You have probably heard a lot of about cryptocurrency. When you go to a bank and exchange money like dollars or euros for some local currency, this is the same way cryptocurrency works. The only difference is that it is online via the internet. But what is it build upon? Well, it is based on shared trust.
The question is, can you trust cryptocurrency, and is it a smart move to start to invest in it. Well, first things first, you need to know what cryptocurrency is. It is easy to say that this is digital money. It is bought online via tokens or coins. You can buy it with real currency to get coins in your online wallet. There are many kinds of virtual money online, like Ether, Bitcoin Cash, Litecoin, etc.
Many famous companies are starting to invest in this new big thing so that they can get a taste of that crypto cake. Everyone knows what currency means, but what does crypto mean actually? In short, it means concealed or secretive—something which cannot be broken so easily. Real money has numbers on it, and every banknote has different assigned ones as well, but so does this kind of cash. Each coin has its code, which requires a lot of decryption to be broken.
But how does it protect your assets? You should know that the most commonly used processor these days, the 64-bit processor, is used as protection. Plus, it is incredibly hard to crack. Imagine trying to destroy the Chinese wall with a stick. It is not going to work.
If you want to read more about how cryptography works, you can check out the following link https://medium.com/@hashelse/cryptography-for-absolute-beginners-3e274f9d6d66.
How does it work?
To make an exchange, you do not need a middleman to do that as you need with real currency. This is an exchange that is happening on the internet from person to person. There are no laws or security in it. As mentioned above, it is based on shared trust. It is much like the wild west, with no marshals to hold the law.
You store your bought coins in your digital wallet. A digital wallet is usually some app or a vendor where you buy the coins. The cool thing about this is that the wallet gives you a unique code that only you know, and you need to submit this code to prove mathematically that your exchange is legitimate.
Cryptocurrency is working on a system which is called the blockchain. This concept works in a way that, when people invest in coins, it keeps growing. It is a public receipt of all transactions around the world that ever happened.
If you want to read more about how to secure your wallet, click on this link.
What can you use it for?
At this time, it is still an investment. You cannot buy any stuff like food, drinks, or go out with your friends and pay with cryptocurrency. It is still young and full of potential. As time goes by, people are starting to gain more trust in it, and soon, it might undoubtedly be used everywhere around the world.
Should you invest?
If you do not have any debts or have some money on the side, it is not a bad idea to invest a small amount of money. Who knows, after all, maybe with some ups on the market, you can exchange it and get rich. If you still do not want to invest and want to try to mine by yourself, then, by all means, give it a go.
All you need are computers which are located in a cool area. You will need many graphics cards to render that information so you can mine a coin. There are still many ways to mine, like CPU mining, GPU mining, ASIC mining, Cloud mining, and et cetera. These days, people have been starting to use PKT mining to gain something out of it because this type has been proven lately that it has been the most effective.
It is crucial to do your homework before doing something like this because to gain something from it, you need to understand how the math behind it works and how mining works. It is a complex process that requires attention, and if you do your things right, you have an excellent chance to get something in return.