What’s Crypto And How Does It Work?

When we transfer fiat money anywhere in the world, there is always an intermediary between the recipient and us. It may be a bank or other financial establishment regulated by the government. 

What is crypto? Cryptocurrencies are digital money that, instead of relying on banks and governmental regulation bodies, exists in digital entries and records transactions in a public ledger, which state regulations cannot control. That is, crypto cannot be issued by the government, and it proceeds transactions with no third parties.

Crypto

The name “crypto” comes from “encryption”, which means transaction verification method. Encryption implies using codes for transferring digital assets between users, ensuring security.

The first crypto coin is Bitcoin. It still takes the leading position in the market. Bitcoins are received through “mining”, which means using powerful computers to solve complex math problems. This process allows generating blocks and adding them to a blockchain. Every transaction in the Bitcoin network is recorded in the chain of blocks, and it cannot be removed or cancelled. It ensures the security of asset transfers around the world.

Price crypto depends on:

  • the complexity of the process of coin creation;
  • the overall number of coins issued (or planned to be issued);
  • the situation in the crypto market; and external factors such as processes in the global economy, crisis, etc.

Also Read: Getting into Blockchain: A Cheat Sheet

How To Use Crypto?

Digital assets are used for investment and trading, for they have changeable prices. It opens many earning opportunities for traders who can buy crypto assets at a lower rate and then sell them at a high price. Price crypto may change many times a day, allowing traders to receive many small portions of profit during the day. This is one of the most popular trading strategies called Intraday Trading.

If you want to buy crypto and start trading, you are recommended to use one of the large and credible crypto platforms such as WhiteBIT, Binance, etc. They offer a full range of crypto assets and tools for trading, as well as educational information and charts to learn more about the market.

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