Cryptocurrency | What is cryptocurrency?

What are some popular cryptocurrencies?

• The most popular cryptocurrencies are Bitcoin, Ethereum, and Litecoin. Other well-known cryptocurrencies include Monero, Ripple, and ZCash. Some are similar to Bitcoin. Others are based on different technologies or have new features that allow them to do more than transfer value. There are currently thousands of cryptocurrencies. with many of them being either scams, like for example Bitcoinnect or Onecoin while others like Dogecoin were started as a joke, but became extremely popular.

What makes cryptocurrency unique?

Crypto allows value to be transferred online without resorting to an intermediary such as a bank or payment processor, allowing value to be transferred around the world, almost instantly, 24/7, with minimal fees.

Cryptocurrencies are generally not issued or controlled by any government or other central authority. They are managed by peer-to-peer computer networks running free and open-source software. Usually, anyone who wants to participate is able to do so.

Cryptocurrency is secure because all transactions are verified by a technology called a blockchain. A cryptocurrency blockchain is similar to a bank’s balance sheet or ledger. Each currency has its own blockchain, which is a continuous and constantly rechecked record of every transaction ever made with that currency.

Unlike a bank’s ledger, a crypto blockchain is distributed among participants across the digital currency network. No company, country, or third party has control; and anyone can participate. A blockchain is a revolutionary technology recently made possible through decades of computer and mathematical innovations.

How do I get some cryptocurrency?

There are two ways to get cryptocurrency.

One is to “mine” it ourselves, which is increasingly difficult nowadays and, in the case of Bitcoin, requires specialized computers called ASIC miners. It’s still possible to mine Etherium as well as less popular cryptocurrencies with ordinary home hardware.

The other way to get cryptocurrency is to buy it. In the most general sense, the options here boil down to using the services of a trusted intermediary, such as Finansiv, or buying directly from another person (a so-called peer-to-peer transaction).

What do I need to know to trade cryptocurrency?

A good financial culture certainly comes first. This includes basic knowledge of financial instruments and foreign exchange markets. For starters, it’s a good idea to first know the basic mechanisms of cryptocurrencies, which we covered in this article. It is also good to know how financial markets work. Once you have gained enough knowledge and are confident in it, you can try to invest your own funds. Keep in mind that a huge percentage of retail investors lose money. If you really want to have a real chance to make money from cryptocurrency trading, focus on improving your knowledge. In other words, focus on a proper understanding of the technology itself. Doing so, you can distinguish projects that have some fundamental value, such as Bitcoin or Ethereum, from obvious pyramid schemes, such as OneCoin or Bitconnect.