What is cryptocurrency in simple words: Full review and description, history, course and schedule, operating principle, prospects, application
Since the appearance of the first cryptocurrency in 2009, the number of its followers has been steadily increasing. Interest does not wane, no matter what ups and downs are observed in the cryptosphere. We bring to your attention a detailed review article about cryptocurrency from the editors of Btcnewsweb.com – its technology, history of appearance, methods of use and receipt. The review also contains a table with rates and main characteristics of coins (capitalization, emission, trading volume) and an online chart. We will tell you where to buy or sell virtual coins, provide a list of exchanges, exchangers and cryptocurrency services, describe ways to make money without investments (faucets) and with them.
Read also: list of the best crypto exchanges.
Cryptocurrencies are digital units, the emission of which takes place on the Internet, and the principles are based on cryptography. The creation of all cryptocoins is based on the blockchain technology – a chain of blocks ordered according to certain rules, the immutability of which is ensured by the use of cryptography. All transactions are closed and with the use of keys. It is necessary to distinguish between the concept of “cryptocurrency (coin)” and “token”. The token does not use its own blockchain and is created on a third-party platform (for example, Ethereum) according to a standard template.
In simple words, a cryptographic currency is a means of payment that exists exclusively in electronic form and is a certain mathematical code. In the process of circulation of these assets, an electronic signature is used, encrypted using cryptographic methods – hence the name. Separately taken units of cryptocurrencies are called coins (coins, coins). These coins exist only on the Internet and do not have any physical embodiment.
Currently, there are a huge number of cryptocurrencies. As of December 2021, there are more than 15,000 cryptocurrencies and tokens that are traded on exchanges and have a block chain. Most people know only the most popular of them: bitcoin (Bitcoin, BTC), ethereum (Ethereum, ETH), litecoin (Litecoin, LTC), not knowing about the existence of other cryptocurrencies that can good make money.
The official status of cryptocurrency as a means of payment is recognized in Japan, thereby legalizing their use. This event played a major role in the growth of the cryptocurrency rate throughout 2017. Today, the Land of the Rising Sun is the largest market in terms of cryptocurrency trading, followed by the United States. In Russia, Ukraine, there are no laws that determine the status of virtual coins. In December 2017, a revolutionary decree was signed in Belarus, which legalizes the use of cryptocurrencies, mining, ICO, token circulation and exempts these operations from taxation.
- 1 Cryptocurrency rate
- 2 How and where to buy / sell cryptocurrency
- 3 Online schedule
- 4 How to get and earn cryptocurrency
- 5 Top 10 cryptocurrencies rating
- 6 The history of the evolution of cryptocurrency
- 7 How cryptocurrency works
- 8 Differences between fiat and cryptocurrency
- 9 How cryptocurrencies are secured
- 10 Cryptocurrency application
- 11 Advantages and disadvantages
- 12 Cryptocurrency wallets
- 13 Private keys and cryptocurrency address (public)
- 14 Promising cryptocurrencies
- 15 Stablecoins
- 16 Features
- 17 Legal status
- 18 The future of cryptocurrencies
The rate of cryptocurrencies against the US dollar in the online update mode is presented here. There are over 1,750+ coins in the table: from promising to shitcoins. Sort by market capitalization or other parameters. You can choose to display the rate in any fiat currency, for example Russian rubles. To view the list of other cryptocurrencies, you need to click “Next” or use the search box:
|#||Name||Price||Changes 24h||Market CAP||Volume||Supply|
How and where to buy / sell cryptocurrency
In crypto exchanges
Crypto exchanges are the fastest way to buy cryptocurrency. It involves a large number of payment solutions for making an exchange in the right direction. There are a lot of exchangers on the Internet. It is better to buy from trusted and reliable ones. If the buying rate is very low or when selling is high, then this is a reason to think and look at reviews on the Internet.
Which exchangers are reliable for buying cryptocurrency? From experience and user reviews, we can recommend:
|Cryptocurrency exchanger||Cryptocurrencies||Fiat money|
|ProstoCash||Bitcoin, Tether, Ethereum, Litecoin, Monero, Zcash, Dash, Ripple, Dogecoin, Binance Coin, Bitcoin Gold, Ethereum classic, Stellar, Neo, EOS, TRON, NEM||RUB, USD, EUR, UAH, KZT, BYN|
|60cek||Bitcoin, Ethereum, Litecoin, USD Coin, Tether (USDT), Ripple, Bitcoin Cas ABC, Zcash Monero, Ethereum classic, EOS, Stellar, Cardano, Neo, Dogecoin, NEM, 0x, Binance Coin||RUB, USD, BYN, UAH, KZT, EUR|
|Ramon Cash||Bitcoin, Ethereum, Litecoin||RUB, USD|
|Platov||Bitcoin, Ethereum, Litecoin|
|Xchange||Bitcoin, Tether, Ethereum, Zcash, Litecoin, Ripple, Dash, Dogecoin, Monero, Neo||RUB, USD, EUR|
|Matbi||Bitcoin, Litecoin, Zcash, Dash||RUB|
|Kassa||Bitcoin, Bitcoin Cash, Ethereum, Zcash, Litecoin, Ripple, Dash, Dogecoin, Monero, Ethereum classic||RUB, USD, EUR|
|Magnetic Exchange||Bitcoin, Bitcoin Cash, Ethereum, Stellar, Litecoin, Dash, Monero||RUB, USD, EUR|
For example, on the website of the ProstoCash exchanger, you can purchase, exchange cryptocurrencies: Bitcoin, Ethereum, Zcash, Litecoin, Dash and others. The exchange process usually takes 10-15 minutes. The exchanger works around the clock. If something is not clear about the exchange, then you need to immediately contact the online chat of the support service. Registration is not required, but after completing it, you can get a discount on subsequent exchange operations.
What payment systems can you buy crypto for? Almost all popular electronic money is available: Qiwi, Yandex.Money, AdvCash, Payeer, Perfect Money, Capitalist, ePayments; Sberbank, Alfa-Bank, Tinkoff, Visa / MasterCard cards of any bank of Russia and other options. It is possible to purchase exchange codes: Livecoin-code, EXMO-code.
The algorithm for buying cryptocurrency is as follows:
- Go to the website of the exchanger, register (optional).
- Select the direction of exchange. For example, buy bitcoins for rubles (in the screenshot).
- Indicate the amount of exchange, taking into account the minimum and maximum limits, the reserve of currencies.
- Enter the rest of the data (card or wallet number, information about the cardholder) and the address of the cryptocurrency.
- Check the correctness of the entered data and strictly follow the instructions from the exchange office.
- Transfer funds to the details of the exchanger within the allotted time.
- Wait until the exchange service, having received the transfer, sends the cryptocurrency to the specified receiving address, having received the required number of confirmations in the cryptocurrency blockchain network.
The exchange process takes a little time, after which you can become the owner of virtual coins. When selling cryptocurrency, the process is similar: you need to transfer it to the address of the exchanger’s wallet.
Buy cryptocurrency on the exchange
If you need to buy a crypto coin that is not in the exchanger, or if you want to make money by trading cryptocurrency, then you need to create an account on the crypto exchange. Another advantage is better exchange rates.
If we consider crypto-exchanges with a Russian-language site, then the following popular platforms can be distinguished:
|Stock exchange||Cryptocurrencies||Leveraged trading||Fiat money|
|Binance||Bitcoin, EOS, Ontology, Cardano, Tron, Bitcoin Cash, Litecoin, Ethereum, Bitcoin SV, Ripple, Binance Coin, Cardano, TrueUSD, 0x и другие (160+)||no||no|
|EXMO||Bitcoin, Ethereum, XRP, Dash, Zcash, Bitcoin Cash, Litecoin, EOS, DAI, Stellar, Cardano, XEM, LSK, Tether и другие (30+)||no||yes|
|BitMEX||Bitcoin, Ripple, Cardano, Litecoin, EOS, Ethereum, TRON, Bitcoin Cash||yes||no|
Let’s take the EXMO exchange as an example:
On it, you can exchange fiat currencies for 97 cryptocurrencies and trade 132 currency pairs:
Algorithm of actions on EXMO:
✅ Register and create an account by entering your email address and password. Be sure to confirm the registration by clicking on the link in the letter that will be received from the exchange. If you need to use Visa / MasterCard, bank transfer, Neteller, Skrill or some other payment systems with an increased level of security to deposit and withdraw money from the balance, then verification is required.
✅ Top up your account in any available way. To do this, go to the “Wallet” section and click “Replenish” in front of the desired account currency.
✅ For quick deposits or withdrawals, you can use EX-code (EXMO internal codes). You need to buy or exchange them in exchangers. Then on the website exmo.me go to the section “Wallet” – “Ex-code” – “Top up”. In the same way, you can withdraw money from the exchange (“Withdraw”). Exchangers for buying codes: ProstoCash, Xchange, 60cek or through the AdvCash payment system.
✅ Next, buy or sell cryptocurrency in the “Exchange” tab or by creating limit, market orders in the “Trades” section.
An online chart of any cryptocurrency is presented below. Quotes come from the most liquid crypto exchanges. In the upper left corner, you can specify the desired crypto coin. It is enough to enter its ticker for available offers. By default, the BTC / USD chart is displayed. The time is in UTC (world time). You can select the required timeframe, technical analysis indicators, etc.
How to get and earn cryptocurrency
Interest in digital money is not limited to theory – the question arises of how you can earn cryptocurrency on your account for further use. There are a lot of ways, consider the five main and most common.
Mining is understood as the process of mining cryptocoins using special software. Since mining is associated with a large volume of calculations, it requires high-power equipment to carry it out. The software is used to connect the miner to the system, and a software wallet is required to conduct transactions (payments).
The mining principle is based on decentralization. Each new transaction is recorded in a chain – a blockchain, a copy of which is available to every participant connected to the network. Some time passes between the records in the blockchain, it is necessary for the exchange of information between all clients of the system about the actions that have passed during this period.
- All miners simultaneously solve mathematical problems issued by the system, trying to find a certain code (hash).
- The user’s computer searches by brute force searching for the appropriate code.
- Once a solution is found, a block is formed. Block – summary information about all recent transactions.
- The block is fixed at the end of the blockchain, where it cannot be changed or deleted in any way.
- The updated blockchain is copied to all clients.
Thus, mining is an important part of the cryptocurrency network. To encourage people to engage in it, a reward system has been introduced – the participant who closes the block receives a certain amount of coins.
Cloud mining allows you to mine cryptocurrency with minimal investment. With this method, mining capacities are leased from specialized companies. All settlements (purchase, distribution of profits, etc.) take place online.
You will need to register on the cloud mining website, select a contract, algorithm, amount of power (hash rate). Payment is made with cryptocurrency or fiat money. Many cloud services accept credit cards. Profit can be received already on the first day after investing.
Currently popular sites for cryptocurrency mining on the “cloud”:
- IQ Mining.
- Genesis Mining.
Cryptocurrency margin trading
Margin trading is trading a cryptocurrency on an exchange using funds lent by the platform itself against the security of a deposit. “Credit” is not given free of charge, but for a certain percentage in favor of the exchange. True, the percentage is usually small (around 0.1%).
Key features of crypto margin trading:
- The loan is issued for the purpose of purchasing currency, for example, BTC, and this method is called “leveraged” trading. When a user buys an asset, he buys not so many coins as his deposit would be enough, but more – the rest of the currency is paid for with funds borrowed from the exchange. Thus, leverage is a targeted loan that temporarily increases the user’s deposit amount several times (depending on the leverage ratio).
- The exchange takes care of its safety and tries to minimize risks. If the rate of the purchased cryptocurrency gradually begins to decline, the system will not pay attention to it for a long time; but in case of a sharp collapse of the price (for example, by half), when credit funds, and not just a personal deposit, are already under threat, the position will be forcibly closed. The phenomenon is called “margin call”.
- A cryptocurrency purchased using a loan cannot be withdrawn from the system as its own.
- To receive a margin loan, you do not need to conclude additional contracts with the site. The main thing is that there are deposit funds on the account.
There are a number of exchange-traded instruments that can make the margin trading process more successful. In particular, alerts and stop losses.
The trading terminal of the BitMEX exchange, which ranks first in terms of the volume of margin trading:
An exchanger is a service that allows you to quickly transfer funds from one payment system to another. This is one of the most convenient ways to buy cryptocurrency, although sites with large commissions are often found.
The well-known BestChange service will help you choose the best exchanger. It is enough to indicate in it the currency given away and the one that there is a desire to receive. A table will instantly appear, allowing you to easily select the exchanger with the best rate at the moment. Then it remains to go to the selected site and follow the instructions.
Exchange 60cek interface:
Continuing: “Bitcoin exchangers”
Cryptocurrency faucet is a site that provides the opportunity to receive small shares of virtual coins for free. To do this, it is enough to enter a captcha or perform another simple action once in a certain period of time.
From one or two faucets, the profit is insignificant, calculated in pennies, if translated into fiat money. Therefore, those who want to earn a tangible amount on them open 10–20 resources in different tabs at once, since there are a lot of them on the Internet today, and they continuously collect profits.
ICO cryptocurrencies and bounty
Most cryptocurrency startups organize ICOs to raise funds for their development. This is an investment venture where investors are given tokens for their contribution to a future project – the coins of this project. Since 80% of ICOs fall apart even before the completion of the project, this is a rather risky way to invest.
However, there is an opportunity to invest not money, but your own time – to post startup reviews, videos, attach links on various platforms. And in return, receive the same tokens. This is called a bounty program (wealth).
Top 10 cryptocurrencies rating
Here is the rating of the top 10 cryptocurrencies by market capitalization:
|Name||Price||Market Cap||Supply||Change % (7D)||Performance|
Bitcoin is the very first cryptocurrency, first released in 2009. According to scientists from different fields of science (mathematicians, cryptographers), the technology has become a fundamental breakthrough and the embodiment of everything that has been developed and brought to mind over 40 years.
As of January 2019, the Bitcoin exchange rate is USD 3,571, the market capitalization is USD 62,495,146,796, which makes the coin the undisputed leader, even despite the recent drawdowns.
Ethereum was created by our compatriot Vitalik Buterin (though at that time he lived in Canada). The platform is positioned as a tool for creating a variety of decentralized applications. It is on the basis of ether that most new cryptocurrencies are created today. In addition, in Ethereum, Vitalik redesigned the technology of smart contracts, making them more flexible and reliable.
Ethereum price is 116 USD, market capitalization is 12,168,909,324 USD.
Ripple is a cryptocurrency platform focused on making fast and cheap payments. It shows really excellent efficiency, so the protocol has already been taken into circulation by such large companies as American Express, as well as about 50 large banks around the world.
The Ripple price is 0.3 USD, the market cap is 12,967,635,031 USD. Due to its cheapness, the coin is considered a good investment option.
The second (after Namecoin) fork, that is, a fork of Bitcoin. Litecoin is similar to its progenitor in almost everything, but it uses a different hashing algorithm – Scrypt. This provides more flexible mining conditions, increased scalability and bandwidth. Low commissions within the network are also noted.
Litecoin price is 32 USD, market capitalization is 1 968 526 709 USD.
EOS is based on Ethereum technology and provides a platform for building high-speed applications. The developers say the key goal of the project is security and elimination of vulnerabilities inherent in other cryptocurrencies.
The EOS rate is 2.4 USD, the market capitalization is 2,496,060,127 USD.
Another smart contract platform that aims to provide users and developers with a broader set of features than the competition.
The Cardano price is $ 0.04, the market cap is $ 1,329,077,911.
A platform for performing foreign exchange transactions operating in real time. Works on its own protocol of the same name. Stellar was selected for collaboration by IBM.
Stellar price is 0.1 USD, market cap is 1 918 470 600 USD.
Binance Coin cryptocurrency is the token of the Binance exchange. It was released in 2017 on the Ethereum platform, but moved to its own blockchain network in 2019. It is used to participate in the IEO (Initial Exchange Offering) tokeysale, reduce the trading commission and increase the referral deduction from 20% to 40%. As of April 20, 2019, BNB is trading at $ 23.
The history of the evolution of cryptocurrency
The first ideas for cryptocurrencies appeared back in 1998, when it was proposed to supply electronic money with cryptographic signatures. This would make each coin unique and eliminate many of the problems of digital currencies. At the same time, the first developments of the idea of smart contracts appeared.
In August 2008, a certain Satoshi Nakamoto published a document on the forum, in which the basics of the cryptocurrency he invented were spelled out. This is how the world first heard about Bitcoin. But who Satoshi Nakamoto is is still unknown, despite the fact that many theories have been built.
In January 2009, Genesis was formed – the “zero” block in the bitcoin network. Mining was then extremely simple due to the small total network hash rate – the number of connected computers was very small. Therefore, bitcoin was freely mined on processors, and for each block found, 50 BTC were given.
Gradually the idea began to gain popularity, the “new money” found more and more supporters. Of course, not without talented enthusiasts: since 2011, other cryptocurrencies have been created, including Ethereum.
Crypt flourished in popularity in 2015. And in December 2017, one bitcoin on the exchanges was given $ 20,000, and this is a record figure that the currency could not beat later. New crypto startups appear regularly, and many no longer consider Bitcoin worthy of attention, although there is another opinion – what exactly is the future for the pioneer.
How cryptocurrency works
Blockchain platforms, including Bitcoin, have one important feature: the records stored in the chain can track absolutely all payments within the network – from the new one to the very first transaction. Information about payments and wallet balances does not belong to confidential information; theoretically, you can find out the state of any user’s account.
However, at the same time, cryptocurrencies are distinguished by a high level of anonymity. You do not need to provide any personal data to use them. It is impossible to determine which specific person owns a cryptocurrency wallet if he does not provide such information himself. And due to the immutability of the blockchain, cryptocurrency systems are extremely stable. There is also a disadvantage in this – it is impossible to cancel an erroneous transaction.
Differences between fiat and cryptocurrency
Digital money is much less subject to control by the state than fiat money due to its anonymity. There are a number of other important differences:
- Decentralization. Crypto is issued by everyone, not just the state or other centralized body. Accordingly, everyone has the right to manage it (influence on the size of commissions, rate).
- Inflation. Fiat money is more prone to depreciation due to its unlimited issuance. When it comes to cryptocurrencies, almost all of them have limited emissions.
- Fiat money has material counterparts; it is easy to withdraw it from an ATM or change it in a store. Digital money can only be paid on the Internet.
- When paying in a store with a bank card, a person immediately transmits the payment data to the bank, where his confidential data is known. There is no anonymity.
- Fiat money is still much more popular than cryptocurrency. It is impossible to say for sure when the situation will change, in the next few years it is definitely not.
As far as security is concerned, it is lame with both types of money. Cryptosystems are susceptible to hacker attacks, and a wallet with fiat money can be stolen, a PIN code can be picked up. There is something to work on both there and there.
How cryptocurrencies are secured
Bitcoin or other digital currency is not backed by the state or any company that could be responsible for its value with its resources. Therefore, in order to determine the real “weight” of the coin, other methods are used. Economists have come up with an interesting analogy for comparing cryptocurrencies with rare substances that exist in the world in the amount of only 1-2 grams, which have been created over the years. My first thought is that they are priceless. However, no, there are three factors by which they can still be assessed:
✅ Production cost.
✅ Market price.
✅ Assessed value.
In fact, it turns out that the value of a substance (just like bitcoin) is determined mainly by the amount of demand and how much resources buyers are willing to give for it.
The ways of using digital money are not original, they are actually the same as that of fiat. For cryptocurrency, you can buy goods or services (albeit only on the network). In this case, the purchase will be completely anonymous.
Also, electronic currencies are considered a convenient tool for long-term investments. The investor buys coins and waits for their rate to rise. To do this, you need to be confident in the bright future of a particular currency. Those who were not mistaken about Bitcoin were able to make a profit of thousands of percent.
Finally, crypto assets are suitable for speculation on exchanges, where additional income can also be obtained through trading and constant monitoring of price fluctuations.
Advantages and disadvantages
Advantages of digital coins:
✅ Inflation resistance.
✅ Transparency of all operations.
✅ No geographic restrictions on payments.
✅ The fees for cross-border transfers are significantly lower than those of banks.
Cons of cryptocurrencies:
✅ Scalability issues causing transactions to get slower as the network grows.
✅ Complexity of development, a small number of blockchain specialists.
✅ High volatility, difficulty in predicting prices.
✅ Lack of recognition in most countries of the world.
✅ Regular hacks and hacker attacks, many fraudulent projects.
It is worth noting that most of the shortcomings can be eliminated by improving the code, and the developers are actively working on this.
The main types of wallets for storing cryptocurrencies:
- Desktop. Installed on a computer or laptop. They have two subspecies – “thick” and “thin”. The fat wallet downloads the entire blockchain to the PC and therefore requires about 200 GB of free disk space and 2-3 days of continuous Internet connection for synchronization. Thin does not download the blockchain, but refers to it in the network for each operation, and, therefore, is less secure.
- Browser. These are sites with a personal account where you can store your private and public keys, as well as conduct transactions.
- Mobile. They are downloaded in the form of applications on a smartphone / tablet, usually they have reduced functionality.
- Hardware (Ledger, Trezor). Outwardly they look like flash drives, sometimes with a small screen. Only your private keys can be written to the hardware wallet, and transactions are only available when the device is connected to a computer with Internet access.
- Paper ones. A paper wallet is simply a piece of paper with the keys to access your balance printed on. From the point of view of protection against hacker attacks, the option is the most secure, suitable for long-term investors.
Bitcoin cryptocurrency wallet
To store bitcoins, you can use the capabilities of the official website of the developers and download the desired program or use the offered online services, hardware devices, and mobile applications. To do this, go to the bitcoin.org website in the “Resources” – “Wallets” section.
Popular wallets for users to install on a computer:
- “Thick” – Bitcoin Core.
- “Slim” – Electrum.
It should be borne in mind that after installing the “thick wallet”, the process of synchronization with the Bitcoin blockchain network starts. All blocks with information about transactions are being downloaded, the size of the downloaded files will be more than 200 GB. Therefore, it is advisable to purchase an external drive and write files to it. The process will take considerable time and requires constant Internet access.
Recommendation: after launching the wallet, it is imperative to make a backup (saving) of it by transferring a small amount to it and then deleting the program from the computer. Then restore using a backup, and if everything works out, then store more amounts on it.
An easier option is to start a bitcoin wallet using online services. You can go to the “Web” tab on the official website of the bitcoin.org cryptocurrency in the wallet selection section or use the popular Blockchain site. You need to follow the instructions, save the passwords – and within a couple of minutes the wallet will be created. Since this is an online wallet, you do not need to download any files, which is an advantage of this method of storing crypto coins.
You can use crypto exchanges to store and trade cryptocurrencies.
Ethereum cryptocurrency wallet
You need to download the Ethereum Wallet program from the official website ethereum.org, save and run, after which the standard process of synchronization with the Ethereum network takes place. Make a copy of the wallet for recovery, for this go to the “Account” item, select “Backup” and then copy the file with the JSON extension. To check, make a test transfer of a small amount.
There is also an option for a lightweight online wallet without installation on a computer. You need to go to Myetherwallet and create an Ethereum wallet on the official website of this service.
Litecoin cryptocurrency wallet
To create a wallet for the litecoin cryptocurrency, you need to go to the litecoin.com developers website, select the device where the files and the operating system will be uploaded.
After installation, you need to back up the wallet.data file and save it in a safe place. To backup, go to “File” and select “Backup”.
Bitcoin Cash wallet
As you know, the safest way to store cryptocurrency is to use official resources. So for bitcoin cash: you need to go to bitcoincash.org and select the “Wallet” tab. There will be several wallets to choose from for using the Bitcoin Cash cryptocurrency.
Please note that sometimes it is easier to register on a cryptocurrency exchange to receive a crypt. Of course, it’s not worth keeping coins on it all the time. But for buying or trading, this is the best way. At any time, you can transfer cryptocurrency to another wallet from the exchange.
For example, on the EXMO exchange, after registration, wallets are available for storing the most popular cryptocoins, and on the site itself, they can be purchased both for fiat currencies and exchange cryptocurrencies among themselves.
Private keys and cryptocurrency address (public)
A private key, also called a private key, is a 256-bit number that visually looks like an alphanumeric combination. The appearance of the key changes depending on the encoding format, which sometimes confuses newbies. Examples of keys in different encodings:
- Hex: 1E99423A4ED27609A15A1813A2B0E9E52CED330AC530EDCC32C8FFC6A526AEDD.
- WIF: 5J3mBbAH58CpQ3Y9RNJpPUK
- WIF Compressed: KxFC1jmwwCoACiCAWZ3eXa96nVN6tb9TYzGmf7YwgdGWY
Formats are easily converted to each other. The private key is required in order to gain access to the management of the cryptocurrency wallet – to see the balance, to make a payment. A public key is generated based on the private key.
A public, or public, key is a unique set of numbers and letters that can be viewed by any member of the network. It acts as a cryptocurrency address to which money can be sent.
For example, the public and private keys of Bitcoin:
The following cryptocurrencies are considered promising for 2019:
- GRAM. Coin from the creators of the popular Telegram messenger. The main goal of the project is to create a payment system that will surpass Visa and MasterCard in terms of efficiency, providing processing of millions of payments per second.
- Siacoin. The idea behind the platform is decentralized cloud storage of files. With a low price at the moment, the coin has every chance to grow in the near future.
- DigiByte. A payment platform with a high level of security and scalability. Differs in the speed of creating blocks (15 seconds). For comparison: Bitcoin has 10 minutes.
- Verge. A network capable of ensuring complete confidentiality of transactions. The functionality for payment for services and goods with Verge coins has already been implemented by some Internet platforms.
- TRON. A platform focused on entertainment and free content distribution.
All of these coins are now very cheap, so they are quite affordable for investment. Meanwhile, they have excellent prospects, thanks to which it will be possible to double or even triple investments in the future.
A stablecoin is understood as a cryptocurrency, the value of which is tied to the value of a real asset. A striking example is the Tether coin (USDT), the rate of which is always $ 1, plus or minus a fraction of a percent.
The purpose of creating such currencies is to eliminate volatility – one of the main disadvantages of digital money. However, this also has its drawbacks: the principles of decentralization and free price formation, which were originally laid down in the idea of cryptocurrencies, are violated.
Let’s name some of the main features of cryptocurrencies compared to regular money:
- Lack of a central governing body and emission.
- Anonymity. The owner can only be determined if the wallet has been used publicly.
- Transparency of operations in the blockchain. The history of transactions is available to everyone, but it is impossible to understand who is behind them.
- Speed. A few minutes are enough to transfer cryptocurrency from one end of the world to the other. In a bank, this process will take several days.
- Small fees compared to bank transfer.
States have different attitudes towards bitcoin – from total rejection and even prohibition to encouragement. In those countries where crypto transactions are legalized, digital money is regarded as investment assets or goods. In Germany and Japan, BTC is recognized as a unit of account. But in China, cryptocurrency transactions are allowed only to individuals.
Switzerland is considered the most loyal, where bitcoin is perceived on the same terms as foreign currency. It is believed that Switzerland is the most favorable environment for launching blockchain startups.
In Russia, discussions of cryptocurrencies have been going on for a long time, but they have not yet been assigned a specific status, although most officials speak in a negative way.
The future of cryptocurrencies
The future of the cryptocurrency industry is closely related to the attitude of the authorities towards it. Any positive movements associated with this segment are instantly reflected in the value of the crypt.
It is noticeable that the world, although slowly, is moving towards the adoption of digital money. So, at the end of 2017, Alexander Lukashenko signed Decree No. 8 “On the Development of the Digital Economy”. This created unprecedented conditions for the creation of new projects and developments in the field of information technology.
The first regulated crypto exchange, Currency.com, recently opened, allowing direct trading of commodities, indices of major global companies and financial assets with BTC or ETH.
And just the other day in the United States, and specifically in the state of Wyoming, a bill was proposed, according to which cryptocurrencies can receive virtually the same legal status as fiat funds. If the law is approved, it will revolutionize the crypto segment.