What is crypto money: Crypto money is a digital currency that is independent from the central authority and states that allows all world citizens to send instant money anywhere. Crypto money uses encrypted technology as its name suggests. This technology is also called blockchain (block chain).
What is cryptocurrency? Cryptocurrencies have taken the last 10 years in the boom that started with Bitcoin, making many millionaires and a few billionaires, and disappointing many. So what is crypto money, how to buy crypto money? In our article, we go deep into this topic. We will try to convey to you a lot of information that you will be surprised, how you can say. Have a good read!
What is cryptocurrency?
What is cryptocurrency? Let’s give the answer to the question immediately. Cryptocurrencies are digital, encrypted currencies that are used in exchange transactions, commercial transactions between individuals. According to many experts, it is a currency that will be used by large masses in the future.
Crypto coins, which were ignored by many people in the first years, are very popular today. It is so popular that big companies, giant banks and governments continue to work on this issue. However, let’s see that trust in cryptocurrencies is not fully established. Because it can be difficult to make sense of because it is located outside the traditional financial system we are used to. First of all, generations that grew up in the current monetary system with the lack of a physical structure are alienating crypto money. This makes it difficult to build trust. Everything in crypto coins is carried out by performing various transactions on computers.
Let’s simplify the matter a little bit and back up with an example. If we consider credit cards (or debit cards), we can say that virtual currencies are also used in transactions between individuals and institutions. Thanks to this process, the systematic information generally changes. In other words, the money from your account is transferred to the other person’s account. However, in this system, you are connected to a certain organization. Because the currencies used in transactions with credit cards are connected to a center. Their institution is the central banks of the countries. On the other hand, cryptocurrencies are not managed by any authority or central bank like real currencies. In other words, crypto coins have a decentralized financial system. This is called DeFi for short.
What is cryptology?
As mentioned above, cryptocurrencies have a digital and encrypted structure. Cryptology is the basis of this structure. So what is cryptology? In its simplest explanation, cryptology is the science of encryption. We call cryptology the encryption of the information held according to a specified system. This can be a text or a number or a message. This encryption enables the data at hand to be kept more secure. When data is transferred between people or devices, it is decrypted and the information remains visible.
Interesting history of cryptocurrencies
If we look at the history of crypto coins, it is possible to reach very interesting information. As we said at the beginning of our article, while people got rich with these digital coins, they were deprived of the money they had. The first crypto currency was Bitcoin, which still dominates the markets today. Bitcoin, which emerged after the 2008 economic crisis and was recognized by the people in 2009, literally drove people crazy. Before touching on that, let’s take a look at its history.
Bitcoin, the first cryptocurrency, remains a huge secret among people and in the digital world. Everything that is written, drawn and said about Bitcoin comes to the person or people who use the name Satoshi Nakamoto at some point. Who Satoshi Nakamato is is still a huge secret. Of course, there are many conspiracy theories about this, but there is hardly any solid evidence. There are also doubts as to whether Satoshi Nakamoto was a single person or a group. Reliable studies show that the person behind this name is a single person.
Bitcoin actually has a dizzying story. Bitcoin, which was in a very limited environment in the first place, gradually became a currency or digital gold used by tens of millions in the world today.
Crypto money mining: How is crypto money produced?
After answering the question of what is crypto money and talking about the history of crypto money, our next stop is crypto money mining. How are cryptocurrencies produced or produced? The production process of crypto coins is called “mining”. Just like gold production is done with mining, this term is used for crypto money production. Crypto coins that use proof-of-work, that is, proof of work, as the algorithm mentioned here. While these crypto coins can be mined, there is no such process as a proof-of-stake, ie cryptocurrency that uses the proof-of-stake algorithm. Cryptocurrencies such as Bitcoin, Ethereum, Litecoin use proof-of-work. Ethereum will switch to proof-of-stake in the future.
In real life, digging, shovels and operations with the necessary equipment are performed by electronic devices in crypto money mining. After providing the necessary electronic equipment, problems are solved by software. It also becomes a reward after problem solving. The person who solves the problem and receives the reward has produced a new Bitcoin or mined Bitcoin. Anyone can mine in the crypto money network, but this is getting harder every day. While the prices of the necessary equipment increase, the equipment must also be of high performance. You can reach comprehensive information about mining from the links we will give.
How to get crypto money?
We continue our article on what is crypto money by answering the question of how to buy crypto money. Users who want to buy crypto money must first register with a reliable crypto currency exchange. Binani worldwide, the most popular crypto currency exchanges are btcturk in Turkey. After registering on these sites, you can own crypto money, Bitcoin or other altcoins by following the necessary steps. You can reach the detailed guide from the link.
Is crypto money reliable?
Not all cryptocurrencies are reliable. Fraudsters are running around in crypto money markets, where they are in almost every field in the world. Numerous people with insufficient knowledge in recent years have fallen prey to these scammers.
If we take it as an investment, there is no such thing as a safe investment. There are of course some investments that are safer than others, but every investment carries an element of risk. Crypto coins are assets with variable prices. This increases both the probability of gain and the risk of loss. However, most people are coming to this area precisely because of the attraction created by the variable prices of cryptocurrencies.
Before purchasing any cryptocurrency, it is important to do research on who created it, whether it is traded on reliable exchanges, whether the audit processes are fully implemented and whether it has connections with known brands.
Bitcoin has a separate place from all crypto currencies. Bitcoin is perhaps the only truly decentralized currency created under the motto “the money of the people”.
Pay attention to these when investing in cryptocurrencies
Today, crypto coins are used as an investment tool. However, as in every investment tool, there are some points you should pay attention to in this part. First, stay away from investment advice. Because you are responsible for the transactions you will make, you will be alone in winning and losing. On the other hand, it is necessary to enter a good research process. About markets, about cryptocurrency wallets, about cryptocurrency exchanges etc. You must have a good knowledge.
First of all, have a clean and secure email address and protect it with a good password. So letters, numbers, dot exclamation everything is in your password. On the other hand, keep the passwords of your accounts in crypto money exchanges safe. Enable two-step verification to be more secure. These security measures can be increased more.
In this case, the stock exchange you will trade becomes important. What are the security measures offered by the exchange, how much is the daily volume of transactions in the exchange, and how many cryptocurrencies are there in the exchange. Also, how do these exchanges react to a possible hack? You should also investigate these.
Advantages of cryptocurrencies
Cryptocurrencies have numerous advantages over traditional currencies. Decentralization is at the forefront of these. We have stated before that cryptocurrencies such as Bitcoin are not dependent on any central authority. This is the biggest advantage of Bitcoin against traditional currencies. Why? Today, the monetary system in the world is managed by central authorities. The wrong decisions of these central authorities directly affect the money in people’s pockets. Many countries from Venezuela to Argentina and even countries considered superpowers today are faced with a phenomenon called inflation. The existence of inflation is making people poorer every day. One of the most striking examples is experiencing in Turkey in recent years. The decentralized nature of Bitcoin and the shrinking of the amount released day by day reveal it as a deflationary asset.
Another advantage of cryptocurrencies is that they allow money to move from one end of the world to the other within seconds and at very low fees. Today, when you want to send money abroad in the traditional system, it will take a few days at the earliest for your transfer to reach the other party and you will be asked for exorbitant commission rates. In many other crypto currencies, especially Bitcoin, you can transfer money 24 hours a day, 7 days a week. This money can be transferred to the other party in minutes or even seconds, and you pay small fees. For example, it is possible to move 500 million dollars to only 0.5 dollars in Bitcoin!
Disadvantages of cryptocurrencies
Of course, it is necessary to mention the disadvantages of crypto money as well as its advantages.
Let’s say you pay someone with cryptocurrency. After the necessary procedures, you have also seen that you sent the crypto money to the wrong person. In this case, you won’t be able to get the amount you sent, but you can request a refund from the person you’re impressing wrongly. This is a situation on the initiative of the other party.
If you are storing the crypto money you use on your phone or computer, you should not forget the password. Because losing your password can mean losing your cryptocurrencies. It is stated that the amount of Bitcoin lost today is between 3 and 4 million units. Considering the current price of $ 10,500 today, that means $ 30 to $ 40 billion was lost.