Imagine this: you’re at an incredibly busy market. People are shouting and yelling about their goods. This is how it can sometimes feel to dive into cryptocurrency. Coininsider has you covered.
Bitcoin, the grandfather of them all. When it first emerged in 2009, most people thought Bitcoin was just another fad. It is a household term today. Like that one kid from high school who suddenly becomes an overnight rock star.
Ethereum is not just a coin. You can think of Ethereum as the artsy cousin to Bitcoin who is also a tech genius. Ethereum brought smart contract technology into the mix. Smart contracts are contracts with terms that automatically execute when they are directly coded. Imagine a vending system that would only let you get your snack after you insert the exact coin and press the appropriate buttons.
Dogecoin. It was initially a joke. But when Elon Musk and other big names gave it a positive nod, it turned serious. It’s similar to a viral meme that suddenly becomes the talk of the town.
Altcoins are the other cryptocurrencies that exist apart from Bitcoin and Ethereum. Each altcoin comes with its own unique purpose and history. Ripple is a platform that aims to speed up and reduce the costs of bank transfers. Litecoin (also known as “Bitcoin’s gold”) is often referred. They’re like different kinds of icecream. While they each have their own flavor, they are all part of the same dessert.
Sometime, crypto security can make you feel as if you are walking on eggshells. Hackers are waiting around every turn, looking for an opening to attack unsuspecting users. Remember Mt.Gox? This hack was so infamous that it made everyone double-check all their security measures.
What about cold wallets, if you’re talking security? Offline storage devices are used to store crypto. Imagine vaults that are buried underground and cannot be reached by hackers unless the hacker physically gets their hands on it.
But don’t forget ICOs. They are startups who seek funding, but instead of Silicon Valley’s boardrooms they do it in the cryptocurrency world. Some ICOs created millionaires overnight, while other… well, lets just say that they vanished as quickly as Houdini’s bunny.
It’s also difficult to understand the jargon – HODL is a contraction for Hold On For Dear Life, FOMO is a synonym for Fear Of Missing out and FUD stands instead of FEAR, UNCERTAINTY, DOUBT. It’s almost as if you were learning a foreign language! Once you master it, you’ll find yourself chatting with fellow enthusiasts at a rapid pace.
In the future, mining will not be about pickaxes but rather powerful computers solving complex problems to validate blockchain transactions. These machines consume electricity more quickly than teenagers at the all-you-can eat buffet.
There are many regulations that play cat and mouse games with cryptocurrency. Governments all over the world struggle to find the best ways to handle this digital rush without stifling creativity or allowing shady transactions.
We should also mention NFTs, which are non-fungible tokens. They have revolutionized digital ownership. Auctions of art selling for millions on the internet are reminiscent more of Sotheby’s and eBay than ever before!