What Are Cryptocurrencies?
As the name suggests, a cryptocurrency is a digital currency that is secured by cryptography. One of its primary functions is to work as a medium of exchange within a peer-to-peer (P2P) economic system, which relies on cryptography to prevent frauds and counterfeiting. Most cryptocurrency systems are decentralized and maintained by a distributed network of computers (nodes) spread around the world. However, there are varying degrees of decentralization and some cryptocurrencies are considered more centralized than others (depending on their network structure and nodes distribution). Being decentralized means that cryptocurrencies cannot be controlled by a single entity and do not rely on a central authority, like governments and banks. Financial transactions may occur directly between users (P2P) without the need for intermediaries.
The Basics of Blockchain
New to crypto and want to understand how Blockchain works? It's neither rocket-science nor magic! By understanding the concept of Blockchain you'll be able to understand the importance of this new technology and how it can improve our lives. A central part in every blockchain is the mining algorithm, let's take bitcoin's algorithm as an example. It's called SHA-256 short for "Secure hash algorithm 256 bits" It takes an input which can be anything, text, numbers, or even a computer file of any length. The output produced is called a "hash" and will be the same length every time, 256bits in machine code. The same input will give the same output every time, it's not random. But if you make a small change to the input the output will change completely. One of the models of making computers work in order to produce blocks is called Proof-of-Work (PoW).
Getting Familiar with Crypto Terminology - "HODL", "FOMO", "FUD"
If you're new to crypto sphere you might have heard some terms which most probably you're not familiar with. It's OK, we have all been there! There’s a lot of confusion on what each term means, but knowing the correct definitions of these terms will help you better understand how to gain the most out of cryptocurrencies. Here's the most common terms used in the crypto space.
Blockchain – The technology that Bitcoin and cryptocurrencies are using to function as a trustless system through consensus. It refers to an open ledger that displays transactions allowing users to verify the authenticity of their coin holdings.
Block – It's the set of new transactions to be added into the ledger. Once verified by the blockchain's consensus mechanism, they are added to the blockchain and cannot be changed.
You’ve probably heard terms such as crypto currencies, tokens, coins, altcoins or digital / virtual currencies. But what do all these terms actually mean? They are often used incorrectly instead of each other. But there is a fine difference between them. Crypto currencies are digital or virtual currency units that are encrypted with cryptographic algorithms to enable and verify transactions while tokens are located on a Blockchain for use in decentralized applications.
The thin line between coin and token still creates a lot of confusion between crypto investors and financial regulators. However, the main differences are their structures. Because coins can be used as currency units and have their own Blockchains. Read our guide to understand better the difference!
What Are Crypto Private And Public Keys?
Private Key is a sophisticated form of cryptography that allows a user to access his or her cryptocurrency. A private key is an integral aspect of Bitcoin and Altcoins, and its security make up helps to protect a user from theft and unauthorized access to funds.
Public key is a cryptographic code that allows a user to receive cryptocurrencies into his personal account. The public key coupled with the private key are significant tools required to ensure the security of the crypto economy. It is an encryption technique that uses a paired public and private key (or asymmetric key) algorithm for secure data communication. Remember that if you don't have the private keys of your crypto, you are not the real owner!
10 Must-Have Cryptocurrency Tools
Even though cryptocurrencies have not yet completed a decade, they are among the most sought-after investment. As of yet no one actually knows how to analyze them with 100% accuracy but there are some tools and services that give you ample amount of crypto insights and can help you make strategic decisions while your research.
In this article, we will be sharing some of the must-have crypto tools that one should use to improve their research on crypto before investing. These tools are being used by most of the crypto investors around the world to get the best out of the crypto revolution. However, please bear in mind that these tools and services only give you insights that you as an investor have to analyze and decide for yourself.
How To Pick The Right Cryptocurrency Wallet
Cryptocurrency wallets are secure digital wallets used to store, send, and receive digital assets like Bitcoin, Ethererum or Litecoin. They are an essential factor of owning and investing in cryptocurrencies of any sort. Most of digital currencies have their own official wallet but third-party wallets have also emerged and they allow you to manage multiple coins at once – however, most of them will only support a limited number of cryptocurrencies.
Undoubtedly, there are many different wallets available and it can be hard to choose the best one; you might need to use more than one, depending on your assets. Read out guide to chose the right wallet and remember, crypto wallets are the difference between a wonderful crypto adventure and a really bad one!
How To Choose The Right Crypto Exchange
Your first step into the wonderful adventure of cryptocurrencies is often through an exchange, therefore, choosing the right cryptocurrency exchange can be a difficult task. It’s not a fast and easy process, it’s actually hard work. There are many available exchanges that you can buy cryptocurrencies by, and there’s a number of factors that you have to consider in ensuring that you’ve opened the right exchange based on your expectations, requirements, and what’s best for you. Depending on what cryptocurrency you are trying to get, you may need to use multiple exchanges, mainly because exchanges offer different cryptocurrencies due to both internal listing processes and laws and regulations around certain coins, especially if the exchange provides FIAT services. Read our guide for more info.
10 Ways To Start Your Crypto Adventure
You can earn money with crypto. What many people won’t tell you is that the process is both slow and painful and just like in any other business you have to be committed to it. You can try Airdrops, Faucets, Bounties, Gaming and Affiliate Marketing as well as Crypto Mining or Gambling. Regardless of the strategy or route you take, it will cost you time, plenty of hard work and probably money. To help you get started with your Crypto Adventure, we have prepared you a list with the best 10 ways to start earning cryptocurrency and explained the process behind it. Please note that these methods are for entertainment and education purposes only and are by no means full proof nor they guarantee any return of investment.