What is crypto currency Bitcoin and Ethereum

  • Jun 03 2022
  • by
  • Analyst AZA
What is crypto currency Bitcoin and Ethereum

What is crypto currency Bitcoin and Ethereum

Crypto currency market have received a lot of attention and will continue to be at the center of conversations in the coming years. Crypto currency is beneficial for the global economy in terms of its anti-inflationary properties. The fastest way to learn about cryptocurrency is to watch YouTube videos. Look for videos that have a lot of views. It is possible that a video may have many views, but it will still be useless. When you are learning something new, you first need to learn and understand the terminology. Most of the coins are on their own blockchain, and some have forked another blockchain. For example, Polygon crypto is a fork of Ethereum, but few people do it, and each of them will have their own unique coins.

Understanding why you like a particular blockchain will help you understand why you like a given crypto coin. It is critically important to think about crypto investments in first principles, and not because you are afraid of missing out on profits. It's better when you have divergence, for example, you have Etherium and Solana, which have their own unique blockchains, and they both take a similar approach to the crypto market. The basic principle of how Ethereum works is that they are as secure as possible by distributing all their nodes so that it is not centralized. The problem is that very low bandwidth is created due to the amount of encoding. At the first level, you have a very high level of security and very high confidence that all changes to the blockchain are legal. In new coin crypto Solana, they take a more centralized approach, with fewer nodes to contact to validate a transaction. This increases their throughput, but some will say it reduces their security.

There was a time when both blockchains were attacked. During the attack, Ethereum did not fall, but Solana did. Interestingly, this does not appear to have affected Solana's price. There is an opinion in the community that higher bandwidth is an advantage because it reduces fees, even though there are cases where it is vulnerable to attack. The community complains that Ethereum's low bandwidth drives up mining fees. For example, if you want to buy a $5 item on the Ethereum blockchain, it could cost you $5 in fees. My principle when buying things in terms of a coin is to understand it in terms of its use in everyday life. Therefore, if you do not understand how you will use it, then leave it alone for a minute and study this issue. The second thing you should pay attention to is how many people use this cryptocurrency.

If you are just starting to explore cryptocurrencies, it is recommended to start by understanding top crypto currency Bitcoin and Ethereum and their differences. When you are satisfied with your knowledge, proceed to study others. There are so many blockchains and so many coins that it's hard to know everything about them. Your understanding of the difference becomes important to investing in them. Security has been a big stumbling block for people wanting to get involved in crypto investments. You can think of cryptocurrencies as internet money that is truly unstoppable. The only way to stop this is to have all countries declare them illegal at the same time and enforce tough measures at the protocol level so that it cannot leak out of the country. India tried to ban cryptocurrencies, but more bitcoins began to flow into the country, and the government could not do anything about it.

Some people associate crypto currencies with illegal transactions, but this is not entirely true, because everything is visible on the blockchain, but you can remain anonymous. Once you know a person's identity, you can track everything they do. Since you can be anonymous and access cryptocurrency through a computer, the crypto currency is not located in your country or outside it, it is in the distributed ledger everywhere, which means that crypto market cannot be stopped. When you set up a wallet with a meta mask, you will need to set the Sid phrase, which consists of twelve words. You should not share this phrase with anyone. For example, if the government wants to block your Bitcoins, they won't be able to do so unless you give them access to your account. So if you remember your seed, you can move to another country, enter your wallet, and your money will be there.

Basically, if you die with your seed, that money will be gone forever and it will actually increase the value of the coins. Thus, crypto currencies allow a person to go to the grave with his wealth. Cryptocurrency in general is speculative, especially in recent years, and it is hard to imagine how it can become functional for commerce with low-value transactions. Ethereum has a first tier where transactions are settled slowly but with a high degree of certainty and finality. This extends to maximum nodes, very low throughput, and very high fees. You can then have second level solutions using the zk drive. Zero-knowledge proof is a very complex math that simplifies the task. It is not easy to determine the value of a product that is priced on a volatile instrument, especially in daily transactions.

As more layer 2 protocols are added and the time spent processing them is minimized, the purchase will be faster. There will be no need to go through the delays present at the first level. It is perfectly normal for people to receive money in fiat because they will be able to immediately transfer it to ethereum at the price of ethereum on that day. In 2020 and 2021, we saw cryptocurrencies post all-time high prices and this was due to several factors. Best crypto to buy now was everywhere at the time, and people were putting their hard-earned money into it for fear of missing out. This is not an ideal reason to invest in anything. Bitcoin jumped on  crypto news from 20000 to 64000 and people thought it would go on forever as we say it is trading at 29000 meaning that those who bought it without understanding the basics of cryptocurrency lost their money. I believe that cryptocurrency is the currency of the future, but at the moment I believe that it is not regulated enough yet to be recognized as legal tender worldwide. Best platform for crypto trading is Mobius trader 7.

Some people associate cryptocurrencies with illegal transactions, but this is not entirely true, because everything is visible on the blockchain, but you can remain anonymous.


imgaza youtube

Profitable trading recommendations, forex analytics for beginners traders

Subscribe our channel

top authors

Fundamental analyst

Stan Zabar
Fundamental analyst

Head of Analysis Department

Michael Wallenberg
Head of Analysis Department

Economic Observer

Alan Dofine
Economic Observer

Call US Feedback
en de nl fr pt es it uk zh ko ja ar ru pl tr