ModelOne key is a single point of failure. Multisig and MPC remove it in different ways, and the differences matter more than the marketing suggests.
Trading & exchanges14 guides
Fees, order books, derivatives and what an exchange is actually doing with your order.
Beginner · 7 minExchange Insurance Funds vs Real InsuranceTwo completely different things share the word insurance, and neither means what customers assume when an exchange fails.- Aggregators vs Direct Swaps: When Routing Saves You MoneySplitting one trade across four pools sounds like overhead. On the trades where it matters, it is the difference between a good fill and a bad one.
- Order Book Depth: Reading the Number That Sets Your FillPrice is what the last trade happened at. Depth is what your trade will happen at, and the two are only similar in liquid markets.
- Why Reported Volume Lies: Wash Trading and How to Spot ItVolume is the most quoted number in crypto and the least verified. Almost every ranking built on it inherits the problem.
- What a Crypto Card Really Costs: Spread, FX and ATM FeesThe headline is cashback. The cost is a conversion spread you cannot see, applied to every transaction, plus network FX on anything abroad.
DeFi14 guides
Lending, AMMs, yield and tokenomics — where the return comes from and where it fails.
Beginner · 8 minVault Strategies: What an Aggregator Does With Your DepositYou deposit once. The vault then interacts with several protocols on your behalf, and you own every risk in that chain.- Wrapped Assets: Who Holds the Collateral Behind Your TokenWrapped BTC on Ethereum is not Bitcoin. It is an IOU whose value depends entirely on whoever holds the Bitcoin behind it.
- TVL Double Counting: Why Two Sites Show Different NumbersTVL is the industry's default size metric and one of its least standardised. The definition changes with the incentive of whoever is publishing it.
- Liquidation Mechanics: How Lending Positions Actually DieLiquidation is not a margin call. There is no phone call, no grace period, and the price that matters is the oracle's, not the market's.
- APR vs APY vs Real Yield: Reading a Rate HonestlyThe number on the dashboard is annualised from a recent window, before fees, and often paid in a token whose price is falling. Here is how to get to the real one.
Staking & yield8 guides
Native, liquid and restaking, with the slashing and depeg risk spelled out.
Intermediate · 9 minLST Depegs: Why stETH Traded Below ETH and What It MeantThe discount was never a backing failure. It was a liquidity event in an asset that could not be redeemed at the time.- Validator Uptime, Commission and What You Actually EarnA validator charging 10% with perfect performance pays you more than one charging 2% that misses attestations. Commission is a headline, not a return.
- Native Staking vs Liquid Staking: Which Costs You MoreThe fee comparison everyone quotes is the wrong one. What separates these two is what you give up, and the answer changes with how much you stake.
- How Crypto Staking Works: Earning Rewards by Securing a NetworkA plain-English walkthrough of proof-of-stake staking — what you're actually doing, how rewards are calculated, and the risks worth knowing before you lock up a single coin.
- Liquid Staking Explained: Earning Yield Without Losing LiquidityHow liquid staking tokens let holders earn network rewards while keeping their capital free to lend, trade, or post as collateral.
Stablecoins5 guides
How a peg holds, how it breaks, and what a reserve report does and does not prove.
Intermediate · 10 minYield-Bearing Stablecoins: Where the Yield Comes FromA dollar that pays you something is a dollar taking a risk on your behalf. The only question worth asking is which one.- Attestation vs Audit: What Stablecoin Reports Really SayEvery major stablecoin publishes reserve reports. Almost none of them are audits, and the difference decides what the document is worth.
- Why Stablecoins Depeg: The Four MechanismsA stablecoin at $0.94 can be minutes from recovery or days from zero. The difference is which of four mechanisms is doing the breaking.
- Fiat-Backed vs. Crypto-Backed vs. Algorithmic Stablecoins ComparedA side-by-side breakdown of how fiat-backed, crypto-backed and algorithmic stablecoins each maintain their peg, and the specific failure mode that has taken each category down.
- What Is a Stablecoin and How Does It Stay 'Stable'?An accessible breakdown of how fiat-backed, crypto-backed and algorithmic stablecoins each try to hold their peg — and the real failures that show what happens when they don't.
Infrastructure & scaling14 guides
Bridges, oracles, rollups, MEV and the tools for reading a chain.
Intermediate · 12 minBridge Trust Models Compared: Light Client, Validator Set, IntentBridges have lost more value than any other category in crypto, and almost always at the same point: whoever attests that funds arrived on the other side.- How Cross-Chain Bridges Work (and Why They're Risky)Cross-chain bridges move billions between blockchains every week — and have lost billions more to exploits. Here's how the plumbing actually works and how to size up the risk before you use one.
- How Crypto Oracles Work: Bringing Real-World Data On-ChainSmart contracts can't see the outside world on their own. Oracles are the systems that feed them prices, events, and data — and getting that design wrong has cost DeFi protocols hundreds of millions.
- How Protocols Are Fighting MEV: PBS, Encrypted Mempools, and MoreSandwich bots have extracted billions from ordinary swaps since the Merge. Here's what the actual technical countermeasures — PBS, encrypted mempools, and private order flow — do and don't fix.
- What Is MEV? How Bots Extract Value from Blockchain TransactionsAn inside look at maximal extractable value: how searchers, builders and validators profit from transaction ordering, and who ultimately pays for it.
Tax4 guides
The taxable events, cost basis methods and country rules.
Intermediate · 11 minCrypto Tax in Germany: The One-Year Rule ExplainedGermany's treatment is unusually favourable and unusually specific. The whole framework turns on one date and on whether the activity stays private.- Crypto Tax in the UK: HMRC Rules for Traders and StakersHMRC treats crypto as property, not currency. That single decision drives the pooling rules, the 30-day rule and why swapping one token for another is a taxable event.
- Cost Basis Methods for Crypto Taxes: FIFO, LIFO, and HIFO ExplainedThe same crypto sale can generate wildly different taxable gains depending on which accounting method calculates it. Understanding FIFO, LIFO, and HIFO for crypto taxes is one of the few legal levers holders actually have over their own tax bill.
- Crypto Taxes 101: What Every Beginner Needs to KnowThe taxable events every new crypto holder needs to track from day one — trades, swaps, staking rewards and more — explained without the jargon.
All 71 guides, A–Z
- Aggregators vs Direct Swaps: When Routing Saves You MoneySplitting one trade across four pools sounds like overhead. On the trades where it matters, it is the difference between a good fill and a bad one.
- Air-Gapped Signing: What QR Wallets Actually Protect AgainstNo USB, no Bluetooth, no network. The device signs and shows you a QR code, and the only thing crossing the gap is data you can inspect.
- APR vs APY vs Real Yield: Reading a Rate HonestlyThe number on the dashboard is annualised from a recent window, before fees, and often paid in a token whose price is falling. Here is how to get to the real one.
- Attestation vs Audit: What Stablecoin Reports Really SayEvery major stablecoin publishes reserve reports. Almost none of them are audits, and the difference decides what the document is worth.
- Bridge Trust Models Compared: Light Client, Validator Set, IntentBridges have lost more value than any other category in crypto, and almost always at the same point: whoever attests that funds arrived on the other side.
- Coins vs. Tokens: What's the Difference in Crypto?Coin or token? The words get used interchangeably in headlines, but the distinction matters for how an asset is built, secured and valued.
- Cost Basis Methods for Crypto Taxes: FIFO, LIFO, and HIFO ExplainedThe same crypto sale can generate wildly different taxable gains depending on which accounting method calculates it. Understanding FIFO, LIFO, and HIFO for crypto taxes is one of the few legal levers holders actually have over their own tax bill.
- Crypto Options Explained: Greeks, Implied Volatility, and StrategiesCrypto options pricing runs on the same mechanics as equity options, with one crucial difference: the underlying never stops trading. Here's how the Greeks and implied volatility actually work in a 24/7 market.
- Crypto Tax in Germany: The One-Year Rule ExplainedGermany's treatment is unusually favourable and unusually specific. The whole framework turns on one date and on whether the activity stays private.
- Crypto Tax in the UK: HMRC Rules for Traders and StakersHMRC treats crypto as property, not currency. That single decision drives the pooling rules, the 30-day rule and why swapping one token for another is a taxable event.
- Crypto Taxes 101: What Every Beginner Needs to KnowThe taxable events every new crypto holder needs to track from day one — trades, swaps, staking rewards and more — explained without the jargon.
- Custodial vs. Non-Custodial Wallets: Who Really Controls Your Crypto?A myth-busting look at the difference between letting an exchange hold your keys and holding them yourself, with the real-world collapses that made the distinction matter.
- DEX vs. CEX: How Decentralized and Centralized Exchanges DifferEvery crypto trade happens through one of two fundamentally different plumbing systems. Understanding the DEX vs. CEX trade-offs — custody, liquidity, execution, cost — matters more than picking a side.
- Exchange Insurance Funds vs Real InsuranceTwo completely different things share the word insurance, and neither means what customers assume when an exchange fails.
- Exchange Withdrawal Freezes: Why They Happen and What to DoFour different things get called a frozen withdrawal, and they need four different responses. The first job is working out which one you are in.
- Fiat-Backed vs. Crypto-Backed vs. Algorithmic Stablecoins ComparedA side-by-side breakdown of how fiat-backed, crypto-backed and algorithmic stablecoins each maintain their peg, and the specific failure mode that has taken each category down.
- How Automated Market Makers (AMMs) Work Under the HoodNo order book, no market makers standing by — just a formula and a pool of reserves. Here's the mechanics behind the constant-product curve that prices most of DeFi.
- How Cross-Chain Bridges Work (and Why They're Risky)Cross-chain bridges move billions between blockchains every week — and have lost billions more to exploits. Here's how the plumbing actually works and how to size up the risk before you use one.
- How Crypto Oracles Work: Bringing Real-World Data On-ChainSmart contracts can't see the outside world on their own. Oracles are the systems that feed them prices, events, and data — and getting that design wrong has cost DeFi protocols hundreds of millions.
- How Crypto Staking Works: Earning Rewards by Securing a NetworkA plain-English walkthrough of proof-of-stake staking — what you're actually doing, how rewards are calculated, and the risks worth knowing before you lock up a single coin.
- How DAO Governance Voting Actually Works (and Its Flaws)Token-weighted voting was meant to replace corporate boardrooms with open, on-chain democracy. In practice it has produced its own aristocracy — and its own exploits.
- How DeFi Lending Protocols Work: Collateral, Rates, and LiquidationsA step-by-step look at how overcollateralized borrowing works on protocols like Aave and Compound, and exactly what triggers a liquidation when the market turns.
- How NFT Royalties Work (and Why They're Disappearing)Creator royalties were once pitched as NFTs' killer feature over traditional art. A few years and one marketplace price war later, most of that promise has quietly evaporated — here's how NFT royalties actually work and why enforcement collapsed.
- How Protocols Are Fighting MEV: PBS, Encrypted Mempools, and MoreSandwich bots have extracted billions from ordinary swaps since the Merge. Here's what the actual technical countermeasures — PBS, encrypted mempools, and private order flow — do and don't fix.
- How to Read a Smart Contract Audit ReportProtocols advertise that they are audited. The useful information is in what was audited, when, by whom, and what the team did about the findings.
- How to Read On-Chain Metrics Like a Crypto AnalystPrice tells you what the market thinks. On-chain metrics tell you what's actually happening underneath it. Here's a starter toolkit for reading network health directly from the ledger.
- How to Revoke Token Approvals Before They Drain YouMost wallet losses are not stolen keys. They are approvals granted months ago to a contract that later turned hostile — and revoking them takes about a minute.
- How to Set Up a Hardware Wallet Step by StepMoving funds off an exchange and into cold storage for the first time is simpler than it looks — provided you follow the sequence in the right order and don't skip the verification steps.
- How to Spot and Avoid Common Crypto ScamsMost crypto scams follow a handful of predictable scripts — fake support, phishing links, and rug pulls — and each one has a tell if you know where to look.
- How to Store Your Seed Phrase Safely (Without Losing It)A practical, low-tech guide to backing up a crypto recovery phrase so it survives theft, fire, and your own future forgetfulness.
- How to Use a Blockchain Explorer to Track Any TransactionA blockchain explorer turns an impenetrable string of numbers into a readable record of who sent what, when, and whether it actually confirmed.
- Impermanent Loss Explained: The Hidden Risk of Providing LiquidityProviding liquidity looks like free yield until you compare it against simply holding the two assets — the gap between those outcomes is impermanent loss, and it's bigger than most LPs realise.
- Limit Orders vs. Market Orders: A Beginner's Guide to Crypto TradingThe choice between a limit order and a market order comes down to a simple trade-off: control the price and wait, or take whatever price is available right now.
- Liquid Staking Explained: Earning Yield Without Losing LiquidityHow liquid staking tokens let holders earn network rewards while keeping their capital free to lend, trade, or post as collateral.
- Liquidation Mechanics: How Lending Positions Actually DieLiquidation is not a margin call. There is no phone call, no grace period, and the price that matters is the oracle's, not the market's.
- LST Depegs: Why stETH Traded Below ETH and What It MeantThe discount was never a backing failure. It was a liquidity event in an asset that could not be redeemed at the time.
- Maker-Taker Fees: The Number Exchanges Don't AdvertiseThe headline fee on an exchange's marketing page is the maker rate at a volume tier you will never reach. Here is what you actually pay.
- Multisig vs MPC vs Single Key: Choosing a Custody ModelOne key is a single point of failure. Multisig and MPC remove it in different ways, and the differences matter more than the marketing suggests.
- Native Staking vs Liquid Staking: Which Costs You MoreThe fee comparison everyone quotes is the wrong one. What separates these two is what you give up, and the answer changes with how much you stake.
- On-Chain Forensics: How Investigators Trace Stolen CryptoBlockchains are pseudonymous, not anonymous — every transaction is public and permanent. Here's how forensics firms actually turn that transparency into traced, and often frozen, stolen funds.
- Optimistic vs. ZK Rollups: How Layer 2 Scaling Actually WorksA side-by-side breakdown of the two dominant rollup architectures, what each trades away to scale Ethereum, and where the gap between them is closing.
- Order Book Depth: Reading the Number That Sets Your FillPrice is what the last trade happened at. Depth is what your trade will happen at, and the two are only similar in liquid markets.
- Perpetual Funding Rates: The Cost of Holding a PositionA perpetual has no expiry, so something has to pull it back to spot. That something is a payment out of your account, several times a day.
- Perpetual Futures Explained: How Crypto Derivatives WorkPerpetual futures now trade several multiples of spot crypto volume most days. Understanding how perps and funding rates actually work is the difference between using leverage deliberately and being liquidated by it.
- Real-World Asset Tokenization Explained: Bringing Bonds and Real Estate On-ChainTokenization takes a claim on a bond, a building, or a bar of gold and represents it as a transferable token on a public blockchain. Here's how the mechanics actually work, and why the technology is the easy part.
- Recovering From a Compromised Wallet: The First HourThe order of operations decides how much you keep. Most people revoke first, which is the step that loses them the rest.
- Sandwich Attacks Explained: How Front-Running Works in DeFiA step-by-step breakdown of how sandwich bots front-run pending swaps in the mempool, with a worked example and the concrete settings that shrink the attack window.
- Seed Phrase Backup Beyond Paper: Steel, Shamir and MultisigMore crypto has been lost to bad backups than to attackers. The backup, not the wallet, is where self-custody usually fails.
- Slippage, Price Impact and Why Your Swap Filled WorseTwo numbers explain almost every disappointing swap, and traders routinely blame the wrong one — which is why they keep setting the wrong tolerance.
- Staking Risks: Understanding Slashing and Validator DowntimeHow delegators can lose principal to slashing and downtime penalties, well before any price volatility comes into the picture.
- The Risks of Restaking: Slashing Cascades and Systemic ExposureRestaking multiplies yield by putting the same capital to work across several protocols at once — but it multiplies the ways that capital can be slashed, too. A close look at where the compounding risk actually sits.
- The Risks of Tokenized RWAs: Custody, Legal, and Redemption ExplainedA tokenized bond is only as good as the custodian holding it, the legal entity issuing it, and your ability to actually redeem it. A framework for the risks that live off-chain in every RWA tokenization deal.
- TVL Double Counting: Why Two Sites Show Different NumbersTVL is the industry's default size metric and one of its least standardised. The definition changes with the incentive of whoever is publishing it.
- Understanding Tokenomics: Supply, Emissions, and Vesting SchedulesA token's price chart tells you nothing about the supply mechanics working against it. Here's a framework for reading tokenomics properly before you decide what a token is actually worth holding.
- Validator Uptime, Commission and What You Actually EarnA validator charging 10% with perfect performance pays you more than one charging 2% that misses attestations. Commission is a headline, not a return.
- Vault Strategies: What an Aggregator Does With Your DepositYou deposit once. The vault then interacts with several protocols on your behalf, and you own every risk in that chain.
- Wallet Drainers: How the Signature That Empties You WorksNothing is hacked. You approve a transaction whose real meaning is hidden behind a wallet prompt that says almost nothing.
- What a Crypto Card Really Costs: Spread, FX and ATM FeesThe headline is cashback. The cost is a conversion spread you cannot see, applied to every transaction, plus network FX on anything abroad.
- What Are Layer 2s? How They Make Blockchains Faster and CheaperLayer 2s sit on top of blockchains like Ethereum to process transactions faster and far more cheaply, without asking you to trust anyone new.
- What Are NFTs? Understanding Digital Ownership on the BlockchainNFTs explained from first principles — what the token actually proves, where the technology is genuinely useful, and where the hype outran the substance.
- What Is a Crypto Wallet? Hot vs. Cold Storage ExplainedA plain-language breakdown of how crypto wallets actually work, and why the choice between hot and cold storage is the first real security decision every holder makes.
- What Is a Stablecoin and How Does It Stay 'Stable'?An accessible breakdown of how fiat-backed, crypto-backed and algorithmic stablecoins each try to hold their peg — and the real failures that show what happens when they don't.
- What Is DeFi? A Beginner's Guide to Decentralized FinanceA first-principles map of decentralized finance — the building blocks, the big protocol categories, and the honest risks — before you send a single transaction.
- What Is MEV? How Bots Extract Value from Blockchain TransactionsAn inside look at maximal extractable value: how searchers, builders and validators profit from transaction ordering, and who ultimately pays for it.
- What Is Restaking? How EigenLayer and Shared Security WorkRestaking lets the same staked ETH secure a dozen other systems at once, turning idle collateral into rented security. Here's the actual mechanics behind EigenLayer and the shared-security model it popularised.
- What Proof of Reserves Actually Proves (And What It Doesn't)A Merkle-tree snapshot is evidence, not a solvency statement. Here is exactly what an exchange proves when it publishes reserves, and the three gaps every programme leaves open.
- Why Reported Volume Lies: Wash Trading and How to Spot ItVolume is the most quoted number in crypto and the least verified. Almost every ranking built on it inherits the problem.
- Why Stablecoins Depeg: The Four MechanismsA stablecoin at $0.94 can be minutes from recovery or days from zero. The difference is which of four mechanisms is doing the breaking.
- Wrapped Assets: Who Holds the Collateral Behind Your TokenWrapped BTC on Ethereum is not Bitcoin. It is an IOU whose value depends entirely on whoever holds the Bitcoin behind it.
- Yield Farming Explained: How to Evaluate DeFi ReturnsA framework for separating sustainable DeFi yield from token-emission dilution before you deploy a single dollar of capital.
- Yield-Bearing Stablecoins: Where the Yield Comes FromA dollar that pays you something is a dollar taking a risk on your behalf. The only question worth asking is which one.
How these guides are written
Every guide is written by the editor on our desk who covers that subject and carries their byline and the date it was last reviewed. Guides are revised when the mechanics change — a protocol upgrade, a new regulation, a fee structure — not on a schedule.
They stop short of telling you what to buy. A guide explains a mechanism and where it fails, then links to the relevant rating when a comparison of services is useful. The explanation and the recommendation live in different places on purpose.
Guides, news and ratings
A story tells you what happened; a guide tells you how the thing works; a rating scores the services that do it, against a published rubric. Each shelf above ends with the rating it feeds into.
Nothing here is financial or tax advice. The tax guides explain how the rules work in general, not how they apply to your position; the editorial policy covers corrections and disclosure.