Cryptocurrency is the monetary objects of the digital world, which do not have physical backing.
“Coin” is accepted as a unit of all varieties of currencies. The term “electronic cash” was used to describe digital money. The concept of “cryptocurrency” took hold after the publication of a large article about Bitcoin in 2011. The basic principle of digital coins is decentralization. The system is not subject to a single command module. This causes concern among the reps of public financial systems.
Open source code. All cryptocurrencies are developed in such a way that anyone can become an equitable part of the system. Mining is a technologically complex process of coin production, which is bound to the use of the computer processing power.
Anonymity of transactions. The identity of the cryptocurrency owner remains hidden, despite the full transparency of transactions. You do not need to have the documents for the transfers and payments, because the accounts are opened without additional checks.
No total control. State bodies cannot influence the cryptocurrency market in any way. Independent digital money is available to everyone, but is not subject to a single command center.
Protection against inflation. Most of the existing cryptocurrencies have an organic emission amount. This protects the coins from depreciation.
Security. The system excludes the possibility to fake up digital money. All manipulations are securely protected by encryption. Databases store information about any transaction.
All these advantages became possible thanks to the Blockchain technology. This is a consistent alignment of blocks that store information about all transactions with the cryptocurrency. It is extremely difficult to hack, fake or destroy the chain.
No guarantees. The user is responsible for the safety of his savings himself. The system does not provide for general mechanisms that insure you against theft, deception or fraud.
Variability. The cryptocurrency exchange rates are known for strong fluctuations. This is due to the fact that the coin stability directly depends on the level of users trust. The change in the legislative base, the appearance of new products and the drop in interest can provoke a collapse or a leap in growth.
Disapproval of the state. The governments of many countries are wary of the popularization of cryptocurrencies. There are cases of prohibition of its circulation and imposition of fines on violators. Although the states of the European Union are seeking compromise solutions, and are trying to take control of the digital money market, thus allowing it to exist within the generally accepted system.
Loss without the possibility of return. Your digital savings are sealed with a special “key”, which is generated in a single copy. If you lost or forgot the code, it would be impossible to get your funds back.
All operations with cryptocurrencies are irreversible. It is impossible to cancel, block, dispute or force the transaction without the private key of the user. By mutual consent of all operation participants it is possible to set bails or other terms of the transaction.
How to get cryptocurrency?
The cryptocurrency market is rapidly developing nowadays. 5 years ago the “garage mining” was really popular, it is when a PC was enough to produce the coins. Today the algorithm is so complicated that even well-developed mining farms are not always able to recoup the costs for the equipment and electricity. And although the large pools still confidently stay afloat, experts are sure that the future belongs to industrial corporations. They have unlimited resources and the funds to improve them.
The cloud mining became most promising in 2018. To become part of the system you do not need to buy computers and graphics cards. By registering on the portal, you sign a contract for 1 year. After that your account is replenished with coins. The investment pays for 200-400%. It is important to choose a powerful “cloud” with the authority in the world of digital technologies. HashFlare and Genesis Mining belong to such clouds.
You need to consider that the cloud mining is a fertile ground for all sorts of scammers. And also study the feedback on the resource thoroughly, and read the terms of the contract carefully. Safety never takes a holiday in the world of high technologies.
Bitcoin is digital gold
Bitcoin is the leader of the cryptocurrency market. It was presented on October 31, 2008 by a developer that goes by the nickname Satoshi Nakamoto. It is not known who is this person in real life. In 2011 he announced he was changing the scope of his work.
Bitcoin has an open source code that allowed creating a lot of forks and develop the idea of digital money. The emission threshold is 21 million coins.