Crypto 101
Buying Crypto - The Basics of Cryptocurrency
Welcome to jour Beginner's Guide to Blockchain Technology and Cryptocurrency! Our goal is to provide you with the knowledge and confidence to understand and explore the transformative potential of blockchain technology.
This guide is designed to make the introduction to the field less intimidating. We cover essential concepts that will help you embark on your journey into the fascinating world of blockchain technology and cryptocurrency.
Jump to :
Crypto
Blochchain"
Trading
Crypto OTC
What is Cryptocurrency ?
Cryptocurrency functions as a digital form of currency, enabling various transactions such as splitting bar tabs, purchasing desired items like socks, or booking flights and hotels. Its digital nature allows for worldwide transfers to friends and family.
However, cryptocurrency differs from traditional methods like PayPal or bank transfers. Unlike centralized online gateways, cryptocurrencies operate without organizations. Instead, you and others can become your own banks by utilizing free software. This decentralized approach facilitates direct communication between computers, eliminating intermediaries.
Using cryptocurrency doesn’t require signing up on websites with email and password. Instead, you can quickly start sending and receiving funds by downloading smartphone apps. This user-friendly process provides accessibility and convenience, enabling seamless transactions within minutes. Embrace the exciting world of cryptocurrency, where you have greater control over your finances and engage in direct peer-to-peer interactions.
Why do they call it Cryptocurrency?
The name cryptocurrency is a combination of cryptography and currency. With cryptography, we use advanced math to secure our funds, making sure that nobody else can spend them. There's no need to understand all this – applications you use will do all the heavy lifting. You won't even know what's going on under the hood.
Who invented Bitcoin?
"It is surprising that nobody knows who invented Bitcoin. All we know is their pseudonym - Satoshi Nakamoto. Satoshi Nakamoto could be an individual, a group of programmers, or, if you believe in some stranger theories, a time-traveling alien or a secret government team. In 2008, Satoshi Nakamoto published a 9-page document that detailed the functioning of the Bitcoin system. A few months later, in 2009, the software itself was released."
In the next section, we’re going to talk about the technology that the vast majority of digital currencies are based on, known as "Blochchain".
What is Blockchain?
Let’s demystify the concept of “blockchain” and cut through the technical jargon. At its core, a blockchain is simply a database. In fact, you could create one using a spreadsheet with minimal effort.
There are a few unique characteristics of blockchain databases. Firstly, they are append-only, meaning you can only add information. Unlike traditional databases where you can delete or modify entries, blockchain databases only allow for adding new data.
Secondly, each entry in the database, known as a block, is cryptographically linked to the previous entry. In simpler terms, each new entry includes a digital fingerprint (hash) of the preceding one.
That’s essentially it! With each fingerprint pointing back to the previous one, a chain of blocks is formed, aptly called a blockchain.
One crucial aspect of blockchain is its immutability. If you change a block, it alters the fingerprint. Since the fingerprint is included in the subsequent block, any change creates a cascading effect, making it evident to everyone. In essence, any alteration of information cannot go unnoticed in a blockchain.
Thats it?
Not satisfied with the previous explanation? That’s completely understandable. The real innovation lies not in creating a clunky alternative to Google Sheets but in the ability for everyone to download blocks from others in the network and build identical copies of the blockchain on their own computers. This is precisely what the software mentioned earlier enables.
Imagine you and your friends Alice, Bob, Carol, and Dan all running the software. Let’s say you want to send five coins to Bob. You send this instruction to everyone else in the network, but the coins aren’t immediately transferred to Bob.
Coincidentally, Carol decides to send five coins to Alice at the same time. She also broadcasts her instruction to the network. At any given moment, a participant can gather all the pending instructions and compile them into a block.
Cryptocurrencies aren't all the same!
Potential of Trading
You’ve probably heard about the numerous applications of blockchain and cryptocurrencies across various industries, but one of the prominent current use cases is undeniably speculation. Trading, in particular, offers a shorter-term approach to generating profits, with traders frequently entering and exiting positions. However, the question arises: How do they determine the right timing?
Enter technical analysis (TA), a widely used method for making sense of the cryptocurrency market. Technical analysts examine price history, charts, and other market data to identify promising opportunities with a high potential for profitability.
Eager to dive into trading? While it may seem tempting to jump right in, it’s important to note that trading is no easy feat. It demands careful consideration of numerous factors. Exploring the intricacies of trading requires an extensive discussion, as there is much to be mindful of.
Learn the art of chart mastery!
Exploring Crypto OTC Shops:
Crypto OTC (Over-the-Counter) shops have emerged as a convenient solution for large-scale cryptocurrency transactions. OTC shops cater to individuals, institutions, or businesses looking to trade significant volumes of digital assets outside of traditional exchanges.
Unlike regular exchanges, OTC shops facilitate direct transactions between buyers and sellers, providing a more personalized and efficient trading experience. These platforms offer a range of services, including access to deep liquidity, competitive pricing, and personalized support from dedicated account managers.
Crypto OTC shops prioritize privacy and security, ensuring confidentiality for their clients’ transactions. Additionally, they often offer flexible settlement options and support a variety of cryptocurrencies, enabling seamless execution of trades.
Whether you’re a high-net-worth individual, a corporate entity, or a professional trader, crypto OTC shops provide a reliable avenue for executing substantial cryptocurrency trades with minimal market impact. With their tailored services and focus on meeting the unique needs of large-scale traders, crypto OTC shops have become an integral part of the cryptocurrency ecosystem.
Whare can i start Cryptocurrency?
Up to date with the basics?
Hopefully these extensive range of articles and resources have equipped you with the knowledge you need to navigate the world of cryptocurrency with confidence.