There are three essential methods for getting Bitcoins: getting them on a trade, tolerating them for products and ventures and mining new ones. Mining is a procedure of adding exchange records to the Bitcoin’s open record called the Blockchain. It exists with the goal that each exchange can be affirmed, and each and every client of the system can get to this record. It is likewise used to recognize real Bitcoin exchanges from endeavors of re-burning through cash that has just been spent elsewhere.
Mining — a procedure of record-keeping, done using PC preparing power.
Blockchain — an open appropriated record where records of each Bitcoin exchange are held.
The Blockchain is supposed in light of the fact that it is artistically a chain of squares, which are arrangements of exchanges made during a set timeframe. At the point when a square of exchanges is produced, diggers put it through a procedure. They apply a complex numerical equation to the data in the square, hence transforming it into a far shorter, apparently arbitrary succession of letters and numbers called a ‘hash’.
A HASH— a fixed-length unique sequence of random digits, which can be created from data of any size.
A hash doesn’t just comprise of data from the square of exchanges, some different bits of information are utilized as well. In particular, the hash of the past square put away in the Blockchain is incorporated.
While it’s moderately simple to deliver a hash from a gathering of information like a square of exchanges, it’s essentially difficult to comprehend what information was utilized just by taking a gander at the hash succession. In addition, every single hash is one of a kind, and changing only one character in a Bitcoin square totally changes the hash grouping.
In light of these characteristics, hash fills in as a computerized wax seal. On the off chance that somebody messes with only one square of exchanges its hash will promptly change, thus will all the accompanying hash arrangements in the Blockchain. In this manner, each endeavor at extortion inside the Bitcoin system will be effectively spotted by everybody utilizing it.
Basically, excavators are serving the Bitcoin people group by affirming each exchange and ensuring that each and every one of them is genuine. They all contend with each other, utilizing programming composed explicitly to mine squares. Each time another square is ‘closed’, implying that an excavator has effectively made a right hash succession, the person gets a reward.
As of October 2017, the abundance remains at 12.5 Bitcoins per square, and this worth will diminish significantly every 210,000 squares. The general number of Bitcoins is constrained, so the more coins are mined, the more important every one of them progresses toward becoming. In this manner, despite the fact that the measure of Bitcoins per square will unavoidably diminish, the estimation of diggers’ prizes will probably remain the equivalent or even ascent.
Ordinarily, it would be incredibly simple to create a hash from a gathering of data, PCs are great at this. Thus why, to keep clients from hashing a large number of exchange obstructs each second and mining the majority of the accessible Bitcoins inside minutes, the Bitcoin system needs to intentionally make the procedure increasingly troublesome.
This is done by means of a required ‘Evidence of Work’. It is a framework that requires some work from the administration requester, generally importance handling time by a PC. Creating a proof of work is an irregular procedure with low likelihood, so typically a great deal of experimentation is required for a legitimate evidence of work to be produced. With regards to Bitcoins, hash is the thing that fills in as a proof of work.
Verification of Work — a financial measure used to guarantee against fake exercises by requiring some work from the administration requester, normally importance preparing time by a PC.
To entangle mining significantly further, something many refer to as the Bitcoin Difficulty is executed all the while. It is a proportion of the fact that it is so hard to locate another square contrasted with the most straightforward it can ever be.
Bitcoin Difficulty — a proportion of the fact that it is so hard to create a right hash.
This measure is recalculated each 2016 squares. It is planned with the goal that mining one square will take around 10 minutes. As more excavators participate, the pace of square age unavoidably goes up. At that point, after the trouble level is recalculated, it ascends so as to redress and bring the pace of square making down. Any square discharged by fake excavators that doesn’t meet the required trouble level will be dismissed by everybody on the system, hence getting to be useless.
Along these lines, this procedure requires effort and through it new money gradually winds up accessible. The rate at which new coins show up looks like the rate at which items like gold are mined from the beginning. Consequently why the procedure is called ‘mining’.
Bitcoin (BTC) is an advanced cash, which is utilized and appropriated electronically.
Bitcoin is a decentralized shared system. No single foundation or individual controls it.
Bitcoins can’t be printed and their sum is extremely restricted – just 21 mln Bitcoins can ever be made.
Who made Bitcoin?
Bitcoin was first presented as an open-source programming by a mysterious software engineer, or a gathering of developers, under the pseudonym Satoshi Nakamoto in 2009. There has been a great deal of bits of gossip about the genuine character of BTC’s maker, anyway the majority of the individuals referenced in those bits of gossip have freely denied being Nakamoto.
Nakamoto himself once professed to be a 37-year-old male living in Japan. In any case, in view of his ideal English and his product not being marked in Japanese, there are sensible questions about this. Around mid-2010, Nakamoto proceeded onward to different things, leaving Bitcoin in the hands of a couple of noticeable individuals from the BTC people group. Likewise Satoshi named Gavin Andresen a lead designer.
It has been assessed that Nakamoto possesses around one mln Bitcoins, which adds up to roughly $3.6 bln as of September 2017.
Who controls Bitcoin?
As indicated by Gavin Andresen, the absolute first thing he concentrated on after Nakamoto proceeded onward from the undertaking was further decentralization. Andersen needed Bitcoin to proceed with its reality self-governingly, regardless of whether he would ‘get hit by a transport’.
For many individuals, the primary bit of leeway of Bitcoin is its autonomy from world governments, banks and companies. Not one specialist can meddle into BTC exchanges, force exchange charges or remove individuals’ cash. Additionally, the Bitcoin development is amazingly straightforward – each and every exchange is being put away in an enormous conveyed open record called the Blockchain.
Basically, while Bitcoin isn’t being controlled as a system, it gives its clients complete authority over their accounts.
How does Bitcoin work?
A client sees just measure of Bitcoins on their wallet and exchange results.
In the background, the Bitcoin system is sharing an open record called the “square chain”. This record contains each exchange at any point handled. Computerized records of exchanges are joined into “squares”.
On the off chance that somebody attempt to change only one letter or number in a square of exchanges, it will likewise influence the majority of the accompanying squares. Because of it being an open record, the error or extortion endeavor can be effectively spotted and redressed by anybody.
The client’s wallet can confirm the legitimacy of every exchange. The credibility of every exchange is ensured by advanced marks relating to the sending addresses.
On account of the confirmation procedure and relying upon the exchanging stage, it might take a couple of minutes for a BTC exchange to be finished. The Bitcoin convention is planned with the goal that each square takes around 10 minutes to mine.
Attributes of Bitcoin
One of Satoshi Nakamoto’s principle destinations when making Bitcoin was the system’s autonomy from any overseeing specialists. It is structured with the goal that each individual, business, just as each machine engaged with mining and exchange check, turns out to be a piece of an immense system. Also, regardless of whether some piece of the system goes down, the cash will continue moving.
Nowadays banks know essentially everything about their customers: record, addresses, telephone numbers, ways of managing money, etc. It is all altogether different with Bitcoin, as the wallet doesn’t need to be connected to any expressly recognizing data. And keeping in mind that a few people basically don’t need their funds to be administered and followed by any sort of a specialist, others may contend that medication exchange, psychological oppression and other unlawful and perilous exercises will flourish in this relative obscurity.
The obscurity of Bitcoin is just relative, as each and every BTC exchange that at any point happened is put away in the Blockchain. In principle, If your wallet address was freely utilized, anybody can tell how a lot of cash is in it via cautiously concentrating the blockchain record. In any case, following a specific Bitcoin address to an individual is still about incomprehensible.
The individuals who wish to remain mysterious with their exchanges can take measures to remain under the radar. There are specific kinds of wallets that organize darkness and security, however the most straightforward measure is utilize different locations and not move monstrous measures of cash to a solitary wallet.
The Bitcoin system forms installments quickly, it typically takes only a couple of minutes for somebody on the opposite side of the world to get the cash, while ordinary bank moves can take a few days.
When you send your Bitcoins to somebody, there is no chance to get of getting them back, except if the beneficiary would need to send them back to you. This guarantees the gathering of an installment, implying that whoever you’re exchanging with can’t trick you by asserting that they never got the cash.
What would i be able to purchase with Bitcoin?
In 2009, when Bitcoin was first presented, it wasn’t exceptionally clear how and where you could spend it. Presently, you can purchase for all intents and purposes everything. For instance, goliath organizations like Microsoft and Dell acknowledge installments in BTC for an assortment of their items and advanced substance. You can fly with carriers, for example, AirBaltic and Air Lithuania, purchase theater tickets through UK’s Theater Tickets Direct, get a couple of jugs of specialty lager from Honest Brew, etc.
Different choices incorporate paying for inns and purchasing property, grabbing bills in different bars and cafés, joining a dating webpage, purchasing a gift voucher, putting down a wager in an online-gambling club and giving for a decent aim. There is likewise a whirlwind of various online commercial centers, exchanging everything from illicit substances to top of the line extravagance things.
Bitcoin is a generally new and very mind boggling type of installment, so it is just regular that the spending alternatives are as yet constrained, yet consistently an ever increasing number of organizations – from little neighborhood bistros to industry monsters – are tolerating installments in BTC.
Additionally, because of its always fluctuating swapping scale, Bitcoin turned into a prime open door for venture. In spite of as yet being a temperamental and somewhat unrecognized cash, it ended up multiple times increasingly significant in the course of the most recent year, nearly arriving at a pace of $5000 for one BTC.
How to get Bitcoin?
The least difficult method for getting Bitcoins is to get them. Bitcoins are accessible from different trades, yet you can likewise get them straightforwardly from other individuals by means of commercial centers. They can be paid for with money, credit and charge card moves or even with different cryptographic forms of money. Above all, you’ll need a Bitcoin wallet.
There is an assortment of choices, however the primary ones can be decreased to an online wallet and a product wallet on the hard drive of your PC. Neither one of the options is totally sheltered, as a hard drive can wind up defiled, while an online wallet may be inclined to a programmer assault. There are additionally versatile wallets, which are very disentangled because of a tremendous stockpiling limit required to convey the whole Blockchain; committed gadgets called equipment wallets and paper wallets with two QR-codes that are not put away carefully anyplace, making them insusceptible to standard digital assaults and equipment disappointments.
Furthermore, obviously, there’s mining. Only a couple of years back, anybody with an amazing enough PC could mine Bitcoins, however this isn’t the situation any longer. The BTC’s regularly expanding prevalence just as its swapping scale made huge organizations step into the game equipped with every kind of weaponry with mining-explicit gadgets, subsequently why the trouble and vitality required to mine beneficial measures of Bitcoins has soar. Furthermore, the measure of Bitcoins still to be mined reductions always and definitely.
BTC was structured in view of opportunity. In particular, opportunity from overseeing experts controlling the exchanges, forcing expenses and being accountable for individuals’ cash. With regards to purchasing things, cryptographic money turned out to be similarly as real as level cash as of late, and considering the presence of various profound web showcases that just acknowledge Bitcoins, you might have the option to get a few things simpler with BTC than with some other cash.
One of the particular qualities of cash is compactness, which means it ought to be anything but difficult to convey and utilize. Since Bitcoin is totally computerized, basically any aggregate of cash can be carried on a glimmer drive, or even put away on the web.
Digital forms of money give individuals opportunity to send and get cash with only a sweep of a QR-code or a tick of an online wallet. It requires some investment, there are no over the top charges and the cash goes from individual to individual with no pointless intermediates; all you need is Internet get to.
Pick your own bonus
Another unquestionable favorable position of the Bitcoin system is a plausibility of picking the exchange charge sum, or deciding not to pay it by any means. The exchange expense is gotten by the excavator, after another square is created with a fruitful hash. For the most part, the sender pays the full expense, while deducting this charge from the beneficiary could be viewed as a deficient installment.
Exchange charges are totally intentional and they fill in as a motivation for the excavators to ensure that the specific exchange will be incorporated into the new square being created. This motivating force likewise fills in as a pay hotspot for the diggers, frequently bringing them more cash than the customary mining would have, particularly thinking about that the mining action will stop totally later on, when the farthest point of Bitcoins will be come to.
In this manner, the cryptographic money market asks clients to picked between the expense and the holding up time. Higher exchange charge would mean speedier preparing, while clients with no time imperatives can set aside cash.
PCI represents Payment Card Industry and it signifies the charge, cr
Cryptocurrency money is advanced or virtual cash intended to fill in as a mechanism of trade. It utilizes cryptography to verify and confirm exchanges just as to control the formation of new units of a specific digital currency. Basically, digital forms of money are constrained passages in a database that nobody can change except if explicit conditions are satisfied.
There have been numerous endeavors at making an advanced cash during the 90s tech blast, with frameworks like Flooz, Beenz and DigiCash developing available yet definitely falling flat. There was a wide range of explanations behind their disappointments, for example, extortion, money-related issues and even erosions between organizations’ representatives and their managers.
Prominently, those frameworks used a Trusted Third Party approach, implying that the organizations behind them checked and encouraged the exchanges. Because of the disappointments of these organizations, the formation of an advanced money framework was viewed as an acts of futility for quite a while.
At that point, in mid-2009, a mysterious software engineer or a gathering of developers under a nom de plume Satoshi Nakamoto presented Bitcoin. Satoshi depicted it as a ‘shared electronic money framework.’ It is totally decentralized, which means there are no servers included and no focal controlling expert. The idea intently takes after distributed systems for document sharing.
One of the most significant issues that any installment system needs to explain is twofold spending. It is a deceitful procedure of spending a similar sum twice. The customary arrangement was a confided in outsider – a focal server – that tracked the parities and exchanges. Be that as it may, this technique consistently involved a specialist fundamentally responsible for your assets and with all your own subtleties close by.
In a decentralized system like Bitcoin, each and every member needs to carry out this responsibility. This is done by means of the Blockchain – an open record of all exchange that at any point occurred inside the system, accessible to everybody. In this way, everybody in the system can see each record’s parity.
Each exchange is a document that comprises of the sender’s and beneficiary’s open keys (wallet addresses) and the measure of coins moved. The exchange additionally should be closed down by the sender with their private key. The majority of this is simply essential cryptography. In the end, the exchange is communicated in the system, however it should be affirmed first.
Inside a digital money organize, no one but excavators can affirm exchanges by understanding a cryptographic riddle. They take exchanges, mark them as genuine and spread them over the system. A short time later, every hub of the system adds it to its database. When the exchange is affirmed it winds up unforgeable and irreversible and an excavator gets a reward, in addition to the exchange charges.
Basically, any digital money system depends on the supreme agreement of the considerable number of members in regards to the authenticity of equalizations and exchanges. In the event that hubs of the system differ on a solitary equalization, the framework would fundamentally break. In any case, there are a ton of standards pre-incorporated and customized with the system that keeps this from occurring.
Digital currencies are supposed on the grounds that the agreement keeping procedure is guaranteed with solid cryptography. This, alongside previously mentioned components, makes outsiders and visually impaired trust as an idea totally excess.
What would you be able to do with cryptographic money
Previously, attempting to discover a vendor that acknowledges digital currency was very troublesome, if certainly feasible. Nowadays, nonetheless, the circumstance is totally unique.
There are a great deal of shippers – both on the web and disconnected – that acknowledge Bitcoin as the type of installment. They go from huge online retailers like Overstock and Newegg to little nearby shops, bars and eateries. Bitcoins can be utilized to pay for inns, flights, jewelery, applications, PC parts and even an advanced education.
Other computerized monetary standards like Litecoin, Ripple, Ethereum, etc aren’t acknowledged as generally at this time. Things are improving however, with Apple having approved in any event 10 diverse cryptographic forms of money as a reasonable type of installment on App Store.
Obviously, clients of digital currencies other than Bitcoin can generally trade their coins for BTCs. Also, there are Gift Card auctioning sites like Gift Off, which acknowledges around 20 diverse digital forms of money. Through gift vouchers, you can basically purchase anything with a digital currency.
At long last, there are commercial centers like Bitify and OpenBazaar that just acknowledge digital forms of money.
Peruse more in the article “What would i be able to purchase with Bitcoins?”
Numerous individuals accept that digital forms of money are the most sultry venture opportunity right now accessible. Surely, there are numerous accounts of individuals getting to be tycoons through their Bitcoin speculations. Bitcoin is the most conspicuous advanced cash to date, and simply a year ago one BTC was esteemed at $800. In November 2017, the cost of one Bitcoin surpassed $7,000.
Ethereum, maybe the second most esteemed cryptographic money, has recorded the quickest ascent a computerized cash at any point illustrated. Since May 2016, its worth expanded by in any event 2,700 percent. With regards to all digital forms of money joined, their market top taken off by in excess of 10,000 percent since mid-2013.
In any case, it is important that cryptographic forms of money are high-chance ventures. Their fairly estimated worth varies like no other asset’s. Besides, it is incompletely unregulated, there is constantly a danger of them getting banned in specific wards and any digital currency trade can possibly get hacked.
In the event that you choose to put resources into cryptographic forms of money, Bitcoin is clearly still the prevailing one. In any case, in 2017 its offer in the crypto-advertise has significantly tumbled from 90 percent to only 40 percent. There are numerous alternatives at present accessible, with certain coins being security centered, others being less open and decentralized than Bitcoin and some simply through and through replicating it.
While it’s anything but difficult to purchase Bitcoins – there are various trades in presence that exchange BTC – different cryptographic forms of money aren’t as simple to obtain. Despite the fact that, this circumstance is gradually improving with real trades like Kraken, BitFinex, BitStamp and numerous others beginning to sell Litecoin, Ethereum, Monero, Ripple, etc. There are likewise a couple of other various methods for being coin, for example, you can exchange up close and personal with a merchant or utilize a Bitcoin ATM.
When you purchased your digital currency, you need an approach to store it. Every single real trade offer wallet administrations. Be that as it may, while it may appear to be advantageous, it’s ideal in the event that you store your benefits in a disconnected wallet on your hard drive, or even put resources into an equipment wallet. This is the most secure method for putting away your coins and it gives you full power over your advantages.
Likewise with some other venture, you have to give close consideration to the cryptographic forms of money’s fairly estimated worth and to any news identified with them. Coinmarketcap is a one-stop answer for following the value, volume, dissemination supply and market top of most existing digital currencies.
Contingent upon a ward you live in, when you’ve made a benefit or a misfortune putting resources into digital forms of money, you may need to incorporate it in your assessment report. As far as tax assessment, cryptographic forms of money are dealt with uniquely in contrast to nation to nation. In the US, the Internal Revenue Service decided that Bitcoins and other advanced monetary forms are to be saddled as property, not cash. For financial specialists, this implies collected long haul increases and misfortunes from digital money exchanging are burdened at every speculator’s pertinent capital additions rate, which stands at a limit of 15 percent.
Excavators are the absolute most significant piece of any cryptographic money system, and much like exchanging, mining is a speculation. Basically, excavators are giving an accounting administration to their particular networks. They contribute their registering capacity to settling muddled cryptographic riddles, which is important to affirm an exchange and record it in an appropriated open record called the Blockchain.
An intriguing aspect regarding mining is that the trouble of the riddles is continually expanding, associating with the quantity of individuals attempting to unravel it. Along these lines, the more prevalent a specific cryptographic money turns into, the more individuals attempt to mine it, the more troublesome the procedure moves toward becoming.
Many individuals have made fortunes by mining Bitcoins. Back in the days, you could make significant benefits from mining utilizing only your PC, or even an amazing enough PC. Nowadays, Bitcoin mining can possibly wind up productive in case you’re willing to put resources into a mechanical evaluation mining equipment. This, obviously, causes colossal power charges over the cost of all the fundamental gear.
Right now, Litecoins, Dogecoins and Feathercoins are said to be the best digital forms of money as far as being financially savvy for apprentices. For example, at the present estimation of Litecoins, you may gain anything from 50 pennies to 10 dollars daily utilizing just shopper grade equipment.
Be that as it may, how do excavators make benefits? The all the more registering force they figure out how to amass, the more possibilities they have of settling the cryptographic riddles. When a digger figures out how to tackle the riddle, they get a reward just as an exchange charge.
As a digital currency pulls in more enthusiasm, mining winds up more diligently and the measure of coins got as a reward diminishes. For instance, when Bitcoin was first made, the reward for fruitful mining was 50 BTC. Presently, the reward remains at 12.5 Bitcoins. This happened in light of the fact that the Bitcoin system is planned so that there must be an aggregate of 21 mln coins available for use.
As of November 2017, right around 17 mln Bitcoins have been mined and appropriated. Be that as it may, as remunerations will decrease and littler, each and every Bitcoin mined will turn out to be exponentially increasingly important.
Those components make mining cryptographic forms of money an extra.
Cryptocurrency market cap
(stats retrieved on Nov. 10, 2017)
|Name||Market Cap||Price||Volume||Circulating Supply||Change (24hrs)|
|Bitcoin Cash||$15,121,119,942||$901.17||$4,500,640,000||16,779,413 BCH||37.68%|
|Ethereum Classic||$1,457,787,439||$14.98||$299,410,000||97,318,182 ETC||5.69%|
Instructions to store
In contrast to most customary monetary standards, cryptographic forms of money are advanced, which involves a totally extraordinary methodology, especially with regards to putting away it. In fact, you don’t store your units of digital currency; rather it’s the private key that you use to sign for exchanges that should be safely put away.
There are a few unique sorts of digital money wallets that cook for various needs. On the off chance that your need is security, you should settle on a paper or an equipment wallet. Those are the most secure methods for putting away your crypto reserves. There are likewise ‘cold’ (disconnected) wallets that are put away on your hard drive and online wallets, which can either be associated with trades or with free stages.
Instructions to purchase
There are a variety of choices with regards to purchasing Bitcoins. For instance, there are as of now right around 1,800 Bitcoin ATMs in 58 nations. In addition, you can purchase BTC utilizing gift vouchers, digital currency trades, venture trusts and you can even exchange eye to eye.
With regards to other, less well known digital currencies, the purchasing alternatives aren’t as assorted. In any case, there are as yet various trades where you can get different crypto-coins for level monetary standards or Bitcoins. Up close and personal exchanging is additionally a prevalent method for securing coins. Purchasing choices rely upon specific digital currencies, their prevalence just as your area.
When a cryptocurrency is about to launch its own blockchain, you may hear terms like Testnet and Mainnet but what really do they mean?
What is Testnet?
Testnet (testing network) is an alternative network that developers use for testing purposes before launching the actual blockchain. It allows them to make experiments without using the actual coin so they can discover software vulnerabilities. Once they are satisfied that it is stable, they go ahead to launch a mainnet.
What is Mainnet?
Mainnet (main network) is the main blockchain of a cryptocurrency. Mainnet is more strict about implementing rules as it deals with coins that have real value.
Thank you for reading…
There has been so much buzz in the news surrounding Libra, a cryptocurrency backed by Facebook and other financial tecky and remittance giants like eBay, Visa, Mastercard, PayPal Holdings, Uber and Kiva.
From my reading, this is the summary;
1. Will be ran by Calibra (Facebook), eBay, eBay, Visa, Mastercard, PayPal Holdings, Uber Kiva and many more.
2. It will be a stablecoin used for local and international money transfers.
3. It will be a Fully working blockchain by 2020.
4. The main aim is to send money faster, cheaper and secure using blockchain and to bank the unbanked.
5. Its value will be tied to hard assets
6. Calibra is a wallet service being built by Facebook to link messenger and WhatsApp for transactions.
7. Will be regulated (the reason to avoid it)
8. Will be built on private blockchain (partially decentralized)
What does this mean for cryptocurrency?
Facebook and its partners boast of close to 5 billion users, this only entails mass adoption for cryptocurrency and blockchain technology as more people will come to know. Libra does not pose any threat to Bitcoin as it is just a stablecoin only. A stablecoin is not good for investment unless as a shareholder, there are already lots of stablecoins on the market.
Bitcoin is by the people and for the people.
In the other post, I discussed with you the WAYS TO MAKE MONEY IN CRYPTOCURRENCIES, But, where you make money, you are also bound to making losses – in this post i will discuss with you how you can lose money in Cryptocurrencies.
The unstable nature of these digital currencies means that if you’re investing with the hope of making money, it’s very easy to lose some or all your original investment.
I have personally seen people lose money in Cryptocurrencies because of the ways below. I was also, on different scenarios had been captured in one of these ways.
1. Wrong Addresses
2. Ponzi Scams
3. Twitter Scams
4. Phishing Scams
5. Lost Private Keys
6. Open Blockchain Wallet
7. Fraudulent ICOs
8. Exchange Hacking
9. Computer Virus
10. Panic Selling
11. 51 Percent Attack
12. Fake exchanges
13. Fake Wallets
16. PUMP & DUMP GROUPS
17. PYRAMID OR PONZI SCHEMES
Let’s go through these one by one…
Unlike bank transactions, Crypto transactions are irreversible. If you send your coins to a public address you didn’t mean to, you have lost your money, unless the other person decides to send your coins.
Ponzi scams usually promise you unrealistic profits you can make by investing in cryptocurrencies. They often have referral programs to encourage investors to sign up their friends so that there’s cash flow for payouts to old investors. In reality, most people will lose their investment in these types of schemes once no new investors to bring in money.
Scammers on social media have devised a new method to get your coins, they say If you send them one Ether coin, they’ll send you 100 back!
Sound too good to be true? It isn’t. Still, scammers have tried to fool people’s followers by making fake accounts (with real names and photos) to lure victims into thinking that they were being offered a great deal from a reputable source.
Here, the scammers will try to get your username, password, or seed keys somehow by luring you to a fake website.
LOST PRIVATE KEYS
There might be no worse regret in crypto than buying a crypto low (say, in 2013) and trying to sell high (say, at the end of 2017), then realizing that you lost your private keys. You would have lost your money because you can’t retrieve your private key.
OPEN BLOCKCHAIN WALLET
This type of scam comes in this form;
“Antminer is a mining hardware that works specifically with blockchain wallets. To start mining you create an empty blockchain wallet and get it connected to the mining network. Once it’s connected, you fund your wallet to get the miner activated on the network. It works with traffic so the more people get on the network the faster and easier mining is. You get daily payouts, the higher the amount of btc you fund the connected wallet with, the higher the quantity of btc you mine daily”
DON’T FALL FOR THIS, WHOEVER HAS ACCESS TO YOUR WALLET, HAS ACCESS TO YOUR MONEY.
The most common way to pull off a scam is to fabricate a fake ICO, create marketing hype and persuade people to buy.
That is because ICOs are a great and innovative way to kickstart a company and that is the aspect that is misused. You will give them your money in hope that once their project is live, you will sell the token for profits. But what do they do? They run away with your money.
There are so many examples i can give of exchanges that got hacked where users lost their money with the famous one being Mt Gox Exchange. Always transfer your coins into your wallet and only leave a small amount for trading if you so wish to.
As many cryptocurrency investors know to their cost, your cryptocurrency investments can be vulnerable to hackers. Keep your anti-virus software up-to-date and ensure you aren’t giving out your data online if you are storing or investing in cryptocurrencies.
They say don’t chase a coin whose price is swiftly going up, usually the price comes down drastically to make you panic sell – you may lose your money because you will be forced to sell on a loss to avoid losing more.
51 PERCENT ATTACK
51% Attack is a situation where a single mining entity gains more mining power of the network because it could tamper with the process of verifying transactions and potentially spend the same Bitcoins twice.
You need to be very careful with fake exchanges because once you deposit your coins there, you have no way to get it back if the intentions of that exchange are not right. You will be locked out of your account and fail to gain access.
It is one of the easiest ways to scam people and happens many times during the launch of new coins. These wallets take your seed or private keys and rip you off of your funds.
FOMO (Fear Of Missing Out) is when investors feel they are missing out on something big and as a result, will immaturely buy an asset to hop on the bandwagon.
FUD (Fear, Uncertainty, and Doubt)
Always do your due diligence before you invest in any coin. Don’t sell your coins on a loss because others are doubting it or are giving fake news.
PUMP & DUMP GROUPS
This is a scheme where a group of people pumps the price of a coin after buying it with the aim that once the price goes by a certain percentage, they all sell and the price plunge. You will definitely lose your money.
PYRAMID SCHEME (same as PONZI SCHEME)
This form of scam is the easiest to spot but people still fall for it.
If you find a crypto project that actively encourages the recruitment of new investors to maximize your profits, it is a Ponzi scheme type. This system works on the model of scamming the one who enters the system later. Also, schemes that promise unrealistic returns are definitely Ponzi schemes.
Thank you for reading……
Please note that, the earlier post about WAYS TO MAKE MONEY IN CRYPTOCURRENCIES, those same ways can also be ways to lose on their opposite.
Be on the lookout, your money is hard-earned – you can’t surely afford to lose it.
Blockchain, as the name suggests is a chain of blocks of transactions linked to each other using CRYPTOGRAPHY.
Because no one can tamper with CRYPTOGRAPHY, blockchain is said to be IMMUTABLE. It is ELECTRONIC because it is maintained by devices called computer nodes.
Each computer node has a copy of the blockchain in real-time via Internet connectivity, therefore, it is DECENTRALIZED.
There are many uses of the blockchain, one of them is to act as a digital ledger to record cryptocurrency transactions.
Initially, blockchain was used in 1991 by Stuart haber and Scott W Stornetta, they wanted to make a system where they could record the time they created documents so that it could not be tampered with or backdated.
Blockchain was used as a concept for digital ledger by a person (or group of people) under the pseudonym Satoshi Nakamoto in 2008. It was then implemented the following year as an important part of the cryptocurrency bitcoin, where it serves as the public digital ledger for all transactions on the bitcoin network.
4. FUTURE PROSPECTS
The future of finance could be dominated by blockchain technology.
▪ Blockchain could replace central banks.
▪ Blockchain technology could be used to bypass today’s centralised financial infrastructure entirely.
▪ Blockchain will be adopted by central banks and Cryptocurrencies will become widely used.
▪ Potential to reduce cyber risks by offering identity authentication through a visible ledger.
▪ Small businesses could use blockchain to create trusted trading platforms.
▪ Blockchain has the potential to create new industry opportunities and disrupt existing technologies and processes.
▪Blockchain can help deliver a Free and Fair election.
And many other blockchain applications….
○51 Percent Attack
51% Attack is a situation where a single mining entity gain more mining power of the network because it could tamper with the process of verifying transactions and potentially spend the same Bitcoins twice.
if Governments have quantum computers in place which are 100 million times faster than the current ones, it will become very easy to work out the mathematic equations, and thus one can easily figure out the digital keys and break cryptography that blockchains rely on Thus, making Blockchain exploitable.
It will be a threat to Blockchain as quantum computing will impact one of the key features of Blockchain like immutability and security, thus making Blockchain as highly vulnerable technology.
Certain countries have already put laws in place to stop blockchain companies or limit what they can do. This can affect the effectiveness and transparency of blockchain.
For simple explanation and easy understanding, I’m going to make this brief and straightforward. Make sure to do thorough research to comprehensively understand digital wallets. Also, most importantly, Understand cryptographic hash functions (check the comments section for the link to hash functions)
A digital wallet refers to an electronic device, phone app, computer software or online service that allows an individual to make electronic transactions. It stores private, public keys and addresses and interacts with various blockchains to enable users to send and receive digital currency and monitor their balance, send money and conduct other operations.
The equation goes like this, the PRIVATE KEY is hashed and multiplied to get the PUBLIC KEY and finally you double – hash the public key to get the ADDRESS. Essentially (in reverse equation, one-way function), we can not calculate the ADDRESS to get the PUBLIC KEY and the PUBLIC KEY to get the PRIVATE KEY, but we can calculate the address from the public key. With the public key, you can sign transactions (or any data) using the private key which points to the block in the blockchain where your coins are stored. The public key is used to encrypt data and only the matching private key can decrypt it and becomes spendable. You use the address to receive coins.
Secure your private keys, anyone who has access to your private keys can spend your money.
In the earliest days, people valued money from item to item, this was called commodity money. They could weigh the value of this item to another and proportionally exchange value. A few years later, silver, gold, and other precious metals were introduced as metallic money. Then later, credit money in form of bank cheques evolved alongside paper money and not long after plastic money came on the market in the form of Bank ATMs.
Now, money is taking another development into cryptocurrency which is highly secure through the blockchain technology – thanks to cryptography. Money has been always used to by kings and governments to control subjects and citizens respectively. With cryptocurrency coming on the scene, it guarantees power to the people and not the established authorities due to decentralization, this is why governments hate it because they can’t regulate it.
Crypto is borderless and highly secure to send 24/7 wherever in the world at the click of a button. It is cheaper to send compared to fiat currency.
Ladies and gentlemen, let’s buckle up and behold the freedom. Crypto is “by the people and for the people” version of money. Who would not want to support it, let’s all pioneer mass adoption for this amazing technology.