This is a must-have article if you are new in the cryptocurrencies world!
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Introduction to the world of crypto
With this short summary, we introduce you to the mysteries of the crypto world.
Cryptocurrencies are getting more and more attention these days and more and more people are starting to wonder what they are really about.
If you didn't know much about them until now, the name of Bitcoin may be familiar, as it is the first, most valuable and well-known cryptocurrency of all. But not the only one.
Cryptocurrencies
Cryptocurrency is a decentralized digital payment instrument that was specially invented for online use. The biggest advantage of crypto technology is that you can send money online, anywhere in the world, at any time and almost immediately, without using any intermediary (bank or payment procedure), all at a fairly low price.
Cryptocurrency ecosystems are user-centered systems that are free and open source. Practically anyone who knows how to do it can connect to the system.
Blockchains
All transactions are verified and authenticated by blockchain technology. This is very similar to the bank balance sheet or ledger used by banks.
Each currency has its own blockchain, in which each transaction can be tracked. However, unlike banks, these transactions can be viewed by anyone who is a member of the given digital currency community.
Mining
Cryptocurrency mining is a mechanism that updates and secures the network by constantly checking the public blockchain ledger and adding new transactions. The name itself is named after gold mining, as the conditions are very similar.
Technically, anyone can become a "miner" with a computer with adequate computing power and an Internet connection. This mechanism is called "proof-of-work".
During "proof-of-work" mining, users have to solve complex mathematical and computing tasks, which ensure the authenticity and security of transactions on the blockchain.
The more power someone provides, the greater the chance of successfully "mining" a block.
Cryptocurrency exchanges
The easiest way to acquire cryptocurrencies is to buy them through an online exchange.
There are three main types of cryptocurrency exchanges: centralized, decentralized, and hybrid .
A centralized cryptocurrency exchange is a platform where cryptocurrency can be bought and sold, all with the help of a third party that performs these transactions. On a centralized exchange, you can use traditional, also known as fiat currency, such as dollars, to execute trades, as well as trade the cryptocurrency itself.
Decentralized exchanges, or DEXs for short , are more in line with the spirit of crypto. This is because these exchanges allow crypto investors to trade directly with each other without an intermediary. In theory, DEXs can be more secure as there is no central platform to hack. Because the platform can be used without the use of a third party, lower fees and faster transaction speeds can be found on DEXs.
Hybrid exchanges are less common than centralized or decentralized exchanges. They aim to combine the features of both, such as the liquidity of a centralized exchange and the security and anonymity of DEXs.
Why is the crypto world becoming more and more popular?
It can be explained in one word: growth. Investors are interested in cryptocurrencies because they hold a huge potential for value growth and also bring with them the potential transformation of the financial system.
When Bitcoin first launched in January 2009, few thought that a single BTC would be worth more than $65,000, or that a digital currency would inspire the creation of thousands more. But that's what happened. In just 14 years, cryptocurrencies have grown from a financial fad to an entirely new market sector worth trillions of dollars.
Although cryptocurrencies are still largely unregulated and limited in their use as actual means of payment, there is a growing sense that they have opened a new door to many possibilities and technologies.
For more content, follow us here, on Twitter, or visit our blog.
#cryptocurrency #blockchain #cryptomining #exchanges
Cryptocurrencies are getting more and more attention these days and more and more people are starting to wonder what they are really about.
If you didn't know much about them until now, the name of Bitcoin may be familiar, as it is the first, most valuable and well-known cryptocurrency of all. But not the only one.
Cryptocurrencies
Cryptocurrency is a decentralized digital payment instrument that was specially invented for online use. The biggest advantage of crypto technology is that you can send money online, anywhere in the world, at any time and almost immediately, without using any intermediary (bank or payment procedure), all at a fairly low price.
Cryptocurrency ecosystems are user-centered systems that are free and open source. Practically anyone who knows how to do it can connect to the system.
Blockchains
All transactions are verified and authenticated by blockchain technology. This is very similar to the bank balance sheet or ledger used by banks.
Each currency has its own blockchain, in which each transaction can be tracked. However, unlike banks, these transactions can be viewed by anyone who is a member of the given digital currency community.
Mining
Cryptocurrency mining is a mechanism that updates and secures the network by constantly checking the public blockchain ledger and adding new transactions. The name itself is named after gold mining, as the conditions are very similar.
Technically, anyone can become a "miner" with a computer with adequate computing power and an Internet connection. This mechanism is called "proof-of-work".
During "proof-of-work" mining, users have to solve complex mathematical and computing tasks, which ensure the authenticity and security of transactions on the blockchain.
The more power someone provides, the greater the chance of successfully "mining" a block.
Cryptocurrency exchanges
The easiest way to acquire cryptocurrencies is to buy them through an online exchange.
There are three main types of cryptocurrency exchanges: centralized, decentralized, and hybrid .
A centralized cryptocurrency exchange is a platform where cryptocurrency can be bought and sold, all with the help of a third party that performs these transactions. On a centralized exchange, you can use traditional, also known as fiat currency, such as dollars, to execute trades, as well as trade the cryptocurrency itself.
Decentralized exchanges, or DEXs for short , are more in line with the spirit of crypto. This is because these exchanges allow crypto investors to trade directly with each other without an intermediary. In theory, DEXs can be more secure as there is no central platform to hack. Because the platform can be used without the use of a third party, lower fees and faster transaction speeds can be found on DEXs.
Hybrid exchanges are less common than centralized or decentralized exchanges. They aim to combine the features of both, such as the liquidity of a centralized exchange and the security and anonymity of DEXs.
Why is the crypto world becoming more and more popular?
It can be explained in one word: growth. Investors are interested in cryptocurrencies because they hold a huge potential for value growth and also bring with them the potential transformation of the financial system.
When Bitcoin first launched in January 2009, few thought that a single BTC would be worth more than $65,000, or that a digital currency would inspire the creation of thousands more. But that's what happened. In just 14 years, cryptocurrencies have grown from a financial fad to an entirely new market sector worth trillions of dollars.
Although cryptocurrencies are still largely unregulated and limited in their use as actual means of payment, there is a growing sense that they have opened a new door to many possibilities and technologies.
For more content, follow us here, on Twitter, or visit our blog.
#cryptocurrency #blockchain #cryptomining #exchanges
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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