The crypto industry is a truly fascinating phenomenon. It attracts brilliant minds and brings revolutionary solutions to the core issues of conventional web space that suffers from a lack of transparency and trust, censorship, third-party intervention into sensitive data processing, and many other problems. On the way of free Internet, the blockchain industry works hard to provide every person in the world with basic rights, security, and freedom.
Knowing about the cryptocurrency market in 2020 is a must, so we’ve collected crypto and blockchain essentials and put them in a map so you can choose the right route during your decentralized trip. What is a cryptocurrency, and where to store it? What is crypto mining? To trade or not to trade crypto? We are going to inspect them all.
Bonus: Changelly strives to provide instant and smooth cryptocurrency purchases to the end-users. While you are waiting for coins to be transferred to your wallet, we’ve prepared a list of entertainment yet educational articles about crypto movies, memes, and more. Keep scrolling, and have a pleasant reading!
A cryptocurrency is a new type of digital asset based and maintained by cryptography. A cryptocurrency serves as a unit of exchange between participants of a decentralized network and regulates the proper environment within a blockchain.
In 2008, a mysterious person (a group of people, we don’t know for sure) introduced a technical paper with a sensational description of a decentralized payment system, Bitcoin, and a digital currency BTC that would be free of any control and regulations.
2017 was a remarkable year for Initial Coin Offerings (ICO). It revealed a wide range of decentralized products and services that could ‘make a world a better place.’ Some of them actually did like Tezos, PolkaDot, etc. However, most of them appeared to be a scam that undermined the credibility of cryptocurrencies drastically.
The second place in the world of crypto takes Ethereum (ETH). The project introduces smart contracts that enable developers to build and implement decentralized applications (dApps). Ethereum shows better transaction throughput than Bitcoin and provides a decent environment for dApp deployment. It’s rapidly attracted a loyal user base and blockchain developers. Up until today, Ethereum (ETH) is number two cryptocurrency in terms of market capitalization and global influence.
Top 15 crypto-assets according to market cap and popularity:
Blockchain technology represents the core values of the independent Internet and excludes a middleman’s intervention to your private information. What is a blockchain? To put it simply, a blockchain is a network of devices/nodes spread around the globe and not connected to the common server.
As can be seen from the name, blockchain is a chain of blocks. Every block contains information about transactions. All the blocks are stored in a specific order that cannot be changed. If a bad actor decided to ‘edit’ or replace a block, the system would reject it.
The information stored in a blockchain cannot be destroyed or changed. If, say, Twitter was built on a blockchain, nobody in the world could hack it and delete or edit your messages. The concept of freedom is essential to the blockchain industry, and many decentralized projects strive to show regular web users all the benefits of blockchain technology.
To be able to produce blocks and add them to the blockchain, participants of the network (miners) have to reach the consensus. There are lots of consensus algorithms that help miners to reach an agreement and protect the network. The well-known Proof-of-work (PoW) algorithm is utilized by Bitcoin (BTC), Ethereum (ETH), and so on. Still, this type of consensus protocol requires too much computational power and does not resolve the scalability issue. For these reasons, new options for algorithms were introduced.
The aforementioned Bitcoin boom provoked another boom, this time, in the mining sector. As soon as regular users found out the value of digital currencies, the word ‘farm’ stopped being associated with barns and cows, while miners were no longer just coal workers.
Cryptocurrency takes a considerable part of the financial sector. The process of crypto trading does not differ much from the conventional one. However, when trading crypto, users have to constantly keep in mind that the crypto market is highly volatile. The crypto rates may change dramatically within several minutes, thereby, depending on a crypto trading strategy and experience, bringing losses or profit.
Before step into cryptocurrency trading, make sure you are aware of risks, familiar with basic trading definitions, and know how to deal with a digital wallet. Do your research carefully! Read educational materials and professional tips to gain a solid knowledge base.
Crypto wallets are essential for the industry. They are a gateway between users and the blockchain that allows interacting with distributed ledgers.
Many of the crypto exchanges enable crypto custody, yet, it is not always a safe option for the storage of your funds. The leading crypto exchanges are still providing centralized service, which means they are vulnerable to hacks.
For over a decade of the crypto existence, the market has provided a range of digital and physical multi-currency wallets for safe and secure crypto storage. These are web wallets, browser wallets, desktop and iOS and Android mobile wallets, hardware wallets, and even paper wallets. In an effort to choose the one that will suit all your needs, we kindly remind you to learn any possible information about the wallet.
Once you select the crypto wallet, you need to install and set it up. With the right tutorial, setting up a Bitcoin (BTC) wallet will not be a headache. Most of the time, the website of a wallet provides user-friendly instructions and video materials on setting up a digital wallet.
The golden rule, while being online (and offline as well) in the cryptocurrency and blockchain industries, is not to share and show your private keys under any circumstances. Once they are compromised or accidentally revealed to a third party, a hacker can withdraw your digital assets without you even noticing.
As mentioned above, most of the custodial and centralized crypto exchanges store users’ funds on their servers. The slightest breach in an exchange’s security can lead to immense losses.
The cryptocurrency industry is a relatively new phenomenon. Therefore, many countries have not put regulations on it yet.
There are countries that are considered to be more tolerant and crypto-friendly to the blockchain and a new kind of digital asset like Malta, Germany, Japan, etc.
However, the more popularity a cryptocurrency gains, the more attention it attracts from the government. Cryptocurrencies cannot be controlled by any single entity, but some countries introduce taxes on crypto-financial operations. The USA, the UK, Switzerland, and many other countries stand firmly on the cryptocurrency and try to apply the same rules that are currently working for fiat money.
Blockchain technology is tough, and this is the main obstacle on the way of mass adoption. While dApp developers try hard to attract new users through the gaming industry, Changelly offers you entertaining, yet engaging content.
What can be better than a good joke? A joke that is estimated at over $300 million. Dogecoin (DOGE) was the first cryptocurrency based on a meme. It is currently ranked number 31 in terms of market capitalization, and DOGE’s popularity keeps on growing. We’ve listed hilarious Bitcoin (BTC) memes recently, but let’s face it, they will never stop being amusing.
We hope you will find your way throughout the blockchain technology complexity with the help of our comprehensive cryptocurrency market map. Behind the tough essence, there are almost unlimited possibilities of the decentralized Internet we’ve all deserved.
Knowledge is power. Changelly will provide more insightful articles along with instant and secure crypto purchases. Thank you for being with us and stay tuned on the latest educational materials with Changelly.
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