What is cryptocurrency and why is it needed. What is the SpankChain (SPANK) cryptocurrency in simple terms? ok google what is cryptocurrency

Cryptocurrency- cryptographic currency (encrypted) - this is electronic money, a means of payment on the network. Such a currency appeared due to the impossibility of counterfeiting it, since when it is created (issued), it is encrypted and additionally protected by the technology on which it is built - the blockchain.

Cryptocurrencies are widely used almost all over the world - the more developed the country, the more this electronic money has taken root. They are used for fast, secure, untraceable and, most importantly, uncontrolled settlements.

There are already several thousand types of "crypt" in the world., some are more successful, others less so. But making your choice is very simple - no one in their right mind will invest in an unsuccessful “coin”. With the capitalization of one individual cryptocurrency from $5 million, you can safely start working with it.

Reasons for the popularity of cryptocurrency

The popularity of cryptocurrencies is caused by two main reasons:

• Impossibility of forgery– thanks to blockchain technology, it is impossible to issue a fake digital coin. But more about the blockchain below.
• Decentralization- behind this difficult word lies a simple essence: no one (!) manages cryptocurrencies. That is, users themselves receive it, they themselves increase the demand for it and decide for themselves what to do with it - this is the real and so far the only "people's money". There is no governing body, like, for example, a "state", which wanted and arranged an artificial depreciation of the currency, after which your savings literally melted away.

The protection of the currency is built, first of all, on the technology of its creation - blockchain. It involves the sequence of creating blocks for which a reward is issued in the form of cryptocurrency. This sequence cannot be changed, there is no way to wedge into blocks already built one after the other.

Thus, if someone wanted to create fake "coins" (cryptocurrency units), they would break the whole chain. But such a "modernized" chain cannot be used, since there are several tens of millions of copies of the original chain around the world - for everyone who is engaged in "mining" (extraction) of cryptocurrency.

At first glance, the explanations above may seem confusing, but this is the simplest explanation of the essence of cryptocurrency and its main feature - security. It is difficult to imagine a simpler description of a phenomenon worth over $300,000,000,000.

How do people earn on cryptocurrency now?

There are a number of ways, some of them are popular and available to the average user, and some require either huge investments or special knowledge and skills.

Now we will analyze those methods that are in demand among ordinary people. Us with you. It's about:

• Mining(direct mining of cryptocurrency);
• Purchase and sale coins already mined by someone.

Cryptocurrency mining - "printing money" with your own hands. Mining is the basis, the production of calculations at the expense of the participants' capacities.

The extraction is that a computer (video card or less commonly a processor) performs complex calculations, something like solving equations for a person.

As a result, when an equation (block) for several thousand or even millions of lines is solved, you receive a reward from the system for this - from one to several thousand coins, depending on the chosen cryptocurrency.

It is important to understand that when mining it is necessary to use the maximum available power, which endlessly absorbs electricity. For this reason, the extraction of any cryptocurrency on a home computer was relevant for the last time a few years ago. Now specialized energy-efficient equipment is used for this.

How to earn on mining?

To date, the very first and at the same time expensive and popular cryptocurrency is Bitcoin.. It is unprofitable to engage in its mining on a conventional video card to such an extent that many times more will be spent on electricity bills than it will be possible to earn from the sale of received bitcoins.

Why? This is due to the fact that the complexity of cryptocurrency calculations periodically increases and in Bitcoin it is now the highest among all cryptocurrencies.

Solution- the use of the so-called ASIC (ASIC) - these are ready-made solutions that are tailored for the extraction of cryptocurrency (most often Bitcoin).

ASIC is a medium-sized device consisting of a powerful power supply and a large number of chips configured for cryptocurrency mining.

The peculiarity of ASICs is in power: one such device can equal 1000 home computers or laptops, but at the same time it costs only several times higher.

And also, which is a decisive factor, in energy efficiency - everything superfluous is removed from these devices that can consume energy, but at the same time does not give an increase in computing.

You can buy ASIC in online stores(American, European and Chinese) or by contacting specialized dealers.

For other cryptocurrencies, ordinary video cards are still suitable, which can be easily purchased on the shelves of our stores. Another thing is that due to the worldwide popularity, the complexity of mining all cryptocurrencies has increased greatly and now, in order to, you need not one or 2 video cards, but the whole Farm!

What is a mining farm? This is a group of video cards, the ratio of computing power and power consumption of which is optimal for continuous operation at full capacity. These video cards are assembled into a single stand and connected to the already familiar components of home computers.

As a result, you get a farm with high computing power, which, after setting up, can be at your home and earn the selected cryptocurrency without your participation. Depending on the region of residence, you will spend from 5 to 50% of the money earned by the farm to pay for electricity.

In addition, there is the so-called "cloud mining". But this topic is for a separate material, as it requires a very detailed disclosure.

Whatever mining option you choose, it is definitely recommended to consult with the appropriate specialist before starting. This will allow you to avoid the standard mistakes of beginners and earn many times more!

Buying and selling cryptocurrencies - fast, a lot, but risky

There is also an alternative with cryptocurrencies - earnings on the difference in the exchange rate (which has only been growing in recent years). In common with mining - investments, their volume will depend on how much and in what time frame you can earn.

It is difficult to talk professionally about making money on buying and selling cryptocurrencies, since traders do this. And for people with such a colossal income, it is difficult to find an incentive for which they would share all the ins and outs.

But in general terms, the principle looks like this:

1. The most successful cryptocurrency for a number of factors is selected: its history is studied, the exchange rate in the past and at the moment, news and prospects are analyzed.
2. The amount of investment is taken at your discretion, it can be from $ 20 to a million dollars or more, since nothing prevents you from buying only a piece of a coin (yes, if a unit of the selected cryptocurrency costs $ 100, then you can easily buy 0.02 coins for $2).
3. These investments are entered into the selected exchange, where you buy cryptocurrency for money and hold it until the rate rises, after which you sell it and return your money and earnings.
4. Repeat as many times as you want!

Of the most notable recent examples: Ethereum cryptocurrency (Ethereum or Ether for short). In mid-February 2017, it cost $12 per coin, and by mid-June it reached $390 for the tighter one coin. Growth by 32.5 times.

Let's say a small percentage will be spent on depositing and withdrawing funds from the exchange, as well as when buying cryptocurrency. The result is a net multiplication of investments by 30 times.

With the help of Ethereum, you could invest $1,000 and in 4 months withdraw your $30,000 without doing anything, of which $29,000 is net income. Impressive, isn't it? For traders, this is called high volatility, when the rate can change several times.

Eg, after reaching a maximum of ~$390, Ethereum began to get cheaper up to $150 per coin. But then he partially returned the cost and for several months was in the corridor of 200-350 dollars per coin. After that, another growth began, and by the beginning of winter (December 1), the price of one Ethereum unit was $470, and the growth continues.

In other words, buying and selling (in other words, market speculation) can easily multiply your investment several times, the main thing is to have patience and not sell the currency while it is cheap.

How much can you earn on cryptocurrency?

As much as you want. And this will be the most accurate answer to your question. You can invest in ASIC and make money on it every day, gradually recapturing its value and starting to receive money out of thin air. You can do the same with video card farms, which, if used correctly, pay for themselves within 12 months.

Or you can choose an unsuccessful cryptocurrency at the maximum growth, after which it will go to a natural temporary fall and you, frightened, sell it, losing part of your investment.

The main thing to remember is that in order to invest successfully and you must either study long and hard to analyze the market, or trust a real specialist who will guide you into the world of big electronic money!

And at the same time, it will provide real companies with tools for tokenizing assets.

The value of blockchain technology is recognized by experts as promising for use in many areas. Along with the public systems of Bitcoin, Ethereum, NEM, organizations and companies have a need to create non-public closed-source blockchains to solve their problems. However, there is a need for interaction between public and non-public systems. This is exactly what Comsa is doing.

The new platform aims to provide startups and real companies with the tools to tokenize their crypto and/or fiat assets. In addition, such companies will be given the opportunity to conduct an ICO, advisory and legal support will be provided. For issued coins, listing on the Zaif crypto exchange is guaranteed.

New projects can be based on the public blockchains of Bitcoin, Ethereum and Nem or the private mijin service. Organizations will use their usual business schemes, but due to the interaction of various blockchain systems, they will be able to significantly expand their reach to other ecosystems without changing anything much.

For example, they will continue to sell their goods or provide services for NEM or their issued token, but at the same time accept payment in BTC, ETH or other tokens. Funds will be automatically converted within the Komsa platform.

Technologies used

To launch a new ecosystem, it is planned to create 2 tools:

• Comsa Core;
• Comsa

The first service is designed to ensure the transfer of values ​​between blockchains by converting related tokens. At the same time, the service will control the total volume of assets.

Let's take an example of how Core will work. The main account of Komsa will receive assets from different blockchains with information about the addressee to whom they are transferred. The system will block or burn the incoming amount on the main account. At the same time, alternative cryptocurrencies or tokens for the corresponding blockchain will be unlocked or issued. They will be sent to the final recipient.

The operation of the Core network will be based on 2 private blockchains based on mijin. The first is for converting cryptocurrencies (BTC, ETH, NEM) into pegged tokens, and the second is for converting pegged tokens one into another. Companies can issue tokens both pegged to cryptocurrency and fiat money. An example of the latter is Tether, whose developers claim to be backed by the dollar.

Comsa Hub is a software that links company accounts in public and private systems based on mijin. It is designed to control the balance of the organization's assets in different ecosystems.

When cryptocurrencies or tokens are received on the main public account, they are blocked by the Hub service. The service then issues equivalent private tokens and sends them to the recipient's corresponding private account on the mijin-based private network. When a company, on the contrary, performs an outgoing transaction with its tokens, they are debited from the private mijin account, and funds are unlocked on the public account. Further, cryptocurrencies and tokens are sent to the final addressee.

Team Komsa

The Japanese company Tech Bureau is working on the launch of the Komsa project. It was founded in 2015 by Takao Asayama, a member of the Board of the NEM Foundation. Another leader is a specialist known by the nickname Jaguar0625, the lead developer of the NEM blockchain.

In early 2015, Tech Bureau became the owner of the first exchange in Japan to trade Bitcoin. After the rebranding, the exchange received a new name Zaif. Since the summer of 2016, only tokens have been traded on this site.

An ICO Committee has been created at the Tech Bureau. His task is to provide advice and support in the development of the Comsa platform, select and invite companies to issue tokens and conduct ICOs with the help of Comsa. This committee includes well-known people from the crypto world, financial and venture capital companies, including the president and vice president of NEM Long Won and Jeff McDonald, respectively.

History of the coin

To ensure the operation of the ecosystem, CMS coins will be used. In total, after the ICO, 2 Comsa tokens were issued on the Ethereum and NEM blockchains. They were simultaneously listed on the Zaif exchange on December 14, 2017. The original cost was $3.65. That is, at the time of entering the exchange, investors received a profit of 365% compared to the price for which they received coins.

At the time of writing, Komsa tokens were trading at $0.57 and had the following indicators:

• Comsa - 1312 place among all cryptocurrencies with a daily turnover of 157.6 thousand dollars;
• Comsa - 1316th place with a daily turnover of 153.7 thousand dollars.

How to get coins

To buy Comsa on the Zaif exchange, you must first deposit another crypto asset there, such as BTC, and exchange it for yen. To buy Komsa tokens, click the Trade button in the upper right corner. Further on the page that opens, you need to open the drop-down list to determine the pair. Here you will be asked to choose between tokens issued on Ethereum and NEM. After clicking on the selected pair, the required page will open with the Comsa chart and forms for placing buy and sell orders.

To buy coins, you need to click on the “Buy CMS:XEM” tab. There are 2 deal options here:

• with issuing your own order;
• fast at the market rate.

In the first case, you need to independently specify the purchase rate and set the required number of coins. The total amount of the exposed transaction will be duplicated in yen. The current Comsa cryptocurrency rate can be viewed on the chart. There is also a separate field for setting a limit on the sale, so that in the event of a jump in the rate, make a reverse exchange with a profit. After clicking on the Buy button, the order will be placed in the corresponding order book.

In the second option, it is enough to fill in only one field - the number of required coins. The exchange will be made at the average rate. It is calculated based on orders placed by other traders. The maximum buy price and the minimum sell price are summed up and divided by 2.

Advantages and disadvantages

The positive aspects of the Coms project include:

• an experienced development team with great authority in the crypto industry;
• support from large financial and venture companies;
• providing a full package of tools to companies that want to attract investments in their startups through ICO;
• existing products (Zaif crypto exchange and Mijin private blockchain service), which are integral parts for the successful functioning of the Comsa platform;
• the ability to vote for token holders for certain projects and participate in non-public ICOs;
• gradual redemption of a part of CMS coins on the Zaif exchange and their burning, which will positively affect the price.

Among the shortcomings, it can be noted that CMS does not quite fit into the usual understanding of cryptocurrency. These are coins for maintaining a private service, a significant part of which is in the hands of developers.

Information on ICO

Raising funds for the development of the project was carried out in 2 stages. First, as a result of the pre-sale, it was possible to attract $9 million from Japanese venture companies ABBALab Inc., Nippon Technology Venture Partners, FISCO Capitals.

At the second stage, from October 2 to November 6, 2017, a public ICO of Comsa was held, which aroused increased interest of the crypto community. Almost 245,000 people have registered on the token sale website. The funds were raised in Bitcoin, Ethereum and NEM.

Many experts who analyzed the project before its release to the ICO pointed out the lack of an upper threshold for raising funds as a negative point. It was feared that the developers would hide the real amount of funds raised. However, the progress of the ICO was openly shown on the website. As a result, it turned out to attract more than 95.6 million dollars of investments. The cost of the token was $1.

Investors who entered the project for amounts over $100,000 received a bonus of 20% of the number of purchased tokens. All ICO participants will receive the privileged right to invest in non-public ICOs of other projects that will be held on the Komsa platform.

Distribution of tokens

The Komsa team indicated in their own that the number of issued tokens will be 2 times the amount of funds raised. Based on the results of the ICO, it can be assumed that more than 191.2 million coins were issued in total. They are distributed in this order:

The Comsa team intends to direct the attracted investments to the development of its platform for conducting ICOs by other projects, the Comsa Core converting service, and the Comsa Hub software. The developers also intend to create a toolkit that allows third-party companies to issue tokens pegged to cryptocurrencies and fiat money. Part of the funds should go to the development of the Zaif exchange.

Future of Cryptocurrency

At the moment, it is difficult to make a forecast for the Comsa cryptocurrency. Over the past 3 months since the moment of appearance on the stock exchange, the value of Comsa has fallen by 7 times. Compared to the price at the ICO stage, the coins fell in price by 2 times. But this is a general trend of deep drawdown, which is observed in the first months of 2018.

The development team after the ICO gives little information about the state of affairs. There is no clear roadmap for when the announced products will be released. On the Russian-language branch of the project on Bitcointalk, it is discussed that the developers have encountered difficulties due to the start of legal regulation of ICOs in Japan. Also, some users indicated that the project might change jurisdiction because of this and move to Switzerland.

However, Comsa's long-term outlook is positive. Behind the project is a strong team of developers with a name who are unlikely to want to spoil their reputation. They, along with similar projects COSMOS and Polcadot, took up the implementation of the urgent task of creating such a system that would ensure the interaction of disparate blockchains. In addition, Comsa will provide all the tools for tokenization of company assets and holding ICOs for them.

Of all the necessary components for the new platform, only Core and Hub are missing. Cryptocurrency exchange Zaif and service for creating private blockchains Mijin are already successfully operating.

With legal issues settled and positive news coming in, Comsa's price should go up. Token holders believe in the coin, as evidenced by the low trading volume at the moment. The rest of the users should consider entering the project right now, since the coins cost only about $0.5. This is 2 times higher than in the ICO.

It is worth paying attention to the XEM coin in parallel. Komsa's success may well reflect on its value, as a member of the Foundation Council and the lead developer of NEM are responsible for the development of the new platform.

Hi all! In recent years, alternative types of earnings have been developing at a tremendous speed, and the concept of cryptocurrency is increasingly being heard. Therefore, today I want to tell you what cryptocurrency is in simple words. This is a stable virtual currency, the unit of calculation of which is a coin (coin). It is protected from forgery - it is a non-copyable encrypted information using cryptographic elements (digital signature). Physically, the monetary unit does not exist and does not belong to any single banking system.

What is the difference between electronic money and cryptocurrency?

Electronic money is initially deposited into the account physically through the terminal, bank, and cryptocurrency is a universal digital currency that is issued only on the network and has nothing to do with the state. It does not have an external or internal administrator. Because of this, any public, private body cannot influence the system participant and his transactions.

History of Cryptocurrency

The first mention of the term "cryptocurrency" appeared in October 2008. Satoshi Nakamoto presented a new type of electronic cash - bitcoin. It was a new type of payment system, which was first mentioned in a posted bitcoin article. It is still unknown who is, such or such Satoshi Nakamoto is a pseudonym. The main concept and principles of the new decentralized electronic cash are:

• Anonymity;
• Fraud protection;
• Independence from controlling organizations. By the way, if anyone remembers blogger Ruslan Sokolovsky (he played Pokemon in the Temple), then all his electronic accounts were closed to him and now he lives precisely at the expense of bitcoins, since no one can block this currency.

The entire electronic money data network includes blocks of transactions that are interconnected. The next cell carries information about the previous one. By lining them up in a chain, you can get information about all transactions. The process of creating new network cells is called mining. To do this, a cryptographic signature is generated and new electronic units are created.

This process is not infinite, the limit is 21 million bitcoins. After that, the mining process will simply be impossible. Initially, it was simple, even single miners coped with it, but after a while, very powerful equipment was required for mining. To receive cryptocurrency, miners began to unite in groups.

After Satoshi Nakamoto, branches of codebases of software projects began to appear - forks: PPCoin, Namecoin, Novacoin, Litecoin and others to start new ones. Until 2013, cryptocurrency software was based on the codes of the "Bitcoin" system. In the future, they began to create other platforms for infrastructure that specializes not only in cryptocurrency: instant messengers, stock trading, shops, and many others.

How to get cryptocurrency?

Mining is the process of obtaining cryptocurrency on the Internet. This can be done by anyone who has access to the worldwide network and the desire to earn money without leaving home. For this type of earnings, special software is installed, and Internet access is also required. To work, you need a computer, laptop or other convenient gadget of a certain power. In the process of mining, due to the power of the equipment, complex algorithms are produced, as a result of which coins are mined using encrypted information.

The mined currency is stored in a decentralized manner on users' electronic crypto wallets. Transactions are available and not encrypted. You can see the amount of digital currency and its availability in an account on the Internet - blockchain.

The transfer of such a specific product in the virtual space is irreversible. The owners of electronic cash themselves can influence the transfer of funds by temporarily voluntarily blocking cryptocurrency as collateral. You can cancel the transaction - this will require confirmation of the action of all participants.

Advantages and disadvantages of cryptocurrency

Compared with the usual state currency, consider the positive and negative aspects of virtual cash.

Pros:

1. Open access for everyone - everyone can mine electronic funds.
2. The anonymity of the participants, only the wallet number is visible to everyone.
3. Decentralized - there is no binding to a specific bank.
4. Does not depend on inflation.
5. Encryption and security - impossible to copy.

Minuses:

1. Lack of guarantees for the safety of the crypto wallet.
2. Large percentage of volatility.
3. The likelihood of negative impact from the state - a ban on the use and conduct of operations.
4. Loss of the password leads to the irretrievable loss of the wallet and crypto coins that are listed there.
5. Unprofitable due to increased complexity for equipment.

The price of digital currency and its breakthrough in the market

Initially, the cost of virtual money was not high and was mined very slowly - it ranged from $0.1 per crypto coin. But since 2010, one exchange has sparked a breakthrough in cryptocurrencies by offering to exchange bitcoins for real money. The course was then insignificant, but there were more miners.

In 2013, the coin was already worth up to $1100, and in 2015 already up to $200-250. In 2016-2017, it became more than $7,000. In addition to them, there are other cryptocurrencies - Ethereum, OneCoin, Peercoin, Bitshares, Litecoin, Ripple, but they are not so in demand and popular. Today, you can exchange cryptocurrency at some ATMs, pay with it for some services and goods.

How to earn on it?

Many people ask, they say, how can you make money on cryptocurrency. As described above, it is obtained through a special complex process called mining, but besides this, many earn income on the difference in the exchange rate. Taking into account the fact that a couple of years ago Bitcoin was worth $200-300, and today it is already more than $6,000, then during this time it would be possible to gain 20-30 times.

But to be honest, I'm not going to teach cryptocurrency trading. I used to participate in cloud mining, but this did not bring me any profit. So I gave up on the whole thing.

Therefore, I would like to warn you about this. Many "eyes burn" when they begin to see the amount of earnings on cryptocurrency. But in fact it is a whole science. If you want to vyat and just start mining bitcoins, then you are unlikely to come up with something worthwhile or profitable, since you will generate about 100 rubles a day on a regular computer, roughly speaking. But if you subtract the cost of electricity, then the profit will be even less. Therefore, I say that this process must be approached with all responsibility.

Well, on this I, perhaps, will end. I hope that everything was clear to you. Therefore, do not forget to subscribe to my blog updates, as well as share the article materials on social networks. Good luck to you. Bye bye!

Sincerely, Dmitry Kostin.

Firework. Despite the fact that it has become warmer outside, and many have begun to spend more time outdoors. We decided to work a little to give you more information about the projects.

It's no secret that the first areas where they began to accept bitcoins as payment were not quite legal areas. Among them was the adult entertainment industry, if you know what we mean? In this article, we will introduce you to the SpankChain platform, which is developing in this direction.

What is Spank Chain Cryptocurrency (SPANK)

The SpankChain (SPANK) cryptocurrency is an ERC20-based token that will be part of the entertainment platform. Spank Chain is based on the Ethereum blockchain, so it will be able to interact with other decentralized applications on Ethereum. The platform will be implemented as a website where you can view public shows, as well as buy content that interests you.

Features of the SpankChain platform

The peculiarity of the platform is that it consists of 3 layers:

– Application layer;

– Service layer;

– A layer of micropayments called SpankChain Core.

On this platform, developers will be able to develop their own applications as well as create their own content.

Blockchain technology, in combination with other technologies, will help each user to be anonymous and safe. In addition, each user will save their money on commissions and fees.

Prospects for SpankChain Cryptocurrency

To be honest, there are already a lot of such projects as SpankChain, for example, Bunny Token, whose advertising does not leave YouTube screens. But, we do not strongly believe in the development of the SpankChain platform. We don't even know what it's about. Maybe because we do not use such sites.

A bubble that will burst at once, leaving thousands with nothing, or a revolution in the world of electronic payments – the attitude towards cryptocurrencies today is radically different. Cryptocurrencies are heard at every step today, but not everyone fully understands what they mean and how to use them.

What is cryptocurrency - in simple words for dummies

The term was fixed in everyday life after the publication in Forbes magazine in 2011, where the name "cryptocurrency" was mentioned, in English - crypto currency. In other words, it is a digital or electronic currency that is produced on the Internet and stored here on virtual wallets. There is simply no physical analogue of it.

When creating this currency, a special cryptographic cipher is used, consisting of sequential hashing and a digital signature. Hence the first part of the word - crypto.

At first glance, the cryptocurrency is similar to traditional electronic payment systems. However, the differences between them are actually enormous. And the first is the way money is issued and stored, which we will talk about later.

But first, the positives...

As with any concept, there are also advantages and disadvantages. Let's start with the advantages of cryptocurrencies, and among the main ones we note:

• decentralization;
• direct exchange in the absence of intermediaries;
• transparency;
• anonymity;
• small commissions for transfers, or even their absence at all;
• not afraid of inflation;
• ease of use.

Decentralization

When creating a cryptocurrency, there is no centralized body that deals with emissions, that is, issues title units, such as the Fed in the USA, the Central Bank or the National Bank in the Russian Federation or Ukraine, respectively, when it comes to ordinary money. If we take payment systems like WebMoney or Yandex.Money, they also belong to certain organizations and are controlled by them.

In the cryptocurrency situation, there is no such central regulator. They are based on a system - in other words, a distributed database. Depending on the popularity of a particular cryptocurrency, it is stored simultaneously on thousands or even millions of computers around the world at the same time.

A few words where does the cryptocurrency come from

A cryptocurrency is created using mathematical calculations and is a computer-generated code. In most cases, the process looks like this.

Users send transactions to each other, which are collected in blocks sequentially linked to each other, and thus confirmed. With each found block, a certain number of crypto coins are released, which are received by the one who confirmed the block.

Cryptocurrency is created using mathematical calculations and is a computer-generated code. It is issued in blocks linked by sequential hashing.

Such a process is called, and those who do this are called miners. Thus, this currency is issued and stored decentralized.

Figuratively speaking, anyone can build a mint at home and turn on the printing press, subject to certain conditions. It is enough to have a powerful computer and install the appropriate program on it.

By analogy with the gold rush that hit humanity in the 19th century, today the world has been swept by a cryptocurrency fever. Entire mining farms are being created that tirelessly generate new and new coins (coins).

But that's not all. With a strong desire to create and put into circulation, you can also have your own personal cryptocurrency. If it inspires confidence among users, success is guaranteed.

By the way, it is worth noting that in some cryptocurrencies, all tokens are issued at the start of the system, and are not mined gradually over time. These include, for example, Ripple, Cardano, Stellar and others.

And through classical mining, coins are mined from such currencies:

• bitcoin;
• Ethereum;
• Litecoin;
• Monero
• Dash.

No intermediaries

As a rule, we exchange money (we are not talking about cash in this case) through intermediaries. These can be banks, payment systems, exchangers. All of them establish their own exchange rules, which can be changed at any time. In any incomprehensible situations, your accounts may be blocked.

In the case of cryptocurrencies, there are no such intermediaries. Here, each user transfers money directly to another user's wallet from anywhere in the world.

Thus, the essence of cryptocurrencies is to eliminate a third party during transactions, that is, intermediaries in the face of banks, exchangers. Another nuance is that such transfers are difficult to track, for example, by the tax authorities. More precisely, all transactions in electronic cash systems are visible to anyone.

It is not a problem to see how much, from which purse and to which what amount was transferred. The question is different - it is not easy to associate these wallets with a specific person. The main goal of this approach is to eliminate fraud in transactions and maintain anonymity.

In the absence of intermediaries, the strictly established commission for transactions also disappears. You can often transfer money, if not for free, then for a small fee.

Another question is that it is more profitable for the miner to process those transfers that provide for a larger reward in the first place. However, compared to the commissions of banks or exchange offices, here you can set the amount as a reward an order of magnitude lower.

What does a cryptocurrency look like

But in fact, no way. There are simply no physical analogues. It is impossible to physically transfer cryptocurrency from hand to hand. In fact, these are only records of completed transactions. Let's say Vasya transferred 2 bitcoins to Gosha - it will look like a record in the blockchain about the transaction. And Gosha will have these 2 bitcoins on his wallet balance until he transfers them to someone else.

Cryptocurrency mining algorithms

As already mentioned, all transactions in cryptocurrency systems are encrypted in a special way. For this, different algorithms are used. For Bitcoin, this is, for example, SHA-256, for Litecoin it is Scrypt. Their transactions are confirmed using PoW (Proof-Of-Work, proof of work). Novacoin uses (PoS, proof of storage) in addition to PoW. Other cryptocurrencies like NXT only use PoS.

Of the other hashing algorithms, it is worth mentioning X11, X13, X15, N-Scrypt, CryptoNote, each with its own pluses and minuses.

How to get cryptocurrency

In addition to the mining mentioned above, when miners receive a commission for generating electronic currencies, you can get hold of coins either by accepting them as payment for goods or services, or for cash on specialized cryptocurrency exchanges. Among the popular:

• Bitfinex;
• bithumb;
• Kraken;
• Bittrex;
• exmo;
• Poloniex.

You can also purchase digital coins using exchange offices that will gladly exchange dollars, euros, rubles or hryvnias for popular cryptocurrencies.

There are also so-called cryptocurrency faucets that distribute tokens for free for performing certain actions - viewing ads, solving captchas. However, you can get a very meager amount of coins with their help.

How to store cryptocurrency

For this, there are special cryptocurrency wallets. They are of various types:

• As a program for installation on a computer - in this case, your coins are stored on your hard drive.
• As an application for mobile devices.
• Online wallets that can be accessed through a browser. For example, blockchain.info.
• Hardware wallets in the form of a physical medium, similar to a regular USB flash drive.

If you buy coins on the exchange, you can keep them directly on the balance of this site.

How without cons?

If there are advantages, then there are disadvantages. In the case of electronic cash, it is important to be careful about the safety of the wallet, as well as the password to it. If access is lost, you can say goodbye to money forever. It is unlikely to be restored.

It is also worth considering the irreversibility of transactions. If you mistakenly transferred money to the wrong wallet, you can return it only with the voluntary consent of its owner.

Among the minuses, it is also worth mentioning the ambiguous attitude of different states towards the existence of cryptocurrencies. Some consider them as a means of payment, for example, Japan, others either limit their turnover or completely prohibit any work with them.

What is cryptocurrency for?

Cryptocurrencies are a kind of symbol of freedom. Lack of control, transfers directly to each other - such opportunities attract many.

Therefore, given the growing popularity of virtual money, more and more shops in the world are beginning to accept them as payment. Also, cryptocurrencies are increasingly used as an investment tool. However, given their increased volatility, this should be done carefully.

What are the cryptocurrencies - how it all began and what we have

The first and currently the most expensive cryptocurrency was released in 2009 and it is called bitcoin. It was invented by an anonymous person or a group of people hiding under the name of Satoshi Nakamoto. It is with it that the very concept of cryptocurrency is most often associated.

Since that time, a great many different electronic currencies have appeared with original and not very concepts, most often tailored to a specific industry. For example, IOTA for the Internet of Things.

Their number has already successfully exceeded one thousand. Most of them duplicate each other, differing only in names.

The developers are doing their best to outdo each other. This is how cryptocurrencies appear for owners of Facebook accounts (Face), the LGBT community (GayCoin). Others are dedicated to famous people and contain their names in their names - EinsteinCoin, TeslaCoin.

In March 2018, the top 10 cryptocurrencies are as follows:

1. bitcoin;
2. Ethereum;
3. Ripple
4. Bitcoin Cash
5. Litecoin;
6. Cardano;
7. Stellar
8. Monero.

Most often, new cryptocurrencies are issued for specific tasks. If bitcoin was developed exclusively for transactions and is often called virtual gold, then, for example, Ethereum is intended not only for money transfers, it already contains smart contracts. Also, decentralized applications are launched on the basis of its network. By the way, the role of an analogue of silver in the world of cryptocurrencies is assigned to Litecoin.

What is the backing of cryptocurrencies

It is worth noting that digital currencies are not backed by anything: neither gold and foreign exchange reserves, nor the economy of a particular state. The only thing that determines their value is demand. The higher it is, the more expensive you have to pay for a certain currency unit. In addition, the creators of certain cryptocurrencies most often set the emission volume in advance, upon reaching which the coins will no longer be issued. For example, Bitcoin has 21 million coins.

Capitalization, price and ratings

You can see the list of the most popular cryptocurrencies on specialized sites. An example is coinmarketcap.com. Here, in the form of a table, the top most common cryptocurrencies are shown, their price, market capitalization, price chart and other indicators.

Also on our website we have our own, where you can find out their current value in relation to the dollar, ruble, hryvnia, view charts.

By the way, in December 2017, the total capitalization of cryptocurrencies exceeded $500 billion. And in January 2018, it completely exceeded the figure of 800 billion. In March, this figure has already dropped to 360 billion. Bitcoin is also leading with a figure of $150 billion.

To find out the rates of a particular currency, you should use one of the currency converters presented on the network. For example, en.cryptonator.com

Legal regulation of cryptocurrency

Different countries today have different attitudes towards cryptocurrencies. Japan officially recognized bitcoin as legal tender in the spring of 2017 and exempted it from consumption tax when sold. More recently, it began to be treated as a unit of account in Germany as well.

Favorable attitude towards cryptocurrencies in Switzerland. In the US and Canada, they are treated as valuable property, and in Bulgaria they are treated as a financial asset. The UK views digital money as a foreign currency. Iceland forbids its citizens to buy tokens on exchanges, but mining, on the contrary, welcomes it.

Cryptocurrency banned in Russia? - No. While officials are pondering the age-old question “to be or not to be”, everyone here conducts operations with crypto-tokens at their own peril and risk.

Russia is going to adopt an appropriate law on cryptocurrencies this year. In January, the Ministry of Finance published the preliminary text of the bill, according to which mining will be classified as an entrepreneurial activity, and cryptocurrencies will not be able to be legal tender.

In the so-called "gray zone" there is a cryptocurrency at the present time in Ukraine. Back in 2017, 3 bills were submitted to the Verkhovna Rada to regulate this area, but so far none of them has been adopted.

What will happen to cryptocurrencies in 2018

What will happen? – Further growth and development. This snowball is unlikely to be stopped by anyone. Some cryptocurrencies can sink into oblivion, others will come to replace them. The top 10 cryptocurrencies may change - stronger systems will push those who have stopped in their development. However, digital money will no longer be able to disappear from our lives. Even if some states ban them. In general, today we are talking more about the regulation of cryptocurrencies, and in 2018 active steps will continue to be taken in this direction.