Crypt currency in simple words – gain or loss?

For some people, crypt currency is an ideal way to earn money, while for others it is a phenomenon that will soon end. What is cryptovalut in simple words? Does it have a future? Answers to these questions are of interest to many people.

cryptovite

The term “gross currency” first appeared in Forbes publishing house in 2011. Crypt currency what are these simple words? It is electronic or digital currency that is produced and stored on virtual wallets. It has no physical analogues. A special cryptographic cipher is used to create it. It includes sequential hashing and an electronic signature. That’s what the first part of the word – crypto – came from.

Many inexperienced users think that electronic wallets and cryptographic currency are similar to each other. But their opinion is wrong, because the principle of their work is significantly different. The main difference is the way the financial resources are issued and further stored.

Advantages of

Crypt currency has many advantages. They can be referred to:

• minimum transfer fees or no transfer fees at all;
• exchange directly without intermediaries;
• transaction transparency;
• resistance to inflation;
• ease of use;
• absence of a centralized body;
• anonymity.

About decentralization

There’s no central authority for the issue. This cannot be said about such organizations as the Central Bank, National Bank or the Federal Reserve. Even the systems Webmoney and Yandex. Money has a central regulator, controlling the situation. The basis of the cryptocurrency is blockchain (distributed database). It is stored on many computers simultaneously.

Where does it come from?

To create a cryptovalue, different mathematical calculations are used. The process itself includes the following steps:

1. People send transactions to each other.

2. They are gathered in connected blocks and confirmed.

3. Release of a certain amount of crypto coins is performed with each found block.

4. 4. The cryptocoins are received by the user who has managed to confirm the block.

To build your own mint, the user only needs to have a powerful computer and install a special program on it. In addition, people have the ability to create their own crypt currency. But it must earn the trust of other users. Otherwise, he will be disappointed.

No intermediaries!

Banks, payment system exchangers are intermediaries. Each of them has its own rules and conditions that must be met. Their danger is that at any moment they can block the accounts. This kind of trouble won’t happen with the crypt currency. It allows users from all over the world to exchange money.

Its main purpose is to eliminate third parties (exchangers, banks, etc.) when attempting to transfer funds. Moreover, the access to the performed manipulations is closed to the tax authorities.

It is not difficult to track from which wallet and for what amount the transfer was made. But another problem arises – to link the purses to a specific user. The main goal is to keep anonymity and exclude fraud.

What does it look like?

It is impossible to hold, touch, pass on to another person the crypt currency, because it is presented in the form of records of transactions carried out earlier.

Getting the crypt currency

The following methods can be used to obtain the cryptovite:

Mining (solving mathematical computational tasks);

demand payment for goods or services in the form of coins;

exchange cash on specialized exchanges;

use the services of exchange offices, where dollars, euros, hryvnias are converted into crypt currency;

refer to tokens (cryptocoins are distributed after viewing an advertisement, unraveling a cappie, etc.).

Safe storage

Special crypt currency wallets are used for storage in a form:

programs (data are stored on the hardcaster);

mobile applications;

online wallets;

hardware wallets (in appearance resemble an ordinary flash drive).

Also you can read in what wallet it is better to store bitcoins here.

You can also store crypt coins at the exchange, where they were purchased.

Shortcomings .

Naturally, this digital currency also has disadvantages. Among them are the following:

1) The impossibility of password renewal. If the user has forgotten the password, he will not be able to access the cryptographic currency anymore.

2. Irreversibility of translation. If the funds were sent to the wrong person by mistake, it will not be possible to return them.

3. Relationship of the state where the person lives to electronic payments. For example, in Japan, crypt currency is in great demand. It can be used to pay for goods and services. But some countries are categorically against digital currency, which can cause problems for its owners.

What are the prospects for 2019?

What is crypt currency 2019? Will it develop in the future? Is it at high risk? In order to answer these questions, one should first determine the most popular cryptov currencies. One of the most popular is still considered Bitcoin. Ethereum, Ripple, Bitcoin Cash, Litecoin are also in great demand. It is important to remember that the rating of cryptovalues may change, but electronic money will never stop being relevant.

How do you start earning?

Many users enter a “how to start earning” query in search engines, and then get seriously baffled. This is all due to the fact that now offered many methods of earning cryptovite. Among the most popular methods are the following:

1. Mining. To earn the cryptovalue in this way, you need to buy a powerful computer with a good video card and special software. In addition, you will need to buy a farm. It has a rather high cost. And the farm pays off for a long time, but with a good course it can take six months, more details for newcomers here.

2. Cloud mining. It’s worth choosing this method because it pays off quickly. It does not require large financial investments. To do this, the user only needs to buy capacity on other farms. It is important to know! Rented farms may charge a fee for outputting cryptovoltaic currency. And the probability of becoming a victim of scammers, who are now very numerous, is high. For today, 03.2019 cloud mining is not yet relevant.

3. Buying the crypt currency and further storage. This method of earning is considered one of the most effective and affordable. The essence of it is simple – real money is exchanged for digital. The course should be low. With its growth, human income increases. This method is worth choosing people who do not follow the exchange rates every day, the site has an article about bitcoin.- Where to buy bitcoin..

4. Buying and reselling. In order to earn money using this method, a person must regularly monitor the situation. In addition, they risk losing some of their money due to high commissions. But among the advantages of buying and reselling cryptographic currency are the following:

• the choice of currencies for every taste;
• the sum of the start, which you can determine for yourself.

It’s done through crypto exchanges, here’s the thing list of exchanges,that I’ve tested.

The methods of earning cryptovolta are different, so even a beginner can find the most suitable for himself.