In depth Review Of Cryptocurrency For beginners

What is a cryptocurrency?

 

A cryptocurrency is a digital or virtual currency that is usually created by extracting computers through a heavy and high power computer. This is the type of currency,  nobody can hack or freeze it. This is the beauty of the cryptocurrency. In addition, all transactions through the cryptocurrency are completely anonymous, no one can trace or track the cryptocurrency.

(Read about top 100 cryptocurrency at the bottom of the page)

The mining technique is used to extract cryptocurrencies, with the blockchain technology, it is also used to facilitate the verification of fund transfers between users of the specific cryptocurrency.

Get more information about blockchain

Bitcoin miners are rewarded both for processing payments in the Bitcoin network and for extracting new "blocks."

The cryptocurrency has two keys. One is public key, another is private key

The public key is basically your address where you will receive your money.

Private is your password, you can say that it is the way to get your address. You can access your address and spend your cryptocurrency securely.

Features of cryptocurrency payments

The cryptocurrencies are - >>

Decentralized

Virtually all services running on blockchain can be decentralized. This includes coins, data storage, hosting and more. Since the activities surrounding these processes are distributed, it makes it almost impossible for them to be closed or controlled by 3rd party.

Anonymous

Since there is no need for a central authority, users do not need to identify themselves when they perform transactions with cryptocurrencies. When a transaction request is sent, the decentralized network will verify the transaction, verify it and record it in the blockchain accordingly. Cryptocurrencies, such as Bitcoin, use a private key and a public key system to authenticate these transactions. This means that users can create anonymous digital identities and digital wallets to perform transactions in the decentralized system and still be able to securely authenticate their transactions.

Irreversible

Cryptocurrency transactions are irreversible. The irreversible and immutable characteristics of the cryptocurrency mean that it is impossible for anyone other than the owner of the respective private key to move their digital assets and that transactions cannot be changed once they are registered in the blockchain. While it is not impossible to modify the transaction, secure cryptography makes it very difficult to modify, since it requires that you alter most of the nodes in the blockchain. To avoid fraudulent transactions (which cannot be reversed), all transactions are recorded transparently in the blockchain and open to the public.

Cheap

A bitcoin transaction can move thousands of dollars with a minimum transaction cost, which is on average less than one US dollar. The cost of bitcoin transactions varies, depending on the transaction speed required.

Fast

The speed at which transactions can be processed depends on how much users are willing to pay. Bitcoin transactions can usually be confirmed in a few minutes.

Global

Bitcoin can be sent basically to anyone, anywhere in the world. With just your Bitcoin wallet address, most countries with Internet access can use Bitcoin, but since there are some countries like China where the cryptocurrency transaction is illegal

Limited supply

Fiat currencies for example INR, dollars, euros have an unlimited offer, as central banks can issue as many fiat currencies as they want. Central banks often manipulate the value of the currencies of countries as part of their economic policies. Most countries often manipulate their currency to be inflationary for a period of time. The inflationary nature of fiat currencies would mean a decrease in the value of the currency over time. Therefore, fiat currency holders could bear the cost of the decrease in value and also face the uncertainty of currency manipulation. On the other hand, most cryptocurrencies have a limited and predetermined supply of the cryptocurrency that is encoded in their underlying algorithm when it is created. For example, Bitcoin has a maximum supply of 21 million, and once this limit is reached, no new Bitcoin can be extracted. The cryptocurrency creates a shortage intentionally to avoid currency manipulation and decrease in value over time.

Most cryptocurrencies use blockchains to continuously verify their supply. Blockchains are secure and distributed public books that record each transaction. Blockchains allow all cryptocurrency users to track the origins of their money and verify its authenticity.

My view about cryptocurrency

Cryptocurrencies are the future and, therefore, obtaining more and more knowledge about them is exceptional, since, at some point, you may also have to deal with them. Cryptocurrencies are also being used as instruments in Forex trading, and there are also cryptocurrency brokers. Therefore, it can be used anywhere now.

When a deal is made in cryptocurrencies, all users find out who is the host of a copy of the blockchain we call 'public ledger' or also 'network'. Then there are the users called 'miners' who then try to solve cryptographic riddles that are prepared with algorithms that use the software, which allows them to add a "block" of transactions to the ledger and compete to see which of them deciphers it first since the Blockchain security is based on cryptography.

Each block is linked to the data in the last block by using unidirectional hashes that are designed to make blockchain manipulation as difficult as possible. Therefore, it takes time depending on the level of difficulty.

 This algorithm is used to confirm transactions and produce new blocks for the chain. With the Proof of Work, miners compete with each other while solving puzzles to complete transactions on the network and then be rewarded as cryptocurrency which later comes to circulation.

 Top 100 Cryptocurrency
There are hundreds of Cryptocurrency on the market right now. See what's their Market cap  here