Cryptocurrencies

What is Cryptocurrencies Trading?

Cryptocurrencies, or crypto for short, are commonly known as digital assets or digital currency. Unlike fiat currency which is declared as legal money by the government, crypto is not issued by a central bank and therefore not deemed as currency by the FCA; rather they are referred to as “exchange tokens” that can be transferred, stored or traded electronically.
The first cryptocurrency, Bitcoin, was designed to facilitate electronic transactions without relying on trust or central authority. The core of Bitcoin is based on “Blockchain” technology.

Cryptocurrency Basics

The foundation of Bitcoin relies on Blockchain, which is a distributed ledger technology where it displays a public history of all its transactions. Users of the network will have access to this public information as it is a database that is shared across a network of computers. Since Bitcoin is decentralized and not monitored by a central authority, the whole network of peers maintains the record. The users, often known as “miners”, gains Bitcoin by expanding their efforts in the form of ASIC units that requires time and electricity, solving complex mathematical puzzles. The purpose of mining includes supporting, legitimizing, and monitoring the network and its blockchain. These miners get paid for their work as auditors, by verifying previous BTC transactions and completing “blocks” of verified transactions which are added to the blockchain.

Since Bitcoin, other cryptos like Ethereum, Litecoin, and Ripple are also popular for trading.

crypto

Cryptocurrency Basics

The foundation of Bitcoin relies on Blockchain, which is a distributed ledger technology where it displays a public history of all its transactions. Users of the network will have access to this public information as it is a database that is shared across a network of computers. Since Bitcoin is decentralized and not monitored by a central authority, the whole network of peers maintains the record. The users, often known as “miners”, gains Bitcoin by expanding their efforts in the form of ASIC units that requires time and electricity, solving complex mathematical puzzles. The purpose of mining includes supporting, legitimizing, and monitoring the network and its blockchain. These miners get paid for their work as auditors, by verifying previous BTC transactions and completing “blocks” of verified transactions which are added to the blockchain.

Since Bitcoin, other cryptos like Ethereum, Litecoin, and Ripple are also popular for trading.

Altcoins

This term refers to all other cryptocurrencies other than Bitcoin. As of 2020, there were more than 5000 types of cryptocurrencies. Altcoins accounted for over 34% of the total crypto market in February 2020, as reported by CoinMarketCap.

An alternative network to Bitcoin is the Ethereum (ETH) is an open-source, blockchain-based, decentralized software platform used for its own cryptocurrency, Ether. Ethereum is not only a platform but also a programming language (Turing-complete) running on a blockchain, helping developers to build and publish distributed applications.

Charles Lee, a former Google engineer created Litecoin (LTC) as a hard fork from Bitcoin. Successfully, the speed to generate a new block was enhanced drastically making transactions much quicker. This, in turn, increased Litecoin’s speed to generate orphaned blocks in its blockchain.

During Ripple‘s (XRP) inception, it attracted a great deal of venture capital’s attention. This altcoin’s startup which was backed by Google managed to pull $50 million from banking institutions and collected $90 million in total funding. Allowing transactions from fiat currency to frequent flier miles makes up Ripple’s unique quality.

Altcoins

crypto

This term refers to all other cryptocurrencies other than Bitcoin. As of 2020, there were more than 5000 types of cryptocurrencies. Altcoins accounted for over 34% of the total crypto market in February 2020, as reported by CoinMarketCap.

An alternative network to Bitcoin is the Ethereum (ETH) is an open-source, blockchain-based, decentralized software platform used for its own cryptocurrency, Ether. Ethereum is not only a platform but also a programming language (Turing-complete) running on a blockchain, helping developers to build and publish distributed applications.

Charles Lee, a former Google engineer created Litecoin (LTC) as a hard fork from Bitcoin. Successfully, the speed to generate a new block was enhanced drastically making transactions much quicker. This, in turn, increased Litecoin’s speed to generate orphaned blocks in its blockchain.

During Ripple‘s (XRP) inception, it attracted a great deal of venture capital’s attention. This altcoin’s startup which was backed by Google managed to pull $50 million from banking institutions and collected $90 million in total funding. Allowing transactions from fiat currency to frequent flier miles makes up Ripple’s unique quality.