Cryptocurrency is electronic money, the issue (release) of which is carried out by the blockchain algorithm. This is a giant chain of special blocks, pieces of code. Network participants can store this chain on their computers. The chain takes into account all actions – transactions, generation of new blocks – and automatically saves information. You cannot roll back a completed action or fake a record.
Cryptocurrencies are just one of the many uses for blockchain technology. And bitcoin is the most widespread of the cryptocurrencies.
In fact, there is a great variety of cryptocurrencies: for example, ethereum, litecoin, dash, peercoin. There is even dogecoin, named after a viral internet meme with a dog. Currencies differ in mining algorithms, speed of work, degree of security and privacy.
It is profitable to exchange cryptocurrency on crypto exchanges. One example litecoin to bitcoin exchange – Godex.io
Which one should you choose?
The answer depends on why you want to work with cryptocurrency. If you are a freelancer, then proven bitcoin is an excellent choice for fast and secure payments with a foreign customer. He is also the best tool for medium and long-term investments.
The time when a home PC was enough to receive cryptocurrency is a thing of the past. The competition among miners has grown, and the generation of new bitcoins requires enormous computing power. Mining has become the prerogative of bitcoin farms – real data centers with thousands of working processors and video cards.
What methods of mining cryptocurrency are available to a simple user?
- Exchange services – we convert money into cryptocurrency and vice versa. The scheme is simple and familiar to everyone who has changed their currency online at least once.
- Exchanges – the high volatility of cryptocurrencies makes them a welcome guest here. If you own shares of, say, Apple or Netflix, you can easily exchange securities for crypto coins.
What cryptocurrency to invest in?
Studying the current quotes of cryptocurrencies is the main task of the investor. It is also necessary to take into account the reliability of “digital gold”. At the moment, you can easily get into a difficult situation with fake currencies, which are carried out by companies and are more like a financial pyramid. Verified cryptocurrencies:
- Bitcoin – one of the most liquid cryptocurrencies. Investors received more than 120% per annum during the investment period.
- Litecoin – it is a peer-to-peer cryptocurrency that is designed to process transactions faster than Bitcoin. The coin was created by a former Google employee named Charlie Lee. It is profitable to exchange this coin litecoin to bitcoin exchange – Godex.io
- Ethereum – shows stable development since its inception. Bonus for users is the ability to independently generate blockchain applications for financial transactions.