WHAT IS CRYPTOCURRENCY?
Cryptocurrency, crypto coins, means encrypted information that has a value in digital and real world. We can simply call. The encryption is used on the internet to secure information and only be decrypted by a unique technique, device, or algorithm.
When it comes to the digital platforms created on internet network, everything works on programing and algorithms. Everybody has, at some point, used encrypted files and decrypted them either online or offline. Think about games or programs you have installed on your desktop or laptop computer and run it with a given key phrase or license for activation. Such activation is done between, at least, two servers to confirm and decrypt the encrypted files. Then, you will have access to certain files to run such programs. Thus, transactions are exactly work like that. It is peer-to-peer network called a blockchain. In this post, I write about how to buy, where to trade, how to mine, and how to store cryptocurrency.
Cryptocurrency and How It Works
Transactions are unique and only solved based on certain algorithms, such as SHA-256 for bitcoin, Ethash for ethereum, Scrypt for litecoin, Equihash for ZCash, Cryptonight for Monero, and X11 for Dash coin. Each transaction on blockchain creates a encrypted code like complicated math. This code becomes valuable by miners with computational power; CPU or GPU.
Two users start a transaction then this transaction encrypted on a data string that denotes a unit of currency. To proof this transaction, miners take place to solve this data string and add the transaction to the blockchain. Of course, there is a fee for transactions and it directly goes to the miners for their effort. For example, as of 11/05/2019, total circulating bitcoin is 18,030,137. And there are still 1,969,863 bitcoin left for mining. For solving every block, around 12 bitcoin will go released.
The total number of bitcoins mined halved every 4 years and it will take about 120 years for miner to mine last bitcoin available. After that, miners will only work and receive fees to confirm transactions. The same story is applies to almost all mining based cryptocurrencies.
How to Own Cryptocurrency
There are multiple ways to own cryptocurrency. You can buy or mine cryptocurrency.
Buy Sell and Trade Cryptocurrency
Mining Cryptocurrency, Crypto Money
Even though, mining cryptocurrency sounds complicated, mining options make it simple. Cryptocurrency mining mostly done by Cloud Mining Companies. These companies hold 10 to 100’s of PH/s mining power in their mining facilities. Buying mining power sounds very good as you think about electricity cost, time consumption, and maintenance. Here I have listed legit cloud mining companies to mine cryptocurrency with a small amount of investment
Years ago, people could buy devices to mine, crypto money, cryptocurrency in their living room. However, increase in mining difficulty and cost per energy consumption made it close to impossible to make profit. There are still good mining equipment sold on markets and making profit on mining. If you want to mine your own cryptocurrency with your own miner devices, here is a list of hardware you can buy to mine bitcoin and altcoins. You can also buy many of these miners to built your own cryptocurrency mining farm. And even find ways to trade your hash power.
Mining Cryptocurrency Crypto Money on Desktop and Laptop
Recently, several mining software released for those who want to mine crypto coins like bitcoin or altcoins on desktop or laptop computers with computational power of CPU and GPU. Such programs will allow you to select coin to start mining. In addition, several web browsers were released to enable mining cryptocurrency. You can mine cryptocurrency while surfing on the internet, watching movies, or reading articles. Cryptotab, Brave, JSEcoin, and Netbox are the most known ones to mine bitcoin, monero, and brave token for free. To read more about browser mining click here.
How to Store Cryptocurrency, Crypto Coins, Crypto Wallets
There are ways to store cryptocurrency either with online wallet providers or offline hardware in cold wallets. None of the wallets store cryptocurrency in any physical location. Your crypto assests will be stored in various blockchain. Therefore, you can see your balance and make transactions anytime anywhere. All of the wallets are backed up with a private key which only matches and unlock a public wallet address. Private keys are only stored in your wallets. It allows you to send and receive any amount of crypto money assigned to your public wallet address. If you loose or forget you private key, there is no way to recover balance. So, be sure to store it in multiple safe locations. It is the nature of cryptocurrency wallets keeping your balance in a safer location and putting ONLY you in charge.
Cold Wallets – Store Cryptocurrency Offline
Offline wallets are more commen way of crypto lover to keep cryptocurrency in a safe location. There are ofcourse pros and cons about it. For example if you loose or damage the device. There is almost to “NO” way to recover your balance. Be sure to buy protevtive cases to avoid any damage o the cold wallet.
Here is the list of the best cold wallets available on the internet:
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