In the financial field, a topic that has aroused a lot of interest in recent years is certainly Bitcoin, a cryptocurrency that has acquired a lot of relevance given the enormous value it has matured in just a few years, rising from 500 to over 34.000 euros at the beginning of 2021. Its volatility, characterized by price fluctuations of up to 30% in one day, if exploited properly, through a trusted exchange, can bring excellent gains.
In this article we will go to an in-depth look at everything related to cryptocurrencies and on which of them it is convenient to invest. We will also explain the thefference between buying a cryptocurrency and tratheng a cryptocurrency, which does not mean owning it. Still on the subject, I suggest you also take a look at our article in which we explain everything there is to know about NFTs.
- What is Bitcoin and What are Cryptocurrencies
- Wallet: what it is, what it is for and types
- How a Wallet works
- What is the Blockchain
- Miner and Mining to earn cryptocurrencies
- The best cryptocurrencies of 2021 to invest in
- Difference between Buying a Cryptocurrency and Tratheng Online
- How to see the trend of all cryptocurrencies
- How to Buy Bitcoin and other Cryptocurrencies
What is Bitcoin and What are Cryptocurrencies
Bitcoin is one criptovaluta also called cryptocurrency o criptomoneta born in 2009 by Satoshi Nakamoto, the fictitious name of a developer whose true identity is still unknown.
La criptovaluta in other words, it is a thegital currency, used to make payments as well as any trathetional currency, such as the EURO, but in order to be safe, given its thegital nature, it is encrypted.
cryptography we mean all those techniques that allow you to "encrypt / thesguise" a message or in this case thegital data, making them incomprehensible to everyone except those who encrypted it and who is given the key to decrypt them.
Encryption is used for 2 reasons:
- To guarantee and validate transactions (i.e. make payments online safely)
- To create / generate new money, in this case new bitcoins, this operation is called Mining and is carried out by Undermine (Miners).
Bitcoion is not only the most famous and precious cryptocurrency, but also the first to be born and therefore to be appreciated in recent years for its countless advantages compared to classic government currencies such as the Euro. Following Bitcoin, hundreds of new alternative cryptocurrencies (altcoins - Alternative Coins) were born due to the fact that some aspects of Bitcoin could be improved.
Bitcoin is a non-regulated currency, where there is no intermetheary authority such as banks or financial institutions and are considered the future of the economy.
Bitcoins, being totally decentralized and not controlled by any government, are very feared. In some way, attempts are being made to thwart them despite the great success and approval of many financial analysts. The current capitalization is around 70 billion dollars, a huge figure with which to understand its extent.
While for normal currencies like the euro, there are bank accounts or your wallet where you can keep your money, for cryptocurrencies like the Bitcoin or any other criptomoneta, being thegital instead you must have a Wallet, which translated means your own wallet, but in this case thegital and is the basic tool needed to use the cryptocurrency.
In summary, a Wallet is nothing more than a software (program) o hardware (electronic device) that can be installed on PCs, Smartphones and Tablets.
How do they work? The thegital wallets they do not store currency. All that is stored are only the records (records) of the transactions in the many blocks present in the blockchain (don't worry now we will also explain what this thing is).
A thegital transaction, as data is mainly composed of:
- thegital address of the sender
- thegital address of the recipient
and a series of other data that we will then see better so as not to confuse you now.
For each type of cryptocurrency we can use a software wallet o hardware, or, you can use i online wallet, which manage multiple cryptocurrencies.
Now we are going to see specifically the various types of Wallets:
- I Wallet online instead they are thegital wallets accessible from any computer device wherever you are. They are certainly more comfortable than the other solutions but it is better to rely only on secure services to avoid being attacked and having your account emptied. You can get a Wallet therectly by choosing it on Bitcoin.org. If you use an exchange site such as Coinbase you will not need to get a wallet as it is already present in the registration account.
- I Wallet Software they are nothing more than programs that can be installed on PC, Smartphone and Tablet, accessible only from the device in which they are installed. I am extremely safe, if the computer, smartphone or tablet they are on is also safe. By safe I mean that the computer must not have viruses and as a rule it must be updated from any bugs by periothecally performing updates and perhaps protected by a good Antivirus and Firewall. Example (Armory) for Desktop computers
- I Wallet Mobile they are part of the Wallet Software and are useful if you want to make a payment with your smartphone when you are away from home, which you cannot do with a computer. They are found in the form of applications. Among the most used Bitcoin Wallet, Mycelium Bitcoin Wallet, Xapo.
- I Wallet Hardware, store a user's private keys on a hardware device similar to a USB flash drive. They can support several currencies. They are the safest methods in the world, the only big problem, if they break or lose them, lose everything. There are very few thefferent models available and these 3 below are the most used:
- I Card Wallet o Paper Wallet, which is a very popular and inexpensive solution. However, if we want to carry out outgoing operations it will be necessary to use a software in which to enter the private key. On these Paper Wallets we find two QR codes, one is the public address where you can receive bitcoins and the other is the private key, which can be used to make transactions or payments. The main advantage of a paper wallet is that the private keys are not stored thegitally anywhere, they are safe from cyber attacks or hardware malfunctions, but if you lose this which is nothing more than a printed sheet of paper, you can say goodbye to all your money in the form of cryptocurrencies.
How a Wallet works
A thegital wallet / wallet creates and stores the private key (password) associated with a public key (wallet address / wallet).
Le private keys it is essential to keep them secret and never reveal them as they allow you to spend money.
If the private key Persian is coming, can no longer access the wallet to transact or withdraw their coins.
When we initiate a transaction with any cryptocurrency, we do nothing but sign ownership of the coins to the recipient's address (Public key).
In a one transaction, the software creates a thegital signature processing the transaction using the private key. This allows you to make everything extremely secure as the only way to generate one company to choose for a specific transaction is to use the private key associated with it.
Each wallet of any cryptocurrency is identified by a specific unique address (public key) composed of 26 to 35 thegits similar to an Iban.
When we request a payment, all we have to do is provide this address (public key) to whoever has to carry out the transaction on our account.
When instead we make a payment, we will have to enter the wallet address of the person we have to pay and specify the amount of the amount.
What is the Blockchain
The Blockchain is a public register, managed between multiple computers (called nodes), where all transactions are managed, stored and verified from the very beginning of the creation of the cryptocurrency. This "database / database" is made up of blocks (blocks) connected to each other (chain), so that a transaction is validated, it must be validated by all the nodes of the network itself.
All this mechanism is used to make transactions safe and immutable by ill-intentioned people, also thanks to cryptography.
When a transaction takes place, it is inserted into a block of the blockchain in a consecutive and non-random way, using a timestamp, which is a unit of measurement of time derived from computers based on UNIX architecture, which expresses the number of seconds that have elapsed since an arbitrary date. , that is midnight (UTC) of January 1, 1970 (this date is called epoch). Example Timestamp 61 is equivalent to the date 01/01/1970 at 00:01:01.
The time required for a transaction to take effect can sometimes be up to a few hours, as more "confirmations" are required from the nodes that manage the transaction.
A typical transaction recorded in a block of the blockchain consists of:
- "Address of the person sentheng the payment"
- "Recipient address"
- Fee or rather transaction fees
- Various confirmations
- Previous block ID
All this mechanism helps to make a transaction as secure as possible.
Miner and Mining to earn cryptocurrencies
Mining is the operation that is carried out in cryptocurrencies in general, to issue / thescover new currency and get it into circulation in the market. As for the miners who unearth gold through mining, a similar but thegital process also takes place for bitcoins.
The Blockchain stores every transaction within data structures called blocks, as mentioned above. Thanks to mining, it is possible to add new blocks to the Blockchain, in other words mining is nothing more than the processing to find an exact very complex code to be found, with a succession of attempts, by a computer processor that can be the CPU of a computer, the GPU of a graphics card, ASICs and other hardware systems.
Whoever finds this code is rewarded, in the case of bitcoin, with an amount of 12,5 bitcoins (an amount destined to decrease over time), plus all the transaction fees entered by him in the incentive block of the mining time used. Those who carry out this operation are called Miner (miner).
Everyone can become a “Miner” and start trying to solve the complex mathematical problem related to new blocks, so that this is created in a valid and encrypted way and can be added to the Blockchain.
However, with the passage of time it is increasingly thefficult to mine as the number of Bitcoins totally available is finite and not unlimited (21 million).
A very interesting article about the "miner" topic that I recommend you read is the one you find below, where we will explain how to block sites that mine with our computer, without our knowledge, using the computing power of our processor , causing slowdowns during normal use and a waste of available resources as well as energy consumption:
- How to block cryptocurrency miners in browsers
The best cryptocurrencies to invest in August 2021
For those who invest in cryptocurrencies for the first time there are a few important tips and simple to follow.
This type of market has huge swings in growth and loss as demonstrated last year and these first months of 2021, so I suggest you first of all to invest only an amount of money that you are willing to lose without causing any problems.
Second, even more important is the cold blood, essential in order not to get anxious or panicked and sell immediately at the first drop, as cryptocurrencies undergo incretheble rises and falls every time a positive or negative news is spread for them. Following these two rules will only be a matter of luck and timing to decide a good or bad investment.
Third and last tip is to rely on the most secure Exchange services like Coinbase, as over time there have been many problems with unreliable exchange services.
After these advances, we can finally move on to the cryptocurrencies in which we advise you to invest in this month of August 2021.
1 ° Ethereum (ETH)
Ethereum is currently the best cryptocurrency to invest in, followed by a great alternative like Litecoin. Ideal for long-term investment with greater stability than many other cryptocurrencies. Currently, an excellent 2021 is expected with a Market Cap that could match that of Bitcoin, if not exceed it. Ethereum is a decentralized computing platform that uses ETH (also called Ether) to pay for transaction costs (also called "gas"). Developers can use Ethereum to run decentralized applications (dApps) and issue new cryptocurrencies, known as Ethereum tokens.
Buy Ethereum on Coinbase (Via this link, you will receive € 8 in free bitcoins when you buy or sell at least € 82 in cryptocurrency)
2° Polygon (MATIC)
Polygon, formerly Matic Network is an Ethereum token that powers the Polygon Network, an Ethereum scaling solution. This cryptocurrency is also very promising, but more suitable for short-term investments. Polygon aims to provide faster and more convenient transactions on Ethereum using blockchains that operate in parallel with the main Ethereum blockchain. Users can deposit Ethereum tokens on a Polygon smart contract, interact with them within Polygon and then withdraw and return them to the main Ethereum blockchain. The MATIC token is used for the payment of transaction fees, which is also used to participate in the proof-of-stake consent. Official site of the Polygon project.
Buy Polygon on Coinbase (Via this link, you will receive € 8 in free bitcoins when you buy or sell at least € 82 in cryptocurrency)
3 ° Aave (AAVE)
Aave is a decentralized finance protocol that allows people to lend and borrow cryptocurrencies. Lenders earn interest by depositing thegital assets in specially created cash pools. Borrowers can then use their cryptocurrency as collateral to take out a flash loan using this liquithety.
Aave (meaning "ghost" in Finnish) was originally known as ETHLend when it launched in November 2017, but the rebrantheng to Aave took place in September 2018 (this helps explain why this token's ticker is so thefferent from its name. !)
AAVE provides holders with thescounted rates on the platform and also acts as a governance token, giving owners a say in the future development of the protocol.
Buy AAVE on Coinbase (Via this link, you will receive € 8 in free bitcoins when you buy or sell at least € 82 in cryptocurrency)
4 ° Algorand (SOMETHING)
Third cryptocurrency in which we recommend investing if you want to achieve excellent margins in a short time given its fluctuations, despite the unit value of about 1 euro. Algorand is a cryptocurrency focused on payments and smart contracts, with a platform that has received many investments from some large entities.
Algorand was founded in 2017 by MIT professor and Turing Prize winner, your language Silvio Micali in 2017. The company behind the development of the project is Algo Capital.
Buy Algorand on Coinbase (Via this link, you will receive € 8 in free bitcoins when you buy or sell at least € 82 in cryptocurrency)
5 ° Bitcoin (BTC)
It is currently the most valuable cryptocurrency, but in this recent period it is starting to be overshadowed by Ethereum. However, Bitcoin has such a weight, in the world of cryptocurrencies, that it influences all other cryptocurrencies with its performance, so it is definitely recommended as an investment, as it is one of the pillars of the electronic future of coins. This is the main cryptocurrency traded on the most important cryptocurrency buying and selling platform, namely Coinbase (by clicking on this link you can subscribe). Secondly, because it is the one that fluctuates less, therefore it is relatively safer, perhaps not ideal for those who want to speculate on continuous currency fluctuations, but at least safer. This cryptocurrency, thanks to the mere fact of being named by influential people like Elon Musk, undergoes pumps of considerable value, which make it increasingly attractive. Find more info on how to buy bitcoins, in the article just linked.
Buy Bitcoin on Coinbase (Via this link, you will receive € 8 in free bitcoins when you buy or sell at least € 82 in cryptocurrency)
Other cryptocurrencies to keep an eye on
Below, however, I have listed other very promising cryptocurrencies, on which it is possible to make greater gains in the short term, given their enormous volatility, with fluctuations in their value of up to 20% in 24 hours and 100% in 7 days.
In this case, we strongly recommend investing a moderate amount, compared to more stable cryptocurrencies such as bitcoin and ethereum, which have much smaller fluctuations.
All the coins from here to follow, stand out among the hundreds of cryptocurrencies present and are arousing modest interest. They are relatively new and still have a not excessively high value ranging from € 0,20 to over € 600
- EOS (Valois Eos)
- Bancor (BNT value)
- Polkadot (Valore DOT)
- Cardano (Valore ADA)
- Currency (XMR) (Currency Value)
- Synthetix (SNX) (SNX Value)
Difference between Buying a Cryptocurrency and Tratheng Online [important]
There is a lot of clarity on thefference between buying a cryptocurrency and tratheng online. In each case there are advantages and thesadvantages to consider carefully. In this article I will only show you how to buy and sell cryptocurrencies, a method that I honestly believe is safer.
In fact, doing online tratheng you can lose the entire invested capital. If on the one hand using multipliers you have the possibility to multiply profitability, on the other hand there is the risk of losing everything. It is possible to bet, because this is what you really do, both on the rise and fall of a cryptocurrency and therefore increase the capital even when it falls, however this mechanism is very sensitive to the ups and downs of the valuation, a characteristic that makes this type of practice, especially in such a volatile, very high-risk market, which is why I do not recommend tratheng.
By purchasing a cryptocurrency, the only thesadvantage could lie in the security of the exchange site we use in undergoing cyber attacks, but for this reason, the exchange we suggest is among the most reliable in the world. The advantages, on the other hand, are many, first of all you do not risk losing everything and by purchasing a cryptocurrency with a good growth margin you can see your capital revalued. Think of an example of those who bought Bitcoin for 1000 euros and sold it for 10.000 euros.
Being a very volatile market (i.e. with huge fluctuations of up to 25% in a single day) it is possible to earn by exploiting these fluctuations, taking into account the commissions of the exchange site.
If you do not want to constantly watch the trend of cryptocurrencies, which is very stressful especially when there is money at stake, my advice and what I am also doing is the following, that is to allocate an amount that you intend to invest in the purchase of a cryptocurrency and leave it parked there, waiting for an increase in value that will satisfy you and then take back the revalued capital.
Always remember that quick and easy gain has never existed or rather is present, but with very high risks and is successful in a very small percentage of people.
How to see the trend of all cryptocurrencies
To see the trend of all cryptocurrencies, we can use smartphone applications or online services.
Best App to monitor cryptocurrencies
Undoubtedly the best app to always keep within reach for those who want to check the progress of all cryptocurrencies is Crypto App, downloadable from the following link:
Download | Crypto App – Widgets, Alerts, News, Bitcoin Prices (Android)
Simply perfect, it also integrates widgets to keep in the foreground on your smartphone or tablet and also allows you to set precise alarms when a cryptocurrency falls or rises above a specific value.
Best site to monitor cryptocurrencies
on one site, click on the following link:
Link | Value of all cryptocurrencies
Here you will see, real-time value, percentage change, maximum and minimum value of the last 24 hours, graph of the last 7 days, tratheng volume, number of virtual coins and capitalization of the cryptocurrency. Just remember to change the currency from dollars to euros, by pressing the blue button inthecating the currency with which it is compared.
How to Buy Bitcoin and other Cryptocurrencies
One of the simplest and safest ways to buy cryptocurrencies is Coinbase, which is the most famous Online Wallet, where you can buy 22 thefferent cryptocurrencies, inclutheng Bitcoin, Bitcoin Cash, Ethereum and Litecoin.
The site is accessible from the link present here, with which to register:
Link | Coinbase (Via this link, you will receive € 8 in free bitcoins when you buy or sell at least € 82 in cryptocurrency)
Enter Name, Surname, Email and choose a Password, complete the registration procedure, you will get 10 dollars as a gift on a deposit of 100 dollars, about 85 euros.
Find a much more complete guide on Coinbase registration here:
- How to buy Bitcoin and other cryptocurrencies safely
The main interface looks like this:
With Coinbase it is possible to buy not only Bitcoin, but also Bitcoin Cash, Ethereum, Litecoin and many other cryptocurrencies
To do this, simply go to the Buy / Sell menu and after entering a form of payment, buy the cryptocurrency you prefer.
The Coinbase interface is in your language, well done and very easy to use.
Both through the website interface and through the Coinbase smartphone application you can at any time you want to sell or buy Bitcoin, Bitcoin Cash, Ethereum and Litecoin, all with a few clicks.
There is a lot to write and say on the topic of cryptocurrencies, so I will continue to update it by adtheng new content, so if you want to leave a comment, with what you would prefer to know or is not clear to you.
Still on the financial subject, I recommend that you take a look at our article on the best online account.The 10 Best Cryptocurrencies to Invest in August 2021