A huge number of people spend most of their time in a network where different financial transactions can be carried out. In this case it is important to know the crypto currency - what is it, how to use it correctly and store it. This type of e-currency has its own characteristics, which should be taken into account.
What does crypto currency mean?
A special virtual currency, in which a coin is accepted for one unit, is called a crypto currency. Since it is inherently only encrypted data, it can not be forged. Many are interested in what is needed for crypto currency, since it was originally launched as a universal means for calculating in the network. Currently, it is used to pay for using the computing power of its PC to produce complex mathematical calculations. There are several retail areas that are ready to sell goods for crypto-currencies.
How does the crypto currency work?
Electronic money of this kind is not related to any of the traditional currencies. Their number is strictly fixed, so they are not afraid of inflation. Everyone can create and use his own crypto currency. To cash out money, there are special exchanges for exchange. Crypto currency is an opportunity to make instant transactions without intermediaries. Coins in the system are cryptographic hash codes that are unique and can not be used twice. They have their own course, which can be monitored on special websites.
How to create a purse for crypto currency?
You can not use virtual money without having a special purse. There are many options and places to store your savings and the best are:
- The most common resource is blockchain.infо. This wallet has a clear interface, a small commission and there are no limits on the transferred amounts. It is considered convenient for storing bitcoins and performing small operations.
- If you are wondering where to store the crypto currency, then you can use the wallet on exmo.me. This resource in addition is a crypto currency exchange. On such a purse it is possible to contain several crypto-currencies. It is worth noting a low commission. Among the minuses, users note the ability to make transfers only from 0.01 VTS.
- Another popular wallet is cryptsy.com. It stands out among others that it can store around 200 crypto-currencies. Thanks to profitable exchange rates, you can earn on mining. You can use such a purse to store "cranes".
Types of Crypto-currency
There are several virtual currencies and the most common are the following options:
- Bitcoin . The very first currency that was launched in 2009, and it still takes a leading position. The creators provided open source code, which enabled other programmers to create and develop other crypto-currencies. The cost of one coin is rather large and the issue is limited to 21 million.
- Litecoin . Representing popular crypto currencies, one can not overlook this improved version of the first currency and its coins are cheaper, and the emission is limited to 84 million. Another advantage in comparison with Bitcoin is the simpler list of calculations and encryption.
- Peercoin . Describing prospective crypto-currencies, it is worth pointing out that the third-most popular version is created taking into account the open Bitcoin code. In comparison with other virtual currencies, Peercoin has no limits on the number of coins created, but there is an annual inflation of 1%.
What does the cost of crypto currency depend on?
Virtual currency can be considered as such only if it can be exchanged for a product or service. The rate for crypto currency is directly dependent on supply and demand in the market. If you follow the exchange of electronic money, you can see regular changes. Many newcomers were interested in why the value of the crypto currency is growing, so it means that demand exceeds supply. There is a special formula by which you can determine the level of success of virtual coins: market capitalization = number of coins * cost of coins. The higher the value, the more stable the currency.
What is provided by the crypto currency?
In order for the created electronic currency to become in demand, it is necessary to take care of the following nuances:
- Ease of use, and this applies to wallets, exchangers and so on.
- Ability to interact with existing payment instruments, for example, to bind to cards, accounts and virtual purses.
- It is important to ensure the safe use of your account and wallet.
- Crypto currency should be recognized by currency traders and popular among users.
- Many people are interested in what is supported by the crypto currency, and so, unlike real money, the stability of most virtual currencies is not regulated by gold, stocks, or other material values. Pricing is completely dependent on supply and demand. To stand out against the background of others, the crypto currency was provided with gold - Hayek.
What is dangerous about crypto currency?
Electronic money has a number of shortcomings that it is important to know before actively using them.
- There is no possibility to control international transfers. There are no supervisory authorities to monitor the release and movement of the Crypto-currency.
- Understanding the topic - crypto currency, what it is and what it is dangerous, it is worth noting that in almost all systems, emissions are limited. It is dangerous because there is no single organizer of trade.
- There are no ways to withdraw a payment. This is important to consider, so as not to fall into the tricks of scammers.
- We note the negative impact of the crypto currency on the economy, which is due to the fact that, due to the lack of ability to regulate such financial flows, there may be a situation when solvent obligations will not be correlated with the real solvency of the economy and the population.
- Due to the lack of provision of virtual currency, it is easy to speculate.
- Since the level of security is inadequate, a crypto-currency crash can occur. There are examples when millions of people were stolen because of hacker attacks, which led to a drop in the rate.
How to create your own crypto currency?
There is a specific instruction for creating your own crypto currency. It is worthwhile to warn that if there is no knowledge in programming, then nothing can happen.
- On github.com you need to choose the most suitable code, based on which the crypto-exchange network will be built.
- Creation of a crypto currency implies the use of applications to adjust the functioning of the software. It all depends on the underlying code and the operating system.
- The next step is to edit the existing code. Knowledge of programming will be useful here. In addition, be sure to come up with a name for your crypto currency. In the program code, the old names for the invented new name are changed. There are special programs that quickly make the necessary adjustments, for example, for Windows, Search and Replace and Actual Search & Replace are suitable.
- At the next stage, the network ports are configured and four free ones are selected. After that, corresponding corrections are made to the selected code.
- At the final stage, it will remain to start the process of generating this currency in blocks. Still need to determine how much coin will be received by the miner for creating a new block.
Crypto currency - how to make money?
To make a profit using virtual money, you can use three directions. More often earnings on криптовалюте carry out by mining, that is there is a coin extraction for what special equipment and complex algorithms of calculations are applied. Another popular direction is trading, which involves trading and exchanging virtual money on special exchanges. To better understand - the crypto currency, what it is and how to make money on it, it is worth mentioning about investments when buying virtual money at the time of the fall of the exchange rate.
How to obtain crypto currency?
The process of creating new cryptonyms using a special algorithm is called mining. It is impossible to get bitlocked on a home computer today, since specialized ASIC devices for crypto currency mining have appeared. Independently you can get other coins - altkkony (forks) and the most popular variant - lightcane. Mining of crypto-currency is carried out taking into account some rules:
- The speed of harvesting a cryptonomete is measured in hashes (h / s), so you need to know how many hashes the computer can give out. Depends all on the power of the video card. This parameter can be found on special sites.
- According to the received indices, crypto-currencies are selected. Key indicators include: Revenue / Profit and Exchange volume.
- Continuing to find out - crypto-currencies, what it is and how to mend them, it is necessary to indicate the necessity of searching for a pool where production will be carried out. Poole is a site where small miners are connected, so you need to choose a resource with a higher production capacity and account for the existing commission.
- Will remain to install the program for mining, purse and register on the exchange.
How to trade in crypto currency?
Brokers offer all interested people the most popular crypto-currencies to trade with. Buy / sell can be carried out for rubles, dollars and euros. Trade in crypto currency is made using ECN technology, that is, the second side of transactions is not broker, but other traders. It is important to take into account that good profits are simultaneously accompanied by greater risks, so it is better to start with training on demo accounts.
Investments in crypto currency
Many rich people believe that virtual currencies are the best investment. It's very simple: you need to get a purse, buy a crypto currency and wait for the rate to rise to make a sale. To invest in the crypto currency, you need to monitor the rate and in time to purchase virtual money in trusted exchangers. It is better to buy developing crypto-currencies or invest in bitcoin, when the price falls.
The Future of Crypto-Currency
Prospects for virtual money under a big question and for that there are a number of reasons:
- Different countries treat crypto-currencies in different ways. In Thailand, Norway, Russia, China and Ukraine, an official ban on the use of virtual currencies as a monetary unit. At this time in the US and the European Union are encouraged to pay for goods with virtual money, but their legal status is ambiguous.
- Prospects of crypto-currencies are marred by high speculation, so in a few days they can, as sharply increase, fall.
- Virtual currencies are used in financial pyramids.