Just stepping into the world of cryptocurrency? If you don’t understand these three concepts, you’ll be confused later on.

**What exactly is fiat currency?**
Simply put, it’s the cash in your wallet—RMB, USD, EUR, and so on. Their value is backed by national credit: if the government says it’s usable, it is. Once you enter the digital asset space, fiat currency becomes your “on-ramp”—want to buy crypto? You have to exchange fiat for it first.

**Token: Stop calling it a “token”**
Many people just call it a “token,” but that’s only half correct. The more accurate term is “proof of stake” or “digital certificate”—it represents a certain type of right or proof on the blockchain.

In the traditional world, only things that can be recorded in ledgers can be traded or circulated, but in reality, most assets can’t be quantified or accounted for. The revolutionary aspect of tokens is this: they can turn physical assets, digital copyrights, even your attention and time into recordable, tradable digital credentials. That’s where their real value lies.

**Are airdrops free money from the sky?**
One day you open your wallet and suddenly see a bunch of unfamiliar tokens—don’t panic, this is probably a project running an airdrop campaign.

To promote new tokens, teams may distribute them for free to users based on the amount they hold. Sounds great? But be careful: the vast majority of airdropped tokens are worth almost nothing; only a few have real potential. Treat them as a “ticket to explore new projects,” but don’t expect to get rich overnight.