Crypto-currencies and operations with them are today more popular than ever. If at first the term “cryptomount” seemed to many strange and frightening, now rather curious, especially in the Wake of reports about the rapid growth rate of various types of electronic money. In this article we will explain what is a bitcoin and how you can start earning on it.
What is cryptocurrency
Omitting complex definitions, we can say that cryptocurrency is a virtual digital currency, is not equal to any of the existing in the real world. This is not a virtual ruble or the Euro, cryptocurrency has no real counterpart or collateral. The creation and control of operations of purchase/sale of cryptocurrency is secured by cryptography to ensure the confidentiality and implement network identity of market participants.
What is the difference between cryptocurrency from other types of electronic money, such as webmoney? As we have said, cryptocurrencies have their course. It’s not released in any state, its rate is not regulated by any country in the world and depends on actual demand. On transactions using cryptocurrencies are unable to influence neither the judiciary, nor public nor private. Any transaction with bitcoin is irreversible. No way to cancel the transaction does not exist, but your account with cryptocurrency, you can freeze to use it as collateral, with the consent of the other parties.
In digital measurement kriptonite is a block of encrypted data, which reflect the record of its purchase, having a connection with the previous operation. Digital currency is difficult to forge, it is quite protected. The limit of emission the release of any cryptocurrency is usually specified by the Issuer. Most altcoins do not provide information on the owners, but under special request, this information can be provided.
The first cryptocurrency was bitcoin BTC. Now there are several dozens of electronic currencies.
As can be seen from the above, cryptogenes there are disadvantages, and advantages. Virtual coins are subject to sharp fluctuations. In some States, transactions with virtual currency are banned, the governments of several other countries are considering a ban using fines and arrests.
It may happen that the platform cryptocurrency trading closes, and the Issuer declares bankruptcy. In the short history of e-currencies such cases have been, the loss of users and issuers millions of dollars. And, of course, despite the high degree of protection, transactions with the cryptocurrency attractive to hackers all over the world who try their hand at stealing electronic coins. Many experts link the exchange rate of the cryptocurrency pyramid schemes, saying that on operations they can lose everything overnight, because the money is not secured.
How can you buy or mine crypto-currency
This can be done in two ways:
1. Mining, or generating new coins. In fact, it is the decision of the economic puzzles with the desired result: a successful solution brings a number of cryptogenic. Mining is quite difficult, because it requires special software and large investments in equipment such as Antminer (China). It is often necessary to create a chain of computers. There is also cloud mining – you use the power of other farms. You will lose money on fees for cryptocurrency. There are risks: the cloud centers may be subject to hacker attacks and bankruptcy.
2. Exchange of cryptocurrencies. In fact, it is a common electronic platforms that allow you to buy any e-currency and play on its course. You need to take into account that exchanges can be high fees for withdrawal amount of cryptocoins, so all the conditions you need to study in advance. Known sites: bitfinex.com, exmo.me, poloniex.com. The exchange of cryptocurrencies.
Like certain types of securities, cryptocurrencies can be used for long-term or short-term investment funds. In such high-risk operations have the opportunity to multiply their investments many times, and everything to lose if the currency suddenly depreciated. The article is specially prepared for the website replyua.net section — cryptocurrency