You may have come across the word “cryptocurrency” several times as you browse online. I bet you have no idea what it entails? Cryptocurrency has become the talk of the town for all people. It’s a major tête-à-tête among the government, businesses as well as the general public.
What is cryptocurrency exactly? It is a type of digital money associated with the internet and designed to be secure. That’s more reason why you need to have cryptocurrency if you’re looking for an investment plan.
Some of the cryptocurrencies include Bitcoin, Litecoin, Ethereum, Namecoin, Swiftcoin, Terracoin, Ripple, NEM, NEO, Monera, etc. Out of all the cryptocurrencies, Bitcoin is the famous and ahead of the competition.
How to Keep Records for Cryptocurrency?
The records for cryptocurrency that includes all transactions are stored in a digital public ledger known as blockchain. The data is stored on a secure network hence prevents central failure or any susceptible exploitation by hackers.
Every series of records or each nonce record in the blockchain is called a block. Once the validity of the transfer is authentic and outlined with the network, which a block is sent, then it’s added to the blockchain making it irreversible. That’s why cryptocurrencies are the most secure form of digital currencies in the world.
If the records are safe and secure, what could stop you from investing in a cryptocurrency? Nothing! Then choose the type of cryptocurrency to play around with. I would recommend bitcoin since it’s the highest on the value table.
How to Mine Cryptocurrency
Mining is a process in which cryptocurrency is generated, and that’s how it’s released to the world. To mine this currency, you would have to decrypt a complex computational puzzle known as a hash. For transparency, all transactions are later recorded in the blockchain for anyone to view.
Around the world, people compete and everyone who succeed and emerge the first to solve the hash is rewarded with a block or the amount of cryptocurrency they have mined.
We have several tools that you can employ for mining cryptocurrency. They include the mining hardware, mining software, and bitcoin wallet.
For mining software, you need a computer with an ASIC chip that’s designed only for mining cryptocurrency. Mining software includes a free software that comes with easy-to-follow instructions that expound on how several programs go hand in hand with your ASIC. A Bitcoin wallet is where you store your bitcoin after completing a block.
How to Use and Buy Cryptocurrency?
Mining is not the only way to have a cryptocurrency. You can use your local currency and purchase a cryptocurrency in the online marketplace.
Be sure to note that this form of currency is very volatile. Its exchange rate can change dramatically within few days or sometimes hours of purchase. You can quickly make a profit or loss at the same time. Once you purchase a cryptocurrency, it comes with a unique digital key that consists of the address to that currency. You can use that key to validate as well as access transactions.
Cryptocurrency wallets is a form of wallet where you keep your key safe at all times. These wallets include desktop wallets, online wallets, mobile wallets, paper wallets, and hardware wallets.
If you’re looking for a modern and new way of storing as well as spending money secretly and without the need of using a financial institution or a centralized bank, then a Cryptocurrency is what to try.