What is Crypto World? Basic Introduction
If we say in simple words, Crypto =Binary Currency = 01010101010 Codes type Currency, Which is owned by People, Mined by People, and there is no middle men, Bank, etc involved. If you have a Computer Operating System and a Crypto wallet with some Crypto Coins in it, You own them, No fees etc. So it is a revolution for banking system.
“Crypto currency is digital currency, which was designed to be most secure and safe in many cases. Because it is non-tractable or traceable currency with minimum to almost no transaction fees.”
BitCoin is Father Coin of all coins, it’s is basically first coin which was created by “Satoshi Nakamoto” in 2008, In 2011 People start to understand the needs of virtual world currency and start adopting it.
I hope it cleared the basic understanding about “What is Crypto Currency”?
Basic Intro about Crypto-Mining
Well, Digital coins are not owned by any bank and as it is no Paper currency (Fiat), So how it is printed? Crypto-Currency is basically mined (generated) by special software & machines (ASIC & GPU mining Machines), which is known as Crypto-Mining.
There is few type of mining.
-Graphic Card GPU mining.
Now, question is how it is done? What’s the catch in it? Are machines really printed digital currencies or what?
Answer is really simple, Hardware is involved to solve different algorithm ( such as Cryptonight Algorithm, Ethash Algorithm, EquaHash Algorithm etc.) problems and in form of reward you get partial of that coin. Because Algorithm consume electricity , hardware , time, and it takes 10-100’s of machines to solve 1 problem to get rewarded with coin, with time difficulty increases and reward coins decreases. So that is why crypto-currency is safest currency, Because it’s take $$ to generate $$$, which is why I believe that cryptocurrency is no bubble but become world currency with time.
Basic Intro About Crypto-Trading:
Trading with different coins buy/sell on prices up/down is Crypto-trading. No such intro is required for it.
Said that, there are two types of traders.
1-Long Term Trader (HODLER’s).
2-Short Term Trader (Day Trading/Real Time trader).
1-Long Term Trader?
Well, those traders who Buy or Mine Coins & hold them for at least 6-12 months to get 200-500% profit. For example In November-2017 if you was able to mine 1-Ethereum Coin which was worth 250-USD & In Jan-2018 It’s price is 980-USD. You would be able to made 300% profit. Which is insane.
2-Short Term Trader?
Such trader analyze coin market up & down & take the advantage of signals swing in prices to get 2-10% profit with each trade.