Cryptocurrency : what i did not know . Begginers

in #money7 years ago

CRYPTO.jpg

When i joined steemit , the community , i did not hear about cryptocurrency a lot , just a few speculations , taughts , and i did not really understand how and the cryptocurrency works .

I do not want to say that i completely understand now but i an getting the main idea of crypto.

i want to share basic stuff that i knew when i started steemit , somebody to tell me .Ofcourse i started searching online and got a few answers that cleared my mind a bit.

So let's begin.


1. Good to know : Cryptocurrency is a type of virtual coin , used as a mean of paying. There are many cryptocurrencies outthere like : Bitcoin(BTC) , Ripple , Litecoin , Dogecoin ant others ). Its name is given by the fact it is using cryptography and is decentralized in order to control tranzactions and prevent double amount of money spent , an existing problem for current valute. Important to say not to compare the cryptocurrency with a DIGITAL COIN. Legally , this is not a digital coin .

Further things to know :


2.Digital wallet.

Digital wallet is , in general the same as a bank account , allows recieving of cryptocurrencies and sent to other accounts . Wallets store private passwork for accesing bitcoin adress .


3.Transactions.

Transactions in cryptocurrencies are secure with help of cryptography between digital wallets .Every wallet recieve a private key , that blocks modifications from another person , this fact making tranzactions very sure .


4.Mining.

Cryptocurrency can be bought , but created too .The process of creating is called "mining".
The participants in the network are known as miners .This miners check tranzactions and share in a database called blockchain. The mining operation is very complex and is very difficult to realize on your own, by a single user .This way , were made groups of miners called "mining pools" .


5.Advantages and Dissadvantages .

Advantages :

  • a decentralized system , no central autority ,like a central bank
  • variable comisions
  • no linit for transfers
  • really fast transfer anywhere in the world
  • payment cand be done without personal data to be associated with tranzaction
  • user have permanently control of tranzactions
  • possibility of createing a copy of cryptocurrency
  • personal data of the user is hidden

Dissadvantages :

  • reduced reuse
  • ireversibility of tranzactions , canceling is imposibile
  • interdiction of some type of cryptocurrency in some countryes
  • requiers a high level of security
  • not all of comercians accept cryptocurrency as a payment method

Cryptocurrency : Bitcoin , Ethereum , Bytecoin , Ripple . Litecoin , Monero , Ethereum Classic , Daash , MaidSafeCoin , Augur , Steemit , Nem , Iconomi ,Factom , Waves , Golem , Dogecoin , Zcash , DigixDAO , Ardor , Stellar Lumens .

These are a few of them .

Finally , here i am .
I am getting to understand better what cryptocurrency means . Hope you find this taughts useful .


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