All You Need to Know About Cryptocurrency

When you think of cryptocurrency, Bitcoin might be the first thing that comes to mind, but it’s certainly not the only cryptocurrency in existence. In fact, there are more than 1,500 cryptocurrencies at this point in time. Many of these are considered altcoins—the name given to any cryptocurrency that isn’t Bitcoin—and can provide investors with solid potential returns on their investments if they time their buys correctly and don’t let fear get the best of them when the market dips.

What is Cryptocurrency?

The first thing you’ll need to know about cryptocurrency is what it actually is. A cryptocurrency, in its simplest form, is a digital currency. This means that it isn’t tangible like dollars and euros—it exists only as lines of code. It relies on cryptography (i.e., complex math) for security and works without any central authority such as a bank or government.

How Are Bitcoins Made?

Bitcoins are created through a complex process known as mining. However, Bitcoins aren’t a physical currency like dollars and cents—you can’t hold them in your hand or put them in your pocket. Instead, you can exchange them for products and services if you have a Bitcoin wallet. If you want to learn more about how Bitcoins are made, check out our guide on How are Bitcoins Made? . What is Blockchain?: The blockchain is one of many inventions by Bitcoin’s anonymous creator, Satoshi Nakamoto. It serves as a digital ledger that records transactions between two parties efficiently and in a verifiable and permanent way. To understand what it does, think of it like an Excel spreadsheet that multiple people share with each other simultaneously so they can make changes from their own computers without having to ask permission from anyone else.

What Can Bitcoin Be Used For?

Think of bitcoin as cash for the Internet. If you have bitcoins, you can use them to buy things online. Think of it like a digital wallet filled with money that only exists in cyberspace.

How Does Mining Work?

Mining is a distributed consensus system that is used to confirm waiting transactions by including them in the block chain. It enforces a chronological order in the block chain, protects it against double-spending, and allows different computers to agree on its state. To be confirmed, transactions must be packed in a block that fits very strict cryptographic rules that will be verified by the network. These rules prevent previous blocks from being modified because doing so would invalidate all following blocks.

Is There An App for That?

The best apps for cryptocurrency investing:
BITSA - Italy: https://bit.ly/3FkyJlg
BITSA - Spain: https://bit.ly/3sg8PcW
BITSA - France: https://bit.ly/3KQGUGX
CRYPTO - Malaysia: https://bit.ly/3LVjtOi