Cryptocurrency explained as simply as possible

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by Hiba Shelleh

I’m sure many of you are curious about this future 21st century money, and due to its increasing recognition and security, the cryptocurrency market is looking good. By the end of this article, you surely know more about cryptocurrency than most beginners or inexperienced people.

* In this article you will learn …

• What is cryptocurrency in simple terms?

• How do cryptocurrencies work?

• How many cryptocurrencies are there?

• Why cryptocurrency?

• Is cryptocurrency a good investment?

• How do I buy cryptocurrency?

ON Cryptocurrency (or “crypto”) is a digital version of money called “Token”Where the transactions are carried out online. It is a medium of exchange like your normal everyday currency like the USD, but it is designed to exchange digital information through a process called cryptography.

You can use crypto to buy regular goods and services, although many people invest in cryptocurrencies as they would in other assets (i.e. stocks or precious metals).

* How do cryptocurrencies work?

Cryptocurrencies are decentralized networks based on blockchain technology (a distributed ledger enforced by a disparate computer network). It usually does not exist in physical form (like paper money) and is usually not issued by a central authority.

Instead, these tasks are distributed to each cryptocurrency user over the internet.

* What is a database?

Understand blockchain; You first need to understand what a database actually is …

A database is a collection of information that is electronically stored on a computer system. Information or data in databases is usually structured in tabular format to make it easier to find and filter specific information.

It is designed to hold vastly larger amounts of information that any number of users can quickly and easily access, filter, and edit simultaneously and from anywhere in the world.

* What is a blockchain?

Blockchain technology (BCT) is a kind of database. Hence, blockchain is a system for recording information in a way that makes it difficult or impossible to modify, hack, or defraud the system.

A blockchain is essentially a digitally distributed ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain contains a number of transactions. Every time a new transaction occurs on the blockchain, a record of that transaction is added to each participant’s ledger.

The decentralized database that is managed by multiple participants is known as Distributed Ledger Technology (DLT). Blockchain is a type of DLT that records transactions with an immutable cryptographic signature called a hash.

This means that when a block in a chain is changed, it is immediately apparent that it has been manipulated. If hackers wanted to damage a blockchain system, they had to change every block in the chain in all the distributed versions of the chain.

Blockchains like Bitcoin and ether grow steadily and steadily; added as blocks to the chain; This adds significantly to the security of the general ledger.

* How many cryptocurrencies are available?

More than 6,700 different cryptocurrencies are used according to the CoinMarketCap Cryptocurrency market research website.

Cryptocurrencies keep multiplying and collecting money First coin offer (ICOs). The total value of all cryptocurrencies on January 27, 2021 was more than $ 897.3 billion, according to CoinMarketCap, and the total value of all bitcoins, the most popular digital currency, was $ 563.8 billion.

* Why should I buy or sell cryptocurrency?

Cryptocurrencies appeal to their supporters for a variety of reasons. Here are some of the most popular …

• Supporters see cryptocurrencies like Bitcoin as the currency of the future and try to buy them now, probably before they become more valuable.

• Some proponents like the fact that cryptocurrency is keeping central banks from managing the money supply as these banks tend to depreciate the value of money through inflation over time.

• Other supporters like the technology behind cryptocurrencies, the blockchain, as it is a decentralized processing and recording system that can be more secure than traditional payment systems.

• Some speculators like cryptocurrencies because they are increasing in value and have no interest in the long-term acceptance of the currencies as a means of transporting money.

* Is cryptocurrency a good investment?

It is possible to get dirty rich by investing in cryptocurrency. However, you could also lose all of your money. How can these two things be equally true? Well, like most investments; Crypto assets come with a wide variety of risks, but cryptocurrencies also offer tremendous potential for profit.

The price could drop steeply, and a single online hack or hard drive crash could wipe out your Bitcoin stash without recourse.

Cryptocurrencies like Bitcoin may not be safe enough for those who consider cryptocurrencies (like Bitcoin) to be the currency of the future.

Bitcoin saw dramatic price increases. followed by some painful crashes but has retained a significant portion of its previous gains every time it goes down. Since its inception, Bitcoin was the first digital asset to create the current crypto ecosystem.

For quite a while, the number of underground investors grew who viewed their future as a possible replacement for the physical currency system.

The decision to invest in cryptocurrency is entirely yours Risk tolerance level.

* How do I buy or sell cryptocurrency?

Some cryptocurrencies, including bitcoin, can be purchased with US dollars. others require you to pay with bitcoins or some other cryptocurrency.

To buy cryptocurrencies, you need a “wallet” (an online app that can hold your currency). Generally speaking, you create an account on an exchange and then you can transfer real money to buy cryptocurrencies like Bitcoin, Ethereum, etc.

Coinbase is a popular cryptocurrency trading exchange where you can create a wallet, buy and sell bitcoin and other cryptocurrencies. A growing number of other reputable online brokers also offer cryptocurrencies to buy and / or sell, such as: CoinMama and Paxful.

In conclusion: If you want to find out more details, news and information about Cryptocurrency or Blockchain, you can access these four pages: Crypto Trader Chat | Blockchain News | KnowHowToEarn | Crypto News and Views

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