Crypto Currency for Beginners

A.D. In the early days of 2009, thousands of bitcoins were used to buy pizza. Since then, the cryptocurrency meteoric has risen to US $ 65,000 in April 2021, and by the middle of 2018, the heart rate is about 70 percent to US $ 6,000. She misses the boat.

How it all started

Remember that dissatisfaction with the current financial system has led to digital currency growth. The development of this cryptope was based on blockchain technology by Satoshi Nakamoto, a name used by developers or a team of developers.

While there are many speculations predicting the death of Cryptop, Bitcoin’s performance has sparked many other digital currencies, especially in recent years. The success of the blockchain-funded campaign has attracted the attention of unsuspecting people and has attracted the attention of regulators.

Beyond bitcoin

Bitcoin has inspired many other digital currencies, and there are currently over 1,000 versions of digital coins or tokens. They are not all the same and their values ​​vary as much as their fluidity.

Coins, altcoins and tokens

Suffice it to say that there are good differences between coins, altcoins and tokens at this time. Altcoins, or alternative currencies, generally denote the pioneer Bitcoin, although altcoins, such as ethereum, litecoin, ripple, dogecoin, and dash, are considered ‘main’ coins, meaning they are traded in many crypto exchanges.

When coins are used as currency or storage, tokens provide a service, for example, supply chain management.

It is important to note that low-value tokens or coins offer upward opportunities but do not expect the same metric increase as Bitcoin. Simply put, popular tokens can be easy to buy but difficult to sell.

Before you get into cryptocurrency, study Value Proposal and Technology Assessment a-Visa trading strategies with white paper with each first coin supply or ICO.

For those who know stocks and shares, it is no different from the original public offering or IPO. However, IPOs are provided by companies with tangible assets and business history. It all takes place in a well-adjusted environment. The ICO, on the other hand, is based solely on the idea of ​​a white paper business – still in operation and without assets – to start a business.

Uncontrolled, so beware buyers

‘One cannot control the unknown’ probably summarizes the situation with digital currency. Supervisors and regulators are constantly trying to get the most advanced cryptocurrencies. The golden rule in crypto space is ‘caveat emptor’, be careful buyer.

Some countries are pursuing blatant fraud against crypto currencies and blockchain applications, following obvious scams. However, there are regulators in other countries who are more concerned about the damage than the use of digital money. Supervisors generally recognize the importance of balance and some look at the rules on bail to try to control the tastes of many cryptocurrencies worldwide.

Digital Wallets: The First Step

A wallet is essential to get started with cryptocurrency. Think e-banking but reduce legal protection in the case of virtual currency, so security is the first and last idea in the crypto space.

Wallets are a digital type. There are two types of wallets.

  • Hot wallets connected to the internet put users at risk of being hacked

  • Cold wallets are not connected to the Internet and are considered safer.

It should be noted that in addition to the two main wallets, there are wallets for one cryptotype and others for multiple cryptocopies. You also have the option of having a multi-signature wallet similar to having a shared account with a bank.

Wallet choice depends on the user’s preference for bitcoin or ethereum, because each coin has its own wallet, or you can use third-party wallet security features.

Wallet notes

The crypto wallet has a public and private key with private transaction records. The public key includes a reference to the encryption account or address other than the name required to receive the check payment.

The public key is visible to everyone but transactions can only be verified and verified by mutual agreement with each cryptocurrency.

The private key can be considered as the PIN commonly used in e-finance transactions. Therefore, the user should never reveal the private key to anyone and make backup copies that should be kept offline.

While large amounts should be in a cold wallet, it is reasonable to have a small amount of secret currency in a hot wallet. Losing a private key is as good as losing your cryptocurrency! From secure passwords to malware and phishing scams, the usual precautions for online financial transactions apply.

Wallet formats

A variety of wallets are available for individual preferences.

  • You must purchase hardware made by third parties. These devices work just like a USB device, which is secure and only connected to the Internet.

  • Web-based wallets, such as crypto exchanges, are considered to be a hot wallet.

  • Software-based wallets are usually available for free on desktop or mobile and can be supplied by coin issuers or third parties.

  • Paper-based wallets can be printed in QR code format with the public and private keys, as well as relevant information about cryptocurrency. These should be kept secure until necessary in the crypto transaction process and should be copied during emergencies such as water damage or leaked information.

Crypto exchanges and markets

Crypto exchanges are trading platforms that are interested in virtual currencies. Other options are websites where direct transactions between buyers and sellers are traded, and brokers are based on an agreement between the parties in the transaction that has no “market value”.

Therefore, there are many crypto exchanges in different countries but with different security practices and infrastructure levels. You will receive an anonymous subscription that only requires email to open an account and trade. However, there are others who require users to comply with international identity verification, known as የእርስዎን your-customer and anti-money laundering (AML) measures.

The choice of crypto exchange is based on the user’s preference but anonymous individuals may have restrictions on the amount of trading allowed or sudden new rules may apply in the country of residence. Anonymous small administrative processes allow users to start a business quickly through KYC and AML processes take a lot of time.

All crypto trades must be properly verified and this can take from a few minutes to a few hours depending on the size of the coins or tokens and the exchange rate. Measurement is known to be an encryption issue and developers are working to find a solution.

Cryptocurrency exchanges fall into two categories.

  • Fiat-cryptocurrency Such transactions are made for the purchase of fiat-cryptocurrency directly through bank or credit and debit cards or in some countries through ATMs.

  • Crypto Currency Only. There are crypto exchanges that only trade in currencies, which means that their customers must already own a cryptocurrency – such as bitcoin or ethereum, in order to ‘exchange’ for other coins or tokens depending on the market price.

Crypto pays fees to facilitate the purchase and sale of currencies. Consumers need to do research to be satisfied with infrastructure and security measures as well as to determine the different rates they pay in different currencies.

Do not expect a common market price for the same cryptocurrency.

Online financial transactions carry risks and users should be warned about such things as two file verifications or 2-FA, monitoring the latest security measures and detecting phishing scams. The golden rule in phishing is to not click on the links provided, no matter how accurate the message or email is.