Guide to the world of cryptocurrencies in simple language
3 min readTable of Contents
Cryptocurrency is gaining popularity every year – along with many well-known bookmakers and casinos – for example, CasinoChan, cryptocurrency is a good source of income. In this article, we will tell you all the basic information about cryptocurrencies for beginners who want to start earning.
What is a cryptocurrency?
If you delve into history, then the main cryptocurrency in the world is bitcoin, a very young financial instrument that appeared in 2008. And began to be in demand closer to 2012. Then the total value of all bitcoins was equal to 140 million dollars. Indeed, at the household level, they started talking about cryptocurrency only in 2018, after its sharp growth. Now the total value of bitcoins is 750 billion dollars.
Cryptocurrency is designed in such a way that everyone can find out how much money is in the wallet, but no one knows whose it is.
Where does cryptocurrency come from?
Everything is simple here if you understand the analogy. Bitcoin is made up of blocks. Each block is an equation, for the solution of which you receive a reward. But only a machine can solve this equation: a processor or a video card. And people who buy equipment for cryptocurrency mining receive the title of miner. But every time it is more and more difficult to mine bitcoin, if nothing changes, then with the current capacities, 100% of bitcoins will be mined only by 2114. Although by now 90.6% has already been mined. Other cryptocurrencies are mined according to a similar principle, but bitcoin is still the most popular for mining.
Why are there so many cryptocurrencies? And how are they different?
To understand where so many cryptocurrencies come from, you need to understand what networks are.
The network works as follows: Vitaliy Buterin made the Ethereum cryptocurrency and published the source code of the coin to the network. Further, other programmers began to make their own coins based on this code. After that, they began to publish their coins based on this network. The same is happening with the Bitcoin network and many others. In other words, anyone can make a token in some network. But to make a new network is not an easy task. Most coins are made on the ETH or BSC network.
At the moment, there are a huge number of networks. For an ordinary user, their difference lies only in the cost of transactions.
Where to store and buy cryptocurrency?
The most popular solution is to buy through exchanges and store them there. But this approach is the most dangerous. Let’s take a look at the available options.
- CEX – Centralized Exchange
- DEX – Decentralized Exchange
In conclusion, it should be said that even 1% invested in cryptocurrencies instead of shares will already give a 50% increase for holders of the base cryptocurrency. And given that many funds in the United States already make it possible for even retirees to buy bitcoins, the cryptocurrency is at the start of its development in terms of accessibility for the average layman.
