cryptocurrency

What is Cryptocurrency ?

“Cryptocurrencies” are digital currencies, alternative to (or used as a replacement for) traditional money. They use cryptography to secure financial transactions and control the creation of additional units of cryptocurrency. In addition to being able to trade cryptocurrency with other cryptocurrency owners, it is also possible to exchange cryptocurrency for real cash or other cryptocurrencies or cryptocurrency can be mined by specialized companies or individuals.

The first cryptocurrency was Bitcoin, which continues to dominate the cryptocurrency world despite new players on the market. As a crypto investor, you may have heard about Ethereum , Ripple, Litecoin and others – there are currently over 5300 different cryptocurrencies available on CoinLore!

Bitcoin was invented in 2009 by Satoshi Nakamoto (believed by many people to be a pseudonym for one or more inventors.) Bitcoin was the first cryptocurrency to make use of blockchain technology. A cryptocurrency is difficult to counterfeit because of this security feature.

During mining, cryptocurrency is created as a reward for transaction verification and computational services performed within the cryptocurrency network. Mining creates new cryptocurrency available for circulation (some cryptocurrencies have an upper limit on their supply). Currently, Bitcoin has reached its maximum supply cap after which no more Bitcoins can be mined!

The most popular cryptocurrency exchanges allow you to change real money (dollars, euros, etc.) into cryptocurrency. The exchanges keep an eye out for ‘price fluctuations’, so they can take advantage of them by purchasing low/selling high — this way, they turn cryptocurrency exchange into   a profitable business. Be aware that cryptocurrency prices are almost always highly volatile — cryptocurrency values can change drastically during a very short timeframe, so if you plan to exchange your cryptocurrency, be prepared to take advantage of the opportunity while it’s still there.

As cryptocurrency is stored electronically in “wallets” (either physical or digital), cryptocurrency owners should consider all possibilities for saving passwords/private keys securely. Just like with real money, cryptocurrency transactions cannot be reversed after they are completed!

When exchanging cryptocurrency for another cryptocurrency, transaction fees are usually pretty low (expect 0%-1% of the value being exchanged). When exchanging cryptocurrency for country-issued currency such as US dollars, there may be significant fees involved depending on the service used.

There are cryptocurrency exchanges where you don’t require additional verification for cryptocurrency transactions – CoinLore is one of them!

Also, cryptocurrency wallet owners should consider taking security precautions (don’t leave cryptocurrency in the same wallets used on public computers etc.) to protect their cryptocurrency value. There are tools available that can help cryptocurrency wallet owners secure their digital currencies. Wallet applications that store cryptocurrency specific virtual keys allow users to monitor/transfer cryptocurrency without any need to access third party services. Check this article about the best cryptocurrency wallets .

By now, you may be asking yourself what would happen if somebody tries to copy your cryptocurrency? If somebody acquires your private virtual key(s), they can control and spend your cryptocurrency. The good news is that cryptocurrency transactions are completely transparent because cryptocurrency wallets contain public virtual key(s) that allow other cryptocurrency users to send cryptocurrency in your wallet. So, cryptocurrency is generally very secure, but there are still ways for people to steal cryptocurrency without proper security precautions in place!

A cryptocurrency transaction can be viewed through a block explorer (we recommend CoinLore’s block explorer !). Each cryptocurrency transaction is shown with the involved cryptocurrency wallet addresses and amounts exchanged. You can even view all previous cryptocurrency transactions ever made by accessing the corresponding blockchain ledger!

The aforementioned cryptocurrencies dominate current cryptocurrency market share. There are over 5300 different cryptocurrencies available on CoinLore (and more keep popping up).

When choosing which cryptocurrency exchange to use, consider fees, cryptocurrency support (do they support the cryptocurrency you would like to use?) and their reputation. Be aware that cryptocurrency wallets should be used on clean operating systems, without any unnecessary software installed.

Now that we’ve covered cryptocurrency basics, let’s get into cryptocurrency mining!

 

Detail: Cryptocurrency is decentralized digital money, based on blockchain technology. You may be familiar with the most popular versions, Bitcoin and Ethereum, but there are more than 5,000 different cryptocurrencies in circulation according to CoinLore. The most popular cryptocurrency exchanges allow you to change real money (dollars, euros, etc.) into cryptocurrency. Lbe aware that cryptocurrency prices are almost always highly volatile — cryptocurrency values can change drastically during a very short timeframe so cryptocurrency investing is best left to experienced cryptocurrency traders.

There are cryptocurrency exchanges where you don’t require additional verification for cryptocurrency transactions – CoinLore is one of them! Also, cryptocurrency wallet owners should consider taking security precautions (don’t leave cryptocurrency in the same wallets used on public computers etc.) to protect their cryptocurrency value.

There are tools available that can help cryptocurrency wallet owners secure their digital currencies. Wallet applications that store cryptocurrency specific virtual keys allow users to monitor/transfer cryptocurrency without any need to access third party services. Check this article about the best cryptocurrency wallets .

By now, you may be asking yourself what would happen if somebody tries to copy your cryptocurrency? If somebody acquires your private virtual key(s), they can control and spend your cryptocurrency. The good news is that cryptocurrency transactions are completely transparent because cryptocurrency wallets contain public virtual key(s) that allow other cryptocurrency users to send cryptocurrency in your wallet. So, cryptocurrency is generally very secure, but there are still ways for people to steal cryptocurrency without proper security precautions in place! A cryptocurrency transaction can be viewed through a block explorer (we recommend CoinLore’s block explorer!).

 

 

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