Hello dear readers!
The idea of “cryptocurrency” or “cryptocurrency” is now on everybody’s mind. This technology, which appeared out of thin air is capable of creating enormous earnings. In this article, you’ll be able to understand in plain language all the essential details on cryptocurrency. The question is, what is it and how can you earn money from this technology?
In the past few years, the world has been through a major financial crisis, as well as a conflict of sanctions. The effects affected all countries that are developed. America, European states, our nation, and many more are left with billions of dollars in debt each year!
Such things do not happen without consequences. This is why we witnessed a dramatic rise in the value of the euro in comparison to the US dollar. and a decline in the value of the British pound, and a decline in the Swiss franc. What are our thoughts on the exchange rates of the national currencies that are issued by Russia, Belarus, and Ukraine? In the present, there isn’t one left that you can guarantee that it will be 100 percent.
Technology, however, does not stop at a halt. In the world of finance, however, the Internet is its own currency, an electronic one. In addition, not one, but several …
The origins of the invention of cryptocurrency
Modern technology is nothing but an amazing thing. Numerous useful technologies appear from nowhere and aid us to live our lives.
It’s difficult to believe that there weren’t smartphones until around 15 years ago. The only phones that were used for calling were the landline “city” telephones.
The world has changed drastically today. It’s difficult to imagine someone without the use of a “mobile phone”. It is extremely practical to use mobile phones. So, even the most conservative of people are using it.
Cryptocurrency technology is another one that can transform our lives for the good. The concept was first introduced a few years ago. However, the technology proved to a very effective and is in high demand in a variety of areas. Beginning with the everyday payment through to the protection of national interest.
The story of the development of cryptocurrency started with the development of bitcoin. Bitcoin is the first cryptocurrency. She is the most admired and expensive one today.
Who invented bitcoin and how did it come about?
The whole thing began during the financial meltdown of 2008 …
In the year 2000, a group of people came up with a one-stop payment system that was independent of policy.
On the 31st of October in 2008, an article was published in one of the websites for programmers where an electronic payment system that was promising was described using “bitcoins”. The article was called “Bitcoin: A Peer-to-Peer Electronic Cash System”.
On the 9th of January 2009, 2009, the first version of the bitcoin wallet went live along with the very first Bitcoins were released. Actually, it was the first cryptocurrency currency.
Over the course of a few months, there have been a number of changes to the system. There are many various settings and options for the well-known Linux operating system.
At the moment, Bitcoin was still known just to a select group of Bitcoin’s users and developers. Thus, the people who developed the system decided to get the attention of the general public.
Then, in November of 2009, an online forum on Bitcoin payments was created. The public began to become attracted. Bitcoins’ popularity began to rise. Furthermore, fresh ideas to improve the first cryptocurrency were conceived in discussions.
In 2010, the programmers identified and fixed a variety of security vulnerabilities in cryptocurrency. The security of Bitcoin has been improved and the speed of bitcoin transactions has increased. Then the number of Bitcoin wallets started growing quickly.
In the month of May, the first bitcoin exchange to real goods was conducted. At the time, American Laszlo Hanech, just for fun, traded 10,000 bitcoins in exchange for two pizzas. This was the first time that Bitcoin was used as a form of currency.
It ended up being one of the most costly pizzas ever in the history of pizza. For 10,000 bitcoins, you’ll receive close to 100 million dollars!
From 2012 onwards, the growth of bitcoins is managed through the American business Bitcoin Foundation. The primary creator of the business is Gavin Andresen. He is the one who is currently to be the director of the projects.
In recent times the demand for bitcoin has increased exponentially. A large number of people purchase them to benefit from the increase of the rate of exchange.
The way cryptocurrencies came to be
Bitcoin was a success in only one year and a half. In the wake of this, numerous developers began creating new cryptocurrencies. They largely actually replicate bitcoin technology, but only minorly alter the technology. There are however certain cryptocurrencies that are truly interesting and even governments of many nations are considering employing them.
At present, more than 250 different cryptocurrencies are believed to exist. Venezuela has its own cryptocurrency, and Belarus is soon to get it. Even the famous TV host Olga Buzova is now issuing her own cryptocurrency. Perhaps it’s just an act of affection. However, the most fascinating aspect is that you’ll likely earn money with”Buzov” cryptocurrency “Buzov” cryptocurrency.
What is the function of cryptocurrency?
Where did cryptocurrency originate? Naturally, it isn’t normal money. It is not created by central banks. They are not dependent on the policies of a specific state.
The brand new cryptocurrency has been released digitally. Anyone can actually mine cryptocurrency.
The process of creating new cryptocurrencies is called mining. To participate in mining operations, the power of computing of a machine is employed.
What exactly is cryptocurrency mining?
The term “mining” came to us from English. Literally translated, it is “mining”. The mining of cryptocurrency is not carried out in a mine but on the computer.
We download specific software, then set it up, and then the computer will create a brand new cryptocurrency. Yes, computers to do this require powerful computers, but if they are not we’ll be mining a single indefinitely for years.
Every cryptocurrency is in reality a unique encrypted block of data. Simply put, it is a particular pattern of letters.
To mine cryptocurrency, you must create a distinct sequence of blocks. Once we launch your mining application, our computer will begin making a new sequence.
When the computer is finished with calculations, data about the process is transferred to special storage for data. You receive one bitcoin. Like, for instance, one brand new bitcoin.
In particular, when it comes to bitcoins, there’s an exclusive restriction on the production of bitcoins. The reality is the greater number of bitcoins that have been mined and minted, the harder it is to acquire (calculate) new bitcoins. Additionally, the availability of bitcoins that are new is restricted. This means that at times, it will never be possible to mine bitcoins that are new. The only option will be to purchase existing bitcoins. This will be the case in 2031.
In addition, I should mention that in order to mine cryptocurrency the system must do a lot of independently calculated calculations. The task can be most efficiently performed by GPUs (video cards). This is why the increasing popularity of cryptocurrency has led to the demand to increase for high-end video cards in the year 2017. Most “sophisticated” models have doubled in price as individuals bought them to use to mine. But, now things have been calming down. The excitement surrounding video cards has gone.
The cryptocurrency wallet
It is possible to store cryptocurrency in specialized electronic wallets. There are currently a variety of different wallets. Some are installed on phones or computers while others operate online. That is, via any kind of website on the Internet.
For instance, We recommend taking note of the Matbi multicurrency cryptocurrency wallet. It is among the most well-known and reliable crypto wallets. It also comes with an online exchange function. It means that users are not required to look for third-party exchange services to trade rubles for cryptocurrency and this can be done without leaving Matbi’s site. The complete procedure and an outline of how to sign up on Matbi to buy cryptocurrencies and save them to an online account are explained in detail in this video posted on YouTube.
Transfers and purchases of cryptocurrency can be done either directly via transactions between wallet owners or via specific exchangers.
Because of its growing popularity, cryptocurrency can be used to make payments in numerous online stores, and even in conventional shops.
In the future, you may even issue a credit card linked to your cryptocurrency wallet. The card can be used in any shop or ATM. Change between cryptocurrency and regular currency will take place automatically with the exchange rate at the time of purchase.
Simply put, if you have a Bitcoin account, then we could issue a credit card that is tied to the balance in that wallet. By using this credit card, you could visit a normal shop and purchase, generally in terms of bread, sausages, and milk. It’s also possible to buy something larger.
The rate of cryptocurrency for today
Digital currencies are not influenced by geopolitics. They aren’t affected by sanctions or oil production. The rate of cryptocurrency is determined as per the rules of economics. Therefore, everything is determined by demand and supply. In the event that the demand for cryptocurrency is constantly high, their price is growing continuously.
Additionally, speculation could influence the rate. In 2013, the bitcoin market makers witnessed a major leap in the rate. In only one month, the price of bitcoin went from $200 to 1000 for 1BTC.
As a matter of fact, bitcoin’s price has also risen significantly. In the last couple of years, it has increased by 10 times.
The advantages and disadvantages of cryptocurrency
Because of the digital revolution and the absence of ownership, cryptocurrencies offer many advantages over traditional currencies:
- Transparency. Due to its technology, digital wallets save all transactions history. Any user is able to view the balance and transactions in any cryptocurrency wallet by knowing the number.
- Security. Cryptocurrency is not a currency that can be counterfeited.
- Anonymity. There is no obligation to the address or name. Tax authorities and banks cannot regulate the circulation of cryptocurrency.
- Independence. The movement of cryptocurrency cannot be subjected to government agencies or regulators.
- Convenience. Making an electronic wallet is more straightforward than opening an account at a bank. However, the speed of transactions with cryptocurrency is much greater and the commission less.
The negatives are:
- Insecure legal standing. In some countries, cryptocurrencies are completely legal. For instance, in Russia, the laws governing cryptocurrency are still being debated.
- Utilization to make money in shadow economies. The attackers make use of cryptocurrency to settle their accounts with each other. They do this to avoid the scrutiny of authorities in charge of supervision.
How do you earn money with cryptocurrency?
There are three proven methods to earn money from cryptocurrency:
- Mining. This is the creation of a brand new cryptocurrency with the goal of selling it later;
- A cryptocurrency investment. It is a transaction for 1 month or more with the purpose of reselling later in the event that the rate increases.
- Trading. This is speculation-based cryptocurrency trading.
We’ve considered mining. So, let’s look at the other options in greater detail.
It is a good idea to invest in cryptocurrency
It’s very easy. Set up a cryptocurrency wallet for yourself. We invest in one or the other cryptocurrency to anticipate its development. After a time we will sell our cryptocurrency.
It is the most convenient way to purchase cryptocurrency through the electronic exchange office. I suggest using only the ones that have been tested and proven. This includes XChange Good Change and 60cek.
In this article, you will look at the entire procedure of purchasing cryptocurrency by using the example of bitcoin.
I would suggest that you firstly lookout for the most popular cryptocurrency. Their exchange rates are more stable and increase steadily over the long run.
Trading in cryptocurrencies
Brokerage firms typically offer the most well-known cryptocurrency to trade. For instance, FXOpen allows us to trade bitcoins and bitcoins in exchange for dollars, rubles, euros, and euros.
Liquidity is typically provided by a major exchange. For instance “BitStamp”. This means that trading takes place by using ECN technology. The second person who is involved in transactions isn’t the broker, however, other traders. All transactions are fair.
In general, trading in cryptocurrency is an extremely profitable option for those who want to test their skills and aren’t afraid of the high risk of trading.
For the majority of investors (and particularly for those who are new to investing) I wouldn’t suggest trading, but rather regular investments. It’s easier, however, the ROI on investment in cryptocurrency is also extremely high. I personally invest with bitcoin, Ethereum, and ripple. And, in the past year, this cryptocurrency made me 700% of the profits!
I’d be happy to answer your comments or questions on what cryptocurrency is and how you can earn money with cryptocurrency by leaving a comment.
I wish you all a profitable investment!