What exactly is a cryptocoin? First, let’s start with this question. Many people talk about it, but how much do others actually know about this topic? First of all, be critical of everything you hear and form your own opinion and make your own decisions. Also read carefully. Cryptocoinskopen.com helps you with this.
For many, crypto is a new one. The operation therefore needs some explanation, because there is a substantial difference with the old familiar currencies such as the euro and the dollar.
A cryptocoin is an alternative payment unit that is booming. Often, terms such as cryptocurrency, cryptocurrency or cryptocurrency are also used. The cryptocoin is a collective name of online coins, of which the Bitcoin is the best known. This digital currency has brought about a true revolution and now has many followers in the form of other currencies.
The term crypto is quickly associated with a cryptolocker. On the one hand that is unjustified, on the other hand there is a relationship. A cryptolocker is a form of cybercrime, in which an IT environment or the computer of a company or person is shut down by a hacker. The hacker encrypts the environment and/or data and demands a ransom (hence the term ransomware). It is often asked to pay out the ransom in cryptocoins.
The difference with real money is that there are no actual coins or paper money. The entire value and trade takes place digitally. The term Crypto comes from the word cryptography, which refers to an uncrackable encryption and unique algorithms. This creates the possibility for a secure and open payment network. This new currency form makes it possible to maintain a payment network outside the supervision of government and central banks (such as the Dutch Central Bank).
The payment network of a cryptocoin is unique and secure. The only difference with ‘real money’ is that it is not centrally regulated and not controlled by the government, but decentralized by means of a peer-to-peer (P2P) network. It is based on an equivalent agreement between two parties without the intervention of a third party such as a government or a bank.
As it were, there is a decentralized ledger that consists of a blockchain of transactions. For this, the English term is generally used, namely blockchain. The blockchain is literally translated as a chain. This chain ensures that the ledger is copied to all participants (also called nodes) within the relevant network. By using a consensus algorithm, copies of the general ledger (a kind of source file) are continuously maintained and validated.
The security of your Bitcoins and altcoins is of great importance. Most traders store the coins in online wallets. 2FA (full name: Two Factor Authentication) is then indispensable. Finally, you have invested a lot of money in it and you want to monitor the value as well as possible.
The technology that underlies bitcoin is seen as revolutionary. Even today’s banks are exploring how they can use this technology in the future. However, the technology surrounding bitcoin also has a so-called ‘bottleneck’, as the hype and the number of spending in cryptocurrencies is increasing. The challenge lies in the so-called scalability, to increase the power of a network because the use or the number of users grows.
Market cap is a frequently heard term in the world of crypto and also a very important one. It plays an important role in the price movement of the coin in question. In an indirect way, it affects the traders, the price and the availability. That is why it is important to know what a market cap is, how to find out this indicator and how to assess it.
Mining Bitcoins, what is it? Mining is an English term that stands for making, or in other words earning, Bitcoins. At the beginning of the Bitcoin era, it was still simple and cheap to start this up. Those days are over. Mining can be a lucrative business if you are willing to invest in Bitcoins. Mining has reached a high level, which has an influence on the required investments. How does mining work and how do you start with it?
Strike of cryptocoins, suddenly it was there. Many traders saw it appear on the exchange website on which they trade. There were even Dutch traders who were shocked by the term, wantstaking in Dutch has a completely different meaning than the English explanation. Then we come directly to the subject of pronunciation. So it is not the Dutch pronunciation, so rest assured: there will be no strike. You pronounce it as “stee king”.
Bitpay is responding to the next phase that cryptocoins are entering. Where Bitcoins and altcoins were until now often seen as commodities, there are more and more opportunities to make investments and payments with cryptocurrency. As a result, these new and trendy currencies are gaining more and more of a foothold.
Trading coins is new to many people. That is why we have posted an overview of frequently asked questions below. This way you can quickly make the world of cryptocoins your own. The better you are aware of the trends and developments, the more successful you will be! Read the most frequently asked questions here.