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What is a cryptocurrency?

Cryptocurrency is basically a virtual exchange medium that uses a cryptography in order to secure its transactions and control the creation of the system units. Meaning, cryptocurrency simply represents money in the digital marketplace nothing else. It is based on an open-source software, cryptography and networking. It lets people or users avoid fees or the lowest fees as compared to what your banks are charging. The system takes part in the non-cash transactions that is anonymous while guaranteeing a secure transactions.

Cryptocurrency is associated with internet using cryptography process converting legible information into an almost uncrack-able digital code, impossible to crack transfers and purchases.

In history, cryptography was born during the Second World War in order to secure communication. It only evolved in the new generation age, the ‘digital era’ with the elements of computer science and mathematical theory to become a secure money online, information and communications.

For most people, cryptocurrency topic are difficult to understand, cryptocurrencies key management mechanics commonly confuses people in the community. With this, there are cases in which people who purchased cryptocurrencies in the market, but in the end left them in others as the holder, the worst scenario is that the balance will be lost to an insider theft or some hackers. Cryptocurrency is subject to pump and dump and this is normal.. Because no one knows what scale will be adopted by the currencies, and there is uncertainty about how the community will maximize them, any cryptocurrencies are volatile relative to the traditional fiat currencies.

Why use cryptocurrency?

Basically, cryptocurrencies are known for its extreme security and anonymity to the highest level. Transactions made by this system cannot be reversed nor faked and compared to what your local bank are doing in its client charging high transaction fees. In cryptocurrency the fees are to the lowest level, making it reliable than the conventional currency in the marketplace. Its decentralized nature means they can be available to everyone, in which banks can only be available to those they permitted to open accounts.

Cryptocurrency is a new generation cash, the cryptocurrency marketplace known this that currency that could take off high value even overnight. But same works the other way around. People who invest on cryptocurrencies must be aware on its volatility in the market and the possible risk when buying it.

How many cryptocurrencies exist in the web?

There is no exact number of existing cryptocurrencies exist in the ecosystem, this is because the code of the cryptocurrency is an open source, this means that anyone has the chance to create their own version of cryptocurrency by just using the code. But as to this moment, the estimated cryptocurrencies in the marketplace is about more than 900, along with the data embedded on them, which can be seen on the list of registered coins.

What was the first cryptocurrency?

The first cryptocurrency that was recorded in the digital data was bitcoin, created in the late 2009 and still as of now the best cryptocurrency known in the marketplace. A creation of cryptocurrencies has started emerging in the past decade and now more than 1000 cryptocurrencies can be found on the internet.

What are the most common cryptocurrencies?

1. Bitcoin: This cryptocurrency was the first in the ecosystem and the most commonly traded cryptocurrency until today. In 2009 Satoshi Nakamoto developed Bitcoin, a mysterious digit who developed blockchain. Ethereum: 2015 is the year Ethereum was born, a token based currency used in Ethereum blockchain, it is placed in the second in rank on the most valuable and popular cryptocurrency in the marketplace.

2. Ripple: a cryptocurrency uses a distributed ledger and it was created in 2012. Ripple has a feature to track the type of transaction made, not just cryptocurrency

3. Litecoin: Litecoin is a cryptocurrency that is similarity with bitcoin, but move quickly on its developments, this includes more faster payments and processes more transaction at a time.

What is alternative currency?

A cryptocurrency is an alternative way if you want to transact something besides from the use of international or national currency. This currency is created by individual, organization or corporation, it can also be created by national, local or even state governments, or they can simply arise naturally as people agreed to use them as their common currency in the marketplace.

Is it that difficult to obtain cryptocurrency coin?

This depends on some factors. But in general, if the kind of cryptocurrency was just recently introduced in the marketplace, the computing power needed in order to mine the coin is obviously low compared to the highly established crypto currency in the market.

These are list wherein you can acquire cryptocurrency coin.

What is a cryptocurrency wallet?

This is all about storing a cryptocurrency, wallet concept can be daunting a bit for the uninitiated. Basically, there are wallet software (this can be desktop, online or mobile), hardware based wallets, and of course the paper wallets. Talking about the “best” wallet in the ecosystem will be different for each one of us, it depends on a particular needs.

Wallets don’t just store cryptocurrency directly. It is accurate to think wallet as storing private keys. The Public key cryptography allows cryptocurrency to function, and uses a specific algorithms in order to generate pairs of keys. Public key is the address to which anyone can send its cryptocurrency balance. The private key allows owners spend funds from the specified address. Without the private key, public address becomes bottomless pit that you can only see; money still be sent there, but lost without a private key.

The type of wallets simply represents various ways a certain can secure their secret private key. There are two main types of cryptocurrency wallet, the hot and cold, these refers to the level or internet connectivity of the wallet. Paper wallet and hardware wallets are not actively connected to internet and considered as cold storage. Hot wallet is internet connected wallet, easy to spend, but vulnerable to cyber-attacks. A cold storage protects you from cyber-crime, but still it will be the owner’s responsibility to secure their property.

How is the cryptocurrency value determined?

The value of cryptocurrencies are ranked in a value or unit times and the cost of exchange to buy equals the capitalization in the market.

Is Cyrptocurrency safe?

Every day of each year cryptocurrency is getting known by people, of course it is made to exchange secure information, in the year 2009 the first cryptocurrency was created in the name of Bitcoin. In the preceding years new cryptocurrencies follow namely, Dash, Ripple, Litecoin, etc. But among those list of cryptocurrencies in the marketplace, Bitcoin has not been beaten.

These cryptocurrencies are obviously safe and more and more people are trusting it, this is because of its decentralized feature, the transparency and how the system works.

One reasons why we should consider cryptocurrency safe is that wallet holder or buyer doesn’t need real information like credit card numbers etc. That alone ensures that you will not be known to someone. Years from now it is expected crypto currency like Bitcoin will become a bridge towards secure payments and will expand more.

Can you transfer Cryptocurrency between countries?

As what we keep saying, cryptocurrency is a decentralized payment system in which it allows its user to exchange even without the help of internet or the involvement of a financial institution. It has a superb authentication system and unique design to send payment at almost instant at the lowest cost anywhere in the world. Therefore, the answer the question is obviously yes!

Sending via cryptocurrency is simple yet fast, just log in on your wallet on the computer with internet connection and immediately send funds to someone that you want to send. Every account has no geographical borders and does not take country regulations, shall we say this is the easiest way to move your asset around the globe.

One’s a transaction is over, the receiver can check his/her wallet and go with another transaction. When transaction is completed, it would only take 3 seconds to 50 minutes and the coins will be received. It only need at least 6 confirmation before the transaction will be process. Fast and simple right? The transaction cost is also low to around 0.30% fee.

How cryptocurrency work?

All cryptocurrencies are basically computer generated currencies. They exist by “mining” as its main function, its purpose is confirming record of movements and accounts known as blockchain. Coins as token are given to those miners who successfully completed a problem.

One’s a cryptocurrency is generated, they are stored in a completely secured wallet that is impossible of hacking. The coins can then be send to another wallet. Every transaction gets appended on the blockchain and verified by mining activity in the ecosystem.

Producing this coins are not unlimited, meaning they are limited and its generation velocity of the coin is variable.

What is the main difference between tokens and cryptocurrencies?

From what most people define, when we talk about currency, this is a generally accepted form of money, this can be paper notes, coins, which is naturally issued by the government and then circulated in the economy.

Cryptocurrency on the other hand is not that different from tokens. These tokens are issued by enthusiastic developers and someone in the community bought it (or received it for something in return) and can obviously trade them, then it becomes a cryptocurrency.

But, these tokens are more than just a cryptocurrency. They can be used in some cases in the operation of smart contracts in the network that accepts the specific token. So therefore, cryptocurrencies helps the transfer of value in the community that accepts it and function as what a physical money does, as token this can be used for some cases in the blockchain.

What is the difference between cryptocurrency and digital currency? Are they both same?

Like US dollar and most currencies in the world would qualify as a digital currency. Because only a little of them exist as a physical bills. When the community is talking about them “creating” more money. What they just actually did was to ad numbers in the system.

A cryptocurrency is extremely secured cryptography, in which dollars are secured by, nothing really. Governments and banks can make money when they feel like making one, and rules should be applied on the amount of funds to be created, but in reality of life, there’s no limit at all.

A cryptocurrency uses a cryptography in order secure every transfers so the function of third party will not be needed anymore, because transfer can be directly send to the receiver without any

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