BITCOIN, WHY IS THIS CURRENCY POPULAR?

Bitcoin is a digital currency conceived in 2009, characterized by being decentralized, that is, it is not backed by any government or central bank and lacks legal certainty. That said, the price of bitcoin is handled by supply and demand.

The reason for its popularity is due to the way it can be obtained for free through the internet through simple works such as surveys, ptc pages, etc., mostly for its hook that will reach the historical price of the million dollars and as a great opportunity for investors.

WHAT IS WALLET, WHAT IS A WALLET FOR?

What is a wallet or cryptocurrency

A wallet comes to make your wallet or virtual wallet encrypted granting total security to save, and serves to send and receive Bitcoin, Ethereum or any cryptocurrency or data. A simpler definition may be: software to store or save, receive and send your cryptocurrencies.

Tips for investing in cryptocurrencies, points to consider

The first advice among our tips for investing in cryptocurrencies is that it is convenient to study the various alternatives before deciding to invest in one or a set of cryptocurrencies. This article gives a series of general advice.

What should we consider when investing in cryptocurrencies?

If it has been decided to invest in virtual currencies, or what is the same, to invest in cryptocurrencies, it is important to know that cryptocurrencies can be acquired without any intermediary involved and although any amount can be invested, since it is not necessary to acquire entire cryptocurrencies, the amount Minimum recommended is $ 100, about € 80, depending on the exchange rate USD-Euro at any time. They have detractors based on legal limbo and defenders, who believe they represent the future where the world economic system is moving. It is a fact that cryptocurrencies are gaining ground (every day more brokers are interested in them) and that the profitability in recent years has been spectacular. But, do not forget that they are high risk investments, and very volatile. And that there is nothing guaranteed. The great advantage of these cryptocurrencies is that Bitcoin has convertibility in all traditional currencies and all cryptocurrencies have convertibility in Bitcoin. Know all the advantages and disadvantages of cryptocurrencies that you should know before investing in them. As for what types of cryptocurrencies to invest in, you should know that there are at least 4000 cryptocurrencies, so good advice is to invest in the most capitalized. How to invest in cryptocurrencies correctly The account or wallet account is opened in an Exchange (there are many, Coinbanse, Bitfinex, Poloniex ...). From there it is possible to acquire cryptocurrencies directly. Once you have your account open, since everything is done online, it is possible to access from anywhere. The most capitalized, such as Bitcoin, can be changed to traditional currencies, but the rest of cryptocurrencies are convertible in it. Other options to invest in cryptocurrency These are the alternatives that exist to invest in cryptocurrencies: Invest through a Broker. In this case, the advantage is that information about market movements is received. They also give you advice.

Mining Cryptocurrencies 

Use ATMs, although they are not yet widespread. Some of the best known cryptocurrencies are Hayek, which stands out as the only cryptocurrency that uses the gold standard. Its price is measured by the price of the gram of gold at each moment. Bitcoin, the first cryptocurrency, born in 2009, is the most capitalized. It has the peculiarity that it is not possible to create more than 21 million. It uses Blockchain technology and, currently, 8 decimals are used in Bitcoin transactions. The idea is that the exchange market of Bitcoins resembles that of foreign exchange, that is, prices change all the time according to supply and demand. Ethereum, the second cryptocurrency by capitalization, is growing a lot. It is characterized by its smart contracts and 8 decimals are also used in transactions. Dash, is characterized by being oriented to get instant transactions. His technical improvements have been remarkable. Ripple is another of the most capitalized. It is known as the cryptocurrency of banks. Litecoin is one of the cryptocurrencies that has shown greater stability. In fact, it is used by operators as a hedge asset in this market. Monero, is known as the currency of cybercriminals, because it is the most confidential cryptocurrency that exists. Another possibility is the ICO (Initial Coin Offering) which are intended to finance the development of new projects and protocols. That is, they are equivalent to an offer of cryptocurrencies before its launch. Although many investors often find, the risk is very high, as it is not possible to know the real state of each project and they may end up disappearing. To save virtual currencies you must have a wallet or purse. It is possible to install software on your computer or mobile phone. However, unless they are to be used it is better to keep them disconnected from the network in a hardware wallet or in a paper wallet, also called paper wallets, which is nothing more than printing or copying the keys of the bitcoins on different papers, to avoid mistakes. And here our advice to invest in cryptocurrencies. We hope we have given you a useful overview.

How does cryptocurrency mining work, is it profitable?

Mining consists of validating and recording transactions in the blockchain. For this, all the nodes of the network participate in the successful resolution of the puzzle that involves the search for the block, where taking into account a random number and applying a cryptographic function, a hash that meets one characteristic is found: certain amount of leading zeros. This work requires effort and computing power, which ensures that it is complex to write new transaction blocks in the registry and thus prevent an attacker from generating a false block and adding it to the network or modifying an existing block. Not all cryptocurrencies work in the same way, since the way of mining depends on the system that uses the blockchain or the algorithm of each cryptocurrency. However, they all have something in common: miners do not perform useless operations, but these are necessary to maintain the stability and security of the network. Since their work is so important, miners charge an amount of money for their mining work. In the case of bitcoin, for example, every time a miner finds a valid block, he is rewarded with 12.5 bitcoins. Payment is made with coins that are in reserve and at that time they come into circulation, which is why it is mistakenly believed that cryptocurrency mining involves generating new currencies. The currencies are already previously defined, however, through mining, new currencies are brought into circulation.

Is cryptocurrency mining profitable?

You probably heard about the big bitcoin mining farms, which consist of huge data centers near power plants or sheltered in the cold of Iceland. This makes many people think that bitcoin mining is already a big business thing and it is impossible to participate. In part this is true; but not because it is impossible, but because the competition is so great that it is very unprofitable to invest in the equipment necessary to mine bitcoins. While Bitcoin is the first and most popular cryptocurrency, there are currently more than 100 alternatives, also known as altcoins. Each of these currencies have their own algorithms and mining costs. In many of them it is possible to participate only with a good graphics card (these work very well to solve mathematical calculations) or even with a traditional computer. For example, Ethereum is considered the second most used cryptocurrency after Bitcoin, and it is possible to undermine it from a graphics card and specific software. On the other hand we also have Monero, which became very popular because it was simply mined through a script that runs in a browser; particularity that took advantage of many cybercriminals with new techniques such as cryptojacking. Finally, a profitable alternative is mining pools. These are groups of users that meet with the objective of uniting the computing power of all participants and thus have greater possibilities of finding valid blocks and winning the reward, which they then divide among all. There are different types of mining pools, some more stable and others more profitable, depending on the volume of work handled by each pool.