What is cryptocurrency ?
Cryptocurrencies act as assets in today's digital world. It is a digital or virtual currency designed to work as a medium of exchange. It uses cryptography to secure and verify transactions as well as to control the creation of new units of a particular cryptocurrency. Essentially, cryptocurrencies are limited entries in a database that no one can change unless specific conditions are fulfilled. These are analogous to shares of a company as they have much similarities in accordance to the trading market. Also, are like your owned properties such as land, gold etc. except for the fact that these are not physical.
What is BitCoin (BTC) ?
Bitcoin is the first digital currency which was developed in 2009 by an unknown developer dubbed as Satoshi Nakamoto. Satoshi described it as a ‘peer-to-peer electronic cash system.’ It is completely decentralized, meaning there are no servers involved and no central controlling authority. The concept closely resembles peer-to-peer networks for file sharing.
One of the most important problems that any payment network has to solve is double-spending. It is a fraudulent technique of spending the same amount twice. The traditional solution was a trusted third party - a central server - that kept records of the balances and transactions. However, this method always entailed an authority basically in control of your funds and with all your personal details on hand.
In a decentralized network like Bitcoin, every single participant needs to do this job. This is done via the Blockchain - a public ledger of all transaction that ever happened within the network, available to everyone. Therefore, everyone in the network can see every account’s balance.
Every transaction is a file that consists of the sender’s and recipient’s public keys (wallet addresses) and the amount of coins transferred. The transaction also needs to be signed off by the sender with their private key. All of this is just basic cryptography. Eventually, the transaction is broadcasted in the network, but it needs to be confirmed first.
What are Altcoins ?
Altcoins are just other digital currencies /assets other than bitcoin. These have there own specific uses. Other than there own usage these coins can also be traded on various exchanges on which they have been listed. Such as binance, coinbase, zebpay, kraken etc.
Each of them have their own specific usage and that is based on what their publishing company believes in its use for for example BCPT(BlockMason Credit Protocol) is used for real estate, BAT(Basic Attention Token) token for attention you give, TRX(TRON) for all the media delivery stuff etc.
What is Trading ?
The basic definition of trading is "the action or activity of buying and selling goods and services". For example in business if one imports some item at some cost price and sells it in the local market at a higher rate(to gain profit) that is trading.
In cryptocurrency trading, these digital assets have some value and it rises based on its demand and supply. At an exchange you can buy them and sell when you are willing. Its totally a game of optimism and pessimism but has some extra factors affecting it such as does the company really solving any bigger issue or if there any news that can directly affect the complete market. It is in some ways analogous to the share market but the profit/loss sheerly depends on the value of the token.
Since it is highly volatile, thus its a game of HIGH RISK, HIGH GAIN.
Beware only invest money which is extra to you. Never invest your daily wage as it is.
Various Exchanges to get started with:
CoinBase (USA, Australia, Canada, Singapore, UK)
Binance (WorlWide)
Zebpay (India)
For Zebpay download the Android or iOS App first. You can add the Referal - REF66168910 to get bonus credit ₹100.
Your Crypto Jargon:
FIAT, HODL, Whale, ATH, FOMO, FUD, P&D, HODLER, Ssill, Long, Short, DDOS, ICO, BTFD, Moon, Altcoin MarketCap, Bullish, Bearish.
I will be writing another article about all of the crypto world terms in detail. So, stay tuned hit upvote, follow for getting updated. Next Up : Crypto Jargon in Detail.