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All you need to know about cryptocurrency


A cryptocurrency is an electronic, or virtual currency, because it does not have a physical form. It is traded from person to person on a decentralized computer system, or blockchain blockchain It is constantly maintained and uncontrollable. The source code of the blockchain relies on cryptographic principles to validate transactions and issue the currency itself.

The vast majority of cryptocurrencies are outside the control of countries and central banks. In this system, the blockchain acts as the central bank. It is used to list all transactions made in cryptocurrency cryptocurrency And write it on the record book.

This record is open and available to everyone on the Internet. It integrates the components of each completed transaction: the transaction amount, the source address, the recipient’s address, as well as the cryptographic fingerprint. However, each cryptocurrency has its own operations, for some of them it is not allowed to track transactions.

Legally speaking, cryptocurrency is neither a currency for a bank account nor an intermediary for bank exchanges and has no national value. Thus it cannot be considered a currency in the traditional sense of the word.

To purchase cryptocurrency, a potential owner most often visits an online exchange platform. It is the platform that completes transactions, as well as requesting necessary information from potential buyers.

Cryptocurrencies can be exchanged for goods, services, or real money. Without being able to talk about “exchange” in the strict sense of the word, we note that the value evolution of almost all cryptocurrencies is characterized by very high volatility.

Bitcoin, Ethereum, Ripple, Litecoin and Monero have become among the most popular cryptocurrencies, but the creation of cryptocurrencies remains open. Therefore, in order to survive and establish itself in the long term, the cryptocurrency must have value to be used on the ground. This is the standard by which all cryptocurrencies on the Internet are governed by the law of supply and demand.


Cryptocurrency trading platform

Cryptocurrency exchange platform, allows you to exchange cryptocurrencies among themselves or convert them into cash. It is a website, and a real-time exchange marketplace, where one can buy and sell cryptocurrencies. That is, in practice, exchanging cryptocurrencies between others. Some platforms, such as Bittrex or BinanceAllows you to exchange bitcoins for any currency altcoin Other, meaning against any other cryptocurrency (ether, ripple, litecoin, zcash, neo, monero …). Others also allow the conversion of cryptocurrency into cash.”fiat-currency”, or a national currency or against a currency issued by the central bank, or even buying cryptocurrencies by spending coins.

The paradox of these markets is that they resemble a decentralized system (and therefore a certain percentage of risk) in a decentralized “blockchain” system. Thus, these sites are sometimes the target of hackers, and sometimes very large cryptocurrency robberies. History will hold hundreds of thousands of bitcoins that “evaporated” in February 2014 from the Mt. Gox, a Bitcoin exchange platform based in Tokyo after it was hacked.


Definition of cryptocurrency mining

Bitcoin mining, Ethereum … What do we mean by cryptocurrency mining? Mining means validating transactions made in virtual currency by decrypting the data and recording it in the blockchain. Operators, individuals or companies who use the computing power of computers (for processors or graphics cards used in video games) to validate transactions are called miners. In practice, miners use computer software to solve a mathematical problem, a solution that results in a transaction validation.

If the data is decrypted, for the fastest miner, the process of re-encrypting the data and recording transactions in the Blockchain results in the miner being rewarded with new bitcoins, the maximum number of bitcoins that can be produced is (21 million). Over time, the amount of this bonus decreases every 4 years. From 50 bitcoins per block in 2009, to 25 bitcoins in 2012, and then to 12.5 bitcoins in 2016.


Bitcoin is a virtual currency that was created in 2009 by an unknown person called Satoshi Nakamoto. Unlike traditional currencies (also known as fiat currency), Bitcoin is not issued and managed by a central banking authority. It is issued by the blockchain protocol of the same name. This technology makes it possible to store and transmit information transparently, securely and without a central controlling body. Bitcoin, like many other cryptocurrencies, is released through mining. So-called miners, people from all over the world, perform complex mathematical calculations using their electronic devices

Specialized in bitcoin to confirm transactions between traders. In return, they receive bitcoins as payment for this service. They can then be converted into real currencies or exchanged for other cryptocurrencies on exchange platforms.

Bitcoin issue is limited to a maximum of 21 million units, as stipulated in the original code. It is expected that this amount will be reached in the year 2140. In early 2018, the number of bitcoins issued exceeded 17 million, which is 80% of the total. As mathematical calculations become increasingly difficult, bitcoins are generated at a decreasing rate: 12.5 bitcoins every ten minutes today (versus 50 bitcoins in 2009). Note that the smallest Bitcoin denomination is a satoshi which equals 1 bitcoin satoshi = 0.00000001.

Bitcoin price:

There is no official value for Bitcoin. This indicator is just the average price of Bitcoin (usually in dollars) across all cryptocurrency trading platforms around the world. There are many websites that use this method, and the most famous of them are CoinmarketCap . How is the price of bitcoin determined? Simply by the law of supply and demand. On November 1, 2019, the price of Bitcoin was $9,179.

Since its inception, the price of Bitcoin has fluctuated widely. 2017 was an eventful year for this cryptocurrency. After crossing the $1,000 hurdle in early 2017, it gradually increased for several months, and its price reached a historic high in December 2017, bringing the coin to $19,000. Then it collapsed at the end of December 2017, then continued to decline gradually in the first half of 2018, reaching about $6,500:

Bitcoin history:

The inclusion of Bitcoin in the currency market began in early 2011, that is, two years after its inception. It is often expressed in dollars or euros, but it can also be in yen or yuan because Asians are very fond of cryptocurrencies. Here is the history of the bitcoin price in dollars:

How to buy bitcoins?

Before buying bitcoins, it is important to keep in mind that, as with anything else that is risky, you should only invest in what you can afford to lose. There is no bitcoin account per se as there are for bank accounts. To get bitcoins, you must open an account on a cryptocurrency trading platform (there are about 100 today in the world). In general, they can be purchased by card or by bank transfer. There are a large number of European brokers: Paymium (Bitcoin/Euro exchange), Zebitex (Multi-Crypt/Euro), Savitar And Coinhouse And ZeBitcoin . Bitcoins can also be bought on US platforms such as Coinbase. Some are more comfortable than others. Opinions differ. site based bitcoin.fr Regularly updates the platform rating by listing the number of positive and negative reviews.

Bitcoin wallet:

Once bitcoins are purchased, they can be held in a physical or digital wallet. It has two components: a public key, known to all, that corresponds to a bitcoin address, and a private key, known only to the owner of the wallet. Physical wallets are similar to keys USB. Two major websites are competing for the market, namely Ledger French and Safe czech. Digital wallets can be accessed from a computer or mobile phone. Some examples of e-wallets: ArcBit, BitGo, Electrum, Mycelium…

Ledger Nano S
Ledger Nano S

Bitcoin Cash (its acronym BCH) is a cryptocurrency born on August 1, 2017, after the fork appeared fork Bitcoin. A fork is a new branch created from the original source code of an existing program. In recent years, the Bitcoin community has been discussing the evolution of Bitcoin, which has many weaknesses including the ability of transactions per second. The maximum bitcoin block size is 1 megabyte, allowing only about 250,000 transactions per day. Bitcoin Cash has a value of 8MB, which allows processing about two million transactions per day. Increasing the block size allows for more exchanges and thus lower transaction costs. The only downside is that Bitcoin Cash requires much more computing power than its cousin to validate transactions.

Bitcoin Cash is the fourth most valuable cryptocurrency, behind Bitcoin, Ether and Ripple Ripple. At the beginning of June 2018, it had a capital value of $14 billion. It was worth about $850 at the same time. It can also be purchased on major trading platforms such as Coinbase or Binance.

bitcoin cashbitcoin cash
Bitcoin Cash

The bitcoin address is used to set the destination of the bitcoin payment. It can be compared to Iban”WERE GOINGfor bank accounts.

What is a bitcoin address?

The bitcoin address, or BTC address, is used to designate the destination of the bitcoin payment to which the currency is to be sent. In this sense, a Bitcoin address can be considered the equivalent of number IBAN accountWERE GOINGAt the classic banks. All Bitcoin addresses start with 1 or 3. Each contains a string from 26 to 35 alphanumeric characters, which can also be presented and converted as a token. QR.

Based on asymmetric cryptography, the Bitcoin wallet generates and stores key pairs composed of the public key/private key. These keys perform and secure transactions and ensure their integrity. The private key can prove to all peers in the network that the person in question is the true owner of the bitcoins associated with a particular transaction. If you own bitcoins, you must be careful to protect your private key, because stealing this key is like stealing bitcoins.

Example of a Bitcoin address:

This is what a bitcoin address looks like: 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa. It is a summary of the public key called “hash. It is obtained thanks to encryption algorithms (SHA 256 And RIPEMD-160). The private key is the equivalent of the wallet owner’s signature.

To receive bitcoins, we only need the public key. But to spend them, the private key is indispensable. The Bitcoin address is randomly generated, using a dedicated software so it is impossible to get the same address twice.


What is ethereum?
Etherum

Ether is a virtual currency like Bitcoin. It is one of the largest cryptocurrencies by market capitalization.

Ether is the name of the cryptocurrency for the Etherum protocol, which is a platform for smart contracts, founded in 2013 by a Russian-born computer scientist, born on January 31, 1994, named Vitalik Buterin. Launched on July 30, 2015, Ether is an exchange module on the Ethereum blockchain. The Ethereum blockchain does not allow the execution of a transaction between two users (as is the case with the Bitcoin blockchain). Its originality lies in the fact that “smart contracts” can be combined and linked to transactions that can be triggered automatically once certain conditions are met. In this regard, Ethereum has become very popular with startups launching a virtual currency fundraising campaign (an “Initial Coin Offering”). The Ethereum protocol is also of interest to the insurance industry, which sees it as a way to automatically manage contracts, without human intervention. As a result, the transaction processing cost is significantly reduced. By extension, it is entirely possible to imagine the Ethereum protocol being used in many other areas of the economy, such as music, or transportation: the settlement of a transaction can be done via “smart contracts,” without an intermediary, once the work is done.

The abbreviation for cryptocurrency is “ETH”. Not to be confused with “ETC”, the abbreviation for the Ethereum Classic cryptocurrency.


Cold Storage is the practice of storing the cryptocurrency we own on a device that is not connected to the Internet. In this way, we definitely think of a person who wants to protect their bitcoins from any attempted theft by keeping their cryptocurrencies in an offline wallet. Bitcoins are thus “stored” on a USB key, an external hard drive, a simple piece of paper, or even a CD…, but again, the risk of losing or sabotaging the device remains strong.

Previous events show that Bitcoin is not safe (large amounts of cryptocurrency disappearing by exploiting security breaches in a timely manner…) Cold storage is the preferred solution for storing the currency and protecting it from thieves. To reduce the risk, private platform managers store the vast majority of their cryptocurrency reserves offline via cold storage in traditional media, where the funds are kept away from any web server or other internet-connected computer.

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