What are Cryptocurrencies?
A cryptocurrency is a digital coin, designed to be transferred between people in virtual transactions. Cryptocurrencies exist only as data and not as physical objects; you cannot actually hold a Bitcoin in your hand or keep Ethereum in your pocket. Owning a Bitcoin means you have the collective agreement of each and every computer on the Bitcoin network that it is currently owned by you and – more importantly – that it was legitimately created by a miner.
At Expert Pips, we offer you the chance to Invest in a selection of leading Crypto currencies. This means you can Earn on whether you believe the price will rise or fall. When you invest with us, you can take advantage of some of the industry’s leading Crypto conditions, including the lowest spreads.
Cryptocurrencies are handled like cash but are mined like gold. Mining is simply the process of verifying a crypto transaction. People around the world transfer e-coins from wallet to wallet, while miners use computer-processing power to maintain the blockchain and verify these transactions. The miners receive some of the cryptocurrency they are mining as their reward.
What is a Blockchain
A blockchain is a list of transaction records, called blocks, which are linked to each other and encrypted. The blockchain is continuously growing and is completely open to anyone. Each block in the blockchain contains:
1.The details of the sender, receiver and amount of e-coins.
2.A hash, which serves as a unique fingerprint.
3.A hash of the previous block in the chain.
When a new block is created, it is sent to all the users in the network. Each user then verifies the block and it is added to the blockchain.
What is a Cryptocurrency Wallet?
A wallet is a piece of software or hardware that gives you the ability to store and exchange your cryptocurrencies. Each cryptocurrency wallet is encrypted and unique to you. When you send funds you actually broadcast an encrypted message to the recipient. Only the recipient’s cryptocurrency wallet can decrypt that message and thus receive the funds.
Every one of the numerous cryptocurrencies existing today has its own blockchain, and the complex maths that is at the heart of the blockchain is computer generated. In order to run a transaction on the blockchain you need an e-wallet (or a cryptocurrency wallet).
Why Invest Crypto CFDs With ExpertPips?
Today’s Most Popular Cryptocurrencies:
This mega-powerful currency has not only opened the gate for other currencies, but also leads the cryptocurrency world with pride. It is limited to 21 million bitcoin units. Once this number has been reached, no further bitcoin can be produced. When first introduced, the rate was $1 to 1,309 . The wheel has turned, and when Bitcoin reached the all-time high of $19,783.21 in 2017, it was certainly a meaningful milestone for Satoshi Nakamoto, the anonymous creator of Bitcoin.
Bitcoin Cash (BCH) was created by the Bitcoin hard fork on August 1, 2017, resulting in a new version of the blockchain with different rules. By switching from the main Bitcoin blockchain to a new version, the software now has a capacity for a larger number of transactions.
Bitcoin Gold (BTG) is the second fork from Bitcoin (i.e. the second version to stem from Bitcoin’s source code). It retains Bitcoin’s transaction history, meaning that if you owned Bitcoin before the fork, you now own the equal amount of Bitcoin Gold. This cryptocurrency aims to introduce an alternative mining algorithm that is less susceptible to ASIC-based optimization, therefore allowing users to earn more with their computer cycles.
Ethereum (ETH) is more than just a currency – it’s like one giant computer housing many computers around the globe. Ethereum can respond to sophisticated requests. Its ability to store revolutionary computer programs, known as smart contracts, gives Ethereum an edge over Bitcoin and has attracted attention from banks around the world. This, among other factors, led to a jump of almost 10,000% in 2017! After reaching a price of $1098 by January 2018, it has not yet managed to come close to this high ever since. However, with all the ingenious developments and smart apps being based on the Ethereum blockchain, watch this space!
Litecoin (LTC) is similar to Bitcoin in many of its characteristics and is also one of the more veteran cryptocurrencies out there. However, there are two main differences between Litecoin and Bitcoin: Speed and amount. While it takes 10 minutes to create a Bitcoin block, Litecoin demands roughly 2.5 minutes to create a block – meaning 4 times the speed. Moreover, Litecoin attracts many users, as it can produce 4 times the quantity of Bitcoin! However, as Litecoin uses highly complex cryptography, often mining it is more complicated than other cryptocurrencies.
Ripple (XRP) can be described as the next generation of payment networks, it is also a technology that acts as a cryptocurrency (XRP). Originally set up to engage financial industry leaders, just one year after being founded, the digital currency’s creator Ripple Labs was named one of the 50 Smartest new Companies by MIT University. Since then banking institutions like American Express, Santander and Money Gram starting adopting Ripple’s payment system. At the time of writing, the RippleNet advanced blockchain is currently being used by over 300 providers spanning 40 countries.
This is the e-coin that is considered Ethereum’s biggest competitor. The EOS blockchain gained its fame because of the way it effectively records and secures transactions. It is similar to the Ethereum blockchain but faster, more scalable, and allows users to build decentralised applications more efficiently. Market analysts are promoting the currency as ‘The Most Powerful Infrastructure for Decentralised Applications’ and expect the coin to be dumped and pumped, which could provide some interesting short-term opportunities.