Crypto currencies are highly controversial because different people have different ideas about cryptocurrencies. Some people think that crypto technology can be a bit challenging for political parties and governments because they have zero control over this technology. On the other hand, many people think that the underlying technology which is blockchain technology is extremely complex. If you are into crypto trading, you will appreciate a reputable website like Go guerillacoin.com that gives information, latest news and guides about cryptocurrencies.
It is true that crypto currencies are highly volatile and you should not take any risk by investing your funds on bitcoin and other digital currencies without knowing the basics of blockchain technology. Here, you can find some insights about blockchain technology:
Blockchain is a chain of nodes which is shared among a network of computers. Basically, it is a database where new blocks can be added by the miners after verifying the transactions. Blockchain is the backbone of the crypto world because it is a decentralized network where all transactions are stored and shared through the computer nodes, and it is impossible to control this network by any bank or government.
Normal database and blockchain database are completely different because blockchain collects the blocks and each block has a group of transactions. These blocks have a certain storage capacity, and once a block is filled with information, a new block will be added automatically to the blockchain network. Different types of information can be stored in a block of this crypto network, but such blocks mainly contain the transaction records.
Bitcoins – the first crypto currency:
Bitcoin was introduced to break the channels of third-party services of fiat currencies, and it is based on a decentralized network, which is referred as peer-to-peer network. All transactions made with bitcoin are stored in a public ledger.
It is the first crypto currency invented by an unknown person. Satoshi Nakamoto is the name behind this invention. Nowadays, many businesses are accepting this crypto as a payment mode as people can buy goods and services with the coins. It is suggested to hold such coins for a longer period of time to get a good return because it is considered as an asset.
Miners can add a block after validating a transaction with bitcoin, and they will get rewards after successfully adding a new block to the bitcoin blockchain. Bitcoin has been criticised for many reasons, such as people can make a transaction with bitcoin with anonymous identity and it can lead to money-laundering activity. Apart from that, bitcoin mining can take a huge amount of power, which is not an eco-friendly process.
But still, bitcoin is considered as one of the best cryptocurrencies and people can get a good return from their bitcoin investment.
Wallets – Store your coins in a digital wallet:
You can invest your funds on crypto via a trading platform, but you need to choose a safe wallet to store your coins, tokens or contracts. You can find different types of crypto wallets available such as paper wallets, cold storage and hot storage. Cold storage wallets are hardware-based and you can use different devices to access your wallet. Else, you can use a mobile app or desktop app to access your coins and crypto currencies, which is known as hot wallets.
You need to enter your private key to transfer your coins from your wallet to another wallet, and you should not disclose or share your private keys with anyone. You can share your public keys or QR code available on your wallet to get the funds from another user. Apart from that, you can use the QR code available on your wallet to access bitcoin ATMs.
Choose a reliable trading platform:
It is important to choose a reliable platform to trade crypto currencies. There are many platforms available where you can find such digital assets. But you need to check their reviews before you choose a platform. You have to open a crypto account on a trading platform by verifying your KYC and you can submit your documents digitally to verify your identity. It will take some time to activate your crypto account.