With the emergence of Blockchain technology and the transfer of money to digital form, what is known as cryptocurrency or cryptocurrency appeared, specifically with the beginning of the emergence of Bitcoin (Bitcoin) in 2009. In this article, we will talk about cryptocurrencies and the most important things related to the world of cryptocurrencies.

What are Cryptocurrencies?



Crypto Coins, Cryptocurrency, or Crypto for short, is a form of digital currency that is created, operated and managed by Blockchain technology. Cryptocurrencies do not have a physical equivalent in the real world. There are no physical coins to represent the value of the cryptocurrencies, although some copies of these coins have been made for promotional purposes or only as a visualization tool for these coins. Cryptocurrencies are purely digital.

Bitcoin is the most common example of cryptocurrency but there are many as well, such as Litecoin and Ethereum that were made to compete with Bitcoin or for use in competing markets.

Cryptocurrency history:

Hundreds of cryptocurrencies have been created since Bitcoin first came into existence in 2009. Some of them have sprung or forked from the Bitcoin Blockchain itself, such as Bitcoin Cash and Bitcoin Gold. (Bitcoin Gold). Others use the same technology as Litecoin as Bitcoin, and many others are based on Ethereum or use their own unique programming language.

Like fiat currency, which is currencies not backed by a physical commodity, some cryptocurrencies are more valuable and practical than others, while most cryptocurrencies have very limited use. Given that anyone can create and program cryptocurrency, it is likely that most of it will remain niche, while only a few of these popular cryptocurrencies will achieve mass adoption through mining or investments and become widely used.

"Most popular cryptocurrency:

1. Bitcoin:

The #1 cryptocurrency in terms of ownership, price, and ease of use is undoubtedly Bitcoin. Bitcoin's popularity is mostly due to it being the first cryptocurrency in the market and to the fact that its brand identity is unmistakable. Everyone has heard of Bitcoin and very few people can remember or name another cryptocurrency. Many physical stores and online stores accept Bitcoin, and it can also be accessed through the many ATMs located in major cities around the world and the number is constantly increasing.

2. Altcoins:

There are many major cryptocurrencies competing with Bitcoin, such as Litecoin, Ethereum, Monero and Dash. While smaller cryptocurrencies such as Ripple and OmiseGo also have the potential for greater adoption in the future due to their support by major financial institutions.

Bitcoin-based currencies such as Bitcoin Cash (BCash) and Bitcoin Gold can get a lot of hype on the Internet, and their prices can look impressive, but it's not. It is clear whether these two coins have any real lasting power due to the growing perception of these coins as cheap imitations of the main Bitcoin blockchain.

Although the word “Bitcoin” is used within these cheap cryptocurrencies, these coins are completely separate from the main currency (Bitcoin) even though they use similar technology. New investors are often deceived into buying BCash, thinking that it is the same as the popular Bitcoin, when it is not.

How do bitcoin, litecoin and other cryptocurrencies work?

Cryptocurrencies use a technology called " block chain " or what is known as "Blockchain", which is basically a decentralized database that contains a record of all the transactions that took place on it. The blockchain database is decentralized, which means that it is not hosted in a particular place or computer and therefore cannot be easily hacked.

Each transaction must be verified several times before it is approved and published on the Public Blockchain. This hack-resistant technology is one of the reasons why Bitcoin and other cryptocurrencies are so popular. It's usually incredibly safe.

Crypto coins are linked to Wallet Addresses in the Blockchain of these coins. Wallet addresses are represented by a series of unique letters and numbers, and currency can be sent back and forth between these addresses. It's a very similar process to sending an email to another email address.

To access wallets on a particular Blockchain, you must use a special application or physical device of the wallet. These wallet apps can view and access the contents of the wallet even though it technically does not contain any currency. Access to a lost wallet can usually be regained by entering a series of passwords or security numbers that were generated during the first wallet setup process. If these tokens are also lost, the wallet and any funds associated with them will become inaccessible and unusable.

Due to the decentralized nature of cryptocurrency technology, there are no customer service contacts who can undo transactions sent erroneously to an incorrect wallet address, or grant access to the wallet if the wallet becomes out of the owner's control (for example, forgetting the password). You are solely responsible for your cryptocurrency.

Why do people love cryptocurrencies?

In general, most of the owners of Bitcoin and other cryptocurrencies are attracted to the technology due to its cheaper and faster transactions and huge investment potential.

All cryptocurrencies are decentralized, which means that their value in general, will not be negatively affected by the status of any country or any international conflict. For example, if the United States enters a recession, the value of the US dollar is likely to fall but Bitcoin and other cryptocurrencies will not necessarily be affected. This is because these cryptocurrencies are not tied to any political group or geographic region. This decentralization is partly why Bitcoin has become so popular in countries that are struggling financially, such as Venezuela and Ghana.

Cryptocurrencies are also deflationary. This means that these coins are all programmed to generate a specific number of cryptocurrencies on their own blockchain. Naturally, this limited supply will increase its value as more people start using this cryptocurrency and therefore it becomes less available. This works in stark contrast to traditional fiat currencies where governments can simply choose to print more money which can significantly reduce its value over time.

Cryptocurrencies and hackers

Despite numerous reports confirming hackers stealing the Bitcoin of ordinary users, in reality the Bitcoin itself or its blockchain and other crypto-blockchain for the rest of the currencies have not actually been hacked by hackers.

Incidents you hear in the news include hackers hacking into users' computers, thus gaining access to the cryptocurrency wallets owned by those users. Incidents could also include the hacking of an online service (a website) that was used to transfer and sell cryptocurrency.

These hack cases are quite similar to the cases where a person can hack another person's computer to get their bank account login information. The bank itself was not actually hacked and the bank is still a safe place to store money. The individual's data was simply compromised due to poor account security by the user. Many people, for example, bypass an extra layer of security like 2- Step Verification (2FA), or don't update and secure their computers, operating system, and security settings.

How to trade cryptocurrency

You can buy or sell cryptocurrency with cash at ATMs designated for this purpose, or through an online exchange. The easiest way to buy and sell cryptocurrencies is to use an online service such as Coinbase or CoinJar .

Both Coinbase and CoinJar allow you to create online accounts that buy or sell cryptocurrency. There is no need for you to have a wallet or special hardware to manage wallets, because the services and user interface of these sites are very similar to those of regular electronic banking sites.

CoinJar sells only Bitcoin, while Coinbase sells Bitcoin, Bitcoin Cash, Litecoin and Ethereum This site is constantly expanding its services to include other cryptocurrencies.