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 An Easy Way To Understand Cryptocurrency

Most people were struggling to understand the internet in the early 1990s. There are now many people struggling to understand what exactly cryptocurrency is, how it works and what are the important things related to it. This guide will help you to understand the thorough concept of cryptocurrency:   What is Cryptocurrency? Cryptocurrency is a virtual currency used as a medium of exchange. It uses cryptography which is a method of protecting information and communications using codes. It works in a decentralized format which means it is not under the control of governments or any other third party. Bitcoin (BTC) is the first cryptocurrency invented by Satoshi Nakamoto in 2009. Other than Bitcoin, all cryptocurrencies are known as Altcoins (Ethereum (ETH), Ripple (XRP), Litecoin (LTC) and Monero (XMR), Dash (DASH), ZCash (ZEC) and many more)). There are 2000+ cryptocurrencies in existence. How Does Cryptocurrency Works: When Alice sends cryptocurrency to Bob. A new block of this transaction will be created and broadcasted over a P2P network. The network consists of electronic devices like computers, mobile phones and more. These electronic devices are known as nodes. The network of nodes verifies and validates this transaction. Once this transaction is verified and validated, then the block will be added to the existing blockchain called the public distributed ledger technology. This transaction is completed Where To Buy Cryptocurrency exchanges are those platforms which allow customers to buy, sell and store cryptocurrency and some of the cryptocurrency exchanges are Binance, Bitfinex, Changelly, KuCoin, Coinbase, Local Bitcoins and Bitstamp. Every cryptocurrency exchange has its own features and exceptions. Binance is the global cryptocurrency exchange where you can buy and sell 100+ cryptocurrencies. Restricted countries are Afghanistan, China, Congo (Brazzaville), Congo (Kinshasa), Cuba, Democratic People's Republic of Korea, Eritrea, Iran, Iraq, Ivory Coast, Kyrgyzstan, Lebanon, Libya, and South Sudan. Bitfinex offers customers to buy and sell cryptocurrency like BTC, BCH, BTG, IQ, TRX, GNT, AVT, DASH, DATA, EDO, EOS, ETC, ETH, LTC etc. Indian customers can use Bitfinex, but it is not available in the US. KuCoin is a Hong Kong-based cryptocurrency exchange which allows its customers to buy and sell Bitcoin, Ethereum, Litecoin, TRON, USDT, NEO, XRP, KCS, and many more. It is available in the US, UK, Canada, Japan, Indian, Australia, Singapore, and many more. Changelly allows you to buy and exchange Bitcoin (BTC), Ethereum (ETH), Ethereum Classic (ETC), Expanse (EXP), NEM (XEM) and 50+ cryptocurrencies. It is available all over the world. LocalBitcoins is a peer-to-peer bitcoin exchange available in 248 countries Bitstamp allows you to buy and sell cryptocurrency like BTC, XRP, LTC, ETH, and Bitcoin Cash BCH. It is available in India, Switzerland, Norway and 50+ countries.   Coinbase offers its customers to buy, sell and store cryptocurrency like Basic Attention Token (BAT), Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), USD Coin (USDC), Zcash (ZEC) and 0x (ZRX). It is available in 42 countries.  What To Consider Before Buying Cryptocurrency Many key factors need to be considered before buying a cryptocurrency and some of the key factors are exchange's reputation, payment options, fiat currencies, conversion fees, and processing fees. Checking the background and reputation of a cryptocurrency exchange ensures that your money will be in the right place. Different cryptocurrency exchanges support different payment options. Many of them accept payments in Credit/Debit cards. All cryptocurrency exchanges don’t accept payments in your native currency and therefore you have to convert your fiat currency. You might be charged with conversion fees. Processing fees are those percentage-based fees charged for every payment done. Not all cryptocurrency exchanges charge processing fees.  How To Buy You need to install a cryptocurrency wallet. In order to protect the wallet, you must set up a strong password. Then, create an account on a particular cryptocurrency exchange. Choose your payment option. Buy your favorite cryptocurrency in exchange of fiat currencies and keep it in the wallet. All cryptocurrency exchanges don’t provide cryptocurrency wallets. What To Buy Overstock.com, Newegg, eGifter, Dish, PizzaForCoins, Microsoft, Reeds Jewelers, CheapAir and Intuit Pay By Coin are those major platforms who accept payments in cryptocurrency. Overstock.com is an American company who allows its customers to pay for laptops, furniture, television sets etc. It has partnered with Coinbase to accept payments in cryptocurrency. Newegg is an electronic retail giant who has partnered with Bitpay. Dish is a Satellite television and Internet service provider who has partnered with Coinbase eGifter eGifter is a gift card site and mobile app who has partnered with Coinbase. It allows its users to buy gift cards from other sites like Amazon, JCPenny, Sephora, Home Depot, Kohl's and more. PizzaForCoins is a food delivery platform who allows you to order your pizza from other platforms like Dominos, Pizza Hut or Papa John's. Microsoft allows you to deposit cryptocurrency into your Microsoft account. Further, you can use it for purchasing games, movies, and apps in the Windows and Xbox stores. Reeds Jewelers is an American fine jeweler who allows its customers to buy fine jewelry, watches, and loose diamonds. It has partnered with Coinbase. CheapAir is an American online travel agency company who has partnered with Coinbase to accepts payments for air travel. Intuit provides PayByCoin services to those small businesses who want to accept cryptocurrency payments. It has integrated with BitPay. Cryptocurrency Wallets Cryptocurrency wallets store that public and private keys which are used to store, send, receive and secure cryptocurrency. Listed below are cryptocurrency wallets: Mobile Wallet: You can access your mobile wallet from any place at any time. It is completely based on the Internet. Its examples are Jaxx, BreadWallet, Mycelium, and CoPay. Hardware Wallet: It is a physical electronic device created to protect cryptocurrency. Its examples are TREZOR One, Ledger Nano X, and Archos Safe-T, Ledger Nano S, Trezor Model T and Keepkey. Paper Wallet: Paper wallets are basically cold storage used for the cryptocurrency. It is not stored on a computer and therefore private keys will not be stored on any other third party server. Its examples are BitAddress.org and Bitcoin Armory. Creating and printing paper wallets can be done through these sites. Desktop Wallet: You have to install your desktop wallet on a desktop computer. It will allow you to store your private keys, rather than storing on any other third-party server. Exodus, Multibit, Armory, and Bitcoin Core are the examples of Desktop wallet. Web Wallet: It is an online wallet used to store cryptocurrency through your web browser. It provides the fastest transactions. You can use it to hold small amounts of cryptocurrency. There are many cryptocurrency exchanges including Bittrex or QuadrigaCX provide web wallets. Online wallets like Coins.ph and GreenAddress are examples of web wallets. Cryptocurrency Mining Cryptocurrency mining is a process in which cryptocurrency transactions are verified, validated and added to the blockchain. It is also used to introduce a new cryptocurrency into the blockchain and to secure that network through which the cryptocurrency is functioned. Miners are those nodes who mine the cryptocurrency. A Cryptocurrency wallet, a mining software package, an online mining pool membership, an online currency exchange registration, full-time internet connection, a hardware setup location, an air-conditioned space, a dedicated computer for mining, and GPU or ASIC chip are required to mine cryptocurrency. Not all cryptocurrencies can be mined. Bitcoin (BTC), Ethereum (ETH), ZenCash (ZEN), Aeon (AEON),  Feathercoin (FTC), Litecoin (LTC), Monero (XMR) and Vertcoin (VTC) are those cryptocurrencies which can be mined. There are also pre-mined cryptocurrencies and these cryptocurrencies are already mined at its initial stage and some of the cryptocurrencies are Cardano (ADA), EOS.IO (EOS), Stellar Lumens (XLM), Ripple (XRP), and NEO (NEO). Hot Wallets Vs Cold Wallet Cold Wallet: It is an offline wallet used to store cryptocurrency. Protecting the wallet from unauthorized access, cyber hacks, and other vulnerabilities are easy as it is not connected to the Internet. Its examples are Ledger Nano S, Trezor Model T, Keepkey, Coldcard, and Bitfi DMA-2.       2. Hot Wallet: It is an online wallet used to store cryptocurrency. It is used to spend cryptocurrency and hold small amounts of any token. It is almost like real wallets which people use. In conclusion, the cold wallet is similar to savings accounts and the hot wallet is similar to checking accounts. Read the full article