Crypto News | Lessons

Cryptocurrencies are a variety of alternative currencies and a peer-to-peer (P2P) tool that allows users to sell goods to each other without intermediaries. In order for a cryptocurrency to function independently of a centralized intermediary, all participants in the process need to have a way to record and store transactions. For this purpose, a blockchain is used - a chain of blocks with transaction records that are interconnected and protected by cryptography. A transaction occurs only after it is included in a block and the block is added to the chain. Once added to the blockchain, blocks cannot be changed without losing data. Until a transaction is added to a block, it is not considered confirmed. Blockchain users interact with each other using asymmetric encryption. It consists in using two keys: public (analogues - bank card number, safe box number) and private (pin code for the card, cipher for the safe). @CryptoNews_Lessons✅️

The birth date of bitcoin is considered October 31, 2008, when the article “Bitcoin: A Peer-to-Peer Electronic Cash System” was published, in which Satoshi Nakamoto first spoke about digital signature protection, payments without the participation of a third party, sanity checks, blockchain and about digital currency. Bitcoin is the first cryptocurrency, but not the only one today. Altcoins are all cryptocurrencies that appeared after Bitcoin. Most cryptocurrencies provide pseudonymity - all transactions between all addresses are public, but there is no data about the owners of the addresses. Cryptocurrency is a kind of digital currency, accounting for the internal units of account of which is provided by a decentralized payment system operating in a fully automatic mode. The transfer of cryptocurrencies is irreversible - no one can cancel, block, challenge or force (without a private key) a transaction. @CryptoNews_Lessons✅️

✅Cryptocurrency Wallets 👉Unlike the US Dollar, cryptocurrencies don’t have a physical form. You can’t hold Bitcoin or Solana in your hands. They are digital assets that are transferred over the Internet. A digital or cryptocurrency wallet is a storage facility for your crypto holdings. Technically, cryptocurrency wallets don’t store your crypto funds. They store your private keys. A private key is a password that proves ownership of your crypto holdings and is used to initiate transactions. Since your crypto lives on the blockchain, the private keys are required to provide access to the digital assets. #how_crypto_work_part3 @CryptoNews_Lessons✅️

✅Cryptocurrency Mining 👉Before transactions are stored on the blockchain, they need to be verified. The blockchain network also has to be maintained. And more importantly, new cryptocurrencies are to be created from time to time. These tasks are carried out by a group of people called “miners.” 👉Cryptocurrency mining is the process of validating crypto transactions and then adding them to the network in exchange for crypto rewards. To validate Bitcoin transactions, for instance, miners have to solve complex mathematical questions using powerful computers. This is called the Proof-of-Work (PoW) consensus. Solving these equations involves powerful computers and energy, making the PoW an expensive endeavor. Bitcoin miners who successfully solve the problems are allowed to add blocks of verified transactions into the blockchain. These miners are paid a reward of 6.25 Bitcoins (about $262K) for their trouble. 👉Other cryptocurrencies, like Solana and Cardano, use a Proof-of-Stake (PoS) consensus, where miners secure and maintain the network by “staking” their coins. PoS consensus attributes mining power based on the proportion of coins staked or held by the miner. #how_crypto_work_part2 @CryptoNews_Lessons✅️

✅How Does Cryptocurrency Work? ✅️To understand how cryptocurrencies work, we need to explain three concepts. ✅️They are 👉the blockchain, 👉cryptocurrency mining, and 👉cryptocurrency wallets. ✅Blockchain Technology A blockchain is similar to a database but better. Databases store a large volume of data electronically on a computer or on servers made up of powerful computers. These servers are often centralized in a location and built for easy storage and retrieval of data. The blockchain differs from a database in setup. Unlike a database, the blockchain is a decentralized public ledger. The computers powering the network are not all under one roof or operated by one single individual. In addition, a blockchain collects multiple data together in groups, otherwise known as ‘blocks.’ These blocks have specific storage capacities. Once filled, the blocks are chained and added to the previously filled block to form a chain of data known as a “block-of-chain” or the “blockchain.” In the case of Bitcoin, the blockchain stores every Bitcoin transaction initiated on the network. #how_crypto_work_part1 @CryptoNews_Lessons✅️

✅ Cryptocurrencies look to offer several benefits over traditional money. ✅️ These include: 👉 Speed: With cryptocurrencies, sending money – or value – across regions or continents happens in a few minutes. This trumps traditional cash, which takes hours to days in some cases. 👉Security: Cryptocurrencies run on blockchains, which are distributed and decentralized. Since they are not centralized, there’s no single point of failure. This makes the blockchain harder to corrupt or hack. 👉 Censorship-resistant: Anyone can use cryptocurrencies. They offer users financial freedom. No government or central authority can censor or reverse a transaction once it’s completed @CryptoNews_Lessons✅️

✅What is Cryptocurrency ? ⭕️Cryptocurrency, is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies don't have a central issuing or regulating authority, instead using a decentralized system to record transactions and issue new units. @CryptoNews_Lessons✅️

Crypto Investing Strategies: Long-term vs. Short-term When considering long-term vs. short-term crypto investing strategies, it's important to understand their differences and benefits: ⭐️ Long-term Investing: 🟢Focus: Long-term investors prioritize the fundamental value of a cryptocurrency project and its potential for sustained growth over time. 🟢Hold Period: They typically hold onto their investments for months to years, aiming to capitalize on the overall upward trajectory of the market. 🟢Benefits: Long-term investors benefit from the compounding effect of market growth and are less affected by short-term price fluctuations. 🟢Risk Management: They are generally less concerned with day-to-day volatility and focus on the project's fundamentals and long-term viability. 🟢 Strategies: Dollar-cost averaging (DCA) and buying and holding are common long-term strategies. To be continued 🔺 🤑 Crypto News | Lessons✅

How Tap-to-Earn Works? "Tap-to-earn" is an emerging concept in the cryptocurrency space that allows users to earn cryptocurrency tokens by interacting with a digital platform or application. Similar to Play-to-Earn (P2E), it provides an easy way for users to gain rewards through simple actions. Here's how it typically works: ▪️User Engagement: Users interact with a digital platform, such as a mobile app, website, or game, by performing actions like watching ads, tapping, completing tasks, playing games, or providing data. ▪️Reward System: In return for their engagement, users receive cryptocurrency tokens directly into their digital wallets. These tokens usually have intrinsic value within the platform's ecosystem. ▪️Token Utility: The earned tokens can often be used within the platform's ecosystem for various purposes such as in-app purchases, trading, or even converting them to other cryptocurrencies or fiat money. 🤑 Crypto News | Lessons✅

Crypto Fun Facts 💡 Lost Bitcoins: It's estimated that around 20% of all bitcoins in existence are lost forever, either because people have lost access to their wallets or because they've been intentionally destroyed. Mining Energy Consumption: Bitcoin mining consumes a significant amount of energy, with estimates suggesting it consumes more electricity than some small countries. This has led to debates about its environmental impact. Crypto Billionaires: The rapid rise of cryptocurrencies has created a new breed of billionaires, with some early investors and founders of crypto projects amassing vast fortunes seemingly overnight.