What are cryptocurrencies?
Cryptocurrencies are a type of digital currency, which uses cryptography to protect transactions and control the creation of new units. Unlike classic currencies, which depend on banks or governments, cryptocurrencies operate in a decentralized environment. For example, you can send and receive money directly from one person to another, without the need for an intermediary, such as a bank.
This flexibility and speed are finalized by impressive statistics: in 2021, the total volume of transactions in cryptocurrencies exceeded 15 trillion.
The history of cryptocurrencies. Everything about cryptocurrencies
Cryptocurrencies began in 2009, when Bitcoin was launched by an anonymous individual or group as Satoshi Nakamoto. Bitcoin was created as an alternative to the traditional banking system, allowing secure and anonymous payments. The captive document of the first cryptocurrency can be found here .
You can learn more about Bitcoin on the Abarai Platform Academy. This non-customs exchange is extremely recognized in Romania for the seriousness with which each client treats and for the telephone support in Romanian.
Articles that will make you understand better how Bitcoin works you can find on the following links:
After the success of Bitcoin, other cryptocurrencies were introduced. For example, Ethereum , launched in 2015, allows the development of decentralized applications, having a significant impact on the technology industry. Statistics show that Ethereum has hosted over 3 million smart contracts since 2021.
Do I have to invest in these cryptocurrencies? Descent not, you have to make a research, you are very interested in the study, to decide whether it is a good idea to invest or not.
The main cryptocurrency
On the cryptocurrency market, a few have been highlighted by their popularity and use:
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Bitcoin (BTC) -is considered "digital gold" from our point of view is the "digital cash", having a market capitalization that exceeded $ 800 billion in 2022, which means about 45% of the entire cryptocurrency market. Bitcoin was used successfully in an underground economy, this story is described in the article " Ross Ulbricht, the emperor of drugs and the pioneer of the economy with virtual currencies, thanks by Donald J Trump "
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Ethereum (ETH) - revolutionized the concept of cryptocurrency with its decentralized applications platform. In 2023, Ethereum saw a 50% increase in the use of intelligent contracts compared to the previous year.
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Ripple (XRP) - it is used by banks to perform fast international transfers, with commissions of about $ 0.00001 per transaction. On their official website you can find more information, all with a simple click here .
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Litecoin (LTC) - its growth in popularity is due to the transaction confirmation time, which is 2.5 minutes, compared to 10 minutes for bitcoin.
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Cardano (ADA) - this is presented as a more efficient development platform, having a unique consensus protocol that reduces energy consumption by up to 99% compared to Bitcoin.
How the Blockchain technology works
Blockchain is the essential technology behind cryptocurrencies. It functions as a digital public register, which stores all cryptocurrency transactions in a computers network. Each group of transactions is organized in a "block". Once the block is complete, it is added to the anterior chain of blocks, forming a permanent data structure.
This architecture ensures that the data is transparent and difficult to falsify. For example, about 51% of the network should agree with changing a block to be changed, which significantly reduces the risk of fraud and corruption. This aspect is very important because of this we wanted to include this in "everything about cryptocurrencies".
Can you find more information about blockchain reading the next article what is the blockchain?
How to choose an electronic wallet
Not Your Keys, Not Your Crypto!
It is a common quote between experienced cryptocurrency users. This quote refers to the fact that if you do not own the private keys from your wallet, then the cryptocurrencies are not yours. How this would translate into a simpler digestion language, if you install your own Wallet and you store your funds is safe, from a series of reasons for such cyber safety but also regarding the funds of the funds . They only have a dedicated account and do various operations on their account with the platform agreement.
Ok but how can I buy bitcoin or other cryptocurrencies without these platforms involved? You can use a non-customs cryptocurrency exchange It is very simple you say what address you want to receive cryptocurrencies and there you will receive the funds. More about how you can choose the right exchange and what is the difference between exchanges you can find here.
To manage cryptocurrencies, you need an electronic wallet. There are various types of wallets, each having its advantages and disadvantages:
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Hardware wallets - these are the safest because they encrypt data and store offline. For example, Ledger Nano S is a popular hardware wallet due to its high security.
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Software wallets -these are applications available on computers or smartphones. For example, Exodus offers an easy -to -use interface for cryptocurrency management.
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Online wallets - although easy to access, are more vulnerable to cyber attacks. Coinbase is an example of an online wallet that combines the ease of use with security measures.
When you choose a wallet, you consider: the security offered, the accessibility on your devices and the types of accepted cryptocurrencies.
You can deepen more information on this topic by reading the article https://www.abarai.ro/post/portofel-criptomonede-ledger-solutia-perfecta-pentru-investori
Safety tips for investors
The investment in cryptocurrencies comes with risks. Here are some recommendations to protect you:
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Do not invest more than you can afford to lose - the volatility of the crypto market can lead to significant losses. For example, Bitcoin decreased by 80% in 2018.
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Use two -factors authentication - this can reduce the risk of unauthorized access of your account.
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It stores cryptocurrencies in hardware wallets - this maximizes your security, given the risks associated with online storage.
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Be cautious with suspicious messages -phishing can lead to financial losses. Avoid clicking on unsafe links.
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Continuously inform yourself -follow news and updates about cryptocurrencies to remain well informed in a constantly changing field.
End of travel
Cryptocurrencies have changed how we think and interact with money. From Bitcoin to the latest innovations, this form of digital currency brings both opportunities and challenges.
If you are at the beginning of the road, make sure you are informed, choose a suitable electronic wallet and invest with responsibility. Every choice you make matters. Be prepared and make informed decisions on this captivating road in the cryptocurrency world. Success in your journey!
