Level Up Your Knowledge on All Things Crypto

Lots of people shy away from new technology such as cryptocurrency since it can be overwhelming. There’s a lot of unfamiliar jargon and processes that are hard to comprehend, stopping people from wanting to understand how it works. These problems can prevent the mainstream adoption of cryptocurrency.

That’s why here at CryptoShimbun, we strive to make the subject of cryptocurrency easier to understand. Learn all you need to know about the new age of money, including basic definitions, processes and the latest cryptocurrency news.

Check out below the topics you’ll learn on this page!

smart contracts

Understanding smart contracts and their intricacies

The continuous advancement of the crypto realm paved the way for innovative technologies people have never seen before. This does ...
Read More
nft news main

What you need to know about non-fungible tokens

NFTs or non-fungible tokens have been picking up steam in the crypto market lately. These tokens have been around for ...
Read More
best exchanges buy crypto banner

The best exchanges to buy cryptocurrency

For new cryptocurrency users, finding the best exchange platform can be complicated and confusing. Crypto exchange platforms are online services ...
Read More
howtobuycrypto

Crypto basics: How to buy cryptocurrency

Cryptocurrency is the biggest thing that has happened to the financial world in the last few years. Each day, more ...
Read More
guide crypto banner en

A guide to decentralised cryptocurrency exchanges

If you’re a cryptocurrency user, you’ve probably wondered how funds are transferred from one wallet to another. While the term ...
Read More
Invest in crypto reap the benefits

Guide on cryptocurrencies: Its benefits and how to invest

Learning about the different benefits of cryptocurrencies is important before you start investing in them. It gives you a better ...
Read More
effective crypto gaming banner

Effective crypto trading strategies you should know about

In recent years, cryptocurrencies have become more mainstream across the world as people begin to see their undeniable benefits in ...
Read More
cryptocurrency differences banner

How is cryptocurrency different from regular money?

For years, the debate between using cryptocurrency versus regular money has been a recurrent discussion as various world events spark ...
Read More
blockchain knowledge banner

Blockchain 101: Everything you need to know

The 21st century has seen the biggest groundbreaking advancements in technology and one of these is blockchain technology. Since the ...
Read More
crypto for dummies banner 101

Cryptocurrency 101: The basics you need to know

Venture into the world of cryptocurrency and get to know its unique features and the numerous investment opportunities it offers ...
Read More
crypto safely store

How to store cryptocurrency safely

Trading digital assets comes with the task of properly storing them in a safe place. This is why it’s every ...
Read More
bitcoin wallet currency

Cryptocurrency wallets: Everything you need to know

With the wide array of cryptocurrency wallets in the market, it can be difficult to select the right one that ...
Read More
proscons crypto investment banner

Pros and cons of crypto investment: Is it worth it?

With cryptocurrency’s burgeoning performance in the financial market today, more and more people are jumping on the trend to try ...
Read More
top 10 highest crypto

Top 10 countries with the highest crypto adoption

Cryptocurrencies have made groundbreaking advances in the world of digital assets since Bitcoin was released in 2009. Over the years, ...
Read More
gold coin bitcoin currency blockchain technology banner

Best crypto exchanges of 2021

Investing in cryptocurrency may seem intimidating, especially for beginners. If you are planning to invest using digital assets in the ...
Read More
history crypto banner

History of cryptocurrency: Its early years and rise to popularity

Created by private individuals or groups, cryptocurrency is considered an alternative to fiat money. Originally, virtual currencies were made outside ...
Read More
guide news febshimbun

A basic guide to cryptocurrency mining

Cryptocurrency is arguably one of the most important inventions in the 21st century. With its revolutionary features such as seamless, ...
Read More
crypto guide banner knowledge

A beginner’s guide to crypto trading

With the latest boom in digital assets, many can’t help but take interest in cryptocurrencies. As the idea of going ...
Read More
guide to crypto banner

An in-depth guide to cryptocurrency investment

At the start of the year, Bitcoin’s price surpassed its previous all-time high and is now at US$34,000. This event ...
Read More
ewasdfav

Crypto basics: What is cryptocurrency?

Banks and financial institutions reign supreme in the present financial system. In exchange for entrusting our funds and personal data ...
Read More
banner knowlege post

CryptoShimbun: Cryptocurrencies and how they work

Cryptocurrencies or digital assets are one of the latest innovations in today’s generation. With the world rapidly entering the digital ...
Read More

What is cryptocurrency

Cryptocurrency is a virtual currency secured by cryptography that can only be accessed and exchanged online. It’s a medium of exchange that doesn’t have a physical body. Cryptocurrencies are built with blockchain technology, which boasts decentralized networks that don’t rely on a single point of control.

How cryptocurrency works

Cryptocurrency involves a lot of systems to work. To make secure payments online, it makes use of various encryption algorithms and cryptographic techniques. At the centre of cryptocurrencies lies blockchain technology that is utilized to keep a public ledger of all transactions.

A digital coin serves as a medium of exchange that performs similar to cash. The difference lies in the lack of central authority controlling the movement of money. In the current monetary system, you’ll need the bank to verify the legitimacy of the exchange before it passes through. The bank keeps track of all transaction records and it is kept private.

In cryptocurrency, the singular point of authority is decentralized and distributed to all members of the network. Instead of the bank keeping track of all transactions, all crypto exchanges are recorded on an open-source public ledger called the blockchain.

To ensure the network’s transparency, all users can see the public ledger where all transactions from the very first Bitcoin bought is recorded. Thousands of people need to reach a consensus before a transaction is validated. If one validator disagrees with the majority, the exchange will not pull through. This protects the network from cyber attacks so if someone were to change anything in the records, they’d have to hack all the computer nodes that validate the system.

Once a transaction is verified, miners add it to a block which is then chained to the one that came before it, making the blockchain. Once a block is uploaded, its content cannot be altered, making it immutable. Together, this string of blocks becomes the ledger of all transactions where you can find all exchanges ever made with cryptocurrencies.

Features of cryptocurrency

No central point of failure

Since the blockchain is decentralized, failure in one computer node won’t disrupt the network since there are others that can take on its role. Unlike in the current system, when a bank encounters an internal error, exchanges won’t pass through and transactions are cut short. You won’t encounter this problem with cryptocurrencies.

Decentralized

Cryptocurrency’s decentralized nature secures it from being shut down by any entity. No government can shut down a blockchain since there’s no point of origin. Thousands of computers spread all over the world make this impossible.

Secure

Once a transaction is verified and uploaded on the blockchain, no one can alter it anymore. All blocks contain the hash of the one that came before it. If you want to change the number of Bitcoins sent to an address, you’ll have to hack the previous block and all the ones that came before it. This impossible task makes the blockchain impregnable and immune from any cyberattacks.

History of cryptocurrency

Cryptography has been around for decades, and it’s been used in securing software and other computer processes. But it wasn’t until 2009 that it was used to create the world’s first cryptocurrency, Bitcoin. Satoshi Nakamoto pseudonymously published Bitcoin’s whitepaper online in 2009, birthing the future of the monetary revolution.

Free from any government control, it piqued the interest of people online though only a small community were using it at first. In the succeeding years, its audience has widened although the general public was still fairly oblivious to cryptocurrency.

To outsiders, Bitcoin was a way to transfer money without being detected and traced. It became synonymous to illicit activities online and had a negative connotation. And it was true, criminals were exploiting the blockchain’s pseudonymous characteristic to send money without being detected.

Eighth years later, Bitcoin entered the mainstream media when its price skyrocketed to almost USD$20,000, its highest ever. Though its price has since dropped to half, it has persisted in being part of the current trend. More and more people are joining the crypto craze which contributes to Bitcoin’s rise in price.

What makes cryptocurrency special

When thinking about what makes cryptocurrency special, we need to talk about the misgivings of the current monetary system. Wherever it falls short, cryptocurrency excels. Here are some reasons why cryptocurrencies are the future of money.

Little to no transaction costs

Since cryptocurrencies remove the need for third-party intermediaries, the cost is also lower. If there are any fees, they are minuscule compared to the rates taken by financial institutions.
24/7 access to money

You won’t have to physically go to a bank to make a transaction. Not only are money transfers accessible anytime and anywhere, but they’re also completely hassle-free. You won’t have to fill up forms or line up just to finish a transaction. As long as you have a device connected to the internet, you’re good to go.

No limits on purchases and withdrawals

There is no limit to the amount of money you can transfer with cryptocurrencies. You don’t have to worry about any restrictions or withdrawal limits.

Free to use by anyone

Cryptocurrencies are designed to be used by anyone in the world. You won’t need to fill up any form of paperwork and provide personal information to make use of it. This is especially good for the unbanked population of the world.

Faster international transfers

Since cryptocurrencies aren’t tied to any country, there is no need to go through red tape and endless bureaucratic processes. With digital currencies such as Ripple (XRP), money remittance from one country to another is possible in just a matter of seconds.

What can you do with cryptocurrency?

Each coin is made with a purpose in mind. For example, Bitcoin is designated as the digital gold that is a medium of exchange with a limited amount in circulation. Ethereum fuels its own platform and is used within the network for transactions.

But no matter what the purpose is, all cryptos share the same fundamental basics. After all, they are all digital currencies with no physical body. Here are some of the things you can do with cryptocurrencies:

Online transactions

More and more stores online and offline are incorporating cryptocurrency as a mode of payment. Using Bitcoin, you can now pay for your purchases online and enjoy a cup of coffee from Starbucks.

Send money

With crypto, you won’t have to remit money through an intermediary money transfer service. As long as the recipient has a wallet address, you’ll be able to send money to anyone in the world in just a matter of minutes.

Access a network

Some digital currencies are made to be used within a certain network. Ether (ETH) is the best example of this. You can make transactions within the Ethereum network without using cash and bank accounts.

Trade

You can earn money by trading coins in the market. This requires intensive knowledge in investing and can be really risky for those who are unfamiliar with it.

Invest

People also use cryptocurrencies as a form of long-term investment. Instead of using it for daily purchases, they leave it in their wallets and wait for it to accumulate in price.

Where to buy cryptocurrencies

There are three main avenues for you to buy cryptocurrencies: through exchange platforms, broker sites or marketplaces.

Broker sites

Broker sites directly sell cryptocurrencies to buyers. It offers a faster buying process though costs an extra penny for the convenience. Because of the ease of use and its navigable interface, broker sites are more suited for beginners looking to buy their first crypto.

Exchange platforms

Exchange platforms are a third-party site that matches buyers and sellers so they can complete transactions. This is where people trade by placing buy and sell orders. Once the site matches you with a buyer or seller, you can proceed with the exchange. This is more ideal for those who are already familiar with the process since the user interface may be too advanced for beginners.

Marketplaces

Just like its name suggests, a marketplace is a free-for-all site where buyers find potential sellers and vice versa. It provides a space for direct peer-to-peer interactions and transactions.

Where to store your coins

Once you’ve bought your coins, it’s important to store them in a secure place. That’s what wallets are for. There are two types of crypto wallets, hot and cold. Hot wallets are software that can be accessed online. It’s free and cheaper but it’s vulnerable to cyber attacks.

On the other hand, cold wallets are hardware similar to flash drives. It’s the safest way to secure your crypto though they are not as accessible.

Learn more about these topics in detail here at CryptoShimbun.