The Basics About Cryptocurrency – Cryptocurrencies have become an attractive investment option in recent years due to their high volatility and potential for quick and high returns. The basics of cryptocurrencies like Bitcoin, why they are valuable and more.
Last year, crypto became more popular when Elon Musk, Jack Dorsey and Mark Cuban, as well as global business leaders, started advocating cryptocurrencies in public forums.
The Basics About Cryptocurrency
Cryptocurrencies have become an attractive investment option in recent years due to their high volatility and potential for quick and high returns.
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A report released by blockchain data platform Chainalysis reveals that global adoption of cryptocurrencies has increased by more than 880% in the past year. Additionally, the total crypto market capitalization reached $2.4 trillion in May 2021.
The most popular cryptocurrencies in the market today are Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Cardano (ADA), Ripple (XRP), Tether (USDT), and Solana (SOL).
If you want to understand the basics of cryptography, why cryptography is valuable, and more, here’s what you need to know.
The word “cryptocurrency” is a combination of the words “cryptocurrency” and “currency”. Basically, a cryptocurrency is a currency that uses encryption for secure transactions.
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Additionally, cryptocurrency acts as a digital currency or virtual currency that is not owned or controlled by a single central entity such as a bank.
This is because crypto and cryptocurrency transactions exist and take place on a blockchain managed by a peer-to-peer (P2P) network of users.
There is no central server or administrator in a P2P network. If a user wants to exchange or trade information in cryptocurrency with a peer, they can send it directly to the recipient without going through a central system or database.
Additionally, cryptocurrencies use strong cryptography for secure transactions, verifying transfers, controlling the production of multiple cryptocurrencies, and more.
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Basically, cryptography allows users to transact cryptocurrencies in pseudo- or complete anonymity depending on the configuration.
Because cryptocurrencies are decentralized, there is no central authority that can regulate transactions, change the rules, impose censorship, or shut down the network.
For example, the Bitcoin network is not owned or operated by any government or financial institution Bitcoin transactions are facilitated and recorded by users of the network and cannot be reversed
Users (aka nodes) maintain a copy of the BTC database (or ledger). This public record cannot be modified, so transactions cannot be rolled back
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Each node acts as its own server, and if one or more nodes go offline, the network will continue to function due to the presence of other active nodes.
In 2009, Bitcoin was the first cryptocurrency after anonymous founder Satoshi Nakamoto proposed the idea of a “pure peer-to-peer version of cryptocurrency”.
Nakamoto envisioned BTC as one of the first applications of blockchain to allow online payments to be sent directly from one party to another without having to go through a financial institution.
Satoshi Nakamoto’s True Identity Still Unknown Despite the mystery, the price of BTC rose from zero in 2009 to an all-time high of $64,863 on April 14, 2021.
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As BTC gains more attention, investors, technocrats, politicians and others often ask the question. Why is Bitcoin valuable?
The common perception is that unlike traditional currencies, BTC and other cryptocurrencies do not have assets. Therefore, it has been argued that cryptocurrencies have no intrinsic value
However, in financial systems, value is a shared belief or consensus Value is not unique to cryptocurrency or any other store of value In other words, if people believe in it and are willing to trade it, then it has value The same applies to all precious metals, data, cash, etc.
For example, taking the example of cash, it can be argued that the citizens of a country use cash for payment because they share a belief in the value expressed in the note, bill or coin.
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In the case of cryptocurrencies, as there are users who believe that a particular cryptocurrency can be used as a currency, they automatically increase in value.
In the case of Bitcoin, the code of the blockchain network defines a predictable release rate and cap. Total BTC cannot exceed 21 million Approximately 19 million BTC have been mined (or created) to date.
Government-controlled fiat money has no intrinsic value. It is also unlimited because governments are known to print more fiat money, which eventually leads to hyperinflation.
Since BTC has a limited supply, it has emerged as a store of value and value similar to gold Where it is accepted, it can be used in transactions
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Interestingly, many cryptocurrencies do not have a supply limit, like BTC Cardano (ADA) has a supply limit of 45 billion, while Ethereum (ETH) and Dogecoin (DOGE) do not.
But neither ETH nor DOGE is centralized nor controlled by a single entity Like Bitcoin they are controlled by nodes and cannot lose value as long as there are users
Since then, thousands of cryptocurrencies have been released, following in the footsteps of Bitcoin. For example, ETH is a cryptocurrency with a blockchain that allows users to run decentralized applications using smart contracts. The native currency on Ethereum is Ether (ETH), which is used to create and transfer tokens within the network.
Retail investors can purchase cryptocurrencies through exchanges that manage these currencies. The first step is to convert fiat to crypto and then hold, trade or lend the cryptocurrency.
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Learn more about crypto exchanges and other cryptocurrencies like Ethereum, Dog, Cardano, etc. It will be explained in a later article
‘It’s hard to get to number 1, but it’s even harder to stay there’ – 15 quotes about motivation and change # CURRENCY FUNDS IN CRYPTOCURRENCY (NEW ARTICLE) maxdigi (50) • 5 years ago (edited) Cryptocurrency basic course If you are familiar with cryptocurrency, these you can find out most of the information and read articles It might waste your valuable time but you can read it to refresh the absolute basics. I feel it’s important to educate new users about cryptocurrencies and this covers the basics. What is electronic money? Cryptocurrency is a digital currency that uses encryption to create money and verify transactions. Transactions are added to the public ledger – also known as the transaction blockchain – and new coins are created in a process called mining. Since 2017, cryptocurrencies have been used as decentralized alternatives to traditional fiat currencies (usually backed by some central government), such as the US dollar (USD). The basics of buying cryptocurrency are as simple as they are for the average cryptocurrency user: Get a digital wallet to store your coins. (https://www.blockchain.com or use the exchanger’s built-in wallet) Use the wallet to create a unique “public address” to receive coins. Transfer money to or from your wallet using public addresses What is a crypto address? A public address is a unique string of characters used to receive cryptocurrency Every public address has a private address that can be used to prove ownership of the public address Using a Bitcoin address known as a Bitcoin address, every cryptographic address is always a sequence of letters and numbers. Think of it as an email address that people can send money to instead of emails This article is sourced from today I will be creating more articles like this in the future to educate newbies interested in the crypto space and help you with some to make a profit in this insanely expanding market. 🙂 Thanks for reading If you like this content, please upvote, comment and/or follow my blog @MaxDig! Congratulations, MAXIDIGI
5 years ago #cryptocurrency maxdigi (50) 0.05 USD Past Deposit 0.05 USD 0.00 TRX – Author: 0.05 USD 0.00 TRX – Admin 0.00 USD 0.00 TRX
Coming from someone who knows crypto, I think this is a pretty good explanation of what cryptography is Good article!
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Yes, I will probably write more articles like this and dive deeper into topics like where and how to buy crypto or how to start analyzing crypto charts.
Oh this is very helpful, sometimes I need to learn more about this, especially now I need to learn more about crypto, because now I am a member and I see that there is some crypto currency that we can get. So it’s definitely going to be a learning experience for me Also, I’ve told a friend about this a few times, I really enjoy things and the crypto aspect. I have a feeling that this is going to be the way to go The way of the future Make money Not only are there more and more places and people are starting to use it more widely, but we’re quickly moving into a basic technology age, the age of technology, so yeah. I can be many
