Summary

Cryptocurrency is a digital currency network designed to work as an exchange. It uses cryptography to make safe and secure transactions. There are countless things you can do with crypto based on what you are working with. With the most simple level, it can be used to send a value to one another or be used to pay for things such as commodities and services. Another use is for trading and investing. As most cryptocurrencies fluctuate in price, people will want to buy for less and sell when the price of the coin has gone up. If you are a business, you can also accept crypto as payment for your goods and services. You can mine cryptocurrency as well. To do this you would have a computer and use its hardware to automatically generate revenue. While it does this, it can confirm transactions and send it out onto the blockchain.

There are two different types of exchanges in the blockchain, centralized and decentralized networks. Centralized network work similar to how a bank does. They are safe and they follow rules and regulations, as well as being consistent. Although they are safe, they have risks. They could be hacked very easily and the entire exchange could disappear at any given time. On the other hand, decentralized networks have their workloads spread across several devices instead of one central server. Hence the name “centralized.” The different devices serve together as a central unit that interconnects independently with other nodes. They are faster and more privatized. Consequently their disadvantages are that it is costly and have some coordination issues.

Today, there are thousands of types of cryptocurrencies. The first block-chain based cryptocurrency was bitcoin. It is still the most popular and valuable. The different types have even different categories. The three main types of cryptocurrency are bitcoin, altcoin, and tokens. Bitcoin was meant to be more of a currency then anything else but yet it has more of a store value role. People see it more as a view of gold. To decrease inflation as well, there is only 21 million bitcoin and the cryptocurrency has a market cap of more than 858.9 billion. Next, There are more than a thousand Altcoins. Most are duplicates to Bitcoin with minor changes. However there are some that are also very different. Ethereum is a type of Altcoin. Lastly there are tokens. Tokens are unique from the other types of cryptocurrency. They do not have their own blockchain but instead they are used on decentralized applications. For tokens, people either use them on the dApp or buy the tokens at a lower price and sell them for higher prices.

Whenever someone trades bitcoin, a process of computation across computers around the globe works to secure that transaction. The computation creates a 64 digit hash number for each bitcoin to show the transaction actually happened and creates a public ledger. The computer that solved that talk gets a winning of 6.2 bitcoin. A crypto mining rig is a barebone computer that has numerous graphic cards. The shortage of graphic cards was because of the popularity of crypto mining. It is estimated that one transaction takes 1,544 kWh to complete. This is about 53 days of power in an average household. Consequently, this is not cheap. This means that one bitcoin transaction costs about 200 Us dollars.

There are many ways to buy cryptocurrency. Crypto-native exchanges a number of different ways to buy and sell. To buy cryptocurrency and sell crypto currency from any given platform can vary from region to region. To buy, you can use crypto ATM’s as well las paypal. You can also purchase crypto by bank transfer, crypto transfers and even credit cards. In fact, yesterday, September 22, 2021, one of the biggest social media platforms, twitter allowed cryptocurrency exchanges on its platform.