It is a decentralized digital encrypted currency that works on a technology known as the blockchain. Cryptocurrency does not have any central authority or does not come under any government. What is cryptocurrency? It is a digital coin, with no physical bill or coin associated with them. Crypto buyers hold their currency through digital wallets and buy/sell their currencies through online platforms. It’s a currency that has peer to peer network using computers. It is accessible to everyone from any place at any time. There are almost 19,000 different cryptocurrencies in Bitcoin, and Ethereum is the most popular one. Other well-known cryptocurrencies include litecoin, dashcoin, and XRP. They are almost similar but some vary with their facilities and technology that is used in transferring funds.
Crypto makes transferring as easy as possible. It has reduced the involvement of a bridge that was the banks or payment processor; with crypto in hand; you can directly transfer your fun/payment to the desired person, globally. It has fast service and is active 24/7 with a low fee.
HISTORY OF CRYPTOCURRENCY:
In 1983 the idea of cryptocurrency appeared when an American cryptographer named David Chaum published a conference paper in which he revealed electronic money through cryptography. The concept behind this paper was that people should be able to send/transfer money that should be untraceable and in a way that is not dependent on a centralized entity.
Chaum in 1996 developed a proto-cryptocurrency called dig cash. It uses software that helps the users to withdraw funds from a bank and require keys to further pursue the transaction.
In 1998 Nick Szabo developed a currency named bit gold which we can presume is a precursor of bitcoin. It requires a participant who is able to solve cryptographic puzzles for a reward.
HISTORY OF CRYPTOGRAPHY:
The word “cryptography” is derived from the Greek “Kryptos” meaning “hidden”. The word ‘crypt” means “hidden” or “vault” and the suffix “graphy” stands for “writing”.
The origin of cryptography is dated around 2000 B.C, with the Egyptian practice of hieroglyphics. This is a mixture of complex pictograms which is understood only by a few.
In current times cryptography has become the battleground for some of the best mathematicians and computer scientists. The ability to transmit sensitive information and store the data securely has given it leverage over others.
What is a blockchain?
It is an open, distributed ledger that records transactions in the form of a code. The transactions are registered as a “block” that is later linked together to form a “chain”. It’s a breakthrough for blockchain technology, recently made possible through decades of computer science and mathematical innovations. It’s a checkbook, that is provided t its users on a computer all around the globe.
In simpler terms let’s assume each page is similar to a block, the entire book, as a group of pages, is a blockchain.
In cryptocurrency, the users have their copy of the book alongside a blockchain, any transaction that takes place is logged on the book, and with that, there is a copy of the updated blockchain that has new information with identical and accurate records.
What is Blockchain Cloud Computing?
As you know the blockchain contains a block of pieces of information. it is the most secure and transparent way of storing information because if there is one block whose information is to be altered, all the previous blocks would need a change of information too so it’s not that easy to change/misuse the information on the blocks. The most widely known blockchain technology is bitcoin which is a major part of cryptocurrency.
To use the servers remotely there is a software or application known as cloud computing which is saved in a remote server. The best thing about cloud computing is that it has better cloud computing security, scalability, and cost-cutting
Why cryptocurrency is important?
1-It is not centralized
2-Has low to no transactions fees
3-It is decentralized
4-It is easy to use
5-It helps you earn more money
How is crypto mined?
To validate transactions new units are released in the world, and the making of those new units comprises MINING cryptocurrency. How is crypto mined? It requires special software that is specially designed to solve cryptographic mathematic equations that are very complicated.
In the early days, cryptocurrency could be mined very easily all you need was a CPU chip on a computer. In the present time cryptocurrency can be mined by using a specialized CPU or an application-specific integrated circuit miner (ASIC).there is a crypto mining pool, to mine crypto you have to be a part of that pool alongside a good internet.
The future of crypto mining is one of progress. As the use and education about cryptocurrency are increasing so will the need to mine it would. Bitcoin mining would be turning to an environment-friendly mining process by the transition to a zero-carbon future which will lead to more green energy jobs and help fight climate change.
How does cryptocurrency work?
As you know it’s a decentralized currency there is no central domain that manages and controls the price for crypto as there are for other major currencies. It is an internet-based currency that is distributed among its users. It is almost as same as stock, precious metals, and forex but one major difference between them and crypto is that you can buy goods, services, and different products through it. The transactions are verified and recorded on a blockchain. These were some of the advantages of digital currency here is how these advantages work.
PROOF OF WORK:
Proof of work includes specialized computers referred to as mining rigs, which are competing to be the first to solve the mathematical problem which is known as hashes. The hashes get difficult over time, which means your computer is doing the mining, and the chances of coding a blockchain become stronger. It helps the miners confirm the crypto transactions and become a part of the blockchain.
PROOF OF STAKE:
Proof of take is a better way of mining than proof of work due to its influence on the environment
Proof of work harms the environment so a better-improvised version was made.
It’s a mechanism in which the cryptocurrencies that are already owned by the miners are given rights equal to the coins they own, which requires less energy.
Both these methods lead their miners to rewards irrespective of the crypto transactions they help them with.
How to value cryptocurrency?
As you know cryptocurrencies don’t have a centralized system so nobody actually controls them i.e. banks governments or investors. There are several other factors that have an influence on cryptocurrencies, discussed below;
DEMAND;
As all markets d depend on the demand-supply relationship, cryptocurrency also is influenced by it. The more people use crypto, coin, or blockchain the more chance it has to have an increase in its price. Just as is the case with bitcoin, Ethereum as they are used more by people as compared to other cryptocurrencies they have a much higher price compared to others of their own.
SUPPLY;
Demand and supply go a long way just as demand has its influence, supply has its. For bitcoin, there are chances shortly that it will maintain its value throughout because there is a certain limit/cap to how many coins can exist.
How is crypto used?
Crypto can be used for two reasons or purposes depending on how you want to use it;
1-To buy goods and services (especially bitcoin, litecoin, Ethereum)
2-An alternate investment or source of passive income.
3-It can also be used to access a blockchain network like Ethereum and can help allow the developer to build software.
4-It can also be used to buy networks.
5-There are crypto debit and credit cards available, linked to your exchange accounts that help you buy real-world stuff. Even PayPal allows you to use cryptocurrency as a way of paying.
How to accept cryptocurrency payments?
Did you know crypto payments have lower transactions fee as compared to credit cards?
As many as two third of cryptocurrency owners think too few businesses accept crypto payments.
Here are some steps that can help you accept crypto payments.
Cryptocurrency payments;
There are two main things people do with crypto cash out
Keep them in their wallets until it builds value and sells it for capital gains when the prices go high.
To use it for peer-to-peer transactions, move it from one digital wallet to another.
You need a crypto wallet/gateway;
Crypto wallets can be used for collecting, storing, and using cryptocurrency for business or for personal use
A Crypto payment gateway is used if you want to receive crypto payments ad convert them into currency.
Coinbase and bit pay have both functions.
OPEN SOURCE WALLETS:
Here are some top open-source wallets with the functions they let you perform;
| CRYPTOCURRENCY WALLET SOFTWARES | THEIR PURPOSE |
| MyEtherWallet | It’s a wallet for sending, receiving, and managing cryptocurrencies |
| BRD | Wallet for storing and exchanging coins. |
| Lumi wallet | Crypto wallet solution |
| Staked | Web-based tool for compounding cryptocurrency investments. |
| Bitamp | Open-source wallet. |
BEST CRYPTOCURRENCIES:
The most popular cryptocurrency has to be bitcoin, Ethereum, and dogecoin. In the wake of bitcoin;s there are other cryptocurrencies as well known as “altcoins”. Few of them are clones of bitcoin while others are new currencies built from scratch.
-Bitcoin
-Ethereum
-Tether
-Binance coin
-Cardano
-Ripple
-Dogecoin
What is bitcoin?
In 2008 Satoshi Nakamoto was the first person to launch bitcoin as the first cryptocurrency in his paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System”. He described this project as “an electronic payment system based on cryptographic proof instead of trust”.
It is a secure decentralized currency that is created, stored, distributed, and traded through a system. It is a store of value just like gold or you can refer to it as “digital gold”, the best-known cryptocurrency so far.
A thought always pops up in one’s head, what is cryptocurrency? What is the all the hype about? But we forget the main part of cryptocurrency which is “what is bitcoin?”
Evolution of bitcoin
The most recognized and bought cryptocurrency has to be bitcoin. Let’s have a look at the ultimate crypto.
In 2020 bitcoins value rose 4 times and was around $28,900.in 2021 July all those gains that happened in April hit a low blow, but again it doubled and ended up to be at $68,990.in the end of 2021 it dropped again to $46,000.
In June 2022 bitcoin cost $31,000 per coin. The original crypto is down by 35% year to date but bitcoin has observed an appreciation of 1000% over the past five years.
What are the best crypto exchanges?
Here are some of the best crypto exchanges;
| CRYPTO EXCHANGES | DESCRIPTION |
| Crypto.com | Provides a selection of cryptocurrencies around 250 is available. They have offers and rewards for crypto.com visa card users. |
| Coinbase | Offers more than 150 tradable currencies. Easier to use. Have an advanced feature for an investor who wants technical aspects to trading. |
| BitYard | Launched in 2019, a Singapore-based crypto exchange providing its services in more than 150 countries. Have low charges for spot traders. |
How to earn money from cryptocurrency?
1-Make a secure account on an exchange.
2-Buy cryptocurrency through a debit card or a bank account.
3-Buy as much as you like. One can buy $25.00 worth of bitcoin.
4-Buy the digital currency you want. USD and Tezos coin holders at times get rewards too.
5-On coinbase you can earn 1-5% APY (annual percentage yield).
CRYPTO PROJECTIONS:
Bitcoin is suffering due to external conditions. For the rest of the year 2022 bitcoin might trade flatly but for 2025 new peaks are coming. At the end of this year, there are chances that bitcoin reaches the amount of $17000 while bitcoin predictions for 2025 are that the prices could go as high as $75000.
