In the financial field, a topic that arouses a lot of interest in recent years, the Bitcoin, which has gained a lot of relevance, given the enormous value gained in a short time, rising from 500 to over 15,000 euros, and then falling back to around 3,500 euros. All these oscillations, if exploited properly, can bring excellent earnings, as in one day you get to have oscillations of the value of a cryptocurrency even of 25%, all knowing how to make the most of them.
For less than a year, it has also been possible to exchange futures on bitcoins. Futures, for the uninitiated, are nothing more than contracts that allow any investor to bet on the trend of the value of almost anything, but are mainly used for raw materials on a regulated market. In the case of bitcoins, you bet on the trend of the value of Bitcoins.
Closed this short parenthesis, open to make you understand the importance that cryptocurrencies are acquiring, we will now go into a detailed look at everything related to Cryptocurrencies, of which Bitcoin and many other electronic currencies are part and on which it is better to invest and how to do it, as there is a lot of confusion and not everyone understands the difference between actually buying a cryptocurrency and instead trading on a cryptocurrency, which does not mean owning it.
- What is Bitcoin and What are Cryptocurrencies
- Wallet – Where to keep your Digital Money / Cryptocurrencies
- How a Wallet works
- What is Blockchain
- Miner and Mining to earn cryptocurrencies
- The best 2019 cryptocurrencies to invest in
- How to see the trend of all Cryptocurrencies
- How to Buy Bitcoin and Other Cryptocurrencies
What is Bitcoin and What are Cryptocurrencies
Bitcoin onecryptocurrencyalso calledcrittovalutaorcriptomonetaborn in 2009 from Satoshi Nakamoto, fictitious name of a developer whose true identity is still unknown.
Therecryptocurrency in short, a digital currency, used to make payments as well as any traditional currency, such as the EURO, but in order to be safe, given its digital nature, encrypted.
For cryptography means all those techniques that allow you to "encrypt / disguise" a message or in this case digital data, making them incomprehensible to everyone except those who have encrypted it and who is given the key to decode them.
Encryption is used for 2 reasons:
- To give guarantee and validate transactions (i.e. make payments online securely)
- To create / generate new money, in this case new bitcoins, this operation is called Mining and is carried out by Miner (Miners).
Bitcoion is not only the most famous and precious Cryptocurrency, but also the first to be born and therefore to be appreciated in these years for its countless advantages compared to classic government currencies such as the Euro. Hundreds of new alternative cryptocurrencies (Altcoins – Alternative Coins) were born following Bitcoin by virtue of the fact that some aspects of Bitcoin could be improved.
Bitcoins are not yet regulated currencies, where there is no intermediary authority such as banks or financial institutions and are considered the future of the economy.
Being totally decentralized and not controlled by any government, they are highly feared and efforts are being made to thwart them despite the great success and approval of many financial analysts. The current capitalization of about 70 billion dollars, a huge figure with which to understand its size.
Wallet – Where to keep your Digital Money / Cryptocurrencies
While for normal currencies like the euro, there are bank accounts or your own wallet where you can keep your money, for cryptocurrencies like theBitcoinor any othercriptomoneta, being digital instead you need to have a Wallet which translated means your own wallet, but in this case digital and it isbasic tool needed to use thecriptovalute.
In summary un Wallet is nothing but asoftware(program) ohardware(electronic device) that can be installed on PC, Smartphone and Tablet.
How do they work? Digital walletsthey do not store currency.All that is stored are only the recordings of thetransactions in the variousblocks in the blockchain (rest assured now we will also explain this thing).
A digital transaction, like data composed mainly of:
- digital address of the person sending the payment
- digital address of the recipient
and a series of other data that we will then see better so as not to confuse you now.
For each type of cryptocurrency we can use asoftware walletorhardware, or, you can use ionline wallet, who manage multiple cryptocurrencies.
Now we will go to see specifically the various types of Wallets:
- THE Wallet Online instead they are digital wallets accessible from any computer device wherever you are. They are certainly more comfortable than the other solutions but it is better to rely only on secure services to avoid being attacked and having your account emptied. You can get a Wallet directly by choosing it on Bitcoin.org. If you use an exchange site such as Coinbasen, you will not need to get a wallet as it is already present in the registration account.
- THE Wallet Software they are nothing more than programs that can be installed on PC, Smartphone and Tablet, accessible only from the device in which they are installed. I am extremely confident, if even the computer, smartphone or tablet on which they are safe. For sure I mean that the computer must not have viruses and as a good rule it must be updated by any Bugs by periodically carrying out updates and perhaps protected by a good Antivirus and Firewall. Example (Armory) for Desktop computers
- THE Mobile Wallet they are part of the Wallet Software and are useful if you want to make a payment with your smartphone when you are away from home, which you cannot do with a computer. They are found in the form of applications. Among the most used Bitcoin Wallet, Mycelium Bitcoin Wallet, Xapo.
- THE Hardware wallet, store a user's private keys on a hardware device similar to a USB flash drive.They can support multiple currencies. They are the safest methods in the world, the only big problem, if they were to break or lose them, lose everything. There are very few different models available and these 3 below are the most used:
- THE Paper wallet or Paper Walletwhich is a very popular and economic solution. If we want to carry out outgoing operations, it will be necessary to use software in which to enter the private key. On these Paper Wallets we find two QR codes, one the public address where bitcoins can be received and the other the private key, which can be used to make transactions or payments. The main advantage of a paper wallet is that private keys are not kept digitally anywhere, they are safe from cyber attacks or hardware malfunctions, but if you lose this than nothing else a printed sheet of paper, you can say goodbye to all your money in the form of cryptocurrencies.
How a Wallet works
A digital wallet / wallet creates and storesthe private key(password) associated with apublic key (wallet / wallet address).
Theprivate keys basic to keep themsecretand never disclose them as they allowspend money.
If the private key is lost, can no longer access the wallet to transact or withdraw their coins.
When we initiate a transaction with any cryptocurrency, all we do is sign the ownership of the coins at the recipient's address (Public key).
In aa transaction, the software creates adigital signatureprocessing the transaction using theprivate key.This allows to make everything extremely safe as the only way to regenerate onevalid signaturefor a specific transaction to use theprivate key associated with it.
Each Wallet of any cryptocurrency identified by a specific single address(public key) consisting of 26 to 35 digits similar to an Iban.
The moment we request a payment, all we have to do is provide this address (public key) to whom must make the transaction on our account.
When, on the other hand, we make a payment, we will have to enter the wallet address of the person we have to pay and specify the amount of the amount.
What is Blockchain
The Blockchain is a public register, managed between multiple computers (called nodes), where all transactions are managed, stored and verified from the beginning of the creation of the cryptocurrency. This "database / database" consisting of blocks linked together (chain), for a transaction to be validated, this must be validated by all the nodes of the network itself.
All this mechanism is used to make transactions from malicious people secure and immutable, also thanks to encryption.
When a transaction takes place, it is inserted in a block of the blockchain in a consecutive and not random way, via timestamp, or a unit of measurement of time derived from computers based on UNIX architecture, which expresses the number of seconds that have elapsed since an arbitrary date , i.e. midnight (UTC) on January 1, 1970 (this date is called epoch). Example Timestamp 61 is equivalent to the date 01/01/1970 at 00:01:01.
The time required for a transaction to take effect can sometimes take up to a few hours, as more confirmations are needed from the nodes that manage the transaction.
A typical transaction recorded in a block of the blockchain consisting of:
- address of the person sending the payment
- address of the recipient
- Fee or better transaction fees
- Various confirmations
- ID of the previous block
All this mechanism helps to make a transaction as secure as possible.
Miner and Mining to earn cryptocurrencies
Mining is the operation that is carried out in cryptocurrencies in general, to issue / discover new currency and bring it into circulation on the market. As for miners who bring gold to light through mining, a similar but digital process takes place for bitcoins.
The Blockchain stores every transaction within data structures called blocks, as mentioned above. Thanks to mining, it is possible to add new blocks to the Blockchain, in other words, mining is nothing more than processing to find an exact very complex code to find, with a succession of attempts by a computer processor that can be the CPU of a computer, the GPU of a graphics card, ASICs and other hardware systems.
Who finds this code rewarded, in the case of bitcoin, with a quantity of 12.5 bitcoins (quantity destined to decrease over time), plus all transaction fees entered by him in the block in incentive of the mining time used. Those who do this are called Miners.
Everyone can become a Miner and start trying to solve the complex mathematical problem related to new blocks, so that it is created in a valid and encrypted way and can be added to the Blockchain.
Know that however with the passage of time it is increasingly difficult to mine as the number of Bitcoins totally available is finite and not unlimited (21 million).
A very interesting article about the "miner" theme that I recommend you read what you find below, where we will explain how to block the sites that make mining with our computer, without our knowledge, using the computing power of our processor, causing slowdowns during normal use and a waste of available resources as well as energy consumption:
The best 2019 cryptocurrencies to invest in
In this article, among the hundreds of existing cryptocurrencies, surely the best currency to invest in this 2019 Bitcoin followed by Ethereum and Litecoin, we will see in the next lines why.
For those who invest for the first time in Cryptocurrencies there are some important tips and simple to follow. This type of market has huge leaps in growth and loss as demonstrated last year and these early months of 2019, so I suggest you invest only a sum of money that you are willing to lose without causing problems.
Second, even more important, cold-blooded, essential in order not to get panicked or panic and sell immediately on the first drop, as cryptocurrencies undergo incredible rises and falls every time a positive or negative news is released to them. Following these two rules will be a matter of luck and timing to decide a good or bad investment.
Third and last advice is to always focus on the most known and stable crypto-names and on the safest Exchange services such as Coinbase, as over time there have been many problems with unreliable exchange services.
Difference Between Buying a Cryptocurrency and Online Trading (important)
As for the difference between buying a cryptocurrency and trading online, there is a lot of clarity. In each of the two cases there are advantages and disadvantages to consider properly. In this article I will only show you how to buy cryptocurrencies, a method that I sincerely consider better.
By trading online you can lose the entire invested capital and by using the multipliers you have the possibility of multiplying your profitability or the risk of losing everything. It is possible to bet, because this is what you really do, both on the ascent and on the descent of a cryptocurrency and therefore increase the capital even when it falls, for this mechanism very sensitive to the rises and falls of the evaluation, a characteristic that makes this type of practice, especially in such a volatile, very high risk market, which is why I do not recommend trading.
By purchasing a cryptocurrency, the only disadvantage could lie in the security of the exchange site used by us in suffering cyber attacks, but precisely for this reason, the exchange suggested by us among the most reliable in the world. The advantages, however, are many, first of all there is no risk of losing everything and by purchasing a cryptocurrency with a good margin of growth, you can see your capital revalued. Think of example to those who bought Bitcoin for 1000 euros and sold it for 10,000 euros.
Being a very volatile market (i.e. with huge swings of even 25% in a single day) it is possible to earn by exploiting these swings, taking into account the commissions of the exchange site. If you don't want to be constantly watching the trend of cryptocurrencies, which is very stressful especially when there is money at stake, my advice and what I am also doing the following, or to allocate a sum that you intend to invest in the purchase of a cryptocurrency and leave it parked, waiting for an increase in value that will satisfy you and then take back the revalued capital.
Always remember that quick and easy money has never existed or is better present, but with very high risks and is successful in a very small percentage of people.
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Currently the cryptocurrency with the highest value and most convenient to invest in, with such importance as to influence with its performance all the other cryptocurrencies, therefore certainly recommended as an investment, as one of the pillars of the electronic future of coins, with the recent possibility to trade securities on bitcoin futures. This is the main cryptocurrency exchanged on the most important platform for buying and selling cryptocurrencies, namely Coinbase. All cryptocurrencies have undergone major collapses, but bitcoin one of the few that, however, since its inception, has maintained the greatest growth, going from less than 1 euro cent, to the current approximately 3500 euro. So even if it has touched maximum peaks of 16,000 euros and has now fallen, it is still the best cryptocurrency to invest in, on the other hand, it cannot be hoped that its value will always increase. Furthermore, given its stability and sudden price changes that nevertheless never lead to devaluing it like other crypto-entities, it is possible to earn between one peak and another, which usually occurs in 24 hours, even the average 3% per day of the capital invested, if the trend of bitcoin is "guessed". Find more information on how to buy Bitcoin later in this article.
The virtual currency par excellence introduced in January 2009 by a computer scientist from the pseudonym of Satoshi Nakamoto. What makes it unique is the absence of an organ that controls and regulates its placing on the market, a task that a central bank usually does. Just for this reason, bitcoins are a masterless currency, independent of any type of authority, which would allow make payments without checks, anonymously and immediately.
In 2013 the non-profit association called Bitcoin Foundation Italy was born, with the aim of promoting this coin
Bitcoin is not the basic currency of money, as its sub-multiples are millibitcoins, microbitcoins and satoshi, which are respectively worth 0.001, 0.000001 and 0.000000001 bitcoins.
In addition to the king of cryptocurrencies, here are the other alternative currencies (of the hundreds present) that are catching on, some of which are already worth hundreds of euros and are continuing to rise.
Ethereum currently the second best currency to invest in, followed by an excellent alternative like Litecoin, with a stability superior to many other cryptocurrencies.The main advantage of this currency is given by its stability visible in its trend, where it is possible to observe greater growth when all cryptocurrencies grow and decrease less marked when the market trend is negative. This coin can also be purchased on Coinbase.
Litecoin is currently the third best cryptocurrency to invest in. Its still relatively low value compared to Bitcoin, but various rises and falls in the value of Cryptocurrencies, the one that is affected in a less negative way. Litecoin has also been included in the most important platform for buying and selling cryptocurrencies, namely Coinbase.
Find more information on how to buy Litecoin later in this article.
Litecoin was born in 2011 from an idea by Charlie Lee, a former Googler graduated from MIT, who confessed to being inspired by Bitcoin, with some changes that make Litecoin better than Bitcoin to date.
Litecoin, (abbreviation LTC) a P2P (peer-to-peer) cryptocurrency, which with its technology has allowed other cryptocurrencies to be born. Like all cryptocurrencies, it is not issued by any central authority, but is generated thanks to mining. For every miner who resolves and checks a block, 50 Litecoin are obtained. In the blockchain every 2.5 minutes the network generates a block, while for Bitcoin it takes 10 minutes. The limit number of Litecoin which can be in circulation of 84 million, against 21 million of Bitcoin.
Bitcoin Cash (BCH)
(Bitcoin Cash value)
This is one of the most recent cryptocurrencies, born of a split with old Bitcoin, which suddenly shot up in value after the announcement of its landing on the American exchange platform Coinbase. At the moment it is a bit risky to focus on this cryptocurrency as it is very volatile, with huge positive and negative fluctuations. There are many potentials for the future, but it is good to wait a little longer. This coin can also be purchased on Coinbase.
Bitcoin Cash history
Bitcoin cash was born as a result of divergences (hard fork, bifurcation or if you want to call it sciccione) regarding a different way of seeing and using the blockchain, or the heart that contains all the exchange data that is used as an accounting register. This new cryptocurrency was created by a group of investors, developers and miners, to overcome some major limitations of the original Bitcoin. In the Bitcoin Blockchain, blocks up to a maximum of 1 MB are supported, while in Bitcoin Cash these reach 8 MB, what does this mean in simple terms for those less skilled in this field? It means many important advantages for Bitcoin Cash, first of all it solves the problem of the slowness of Bitcoin in validating transactions, which can reach a maximum of 3 per second, against for example those of the Visa circuit which can validate up to 24,000, therefore this will lead to use it more easily as a "means of payment". It also means greater security against the risks of replay and wipeout of data, with slight differences in the signing of transactions and greater simplicity in changing the difficulty of proof-of-work with greater frequency.
Until August 1, 2017 they shared the same BlockChain, the market capitalization currently 6 times higher for the benefit of the original Bitcoin. In addition to Bitcoin Cash, there is a further split occurred at the end of October 2017, namely Bitcoin Gold which uses instead of the proof-of-work algorithm of Bitcoin from SHA-256, the Equihash algorithm, also used by cryptocurrencies Ethereum, zCash, born to bring greater power to individual users who do mining, an operation that becomes increasingly difficult and requires very powerful multiprocessor systems that a normal user cannot afford.
- Ripple (XRP)(All the coins to follow, stand out among the hundreds of cryptocurrencies present and are provoking modest interest. They are relatively new and still have a not excessively high value that ranges from ? 0.20 to over ? 600 (Ripple value)
- Monero (XMR) (Monero value)
- Dash (DASH) (Dash value)
- Ethereum Classic (ETC)(Ethereum Classic value)
- Zcash (ZEC)(Zcash value)
- Zcoin (Xzc)(Xzc value)
How to see the trend of all cryptocurrencies
To see the progress of all cryptocurrencies on one site, click on the following link:
Link | Value of all Cryptocurrencies
Here you can see, real-time value, percentage of variation, maximum and minimum value of the last 24 hours, graph of the last 7 days, trading volume, number of virtual coins and capitalization of the cryptocurrency. Just remember to change the dollar coin into euro by pressing the blue button indicating the currency with which it is compared.
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How to Buy Bitcoin and Other Cryptocurrencies
One of the easiest and safest methods to buy Coinbase Cryptocurrencies, or the most famous Wallet Online, where you can buy 4 different cryptocurrencies, namely Bitcoin, Bitcoin Cash, Ethereum and Litecoin.
The site accessible from the link here, with which to register:
Link | Coinbase
Enter Name, Surname, Email and choose a Password, complete the registration process, you will have 10 dollars as a gift on a deposit of 100 dollars, about 85 euros.
Find a much more complete guide on signing up for Coinbase here:
The main interface looks like this:
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With Coinbase you can buy not only Bitcoin, but also Bitcoin Cash, Ethereum and Litecoin.
To do this, simply go to the Buy / Sell menu and after entering a form of payment, buy the cryptocurrency you prefer.
The interface of Coinbase in Italian, well made and very simple to use.
Both through the website interface and through the Coinbase application for smartphones, you can at any time want to sell or buy Bitcoin, Bitcoin Cash, Ethereum and Litecoin, all with just a few clicks.
There is a lot to write and say about the cryptocurrency topic, so I will continue to update it by adding new content, so if you want to leave a comment, with what you would prefer to know or not clear.