Are you new to the world of Crypto Currency? This mini-guide is for you. We wll cover the basics of Crypto Currency, what it is, how it works, and why it's become so popular. We'll also introduce you to the most popular Crypto Currency coins and give tips on getting started with investing. Read on to know more in detail to have an overall bitcoin-lifestyle better understanding!
The inception
There was either a group of folks or some individual known as Satoshi Nakamoto who created the blueprint of cryptocurrency. Little did he ( or them) know what it will become in the future. The theory came into light before crypto came on the market in 2009. People worldwide mostly did not pay as much attention as we do now. However, those who did make some investment and ave held on to it till now are the real profit makers.
Satoshi
If you are reading it for the first time in your life, the first question comes to your mind is where is Satoshi Nakamoto now? Well, he (or them) disappeared from the internet after two years of the invention of cryptos. What greater of a fact is that Satoshi holds an amount of crypto which would make him the richest man in the planet. But no evidence of him alive is found till 2010. He stopped connecting to the world through the internet.
Bitcoin
Bitcoin is the first of all the endeavors in cryptocurrency. Undoubtedly, it is the biggest among all the future inventions of cryptos. Thus, bitcoin always gets the special attention of all. Having said that, bitcoin has a limit of 21 million for mining. More than that is not possible to be mined.
Since it was incepted, it has zero value. This is why not many people trusted in it. started from zero, today the value of bitcoin is 23,039 USD. However, the price of bitcoin reached 64,000 USD in 2021 not once but thrice.
Altcoin
There are not one but thousands of cryptocurrencies present in the market. the name of altcoin knows a crypto which is not bitcoin and there are different types of altcoins.
While talking about altcoins, three terms come up: stablecoins, alternative cryptocurrencies, and tokens.
Tokens are used interchangeably with cryptocurrency to refer to any digital assets except Bitcoin and Ethereum. Some blockchains, such as Ethereum, produce currencies that are both stables pegged to real currency and tokens, which can lead to some confusion (not stable).
- To mine is to generate new bitcoin by solving mathematical challenges for no monetary reward. To operate, miners require mining hardware and a cryptocurrency wallet.
- Proof-of-work: The first consensus mechanism, miners are incentivized to perform security and validation in exchange for cryptocurrency.
- Proof-of-stake is a recent consensus process in which users who stake or keep substantial amounts of bitcoin on a blockchain are randomly selected to validate transaction blocks.
- As well as being a synonym for cryptocurrency, the term "token" may be used to describe any digital currency outside Bitcoin and Ethereum.
Cryptocurrency trading
Crypto trading are very much similar to the stock trading with slight different procedures and rules. In this, the investor must go with both kinds of investments, such as day trading or holding it for a longer time. And to accomplish this, they would require a platform called exchange or crypto exchange, to be precise.
Blockchain technology
Blockchain technology is the backbone of bitcoin and many other cryptos. The network system keeps note of every detail of transactions and mining. As the mining process is done for one crypto, one block is created to hold the new information since the time of the creation.
Cryptocurrency wallet
Cryptocurrency wallet might seem like a twisted concept, but it's not. Crypto wallet is the virtual space that holds up to the cryptos. Also, crypto wallets are of multiple in kinds of which you can choose according to your need.
Conclusion
This is the basic cryptocurrency that is best known as a fresher in the field. Do a lot of research when you are thinking about proceeding. Talking about the exchanges, finding a real one is of immense need, and one can join bitcoin pro today.
