Cryptocurrency for Open-Source AI: A Beginner’s Guide
Why crypto matters for the commons - and how to use it safely, step by step
You don’t need to become a blockchain evangelist to help build the intelligence commons. You just need a wallet, careful habits, and the willingness to learn step by step. This guide is for those who may be curious but wary, hopeful but cautious, committed to building better systems but unfamiliar with the tools that make them possible.
If you keep seeing terms like staking, bridges, wallets (the crypto kind), and gas fees and feel lost - you’re not alone. If you’re frustrated by the casino mentality of crypto culture while sensing there’s something genuinely important underneath - you’re exactly where you need to be.
In the open-source AI world, cryptocurrency is becoming infrastructure. It’s how value flows between contributors, how compute gets rewarded, how governance can resist centralized capture. The difference between crypto and traditional currency, however, is that it’s not about getting rich - it’s about getting free.
Why Crypto Matters for the Open Intelligence Movement
Cryptocurrency isn’t a gimmick or a speculation game. At its core, it’s a protocol for coordination without permission. It lets value, trust, and ownership move directly between people without requiring a central broker, bank, or platform to verify the exchange.
That matters because almost everything in modern life runs through middlemen who extract profit simply for standing between two parties. Those tolls, those fees, those opaque approvals - that’s how extractive systems maintain power. Strip that away and something fundamental changes. Money stops being a weapon of control and starts becoming a medium of collaboration.
The same way open-source software freed knowledge from corporate code vaults, cryptocurrency can free participation from financial gatekeepers. It’s the economic layer of the commons.
Yes, we’re trying to move beyond money entirely. But before we can transcend it, we have to fix what money is allowed to do. Traditional currencies are rooted in debt, surveillance, and hierarchy - they flow upward. Crypto, when designed for openness and public good, can be different. It can encode reciprocity instead of rent-seeking, transparency instead of secrecy, and community governance instead of corporate fiat.
You might think this is just swapping one form of extraction for another, and you’d certainly be forgiven for thinking so. However, cryptocurrency is not about creating a new class of digital landlords - it’s about dismantling the landlord logic itself.
That’s why Builders in the open-source intelligence space rely on it. They’re not worshipping tokens - they’re using cryptography to build trust in environments where trust has been privatized. Cryptocurrency isn’t the endgame; it’s scaffolding. It gives us a way to build systems that reward contribution rather than compliance, that sustain shared projects without selling them off.
In short: cryptocurrency is the bridge from capitalism to cooperation. It’s the proof layer for a new kind of economy - one where transparency, autonomy, and shared creation can finally scale.
But here’s the truth underneath the philosophy: you can’t participate in open-source AI projects without understanding crypto basics. You can’t stake tokens to support a subnet, donate to developers, or run compute nodes if you’re afraid to touch a crypto wallet. The tools exist. The knowledge exists. What’s missing is a guide written for people who care more about building the commons than chasing pumps.
This is that guide.
The Roadmap: What You’ll Learn
Here’s the journey ahead. Each step builds on the last. Don’t skip - each one lowers your risk and builds your confidence.
Choose and secure a wallet
Acquire your first crypto (on-ramp)
Withdraw to your own wallet (self-custody)
Practice sending a transaction
Swap or bridge to the token your project uses
Stake, donate, or interact with the protocol
Harden your security and develop good habits
Troubleshoot common errors
We’ll walk each step with examples, warnings, and minimal jargon.
Step 1: Choose and Secure a Wallet
Your wallet is your portal. It holds your keys, lets you sign transactions, and is the core of ownership. Good security here saves years of heartbreak.
Types of Wallets
Hot wallets (browser or mobile): MetaMask, Phantom, Trust Wallet, Rainbow, Exodus. Convenient, flexible, good for interacting with apps and protocols. Typically good for beginners.
Cold / hardware wallets: Ledger, Trezor, Keystone, Tangem cards. Store keys offline for maximum security. Use these for serious value or long-term holdings. Moderate level.
Hybrid / emerging models: Multisig, social recovery wallets (Argent, Safe). More complex, good for advanced users later.
Setting Up Properly
Download only from official sources. Fake wallet apps abound - one of many scams in the highly unregulated crypto world. Verify the URL or app store listing carefully.
Create a new wallet. Don’t import an existing one initially - start fresh to understand the process.
Write down your recovery phrase. The wallet will give you 12 or 24 words. This is your master key. Write it by hand on paper in two separate safe places. Never store it digitally - no screenshots, no cloud, no text files.
Add a strong password to unlock the app locally.
Enable two-factor authentication (2FA) on any exchange or account tied to crypto. Use an authenticator app, not SMS.
Optional: Add a passphrase (25th word). Some wallets support this - it’s an extra secret layer on top of your seed phrase. Use it if you’re holding significant value.
Test recovery. Before you put any funds in, try deleting and restoring the wallet with your seed phrase. Make sure you wrote it down correctly.
Critical rule: Your seed phrase is the key to everything. If you lose it, your funds are gone. If someone gets it, your funds are theirs. Treat it like the nuclear codes.
For high amounts, always use a hardware wallet. For learning and small transactions, a browser wallet like MetaMask is fine.
Step 2: Getting Your First Crypto (On-Ramp)
You need a way to turn dollars (or your local currency) into tokens.
Choose an Exchange
Pick a reputable one in your jurisdiction. Common options: Coinbase, Kraken, Binance, Gemini.
Setup process:
Create an account and verify your identity (KYC - Know Your Customer). This is unavoidable at regulated exchanges. In fact if an exchange doesn’t require a KYC, tread carefully. Anonymity can be a good thing in crypto, but the more anonymity, the more danger of fraud.
Activate two-factor authentication (use an authenticator app like Authy, Bitwarden Authenticator, or Google Authenticator, not SMS).
Deposit funds via bank transfer, debit card, or wire. Bank transfers are usually cheaper but slower.
Buy a base token. Which one depends on your target chain:
Ethereum (ETH) - for Ethereum mainnet or Layer 2s (Arbitrum, Optimism, Base)
Solana (SOL) - for Solana-based projects
USDC or USDT - stablecoins pegged to the dollar, useful for holding value without volatility
Start small. Buy $20-50 worth to practice. Don’t invest what you can’t afford to lose.
Considerations for Open Source AI Projects
Many protocols run on Ethereum (or Layer 2 scaling solutions), Solana, Polkadot, or other chains. If your target project uses a specific token (like TAO for Bittensor, or ORAI for Oraichain), you’ll often buy ETH or SOL first, then swap later.
Use “spot” trading, not futures or margin. Keep it simple.
Step 3: Withdraw to Your Wallet (Self-Custody)
Exchanges are convenient but risky. They can freeze accounts, get hacked, or go bankrupt (see: FTX). The mantra in crypto is: Not your keys, not your coins.
Once you have crypto on the exchange:
Open your wallet app and copy your wallet address. (It’s a long string like
0x1234…abcdfor Ethereum or a different format for Solana.)Go to the exchange’s “Withdraw” section.
Select the correct network / chain. This is critical. If you withdraw ETH on Ethereum but select the wrong network, your funds could be lost.
Paste your wallet address.
Always test with a small amount first (like $5-10). Once it arrives safely, send the rest.
Wait for confirmations. Depending on the chain, this takes seconds to minutes.
Leaving large amounts on an exchange is gambling with trust. Exchanges are honeypots for hackers and regulators.
Step 4: Practice Sending a Transaction
Before you stake or donate, practice moving crypto around.
Simple exercise:
Create a second wallet (or ask a friend for their address).
Send a tiny amount ($2-5) to that address.
Observe the network fee (gas). On Ethereum, gas can be expensive ($5-50 depending on congestion). On Solana or Layer 2s, it’s usually pennies.
Use a block explorer (Etherscan for Ethereum, Solscan for Solana) to watch the transaction. Paste your transaction hash (TxID) to see its status.
This helps you internalize how addresses, fees, confirmations, and speed work. You’ll feel more confident when real stakes are involved.
Step 5: Swap or Bridge to Your Project’s Token
Many open source AI protocols use specific tokens on specific chains. Here’s how to get from your base token (ETH, SOL) to the project token.
Swaps (Same Chain)
If your project token lives on the same chain as your current holdings, use a decentralized exchange (DEX):
Ethereum/L2s: Uniswap, SushiSwap, Curve
Solana: Raydium, Orca, Jupiter
Other chains: Check the project’s official docs for recommended DEXs
How it works:
Go to the DEX website.
Connect your wallet (approve the connection prompt).
Select the tokens to swap (e.g., ETH → TAO).
Approve the token first (this is a separate transaction with a small fee).
Swap the token (second transaction, includes slippage tolerance).
Set slippage tolerance (usually 0.5%-2%). This allows for small price changes during the transaction. Check project docs for guidance.
Confirm the transaction in your wallet.
Your new tokens will appear in your wallet within seconds to minutes.
Bridges (Cross-Chain Transfers)
If your project token is on a different chain, you’ll need to bridge your assets.
Critical: Only use official bridges listed in the project’s documentation. Fake bridges are a common scam vector.
How it works:
Go to the official bridge website (e.g., Wormhole, Hop Protocol, Stargate).
Connect your wallet.
Select source chain and destination chain.
Enter amount and confirm.
Bridge small amounts first to test. Bridging can take minutes to hours depending on the protocol.
Track the transaction on both chain explorers.
Bridges are one of the riskiest parts of crypto. Mistakes in chain selection or contract interaction can lose funds. Go slowly. Double-check everything.
Step 6: Stake, Donate, or Participate
This is where your crypto becomes meaningful in the open intelligence ecosystem.
Staking / Delegation
Many networks require staking tokens to validators or pools to participate in governance or earn rewards.
How it works:
Visit the project’s official staking portal (listed in their docs).
Connect your wallet.
Choose a validator or pool. Research reputation, commission rates, and uptime.
Delegate or stake your tokens.
Note the unbonding period - many networks have a delay (days to weeks) before you can withdraw staked tokens.
Track your rewards in the staking dashboard.
Examples:
Ethereum staking: Requires 32 ETH to run a solo validator, but pooled staking (Lido, Rocket Pool) allows smaller amounts.
Bittensor (TAO): Stake to subnets to support specific AI tasks and earn rewards.
Polkadot: Nominate validators to secure the relay chain.
Risks:
Slashing: If your validator misbehaves (goes offline, double-signs), you can lose a portion of staked tokens.
Smart contract risk: If the staking protocol has a bug, funds could be lost.
Opportunity cost: Staked tokens are often locked for a period.
Only stake what you can afford to lock up. Don’t stake your entire holdings.
Donations or Protocol Fees
Some projects accept direct donations to fund development or infrastructure.
How it works:
Copy the official donation address from the project’s website (not Discord, not Twitter).
Send a small test amount first.
Save the transaction hash as proof.
Send the rest if the test succeeds.
Many open-source AI projects (like Hugging Face contributors, model developers, dataset curators) list donation addresses. This is a direct way to support builders without middlemen.
Running Compute Nodes (Advanced)
As mentioned in last week’s post, some protocols reward you for running nodes or providing compute. This can be more technical and requires hardware, uptime, and configuration. Start with staking, then explore node operation once comfortable.
Step 7: Harden Your Security and Develop Good Habits
Crypto security is personal responsibility. No customer service, no chargebacks, no password reset. Here’s how to protect yourself:
Core Security Practices
Never share your seed phrase or private keys. Not with “support”, not with “developers”, not with anyone. Real support will never ask.
Use hardware wallets for significant holdings. Ledger, Trezor, or Tangem cards keep keys offline.
Verify addresses on hardware wallet screens. Malware can replace clipboard addresses - always double-check on the device itself.
Revoke token approvals periodically. When you swap on a DEX, you give it permission to access your tokens. Revoke old approvals at sites like Revoke.cash (Ethereum) or similar tools for other chains.
Use separate wallets for different risk levels. Keep high-value holdings in cold storage. Use a “hot” wallet for daily interactions.
Beware of phishing. Fake websites, impersonator accounts, and Discord scams are rampant. Always verify URLs. Bookmark official sites.
Don’t click random links. Even in official Discord servers, scammers post fake “mint” or “claim” links.
Backup wallet files and keys in multiple secure locations (safe deposit box, encrypted USB, trusted family member).
Paranoia is rational in crypto. Trust no one. Verify everything.
Step 8: Troubleshooting Common Errors
Even with care, things go wrong. Here’s how to handle common issues:
Exchange Withdrawal Delayed
Many exchanges hold withdrawals for 24-72 hours on new accounts or after security changes. Check their support page or wait.
Sent Funds to Wrong Chain
Sometimes recoverable if the chains are EVM-compatible (e.g., Ethereum, Polygon, BSC) and you control the private key on that chain. Look for chain-specific recovery guides or contact project support with your transaction hash.
Often not recoverable - which is why you always test with small amounts first.
Missing Memo/Tag on Transfer
Some exchanges or staking pools require a “memo” or “destination tag” to identify your deposit. If you forgot it, open a support ticket with the transaction hash. Recovery is possible but slow.
Transaction Stuck (Pending)
On Ethereum, transactions can get stuck if gas prices spike. Options:
Speed up: Send a new transaction with the same nonce but higher gas.
Cancel: Send a zero-value transaction to yourself with the same nonce.
Most wallets have built-in options for this (MetaMask does).
On Solana, transactions usually fail quickly rather than sticking.
Scam or Phishing Link Clicked
If you approved a malicious contract:
Stop immediately.
Revoke approvals at Revoke.cash or similar.
Move funds to a new wallet if you suspect key compromise.
Report the scam to the project’s official channels.
If you entered your seed phrase on a fake site, your wallet is compromised. Create a new wallet immediately and transfer any remaining funds.
Glossary of Terms (What You Actually Need to Know)
Address: Public string identifying your wallet (like an account number).
Private key / seed phrase: Your secret - controls access to funds. Never share.
Public key: Derived from private key; safe to share (often what your address is based on).
Gas / Fees: Cost to process transactions on the network. Varies by chain and congestion.
DEX (Decentralized Exchange): Platform for swapping tokens without a central authority (Uniswap, Raydium).
Approval: Permission for a smart contract to access your tokens. Required before swaps.
Slippage: Difference between expected and executed price due to volatility or liquidity.
Bridge: Protocol for moving tokens between different blockchains.
Staking / Delegation: Locking tokens to support a network and earn rewards.
Unbonding / Cooldown: Waiting period to withdraw staked tokens.
Validator: Node that processes transactions and secures a proof-of-stake network.
RPC (Remote Procedure Call): The node endpoint your wallet uses to interact with the blockchain.
Stablecoin: Token pegged to fiat currency (USDC, USDT) to minimize volatility.
Token contract: Smart contract that defines a token’s behavior and supply.
TxID / Transaction hash: Unique identifier for a transaction on the blockchain.
Block explorer: Website for viewing blockchain data (Etherscan, Solscan).
Example Walkthrough: Supporting an Open Source AI Project
Let’s say there’s a project called OpenMindNet using token OMT on Ethereum Layer 2 (Arbitrum).
Your journey:
Buy ETH on Coinbase.
Withdraw ETH to your MetaMask wallet (select “Arbitrum” network).
Go to Uniswap, connect wallet, swap ETH → OMT (approve, then swap).
Visit OpenMindNet’s staking portal (linked from their docs).
Connect wallet, choose a validator, stake some OMT.
Monitor your staking dashboard for rewards.
(Optional) Run a compute node following their GitHub instructions - rewards flow to your wallet address.
Always refer to the project’s official documentation for contract addresses, recommended DEXs, slippage settings, minimum amounts, and unbonding periods.
Risks and Cautions (The Unvarnished Truth)
Crypto is powerful, but it’s also unforgiving. Here’s what you need to accept before you start:
Crypto is volatile. Prices swing wildly. Only use funds you can afford to lose.
Projects can have bugs or exploits. Smart contracts are code, and code can be flawed. New projects are especially risky.
Scams are everywhere. Fake tokens, rug pulls, phishing sites, impersonator accounts. Vigilance is your only defense.
Regulation is uncertain. Laws vary by country and change often. You’re responsible for understanding your local tax and legal obligations.
No real customer service. If you lose your keys or send to the wrong address, there’s no helpdesk to call. The community is great and always willing to help, but they can’t help you recover lost funds.
Irreversible transactions. Once sent, crypto cannot be reversed. No chargebacks, no “undo.”
This isn’t meant to scare you off. It’s meant to keep you safe. Approach crypto with respect, caution, and a learning mindset. Once you’ve been around the block a few times you’ll start to get a feel for it.
Your First Crypto Learning Path
Want to get started? Here’s a realistic timeline, accounting for exchange hold periods:
Day 1 (60 minutes)
0-10 min: Install MetaMask (browser extension). Create wallet, write down seed phrase on paper, store it safely.
10-30 min: Create Coinbase account, activate 2FA, complete identity verification.
30-45 min: Add payment method (bank account or debit card) and deposit $20-50.
45-60 min: While waiting for deposit to clear, read wallet security best practices and bookmark official project docs.
Days 2-7: The Waiting Period
Most exchanges hold your first deposit for 3-10 days before allowing withdrawals. This is normal security practice for new accounts. Use this time wisely:
Read your target project’s documentation
Join their Discord or community forum (lurk and learn)
Watch wallet security videos
Understand the difference between hot and cold wallets
Research hardware wallet options if you plan to hold long-term
Day 8+ (After Hold Period Ends)
15 min: Buy $20 worth of ETH (on Arbitrum or Base L2 to save on fees later).
10 min: Withdraw $5 worth to your MetaMask wallet as a test (select correct network).
Wait 5-10 min for confirmation, then withdraw the rest.
10 min: Send $2 worth of ETH to a second wallet you control (or a friend’s address) to practice.
15 min: Read the staking or donation docs for an open AI project you care about.
Optional: Post your first small transaction success (not your address) in the project’s Discord or forum. Communities love welcoming newcomers who care about the mission.
Pro tip: Some exchanges (like Kraken) may have shorter hold periods. Some payment methods (like wire transfer) may clear faster but cost more. Card purchases often clear immediately but have higher fees and lower limits. Research your options based on your jurisdiction.
Building the Commons Together
Every dollar staked, every donation sent, every node run is a small act of sovereignty. You’re not just learning technical skills - you’re participating in the most important infrastructure shift since the internet itself.
The extractive model wants you dependent, afraid, and waiting for permission. The generative model - the one we’re building - wants you capable, confident, and actively contributing.
Crypto is the rails for this transition. It’s imperfect, chaotic, and sometimes frustrating. But it’s also the only economic layer permissionless enough, transparent enough, and resilient enough to sustain the intelligence commons we’re trying to build.
You don’t need to become a crypto expert. You just need to become competent enough to participate. This guide gets you there.
The window for shaping this future is measured in months, not years. The protocols being built now will define the next century of human-AI collaboration. If we don’t participate, we forfeit the right to complain when others capture the ecosystem entirely.
So start small. Test carefully. Learn continuously. Build together.
The commons is calling. And now you know how to answer.
Sources and further reading
The Last Economy (ebook by Emad Mostaque)
The Bitcoin Standard: The Decentralized Alternative to Central Banking (book by Saifedean Ammous)
The Codebreakers: The Comprehensive History of Secret Communication from Ancient Egypt to Modern Times (book by David Kahn)
Mastering Bitcoin (book by Andreas M. Antonopoulos)
The Basics of Bitcoins and Blockchains (book by Antony Lewis)
Digital Gold (book by Nathaniel Popper)
Why Decentralized AI Matters More Than Ever (Tanishq Bodh)
Decentralized communities can fix AI bias (Jarrod Hope)
Ben--there has to be an easier way! I'm interested but got intimidated as soon as I saw the list of steps I'd have to understand first and then take act on.
I think it's going to have to become much easier before crypto as money moves beyond a (male) minority.
By the way--I owned Bitcoin but eventually moved it out of my wallet to an ETF because I kept wondering how my heirs would access my Key. They'd be pissed to have to go through all that hassle, I thought.
Money should be simple. This does not simple to me. Am I missing something?