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Understanding the Basics of Cryptocurrency Trading on Exchanges

Cryptocurrency trading is a popular way to get started with cryptocurrency. It's also a great way to multiply your funds if you're an experienced trader. In this post, we'll give you the basics of how cryptocurrency exchanges work and help you choose an exchange.

What is Cryptocurrency Trading?

Cryptocurrency trading is the process of buying and selling cryptocurrency on an exchange.  Cryptocurrencies are digital assets that can be exchanged for other cryptocurrencies, for example, you can exchange eth for sol , or for fiat currency (US dollars).
You can use a cryptocurrency exchange to trade your coins, or you can buy them directly from another person. Some exchanges offer both options: they allow users who want to trade coins with one another and also serve as platforms where people buy and sell their coins with each other through the site's interface. Exchanges work like stock markets but instead of stocks being traded, it's digital currencies such as Bitcoin that get exchanged back and forth between traders using their funds from bank accounts or credit cards on file with these sites' payment processors like PayPal or Stripe.

How Cryptocurrency Exchanges Work

A cryptocurrency exchange is a type of online platform where you can buy, sell, and trade cryptocurrencies. These exchanges act as intermediaries between buyers and sellers, allowing them to trade with each other at an agreed-upon price. The most popular ones are those that support fiat currencies like USD or EUR (the euro), but some also allow you to trade using other cryptocurrencies like bitcoin.

Cryptocurrency exchanges work similarly to stock exchanges: You place your order with one person who's willing to sell their coins at the price you're asking for, then someone else comes along with enough money in hand for them both, and voila! You've just made yourself some money by selling your coins on the market. Just like stock markets have different rules depending on where they're located (for example Japanese stocks tend not to be traded outside Japan), so too do cryptocurrency markets differ from country to country based on local regulations regarding trading platforms such as these here in Europe versus those located elsewhere around the world such as China's YuBigChina Exchange which recently launched its coin called YBC Coin which aims specifically towards Chinese citizens looking into investing but don't necessarily know how yet because there aren't many educational resources available locally yet either.

Choosing a Cryptocurrency Exchange

If you're new to cryptocurrency trading, it can be difficult to know where to begin. The first thing that you need to do is choose an exchange. There are many different exchanges out there and they all offer different features, so you must choose one that meets your needs.
Some things to look for when choosing a cryptocurrency exchange:
Reputation - before signing up with an exchange, look at its reputation, read reviews from other users who have traded on that platform, and you can also check if it is legal.
Security features - some exchanges require users' personal information before allowing them to access their accounts. And some exchanges don't require any personal information at all!
Available cryptocurrencies - Look carefully, because some services may only allow certain cryptocurrencies, while others may offer more options.
But the more options a company offers, the higher the transaction fees can be.

Tips for Successful Cryptocurrency Trading

As with any investment, it's important to do your research and choose an exchange that is well-known and trusted. You should also be aware of the risks that may arise when trading cryptocurrencies. One of the most common mistakes people make when first getting started is investing more than they can afford to lose, so make sure you have a budget set aside for this activity before committing any funds.

Conclusion

We hope that this guide has helped you understand the basics of cryptocurrency trading on exchanges. If you want to learn more about trading, we recommend checking out our other articles on this topic!

Introduction to Bitcoin - A Comprehensive Beginner Guide

Hi folks, I hope you guys are doing great. In my previous post, I have discussed what cryptocurrency is. Before I go in detail about Bitcoin, let me tell you. Go and read the last article about cryptocurrency. As you should have information about cryptocurrency before jumping into bitcoin. Bitcoin has become a buzz word now. It’s been around 12 years since Bitcoin release.  A person or group of people name Satoshi Nakamoto emerge bitcoins that host a digital currency bitcoin. The individuals who already knew about Bitcoin are curious about it that how is it going to leave an impact on our daily lives in the future.  I am here to answer all of your questions and that will clear all your doubts and curiosity. So we are going to cover all these topics down below:

• What is Bitcoin?
• Understanding of Bitcoin in Depth.
• How Does Bitcoin work?
• What is Mining?
• Useful Definition for Bitcoins wallet.
• How can I store my Bitcoins?
• Types of wallets.
• How to Buy Bitcoins?
• Pros of Bitcoin.
• Cons of Bitcoin.
• Conclusion.

Introduction to Bitcoin

• Bitcoin is the official first cryptocurrency that had been released in 2009. It is basically a digital currency and only exists electronically.
• Bitcoin becomes known in 2009 when the world economy was on the crisis. Those big banks were doing fraud with clients and manipulating the system.
• So, basically Bitcoin founder actually wants to get rid of the third party and put the seller in charge. They want to make transaction safe and secure without any interest fees and corruption.
• Bitcoin is a decentralized system, it means it doesn’t have any central hub or any insinuation like banks etc that controls the amount of Bitcoin.
• Bitcoin has come too far in such a short time.  Now globally different big companies are accepting Bitcoin as currency.

Understanding of Bitcoin in Depth

Bitcoin has a different importance for different persons. The Bitcoin process is organized and easy to understand.  Bitcoin uses peer to peer technology for the transaction of Bitcoins. All of these transferred are tracked on “Blockchain” and known as the giant ledger.  This giant ledger saves all the transaction of Bitcoin that ever made. The giant ledger records every transaction and whenever it made. 17 million bitcoins are currently in circulation. No one is yet controlling the supply of bitcoins, that’s means that supply is controlled by design. The total supply of bitcoins that will be ever created is 21 million bitcoins.

How Does Bitcoin work?

Before further getting into details about working of bitcoins, if you are not interested in the technical process then you can check my last article about cryptocurrency where you can find a simple example of bitcoin working. As I told before, Bitcoin is decentralized and work on a giant ledger also called a blockchain.  Bitcoin is a secure process and uses a great verification method which minimizes the risk of hacking and fraud. Volunteers of bitcoin referred to as” miners” who constantly update and verify the blockchain as you all know that bitcoin is decentralized. When a specific amount of bitcoin transactions is verified then another block is added to the blockchain and that’s how the business continues as usual. May you have heard the term “mining” many times when reading about bitcoins. So I will explain to you briefly today about mining.

Introduction to Mining?

As you all know now that in bitcoin there is no central hub for verifying the transaction of bitcoins. So all the people on the networks are verified each transaction. The people who are verifying transaction are miners and all of this process will be called Mining.  Mining is a process that keeps the bitcoins secure by adding the new transaction or updating it and keeping them in the ledger. Let me explain the process simpler so you will understand. Now you must be thinking how could a person sit 24 hours for this single process and verify and update all the procedure. Actually, there is not any human being who is doing this process but hardware are used to perform Bitcoin mining.  And these hardware called miners. Miners are presented with math problems and the first one who will solve this problem will add a new transaction (or block) in the ledger. All of these calculations are stand on Proof of Work. There is a reward system involved in the process of Bitcoins. The one miner who will solve first will get a reward. The reward got changes over time with the update of Bitcoin programming. The most successful process uses in bitcoin is ASICS–Application-Specific Integrated Circuits.  ASICS are hardware systems similar to CPU but these are only designs for bitcoin mining. All of the mining processes take a lot of power and effort. The competition is higher in this bitcoin mining and that makes it difficult for new people to enter the race and get profit.

Bitcoin wallets

There are different applications you can use to store your bitcoins in the wallet.  As you all know already this is a digital currency and you can’t keep it in your pocket.  But first, let me introduce you some useful definition before going further in detail.

1. Exchange Platform

It is a platform where you can trade money to cryptocurrencies such as Bitcoin, Litecoin or Ethereum. You can also buy and sell one cryptocurrency to others.

2. Hard Wallet

It is an offline wallet that is not linked to any network.

3. Public Cryptographic Key

The Public Cryptographic Key is like your bank account number. The Public Cryptographic Key is the information you give someone to receive cryptos.

4. Private Cryptographic Key

It is key that will allow you to spend your bitcoins or any other cryptocurrency.  You can't share it with anyone because if you did they can steal your bitcoins or transfer to their wallets.

5. Wallet platform

Wallet platform is like your bank account where all of your cryptocurrencies are kept.

How can I store my Bitcoins?

Now you can understand the bitcoin wallet terms easily. Let’s jump into it with further details. Bitcoin has secure transaction technique and it is difficult to hack the wallet and if you had ever heard that bitcoin being hacked. It does not mean that someone wallet got hacked but it would be probably the exchange platform. There are different wallet platforms and are extremely secure that make it impossible to hack.

• Full Client

It is an email server that handles all the aspect of processes without relying on any third party. It allows you to control your whole transaction from beginning to end by yourself.  But sadly this is not for beginners.

• Hard Wallet

A hard wallet is like a USB that allows you to store cryptocurrencies key offline. Your cryptocurrency will be only live on your hard wallet and it is not possible to hack unless someone steals your hard wallet.

• Web Client

A web client is opposite to Full client. It totally depends on the third party. The third party will help you to operate your all transaction.

• Lightweight Client

This is an alone email client that helps you in connect to mail server to access all the email.  It would store all your bitcoins but it also needs a third party server owned server to access the network and make the transaction.

Types of Bitcoin wallets

Wallet basically comes with five different main types. Each type has its own advantage and disadvantage.

• Desktop
• Mobile
• Web
• Hardware
• Paper

How to Buy Bitcoins

It was difficult to buy bitcoin in the past because of the trouble of finding a trustworthy place to buy bitcoins. But now as the popularity of bitcoins, the demand for bitcoins got increased and many new companies have decided to help in easily purchasing Bitcoins. Now day’s bitcoins exchanges are receiving huge investments. Coinbase is a good platform to buy and sell your bitcoins. Its got launched in 2012 and providing users with an easier way to buy bitcoins. It is the easiest ways for newcomers who want to buy bitcoins. Gemini is another great place to buy bitcoins. It was founded in 2015 by Tyler and Cameron.

Pros of Bitcoin

• Payment can be made to anyone and at any time instantly
• Does not require any third party for the transaction
• Data of Bitcoin can’t be manipulated by any person, bank, or government
• Processing fees of bitcoins are low
• Transaction of Bitcoin can’t be reversed

Cons of Bitcoin

• Bitcoin Exchange hacks
• Mining Scams
• Lack of adoption by business
• The strength of bitcoin lies in its networking effects.
• Transactions are slow and you have to wait almost ten minutes for your network to approve

Conclusion

Everything in this world comes with advantage and disadvantage. Now it is up to you how you will use it in your life. Bitcoin is free from third party interference and manipulations. It is a transparent system where you are aware that what is happening with your money. Bitcoin is going to grow stronger when most of the people will be aware of its efficiency. NOW it is time for your respond. What do you think about bitcoins? Comment down below for any further query and suggestions.

Introduction to Ethereum (ETH) - Complete Guide For Beginners

If you want to know what is Etherum, then you are in the right place. I am going to tell you in detail about what Ethereum is, and how does it work. There will be also the pros and cons of Ethereum. As I discussed in my previous articles about them with complete guide. That bitcoin was created in 2008 by Satoshi Nakamoto. But no one knows who he is and the interesting thing about bitcoin is that it is decentralized and nobody owns it. There is no COE, CMO, CTO, etc. In it. They are all developers who are working from around the world.  So, if you don’t know about them, then start off by reading them. The question that might come up in your mind that what Etherum is and what is the reason behind the existence of Ethereum. Don’t worry, I will explain each and everything in detail down below. You must be aware of the fact that our data are stored on other peoples' computers.  Clouds and servers are owned by Amazon, Google, Facebook, etc. Even this single tiny article is stored on some cloud.   As we all know that our data on the internet is not safe. There are different authorities who can access our data at any time and they can get our personal data, financial and passwords. The hacker and the government can access your data at any time and can modify it. In short word, they can change or leak and steal your data anytime. People from diverts platforms come outside and said that the internet was meant to be decentralized.  That's why blockchain technology emerged to achieve the goal of making the digital world decentralized. And Ethereum is the newest technology to join this trend.

What is Etherum?

• Etherum is an open software program based on blockchain technology. It allows developers to develop and extend decentralized applications.

Is Etherum is related to Bitcoin? No, they are not similar much, but kind of similar in different ways. I will discuss them with you in detail.

Similarities

• Ethereum is a public blockchain network like Bitcoin.

Differences

• Their purpose and capability of doing work are different.
• Etherum is focused on running the programming code of any decentralized application, but bitcoin focuses on only one application.
• The bitcoin blockchain is used to trace the ownership of bitcoin. While Etherum focuses on running the program code.
• There are real people who are working behind this cryptocurrency
• It is based on smart contracts

 

What are smart contracts?

Smart contracts are a digital code well some people call it only code. It is also called “Digital Triggers”. You can implement them online to execute a certain task that you need. Let me explain it with an example.

Virtual vending machine

I put an escrow and add some of certain rules in escrow. Meaning, when certain people will register their five votes into escrow automatically. And then automatically that escrow will open up and send five people this cryptocurrency ether.

vending machine

Or maybe some of you will understand with this simple example. It is the same as a vending machine where you will put a dollar then press a code and that code will execute a trigger. And that triggers in all spin on a different candy bar for you and you will get the one you pressed code for. Smart contracts are based on rules and laws. And it is just a computer code that can help you in exchange money, share, content, and property, etc.  A smart contract is a self-operating computer program that runs when it meets specific conditions. It runs on the blockchain as they programs without the interpretation of any third party.  While blocking programmed have the ability to process code but in very restricted manners. But Ehterum is totally different, they allow developers to build operations they want. That means a developer can build different applications. In the Etherum blockchain miner works to earn Ether.  Ether is a type of crypto token. Notes: Okay let me clear you what Ether is and it is the currency that is used to buying services in Etherum.  And Ether is a digital currency that is used for trading. There is also a one more token too, that is used to pay miners fees to include transactions in their block. And it is called Gas.

History of Etherum

Etherum has a  controversial and significant history. Etherum was founded by the taluk butyrin and got released in 2015. It is becoming better to know cryptocurrency outside Bitocin. It has a completely different blockchain protocol. Recognized for sorting all the computer programs. The purpose behind creating Ethereum was to take advantage of the potential provided by blockchain technology.

What Ethereum can be used for?

It allows developers to build and extend decentralized applications.  Dapp or Decentralized app serves a different purpose to its users. For example, bitcoin is a Dapp that provides its users a peer-to-peer digital cash system and that enables a bitcoin online system. A decentralized application is one that runs on the blockchain network, and it is not controlled by any single person or central hub or entity. Through Ethereum any service that is centralized can be decentralized, for example, voting system, loan provided, etc. Etherenum can also build Decentralized Autonomous Organizations (DAO). DAO is fully decentralized without any leader. It runs on programming code and on a collection of the smart contract written on the Etherum Blockchain. It can be own by anyone who buys its token. But instead of each token equalizing to equality shares and ownership. This token acts as contributing and that contribution give different people voting rights.    It is also used as a platform to launch other cryptocurrencies. Lately, Ethreum has created a new standard to track unique digital assets. Different games are developed recently using this technology like overnight hit crypto-kitties.

Advantages of Etherum

Here is the main advantage of Ethereum that will develop your more interest in it.

• A third party can’t change its data
• All the applications, organizations or projects that are running under Etherum cannot be turned off.
• The security in Ethereum is super strong because of the PoW consensus and cryptographic techniques that are used in the transaction model. The central point network is so strong that protects the model from hacking and manipulations.
• Because of Pow consensus censorship is unfeasible.

Disadvantages of Etherum

• There is nothing in this world that does not have any disadvantages. Everything comes with its own advantage and disadvantages and that makes it more attractive and grab peoples' attention.
• Here is the disadvantage of Etherum:
• It is capable of being attacked by hackers. That can be used through the complexity of the basic programming language used in smart contracts, Solidity.
• The Ethereum main focus is on decentralization and security over Scalability.

Ethereum Mining

As you have read in another article about bitcoin mining. It is similar to bitcoin mining, you will know about it more when you read it. But still, there are few major differences between bitcoin mining and Etherum mining. In Ethereum mining blockchain is not only stored the transaction list of the blockchain but also note down the most recent state of the network.

1. Use Patrica Trees rather than Merkel Trees in its blockchain regulations that enable Ethereum to efficiently store.
2. The block time is 12 seconds.
3. Miner paid for gas expended in blocks.
4. The reward of the static block is 3 ETH.
5. The Ethash Mining Algorithm (Uses DAG).
6. There is an extra reward for including Uncles as blocks.

If you are in a hurry and don’t have much to read all the article. You want to know the answers to the questions. Then read them below, there are few important short questions about Ethereum is available for you.

• What is Etherum? A Blockchain application platform.
• What is Ether? It is the fuel of the Ethereum network.
• How to use Ethereum? By dapps, wallet, and trading.
• Who created Ethereum? Vitalik Buterin.
• How Ether Works? It is work by turning complete programming, EVM and State
• How Etherum Mining Works? It works by “Proof of stake” and “Proof of work”.
• How to Mine Ethereum? By pooling and mining software and GPUs.
• How do Ethereum smart contracts work? It worked with gas, transaction, and fees.

Conclusion

So now you have a clear idea of what is Etherum unless you don’t, then read this conclusion with full concentration. It will help you in understanding different things. As you all know Ethereum is one of the most popular platforms in cryptocurrency and the blockchain world today. Looks like Ethereum is going to stay for a long time in the decentralized application.   It is helping us in changing the way of the usage of the internet. So let us know if you have any questions related to this article. I will love to answer all your questions. And tell us what is your favorite cryptocurrency so I will cover that cryptocurrency in my next post.

What Is Ripple (XPR) - Everything You Need To Know

If you have an interest in cryptocurrency then there is no doubt that you have NOT already heard about Ripple (XPR) or What is Ripplee (XPR). Ripple is not just a cryptocurrency, it is also a platform. Ripple is an open source platform which allows doing cheap and fast transactions. I have put together this complete beginner guide for you. I am going to discuss everything you need to know about Ripple (XPR). Ripple is one of the top five cryptocurrencies and on the top of the list is as usual bitcoin and Ethereum is holding a second position. Ripple is in the third position. We are going to cover every aspect of ripple for you, so have patience and read it till the end. You are going to learn so many new things about Ripple in this article you may have not heard before. For deeper information about Ripple keep reading. The topic I am going to cover are:

• what is Ripple (XPR) ?
• What is RippleNet - How does Ripple Work?
• What is the Ripple protocol Consensus algorithm RPCA?
• Uses of the Ripple.
• Banks Support Ripple.
• Benefits Of Ripple.
• Is it safe to invest in Ripple?
• How is it different from Bitcoin?
• Where can you buy XRP?
• Which wallet to save XRP?
• Conclusion

So, you must be thinking what is Ripple (XPR)? Ripple was founded in  2012 by a San-Francisco Fintech company name Ripple Lab Inc. The aim of this company was to provide instant, secure and affordable transaction platform. Brad is the CEO of Ripple Ripple has built upon the open source an internet protocol. Ripple has an aim to increase the efficiency of the transaction between financial institutions. The word  Ripple is most of the time used to refer its digital currency XRP. But they allow other people to use this platform and create their own RippleNet.

What is RippleNet - How does Ripple Work?

RippleNet is a network that provides payment to different organisations like banks and other money service business. They all use solutions what Ripple has provided them to send money globally with a smooth experience. Might be you have not understood what actually Ripplenet network does and how it helps individuals.  Here is an example for you. Justin lives in Newyork and has a cookie box he does not need. He is just interested in watching a football match. But he does not have a ticket. Adam who lives in a California has a rare book which he would like to giveaway for a cookie box. Annie who lives in Los Angles has a ticket for a football game and has not any interest in a football game. But want to read an interesting or a rare book. We are living in a system where we don’t have sources to find each other and make our not valuable things valuable. But in the Ripple platform, you could by saying “Hey, I have a cookie box but I want a football game ticket”.  Then Ripple network will look for a shortest and efficient way to make it happen. Besides it, it allows making payment in any currency including bitcoin. The minimal transactional fee is $0.00001. It is only because of preventing the system from DDOS attack.

What is the Ripple protocol Consensus algorithm RPCA?

As I told you before that Ripple has a distinctive way of working than Bitcoin and Ethereum. It does not have a blockchain but uses its own technology RPCA to verify transition and make sure everything is ok. Word ‘Consensus’ means that if every node agrees with the rest then it means there is no issue. Here is an example: Suppose there is a place where ten wise man lives and a city need all of them agreed on one thing to make a decision. The decision could be anything like about the release of prisoner or rises of tax etc. But if one of them disagree then nothing will happen until we figure out what is his problem.

Pros of Ripple

• Low commission currency exchange

As you all probably aware of the fact that many currencies can’t convert directly with each other. That's why the banks use the US dollar as a medium to convert currencies. Therefore banks take a double commission for converting money. They will convert A money to US dollar and again US dollar to B money. Ripple also works as mediators but is much cheaper than US dollar.

• Fast Worldwide Transactions

Regardless of cheap commission Ripple is a fast international transaction mediator. The average transaction time of Ripple is 4 second. If we compare it with Bitcoin which takes hours for the transaction and regular banks take days.

• Payment ecosystem

It is an interesting fact that a user can create his/her own currency for transaction. For example, an individual can create a currency to buy a football game.

Banks Support for Ripple

1. Yes Bank
2. Santander
3. Axis Bank
4. Westpac
5. UBS
6. Union Credit
7. NBAD

Benefits Of Ripple

There are so many benefits of Ripple that can amaze you. Here are a few important ones I am going to highlight in this post.

• More powerful than bitcoin because it is a day to the day payment system. Moreover, it is the fattest and efficient platform in a transaction.
• An official organization started Ripple. So their main goal is to be used by a bank.
• Ripple has an ability to change in any currency including gold etc with a minimal commission.

Is it safe to invest in Ripple?

As I told before in 8 Best Cryptocurrency To Invest In 2019 article that what are the best cryptocurrencies for you to invest in. As you all know that there is not a single place in this world where investment is 100% safe. There is always risk include in your any decision. Regardless of all the fact following are some advantage and disadvantages for you.

Advantages:

• As I mentioned above that Ripple is the most trusted digital currencies by many banks. Because it is not a company with no name but there is an organization behind it.
• All the tokens have already existed, and there is no doubt of inflation.
• Ripple currency is climbing the currency chart and now is on 3rd position.
• The XRP value will be increased if banks start to use it as their transaction platform.

Disadvantage:

• It is centralized, but the cryptocurrencies are recognised for decentralization. Ripples developer can control its number of releasing or not releasing. It is like a bank.
• There is also on another drawback that ripples lab has owned it 61 percent of coins.
• There are chances of being hacked despite its open source and very smart built.

Difference between Ripple & Bitcoin

The main contrast between Ripple and Bitcoin is that:

1. Ripple is centralised but Bitcoin is decentralised.
2. Bitcoin is blockchain based technology but Ripple is not.
3. Ripple uses HashTree to compile the data.
4. The main focus of Ripple is to move money across the world fast.
5. Token of Ripple is not mined like Bitcoin or other cryptocurrencies.

Where can you buy XRP?

There are different platforms available where you can buy XRP. You can buy it from these exchanges.

• Binance
• Bittrex
• Bitstamp
• Kraken
• Bitfinex

There are many other different places where you can buy but these are the most popular and trusted one.

Which wallet to save XRP?

When you will buy XRP, you must have to hold them in a wallet safely. I am going to share with you the best wallet for XRP. The ledger Nano S is the most used hardware wallet, its support XRP storage. As it is a hardware wallet and it is safer to store your cryptocurrency and easy to use. I will always recommend using a hardware wallet. It is another one of the most used wallets, Toast Wallet is an open source wallet. It is available on Windows, Mac, Linux, IOS and Android. It is a software wallet and I will not recommend you to store a large amount of XRP.

Conclusion

I hope you could understand now What Ripple is and how it's work - It allows almost immediate cross border transaction with cheap cost. Ripple is the 3rd biggest coin by market capitalization. Moreover, Standing at the same position for a long time is not an easy task but XRP is doing it for a long time. Ripple is reaching their goals by doing all the advancements in the system and adding more banks to their system. Ripple holds significant financial capital and doing all the effective partnership with big companies. Besides, if XRP got to succeed in gaining Worldwide adoption then the transaction amount will be tiny as compared to current costs. But nothing is happening like this for now. But we can be hopeful for a change. What do you think about Ripple and XRP? Are you going to invest in XRP in future or have you invested? Let me know by commenting below and if you have any query feel free to ask. I am going to cover many other cryptocurrencies topics that you should know except What is Ripple (XPR) - A complete beginner guide.  So keep visiting our Blog or bookmark our website and visit it daily or weekly for the latest cryptocurrency updates.

Introduction to Cryptocurrency - Complete Beginner Guide

Hello friends, I hope you all are doing great. In today's tutorial, we will have a look at a detailed Introduction to Cryptocurrency. You may have heard the term cryptocurrency first time from your friend, family or colleague and you will be confused. What is it? Why would someone need cryptocurrency in their life? They may have told you about it briefly that it is like a dollar or other currency etc.

We have decided to publish a series of articles where we will explain cryptocurrency in simple and easy-to-understand language. So let’s walk through this together.

I am here to help you and going to explain it in the easiest way that anyone could understand. It is a complete beginner guide for the one who does nothing about cryptocurrency and heard about it first time in their life. Besides, you can check out Dchained to find tons of information about cryptocurrencies and how to work with them.

Before we further go into detail. Let me tell you now that maybe there are not many people who do know about cryptocurrency but it is becoming globally phenomenal now.

The topics we are going to cover in this article are:

• What is cryptocurrency?
• History of cryptocurrency.
• What is the story of bitcoin?
• Cryptocurrencies in reality?
• What can we do with cryptocurrency?
• How does Cryptocurrency work?
• Name of the most popular cryptocurrencies.
• Can you transfer cryptocurrency to a bank account or trade for cash?
• Why should you buy a cryptocurrency?

What is cryptocurrency?

The easy answer to this question is: Cryptocurrency is digital money.

• Cryptocurrency is a digital or virtual currency and it doesn’t have any physical form.  It is the medium of exchange in the digital world.

To secure transactions between mediums, it uses cryptography (cryptography is the skill of encoding code). Crypto means hidden and cryptography means hidden code that no one can understand except the sender and receiver. Cryptography makes transactions secure.

The aim of cryptocurrency is to do a transaction with each other without any third party i.e. banks.

History of cryptocurrency

• In 1990, few digital geeks try to make currency through cryptography because they didn’t want to depend on third parties for sharing their money and information.
• They wanted freedom because they thought the government had too much power in their lives. In other words, digital geeks didn’t seem to trust third parties.
• They tried to make digicash and cybercash on those times in the 90s but in the end, got failed in this attempt.
• After that, no one particularly seemed to work in this cryptocurrency field. But in 2009 an unknown entity “Satoshi Nakamoto” created Bitcoin.
• You have to understand what Bitcoin is to understand cryptocurrency.

What is the story of Bitcoin?

• It is a secret who Satoshi Nakamoto is. Because still no one knows either it is he or she or a group of people. He only communicates with others through email and crypto forums.
• Satoshi Nakamoto said in his announcement of bitcoin “A Peer-to-Peer Electronic Cash System is developed for Bitcoin".
• Satoshi Nakamoto published a paper in 2008 and described how Bitcoin actually works. The First Bitcoin transaction was made on January 12 between Satoshi Nakamoto and a coder Hal Finney of 10 BTC.
• Within a time Bitcoin becomes more popular among different people who thought it is important and going to become more popular in the future.  One Bitcoin was worth one dollar in April 2011. But in December 2017 one Bitcoin was worth more than 20,000 Dollars. Today the price of one Bitcoin is 4,991 Dollars.
• Now hundreds and thousands of people are currently using it and there is no third party included in this process. There are different famous websites that are accepting bitcoin currency on their websites like WordPress, Piratebay, ok cupid and Reddit.
• There are many other digital currencies that are working on the same basis but are using different codes for them like Ethereum, XRP, Litecoin, Primecoin, etc.

Cryptocurrencies in reality?

In the simpler word, the reality of cryptocurrencies is that If we take all the problematic equations out of cryptocurrencies and reduced all the noise. Then you will discover that it consists of only on simpler entries or records in the database and no one can change it until meeting a few particular conditions. This maybe seems strange to you or usual, but the reality of the currency is this simpler. Here is an example of your daily life. Let’s talk about your bank account money. The money you have in your bank account is nothing more than entries in a database. These entries of the database only can be changed under some specific conditions.  Hence money is all about verified entries in some sort of database of records and balances.

What can we do with cryptocurrency?

• In the past merchant was not accepting any cryptocurrency.  But now day’s situation is different and merchants are accepting cryptocurrency.                                      
• Cryptocurrency has so many benefits now. You can send your money to the family without getting extra charged fees by 3^rd parties like banks etc.  You have no longer to worry about an invalid check and payment fraud by different people or companies. All transitions will be secure and you can send them directly to anyone.
• Bitcoin is so common nowadays and people are using it for paying hotel bills, flights, apps, jewelers, college degrees and so many more.
• Different other digital currency of cryptocurrency is not common yet and not accepting widely by merchants. But things are changing slowly and even APPLE has authorized ten cryptocurrencies. Now people can pay through these cryptocurrencies for the app store.
• There are different market places like openBazar & Bitify that only accept cryptocurrencies.

How does Cryptocurrency work?

In cryptocurrency, there is not a single central record of the transaction. But they distribute many copies of the ledger around the world and each owner of each copy record every transaction. They trust each other. How? Let me explain in a simpler word for you! For example, you are going to buy something using cryptocurrency.  You will give him all the details about yourself and then the merchant or shopkeeper will ask all the other bookkeepers who have a record of each owner that if that buyer is good for the money.  Then the record keepers will check from their records to see if the buyer has enough money.  If the buyer has enough money then they will tell the shopkeeper that he/she has money. So, when the new transaction will be made now everyone will update their records to show the movement of money.  Keep in mind that all of the bookkeepers and ledgers are lots of computers, not people. Hence there is no way of making a fake transaction in it. But if someone tries to change a ledger and it would not match the rest of the copies and its get rejected. Then one of the random bookkeepers will get a reward for it.

Name of the most popular cryptocurrencies

• Bitcoin: Bitcoin is the first cryptocurrency that started in 2009 by Satoshi Nakamoto. It is the most popular cryptocurrency and accepted globally.
• Ethereum: Ethereum is a programmatic cryptocurrency that allows developers to build different apps and technologies. It is the most trustable cryptocurrency after Bitcoin.
• Ripple: Ripple does not use blockchain method for the transaction. They use a different iterative consensus process for a transaction which makes it faster than Bitcoin. But it is a weak technique and hacker can hack easily. Ripple is, in fact, RTGS(Real Time Gross Settlement System).
• Bitcoin Cash: Bitcoin cash is a part of Bitcoin and Bitcoin support it in manufacturing ASICs Bitcoin mining chips.
• NEM: NEM use proof of work algorithm that is different from all other cryptocurrencies.  NEM used proof of importance which requires users to already have few coins to get the new one. In this, you can track your transactions result and others too. It will tell you the importance of particular users.
• Litecoin: It started in 2011 and the intention of this cryptocurrency was to be the “digital silver” compared to Bitcoin which is “digital gold”. It is also a part of Bitcoin and this cryptocurrency can be mined.  It can be used in transacting services and goods.
• Monero: Monero can provide you more privacy and you can’t trace easily through monero as comare to Bitcoin.  It used signature technology that makes it untraceable and secure.
• Dash: Dash is actually digital cash and its use anonymization technology to secure the transaction. It was also known as Darkcoin and is secure and fast. It is a two-tire network.
• IOTA: Ledger technology does use in IOTA cryptocurrency.  Proof of work requires in this also from a sender for the transaction.

Can you transfer cryptocurrency to a bank account or trade for cash? Yes! Definitely, you can transfer cryptocurrency to a bank account or trade for cash. There are many banks that are making it possible with fast and secure options.

Why should you buy a cryptocurrency?

There are so many reasons for buying cryptocurrency is but the most essentials are:

• Easy to start and you can manage different and many accounts.
• Safe place from hacker and cybercriminals.
• Don’t need to share your personal information for buying cryptocurrency.
• A single nickname can buy you all the digital money.
• Millions of users are already using it and it getting bigger day by day.