What To know About Cryptocurrency

Uju Okoye
Uju Okoye
Sep 5, 2018 · 3 min read

Have you come across the word Cryptocurrency and probably be wondering what the word really means? Or you haven’t even heard of the word Cryptocurrency before?

Here I am going to give you an explicit explanation about Cryptocurrency and also the five terms you need to know about Cryptocurrency.

· Cryptocurrency

· Bitcoin

· Wallet

· Blockchain

· Mining

What is Cryptocurrency?

Just like every other currency like Naira, Dollar, and Cedi etc. Cryptocurrency is a digital currency. Cryptocurrency is a type of digital money. This simply means that its transaction is done electronically.

It is an online transaction that uses Cryptography. Cryptography is the art of deciphering and creating codes. Here, Cryptocurrency has encryption that makes it secure.

One of the benefits of Cryptocurrency is that it has no central regulator such as government i.e. unlike the traditional means of transaction, it has no central bank.

Another benefit of Cryptocurrency is that you can actually perform transactions without revealing your identities.

You can also send and receive any amount of money to anyone at all worldwide immediately with low transaction fees. So, people prefer this digital currency as it is cheaper than traditional currency.

Decentralized Cryptocurrencies such as bitcoin provide an outlet for personal wealth that is beyond restriction.

Types of Cryptocurrency

There are over one thousand Cryptocurrencies and here are some of them.

  • Bitcoin — It started in 2009
  • Ethereum or Ether — It started in 2005
  • Bitcoin Cash — It started in 2017
  • NEM — It started in 2004
  • Litecoin — It started in 2011
  • Stellar — It started in 2014
  • IOTA — It started in 2015
  • Cardano — It also started in 2018
  • TRON — It started in 2017
  • Ripple — It started in 2013

I will be discussing just one type of Cryptocurrency called Bitcoin. It is the first type of Cryptocurrency.

What is Bitcoin?

Bitcoin is a digital currency which is also a type of Cryptocurrency. This is by no doubt the most popular Cryptocurrency.

Bitcoin gained its popularity in 2009 when it was released during the financial crisis. It was created by a Japanese named Satoshi Nakamoto

For you to buy, sell or store Bitcoin, you must have a Cryptocurrency wallet. Having a Bitcoin wallet will allow you to end and receive bitcoin, so this is obviously required before making any sort of investment in Bitcoin.

Bitcoin is revolutionizing the $1.8 trillion global payments industry and people around the World are rethinking the meaning of their money.

Blockchain

The blockchain is actually the technology that allows the existence of Cryptocurrency. It is also a type of data structure that allows the identifying and tracking of data transaction using digital and also shares the information. It allows you to store three different Cryptocurrencies. Bitcoin, Ethereum and Bitcoin cash

Mining

In cryptocurrency, the validation of transactions is called mining. This is one means of making sure that cryptocurrency transactions are correct.

The basic two functions of mining are; adding transaction to the blockchain and releasing new currency.

According to Bloomberg a complete mining kit consists of the following graphics cards, a processor, power supply, memory, cabling and a fan, which would cost between $2,400 and $3,800 on Amazon.com, Inc.

According to 99bitcoins.com, the top three mining hardware are Avalon6, AntMiner S7 and AntMiner S9.

Wallet

This is a software programmer that keeps storage of private and public keys and also interacts with different blockchains.

Anyone who wants to use Bitcoin or any other Cryptocurrency, one needs to have a digital wallet.

With digital wallet, users can send and receive money and monitor their accounts.

Uju Okoye
Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade