Principles of working with cryptocurrency and services for its maintenance



How coin-currency works?
How does the mining?
How to operate a coin-currency wallets?
How do the exchange?
How do the exchanges of coin-currencies?

In 2020, the year of bitcoin have not heard just lazy. Now the market is not active stage, as in 2017, but continues to evolve. An increasing number of projects apply the technology, and of course “players”. Traders, investors, venture capital funds give birth to on the stock market capital.
The last act with a clear understanding that the direction has huge prospects. In order not to be a bystander and to take an active part, it is important to first understand what a coin-currency is, how it works and how to operate here, stock exchanges, exchange offices and other services.

How coin-currency works?
In simple words, initially it was seen as the equivalent of money from the decentralized control system. Because of this, manipulation of the asset should be reduced to a minimum, as the security risks of the system as a whole. Now, there are many projects where the crypt performs other tasks.
That will always be true – the basis will remain the technology of the blockchain. Any project is a chain of blocks with the defined data, related to each other. Thanks to the algorithms, which are generated subsequent blocks are transparent (you can track any transaction and which node it belongs to) and the immutability of data. You cannot hack into the system and overwrite any block. It will be rejected by other members of the network as invalid.
Given the fact that the blocks can be stored not only financial information, but any that has value, there is a logical question where there appears coin-currency? To the blockchain worked and there were new blocks needed resource in the form of computing power. Those who provide and receive reward tokens. He is a crypt. The process is called mining. About it in detail will tell later.
Received coins are stored on coin-meria, or special electronic wallets. To dispose of can be as any classic currency if it has value and is traded on platforms. The principle is not much different. Beneficiary’s personal address, and sometimes it is possible to determine the amount of the transfer fee. Of course, one might be tempted to specify its minimum, but in this case, the transaction may be queued for processing for hours, maybe days.

How does the mining?
The extraction of the “gold” is of two types. In the first case, used computer hardware or ASIC device that is designed specifically for fast processing.
To start mining coin-currency, several steps are required:

through the services to figure out which token it is now more benefitable to mine;
to register a wallet under the coins that have chosen, or take a personal address for him on any coin currency exchange (the first is preferable);
to configure the software on the device and connect to any pool (combining computers and Asimov to the network for more efficient operation)
to ensure that the hardware worked under appropriate conditions and time to serve.

To the purse with a specific periodicity comes reward. It is important to monitor the benefitability of the process, because the computational complexity increases and the device yield less benefit. Also important, the course of bitcoin — if there is a decline in price, you can’t sell it, and wait for favorable conditions.
Another strategy applied by miners to produce something that brings the greatest benefits and instantly convert into a future-proof crypt.
Approach of using computers or ASIC-s is called the PoW (Proof Of Work).
The second PoS (Proof Of Stake) does not involve the additional computational power. The award is given to members of the network that keep money in the wallets. They are validators, confirming a new transaction. The larger the amount stored, the greater the weight of such a node and thus the reward. This is somewhat similar to the function of the Deposit in the Bank with the only difference that here the asset can be used at any time.
Detail about mining and how it is relevant now described in the article

How to operate a coin-currency wallets?
For the user, the use of coin is not very different from any electronic. Is the address that accepted the funds. They appear on the balance sheet. But from the point of view of the network, it is only the recordset that is bound to a specific Valleta, not the actual amount owned by person.

There are several types:


Not to say that some are better or worse, just each is optimal for specific tasks. If you need storage space for the crypt, it is best suitable paper or hardware. The advantages that the wallet does not have a permanent access to the Internet, and hence no risk of theft of hackers.
Hardware looks like a flash drive and costs at least $ 50. Paper done independently. Visually, it looks like QR, which is printed on the sheet.
When coincurrency is continuing to receive and transfer funds, the best is vollet software installed on your PC, or access to the browser.
Advantage — speed. At any time perform the desired action with the asset will take a couple of minutes. Some are used for this purpose of coin currency exchange where partially keep money for trading and transactions. This method is more risky, because the small and the big stock exchanges are constantly subjected to hacker attacks, in which a customer deposits can steal.
Unfortunately, given universalnoi no coin-currency wallet where you can store everything. But enough that support most of the coins. Typically, they are enough for everyday use, and “exotic” are stored on a separate vollet projects or exchanges, if you already got in the listings.

How do the exchange?
One of the most pressing questions after “how to buy bitcoin?” is how do I get it out. Despite the fact that the market is “gold” is growing, cheap to cash the crypt of possibility yet the Commission can still reach 20% of the amount. And still to do it. Two of the most popular is the aggregator exchangers bestchange and peer to peer site called Localbitcoins.
The first is a list of trusted sites through which you can buy tokens and turn them into Fiat. There is a visual feedback system where you can weed out those that hold transaction. And choose the one that offers the best rate at the moment.
The principle of operation is no different from those in which it is possible to buy dollars or any other currency.
Localbitcoins is a great alternative that has become popular around the world. The main difference is that on the platform members are free to set their bids to buy or sell. This eliminates the middleman. And each, like the trade on the exchange can make a transaction at a favorable price to him.
Both good, if the operation needs to be performed with popular crypt. Otherwise, you will have to look for exchange, which presents the enough coin to convert it in to a hot and then withdraw.

How do the exchanges of coin-currencies?
Each exchange provides to users a platform where provided for trading a specific list of tokens. In coin-suite it is called listing. Within this list, you can make exchanges some coins for others. As for Fiat, the output in dollars is available only in part of the grounds.
First of all it is connected with the legal regulation of the exchange depending on where it is. On many platforms, even start dollars is impossible. And to start trading, you need to use exchangers.

The procedure of funding the account as follows:

the listing
getting the address needed coins
submitting a request to the exchanger, where the receipt address is specified tokens previously issued
start trading when the transaction is committed and the balance on the exchange are updated.

The main reference in the stock market, paired with which the majority of trades — bitcoin (BTC), but there are other, including the dollar.
In those areas where, for various reasons, such is not possible, there is “the equivalent of the dollar” USDT. It is also a token, the cost of which is constantly kept at the level putnogo. Most often used to lock in benefits.
When choosing the right coin currency exchange, one should consider not only the availability of the necessary coins in the listing, but the trading volume and you should pay attention to how seriously the owners of a platform approach to security. Unfortunately, the accounts of customers are still a tasty morsel for hackers who are abducted every year “gold” for hundreds of millions of dollars.
To avoid this, it is necessary not only to choose a well-protected platform, but also to perform all the necessary precautions with his hand. A complex password, two-factor authentication and diversification of funds.
For those who have already had experience of stock trading in other markets, and here the special difficulties should arise. But in the stock market has its own specifics, which should also take into consideration during trading to avoid losing all the assets.
It is first important to understand that volatility is much higher and some coins in a day can rise in price by 500% and instantly depreciate. A competent systematic approach to trading will help to avoid the most negative scenarios.

Overall, it is clear that the coin-currency market is promising not only for traders, but also as an investment tool. More projects are appearing, which is based on blockchain technology. And solutions has long been moved from trivial to complex products that take whole areas to a new level.
The crypt is not just another fashionable trick, which after a year everyone will forget. She long proved their worth and potential. Growth dynamics community is a good confirmation of exactly the same as the number of institutional investors who become participants in the stock market.
Therefore, the sooner you will understand the advantages of coin-currency and the blockchain, the easier you will find the opportunity to use it to their advantage.

Leave a Reply

Your email address will not be published. Required fields are marked *