Cryptocurrency — also known as crypto — is a digital currency designed to work as a medium of exchange. It uses cryptography to secure and verify transactions, as well as to control the creation of new units of a particular digital currency.
Many cryptocurrencies are built on blockchain technology, which is a distributed ledger enforced by a distributed network of computers. Cryptocurrencies are distinguished from fiat currencies like the United States dollar or the British pound because any central authority does not issue them, making them potentially impervious to government intervention or manipulation.
This article will discuss various concepts of a cryptocurrency to help you understand the novel financial innovation.
How does cryptocurrency work?
The majority of cryptocurrencies function without the backing of a central bank or government. Instead of relying on government guarantees, decentralized technology called blockchain underpins the operation of cryptocurrencies.
Cryptocurrencies do not exist as a stack of notes or coins. Instead, they live only on the internet. Consider them virtual tokens, the value of which is decided by market forces created by those seeking to purchase or sell them.
Cryptocurrency is formed through a process known as mining, which entails employing computer processing power to solve complex mathematical problems to earn coins. Users can also purchase the currencies from brokers, which they can then store and spend using encrypted wallets.
Blockchains typically function via proof-of-work (PoW) or proof-of-stake (PoS) consensus algorithms. PoW operates based on miners who often designate specific computing machines for the process.
PoS, on the other hand, runs on staking. In the staking system, rewards are distributed to help run the network by holding assets in certain designated wallets. A number of PoS assets also allow for masternodes — a more complicated staking process that usually requires a certain minimum number of coins.
Who has historically impacted cryptocurrency?
A number of figures have significantly impacted the cryptocurrency industry throughout its time. Satoshi Nakamoto kickstarted the sector with the creation of Bitcoin (BTC). Known for building Ethereum (ETH), Vitalik Buterin has also notably impacted the cryptocurrency movement. With Ethereum came a whole world of extra tokens built on its network called ERC-20 tokens.
Jed McCaleb helped spread Bitcoin’s prominence in the industry’s early days as a result of starting Mt. Gox, a place that frequently hosted Bitcoin trading — despite its original function as a hub for fans of a game called Magic: The Gathering. However, it was rendered infamous when the platform fell apart in 2014.
Changpeng Zhao increased crypto-asset availability as one of the founders of Binance, which has grown into one of the largest crypto exchanges. Sam Bankman-Fried, co-creator of the FTX digital asset trading platform, serves as another important individual in the industry that impacts trading, decentralized finance (DeFi) and other aspects of the crypto space.
Numerous others have also made their mark on the industry, some of whom Cointelegraph lists in its top 100 people in crypto and blockchain for 2021.
Why are cryptocurrencies so volatile?
There is a lot of volatility in the cryptocurrency space due to the industry’s newness. Investors are seeking to experiment with their money to generate riches quickly and figure out how cryptocurrency prices vary and whether they can affect them.
The number of people who utilize crypto coins (i.e., utility) and for what purpose impacts their price. The price will rise if more people use them to buy goods and services rather than just holding them.
The value of cryptocurrency is also driven by scarcity. This alludes to the cryptocurrency’s finite mechanism. The Bitcoin protocol sets the maximum amount of BTC that can be mined at 21 million. Therefore, as more people enter the crypto space, Bitcoin’s scarcity will inevitably increase, causing its price to increase. Some coins also use the burning mechanism to increase their value by destroying a portion of the supply.
Accounts that hold vast amounts of a cryptocurrency may begin to sell, causing prices to plummet. These accounts are known as whales because they have a significant position and can influence the market if a group of people agrees to sell crypto assets.
Types of cryptocurrency
Different types of cryptocurrencies can be classified into the following two groups:
Coins are designed to be used as a kind of currency and are created on their own blockchain. For example, Ether is a cryptocurrency based on the Ethereum blockchain.
“Altcoin” refers to any blockchain-based cryptocurrency that isn’t Bitcoin. The term “altcoin” was coined as a shorthand for “alternative to Bitcoin,” and the vast majority of altcoins were created to improve Bitcoin somehow. Namecoin, Peercoin, Litecoin (LTC), Ethereum and USD Coin (USDC) are examples of altcoins.
Some cryptocurrencies, like Bitcoin, have a finite number of coins that help to generate demand and reinforce their perceived worth. For example, the maximum supply of Bitcoin is capped at 21 million, as determined by the Bitcoin’s creator(s).
Tokens are built on an existing blockchain but are considered to be programmable assets that enable the formulation and execution of unique smart contracts. Outside of the blockchain network, these contracts can be used to establish ownership of assets. Tokens can be used to represent units of value such as money, coins, digital assets and electricity, and can also be sent and received.
Stablecoins peg their values to various fiat currencies or assets, such as gold. Most often pegged one-to-one with the U.S. dollar, stablecoins give users a way to sell into an asset carrying the same value as a national currency, but one that can still be transacted and stored in a crypto-esque fashion within the ecosystem.
Nonfungible tokens, or NFTs, are yet another type of cryptocurrency, denoting that it is a one-of-a-kind asset and cannot be replaced. A Bitcoin, for example, is fungible, meaning you can exchange one for another and get precisely the identical thing. However, a one-of-a-kind trade card, on the other hand, cannot be duplicated. You’d get something altogether different if you swapped it for a different card.
Before interacting with any given asset, it may be important to look up the asset’s type and function depending on your goals. Not all digital assets were created for investment purposes.
Are cryptocurrencies legal?
Regulation has come into play worldwide with the growth of the crypto industry. Over the years, the United States has increasingly stepped up its overwatch of the space. The Securities and Exchange Commission (SEC) cracked down on initial coin offerings, or ICOs, after the mania of 2017 and 2018. The Commodity Futures Trading Commission (CFTC) and other U.S. agencies have also engaged in various capacities.
Additionally, crypto regulation outside the U.S. has changed over time, based on evolving regulatory guidelines. The fifth Anti-Money Laundering Directive from the European Union, for example, entails that crypto buying, selling and other operations must comply with certain guidelines in certain regions.
Since crypto is a relatively new industry compared with others, legal clarity does not yet exist in terms of requirements for all areas of the space. Part of such clarity includes asset classification. Bitcoin and Ether are viewed as commodities, although categorization for numerous other assets remains unclear.
Advantages and disadvantages of cryptocurrency
A cryptocurrency transaction is usually a rapid and straightforward process. Bitcoin, for example, can be exchanged between digital wallets using only a smartphone or computer. Public and private keys and various incentive schemes such as proof-of-work and proof-of-stake are used to safeguard these transfers. Payments in cryptocurrencies are growing more popular among large corporations and in industries such as fashion and pharmaceuticals.
Every cryptocurrency transaction is recorded in a public ledger known as the blockchain, which is the technology that makes it possible for it to exist. This allows people to follow the history of cryptocurrencies like Bitcoin to prevent them from spending coins they don’t own, copying transactions, or undoing them. Because blockchain intends to eliminate intermediaries such as banks and internet marketplaces, there are no transaction costs.
However, you’ll likely misplace your virtual wallet or lose your coins. There have also been thefts from the websites that exist to store cryptocurrency on the internet. Because the value of cryptocurrencies like Bitcoin can fluctuate dramatically, some people are hesitant to convert “real” money into Bitcoin.
Additionally, there are no standards to protect your business because authorities like the Financial Conduct Authority (FCA) do not regulate the cryptocurrency market. It could lose value and become useless if firms or consumers switch to a different cryptocurrency or stop utilizing digital currencies altogether.
Cryptocurrency exchanges are vulnerable to cyber attacks that might result in your investment being lost forever — scams are always a possibility with cryptocurrency. Scammers frequently use social media platforms such as Instagram, Facebook and Twitter to dupe consumers into making these investments. If you believe you’ve been targeted, you should contact national reporting centers like Action Fraud in the United Kingdom or the Federal Trade Commission (FTC) in the United States as soon as possible.
What is a blockchain in cryptocurrency?
Although blockchain appears to be sophisticated as it can be, its core notion is pretty simple. A database, or blockchain, is a sort of digital ledger. To comprehend the concept of blockchain, it is necessary to first understand what a database is. A database is a collection of data saved on a computer system in an electronic format.
Distributed ledger technology (DLT) is a decentralized database that various network participants administer. Blockchain is a type of DLT where transactions are recorded using a hash, which is an immutable cryptographic signature. This means that if a single block in a chain is modified, it will be immediately clear that the chain has been tampered with. Private and centralized blockchains, on the other hand, exist in which all of the computers that make up the network are owned and operated by a single company.
Popular cryptocurrencies such as Bitcoin and Ethereum are built on blockchain technology. Blockchains like Bitcoin and Ethereum are constantly growing as new blocks are added to the chain, increasing the security of the ledger dramatically.
Are blockchain and cryptocurrencies the same?
Decentralized platforms that require a coin can be enabled via blockchains. The blockchain is the distributed ledger technology that allows a network to maintain consensus. The network can track transactions and transfer value and information due to distributed consensus.
Blockchain technology can be conceived as a form of next-generation business process optimization software from a business standpoint. Collaborative technology, such as blockchain, promises to improve business procedures between firms, cutting the “cost of trust” dramatically. As a result, it may provide much better returns per dollar invested than most traditional internal investments.
Cryptocurrencies are the tokens used to convey value and pay for transactions within blockchain networks and offer network incentives. Furthermore, you might think of them as a blockchain tool that can be used to serve as a resource or service or even to digitize asset ownership.
How do you buy cryptocurrency?
Given the pace of crypto adoption, there are a number of ways to buy cryptocurrency. Crypto-native exchanges offer a plethora of different digital assets for buying and selling. In the mainstream world, PayPal serves as one example platform on which participants can buy and sell certain digital assets. Crypto ATMs such as Bitcoin ATMs also exist in various parts of the world.
As far as payment for assets goes, platforms offer crypto purchases via bank transfers, crypto transfers, or credit cards, depending on the platform. Buying crypto with cash in a person-to-person fashion is also possible. Availability for buying and selling crypto on any given platform, however, can vary from region to region.
Is cryptocurrency taxable?
Although cryptocurrencies like Bitcoin are virtual currencies, they are treated as an asset for capital gains tax purposes, and “ordinary” investors who purchase Bitcoin as an investment will experience a capital gain or loss when they exchange it for traditional currency, products, or services.
The taxes that can be applied to cryptocurrencies include:
- Corporation tax: Profits or losses on currency exchange movements including virtual currencies are taxable. The profits and losses of a company that engages in cryptocurrency transactions would be recognized in the books and taxable under standard corporation tax regulations.
- Income tax: Profits and losses from cryptocurrency transactions must be shown in a non-incorporated business’s accounts and are taxable/allowable under conventional income tax laws.
- Chargeable gains: Gains and losses on Bitcoin or other cryptocurrencies (which are not within trading profits) are chargeable or allowed for capital gains tax if they accrue to an individual, or for corporation tax on chargeable gains if they accrue to a company.
Are cryptocurrencies a good investment?
Cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency, while a safer but potentially less lucrative alternative is to buy the stocks of companies with exposure to cryptocurrencies.
While the success of any cryptocurrency initiative is not guaranteed, if it meets its objectives, early investors may be well rewarded in the long run. To be regarded as a long-term success, any cryptocurrency initiative must first achieve widespread adoption.
Cryptocurrencies like Bitcoin have traditionally had little price correlation with the stock market in the United States, so owning some can help diversify your portfolio. If you believe that cryptocurrency usage will grow in popularity over time, it’s probably a good idea to invest in crypto as part of a balanced portfolio. Make sure you have an investment thesis for each cryptocurrency you buy. This will help you understand why the currency will stand the test of time.
What is cryptocurrency mining and how does it work?
The process of collecting cryptocurrency as a reward for solving complex functions and recording data to a blockchain is referred to as cryptocurrency mining.
But, why do individuals mine cryptocurrency? The most obvious answer is that some people seek a second source of income and others want more financial freedom without the interference of governments or banks. For instance, crypto miners verify the legitimacy of transactions in exchange for Bitcoin as a reward for their efforts.
A cryptocurrency blockchain is constructed on the foundation of transactions. A blockchain is a collection of linked data blocks that include essential information such as cryptographic hashes. The blocks that make up a blockchain are collections of data transactions added to the ledger’s end. This adds a degree of transparency, allowing network participants to see their transactions added (chained) to the blockchain.
The next phase in the crypto mining process is to compile a list of all transactions, which is subsequently included in a new unconfirmed data block. It avoids “double spending” of any cryptocurrency and keeps a permanent and public record by adding their transaction to the blockchain, once the verification procedure is complete. The record is immutable, which means it can never be changed or corrupted.
Once there are enough transactions in the block, more information is added such as the header data and hash from the previous block in the chain and a new hash for the current block.
The network’s miners then check the hash to see if the unconfirmed block is valid. This is a time for celebration among crypto miners because the proof of work has finally been completed. From the user’s perspective, this essentially implies that the sender’s cryptocurrency transfer to the receiver has been confirmed and will be added to the blockchain as part of the block.
How to use cryptocurrency for making purchases?
You can do a number of things with cryptocurrencies, depending on which one you own. On the most basic level, the definition of a cryptocurrency asset is that it can be used to send value from one person to another or to pay for goods and services.
Each asset holds a value, often priced in U.S. dollars, which leads to another use case: trading and investing. Aside from stablecoins — which seek to stabilize the instability of cryptocurrencies by pegging an asset to something else, such as the U.S. dollar — most cryptocurrencies constantly fluctuate in price. You can trade between cryptocurrencies and national currencies (called fiat currencies) on exchanges, depending on the trading pairs available on the platform of choice.
If you are a merchant, you can also accept digital assets as payment directly or through a payment processor or service that is more convenient and adds capabilities. Some services give the option to convert paid cryptocurrencies into cash automatically on the back end, while there are also some companies that offer crypto top-up debit cards that are indistinguishable from any other plastic card to pay for goods or services.
Additionally, you can mine cryptocurrencies. Mining uses your computer or designated hardware to help run the networks that back crypto assets. Running a function on your computer or hardware automatically and continuously after it’s set up, carries out the mining process and generates revenue, helping to validate the transactions that are carried out on the blockchain, depending on the computing power designated.
People can also borrow crypto assets on various platforms and earn interest for loaning out assets. This niche of the cryptocurrency space is what is known as decentralized finance, or DeFi. Based on the DLT, various platforms facilitate the lending and borrowing of crypto without requiring the user to submit to the control of a centralized entity. DeFi also includes other aspects as well such as decentralized exchanges, or DEXs.
What is the future of cryptocurrency?
Cryptocurrency has come a long way over the last decade, advancing at a lightspeed pace. Value can be stored, transferred and spent in different ways through various assets and solutions, while DeFi has pioneered the way for new borrowing and lending avenues.
Some mainstream companies also view blockchain technology itself with interest, evaluating various uses such as supply chain. The future of cryptocurrency and its associated technology appears bright, judging by the growth and adoption that has been seen since 2008 when Nakamoto published the framework for a little asset called Bitcoin.
Cryptocurrency - pia inajulikana kama crypto - ni sarafu ya dijiti iliyoundwa kufanya kazi kama njia ya kubadilishana. Inatumia cryptography ili kuhakikisha na kuthibitisha shughuli, pamoja na kudhibiti uundaji wa vitengo vipya vya sarafu maalum ya dijiti. Cryptocurrencies nyingi ni kujengwa juu ya teknolojia blockchain, ambayo ni kusambazwa ledger kutekelezwa na mtandao wa kusambazwa wa kompyuta. Cryptocurrencies ni tofauti na sarafu za fiat kama dola ya Marekani au pauni ya Uingereza kwa sababu mamlaka yoyote ya kati haitoi, na kuwafanya kuwa na uwezo wa kuzuia uingiliaji wa serikali au udanganyifu. Makala hii itazungumzia dhana mbalimbali za cryptocurrency kukusaidia kuelewa ubunifu mpya wa kifedha. Jinsi gani cryptocurrency kazi? Wengi wa cryptocurrencies kazi bila msaada wa benki kuu au serikali. Badala ya kutegemea dhamana za serikali, teknolojia ya kugawanyika inayoitwa blockchain inasaidia uendeshaji wa sarafu za sarafu. Cryptocurrencies si kuwepo kama rundo la noti au sarafu. Badala yake, wanaishi tu kwenye Intaneti. Kwa mfano, ni ishara za virtual ambazo thamani yao huamuliwa na nguvu za soko zilizotengenezwa na wale wanaotaka kununua au kuuza. Cryptocurrency hutengenezwa kupitia mchakato unaojulikana kama uchimbaji, ambao unahusisha kutumia nguvu ya usindikaji wa kompyuta kutatua matatizo magumu ya hisabati ili kupata sarafu. Watumiaji wanaweza pia kununua sarafu kutoka kwa wakala, ambayo wanaweza kisha kuhifadhi na kutumia kutumia mkoba uliofichwa. Blockchains kawaida kazi kupitia uthibitisho wa kazi (PoW) au uthibitisho wa hisa (PoS) makubaliano algorithms. PoW inafanya kazi kulingana na wachimbaji ambao mara nyingi huteua mashine maalum za kompyuta kwa mchakato huo. Kwa upande mwingine, PoS inaendesha juu ya staking. Katika mfumo wa kuhifadhi, tuzo zinagawanywa kusaidia kuendesha mtandao kwa kushikilia mali katika mkoba fulani uliowekwa. Idadi ya PoS mali pia kuruhusu masternodes - mchakato ngumu zaidi staking kwamba kawaida inahitaji idadi fulani ya chini ya sarafu. Ni nani aliyewahi kuathiri cryptocurrency? Takwimu kadhaa zimeathiri sana tasnia ya cryptocurrency wakati wake wote. Satoshi Nakamoto alianzisha sekta hiyo kwa kuunda Bitcoin (BTC). Vitalik Buterin, ambaye anajulikana kwa kujenga Ethereum (ETH), pia amekuwa na athari kubwa kwa harakati za cryptocurrency. Ethereum ina mfumo wa sarafu ya Ethereum, ambayo ni pamoja na sarafu za ERC-20 na sarafu za ERC-20 za ERC-20. Jed McCaleb alisaidia kueneza umaarufu wa Bitcoin katika siku za mapema za tasnia kama matokeo ya kuanza Mt. Gox, mahali ambapo mara nyingi mwenyeji Bitcoin biashara <unk> licha ya kazi yake ya awali kama kitovu kwa mashabiki wa mchezo aitwaye Magic: Mkutano. Hata hivyo, ilibadilika na kuwa maarufu wakati jukwaa hilo lilipovunjika mnamo 2014. Chang Peng Zhao, mwanzilishi wa Binance, ni mmoja wa wauzaji wa crypto wa sasa. Sam Bankman-Fried, mwanzilishi mwenza wa jukwaa la biashara ya mali ya dijiti la FTX, anatumikia kama mtu mwingine muhimu katika tasnia ambayo inaathiri biashara, fedha za kugawanyika (DeFi) na mambo mengine ya nafasi ya crypto. "Wengine wengi pia wamefanya alama yao kwenye tasnia, baadhi yao Cointelegraph orodha katika yake ya juu ya watu 100 katika crypto na blockchain kwa 2021.""" Kwa nini sarafu za sarafu ni zisizo na uthabiti? Kuna mengi ya kutofautiana katika nafasi cryptocurrency kutokana na sekta ya novelty. Wawekezaji wanatafuta majaribio na pesa zao ili kuunda utajiri haraka na kujua jinsi bei za cryptocurrency zinavyobadilika na ikiwa zinaweza kuwaathiri. Idadi ya watu wanaotumia sarafu za crypto (yaani, matumizi) na kwa kusudi gani huathiri bei yao. Bei itaongezeka ikiwa watu wengi zaidi wataitumia kununua bidhaa na huduma badala ya kuzishikilia tu. Thamani ya cryptocurrency pia inaendeshwa na upungufu. Hii inahusu utaratibu wa cryptocurrency ya mwisho. Bitcoin Protocol inaweka kiwango cha juu cha BTC ambayo inaweza kuchimbwa katika 21 milioni. Kwa hivyo, watu wengi wanaingia katika nafasi ya crypto, upungufu wa Bitcoin utaongezeka bila shaka, na kusababisha bei yake kuongezeka. Sarafu fulani pia hutumia utaratibu wa kuchoma ili kuongeza thamani yao kwa kuharibu sehemu ya ugavi. Akaunti ambazo zina kiasi kikubwa cha sarafu inaweza kuanza kuuza, na kusababisha bei kuanguka. Akaunti hizi zinajulikana kama nyangumi kwa sababu zina nafasi kubwa na zinaweza kuathiri soko ikiwa kikundi cha watu kinakubali kuuza mali za crypto. Aina ya cryptocurrency inaweza kugawanywa katika makundi mawili yafuatayo: Sarafu zimekusudiwa kutumiwa kama aina ya sarafu na huundwa kwenye blockchain yao wenyewe. Ether ni cryptocurrency ya cryptocurrency ambayo inategemea blockchain ya Ethereum. "Altcoin" inahusu cryptocurrency yoyote ya msingi wa blockchain ambayo si Bitcoin. Neno "altcoin" lilibuniwa kama kifupi cha "mbadala wa Bitcoin", na idadi kubwa ya altcoins ziliundwa kuboresha Bitcoin kwa njia fulani. Namecoin, Litecoin, Ethereum, na USDC ni baadhi ya aina ya altcoins. Baadhi ya sarafu za sarafu, kama vile Bitcoin, zina idadi ya sarafu ambazo husaidia kuunda mahitaji na kuimarisha thamani yao inayoonekana. Kwa mfano, kiwango cha juu cha Bitcoin ni 21 milioni, kama ilivyoamuliwa na muumbaji wa Bitcoin. Tokens ni kujengwa juu ya blockchain zilizopo lakini ni kuchukuliwa kuwa mali programmable kwamba kuwezesha utengenezaji na utekelezaji wa mikataba ya kipekee smart. Nje ya mtandao wa blockchain, mikataba hii inaweza kutumika kuanzisha umiliki wa mali. Tokeni zinaweza kutumika kuwakilisha vitengo vya thamani kama vile pesa, sarafu, mali za dijiti na umeme, na pia zinaweza kutumwa na kupokea. Stablecoins peg maadili yao kwa sarafu mbalimbali fiat au mali, kama vile dhahabu. Mara nyingi imewekwa moja kwa moja na dola ya Marekani, stablecoins huwapa watumiaji njia ya kuuza katika mali inayobeba thamani sawa na sarafu ya kitaifa, lakini moja ambayo bado inaweza kufanyiwa biashara na kuhifadhiwa kwa njia ya crypto-esque ndani ya mazingira. Tokeni zisizoweza kuharibika (NFTs) ni aina nyingine ya sarafu, ikionyesha kuwa ni mali ya kipekee na haiwezi kubadilishwa. Bitcoin ni fungible, ambayo inamaanisha unaweza kubadilishana moja kwa moja na kupata kitu sawa. Hata hivyo, kadi ya biashara ya kipekee, kwa upande mwingine, haiwezi kuigawa. Ungepata kitu tofauti kabisa ikiwa ungeibadilisha kwa kadi tofauti. Kabla ya kuingiliana na mali yoyote iliyopewa, inaweza kuwa muhimu kuangalia aina ya mali na kazi kulingana na malengo yako. Si mali zote za dijiti ziliundwa kwa madhumuni ya uwekezaji. Je, sarafu za sarafu ni halali? Utaratibu umekuja kucheza ulimwenguni kote na ukuaji wa tasnia ya crypto. Kwa miaka mingi, Marekani imezidisha zaidi na zaidi ufuatiliaji wake wa anga za juu. Tume ya Usalama na Soko (SEC) ilishambulia matoleo ya kwanza ya sarafu, au ICOs, baada ya uchovu wa 2017 na 2018. Tume ya Biashara ya Bidhaa za Baadaye (CFTC) na mashirika mengine ya Marekani pia yamejihusisha na uwezo mbalimbali. Kwa kuongezea, udhibiti wa crypto nje ya Marekani umebadilika kwa muda, kulingana na miongozo ya udhibiti inayobadilika. "Mwongozo wa tano wa kupambana na utapeli wa fedha wa Umoja wa Ulaya unaonyesha kuwa ""ununuzi, uuzaji na shughuli zingine za crypto lazima zifuatane na miongozo fulani katika mikoa fulani.""" Kwa kuwa crypto ni sekta mpya ikilinganishwa na zingine, uwazi wa kisheria bado haupo katika suala la mahitaji kwa maeneo yote ya nafasi. Sehemu ya uwazi huo ni pamoja na uainishaji wa mali. Bitcoin na Ether zinaonekana kama bidhaa, ingawa uainishaji kwa mali nyingine nyingi bado haujulikani. Faida na hasara za cryptocurrency: Uhamisho wa cryptocurrency ni mchakato wa haraka na rahisi. Bitcoin, kwa mfano, inaweza kubadilishana kati ya wallets digital kutumia tu smartphone au kompyuta. Funguo za umma na binafsi na mipango mbalimbali ya motisha kama vile uthibitisho wa kazi na uthibitisho wa hisa hutumiwa kulinda uhamisho huu. Malipo katika sarafu za sarafu yanaongezeka kwa umaarufu kati ya mashirika makubwa na katika viwanda kama vile mitindo na dawa. Kila shughuli ya cryptocurrency imerekodiwa katika ledger ya umma inayojulikana kama blockchain, ambayo ni teknolojia ambayo inafanya iwezekane kuwepo. Hii inaruhusu watu kufuata historia ya cryptocurrencies kama Bitcoin ili kuwazuia kutoka kutumia sarafu wao si kumiliki, kunakili shughuli, au undoing yao. Kwa sababu blockchain inakusudia kuondoa waingiliaji kama vile benki na soko la mtandao, hakuna gharama za shughuli. Hata hivyo, uwezekano wa kupoteza mkoba wako virtual au kupoteza sarafu yako. Pia kumekuwa na wizi kutoka kwa tovuti ambazo zipo kuhifadhi cryptocurrency kwenye mtandao. Kwa sababu thamani ya cryptocurrencies kama Bitcoin inaweza kutofautiana sana, baadhi ya watu ni kusita kubadilisha "halisi" fedha katika Bitcoin. Kwa kuongezea, hakuna viwango vya kulinda biashara yako kwa sababu mamlaka kama Mamlaka ya Utendaji wa Fedha (FCA) hazidhibiti soko la cryptocurrency. "Inaweza kupoteza thamani na kuwa haina faida ikiwa kampuni au watumiaji hubadilisha kwa sarafu tofauti au kuacha kutumia sarafu za dijiti kabisa. """ Kubadilishana kwa cryptocurrency ni hatari kwa mashambulizi ya mtandao ambayo yanaweza kusababisha uwekezaji wako kupotea milele - udanganyifu ni uwezekano wa kila wakati na cryptocurrency. Watapeli mara nyingi hutumia mitandao ya kijamii kama vile Instagram, Facebook na Twitter kuwadanganya watumiaji kufanya uwekezaji huu. Ikiwa unaamini umekuwa lengo, unapaswa kuwasiliana na vituo vya kuripoti kitaifa kama Action Fraud nchini Uingereza au Tume ya Biashara ya Shirikisho (FTC) nchini Marekani haraka iwezekanavyo. Nini ni blockchain katika cryptocurrency? Ingawa blockchain inaonekana kuwa ya kisasa kama inaweza kuwa, dhana yake ya msingi ni rahisi sana. Hifadhidata, au blockchain, ni aina ya ledger digital. Ili kuelewa dhana ya blockchain, ni muhimu kwanza kuelewa nini database ni. Hifadhidata ni mkusanyiko wa data kuhifadhiwa kwenye mfumo wa kompyuta katika muundo wa elektroniki. Teknolojia ya Ledger ya Usambazaji (DLT) ni mfumo wa kuunganisha wa data ambao unasimamiwa na washiriki mbalimbali wa mtandao. Blockchain ni aina ya DLT ambapo shughuli ni kumbukumbu kwa kutumia hash, ambayo ni saini cryptographic immutable. Hii ina maana kwamba kama block moja katika mlolongo ni iliyopita, itakuwa mara moja wazi kwamba mlolongo imekuwa tampered na. blockchain binafsi na centralized, kwa upande mwingine, zipo katika ambayo wote wa kompyuta kwamba kufanya up mtandao ni inayomilikiwa na kuendeshwa na kampuni moja. Cryptocurrencies maarufu kama vile Bitcoin na Ethereum ni kujengwa juu ya teknolojia blockchain. Blockchain kama vile Bitcoin na Ethereum ni daima kukua kama vitalu vipya ni aliongeza kwa mlolongo, kuongeza usalama wa ledger kwa kiasi kikubwa. Je, blockchain na cryptocurrency ni sawa? Jukwaa la decentralized linahitaji sarafu ya blockchain. Blockchain ni teknolojia ya usambazaji wa ledger ambayo inaruhusu mtandao kudumisha makubaliano. Mtandao unaweza kufuatilia shughuli na uhamisho thamani na habari kutokana na makubaliano kusambazwa. Blockchain inaweza kuwa na uwezo wa kuunda programu ya kizazi kijacho cha optimization ya mchakato wa biashara. Teknolojia ya ushirikiano, kama vile blockchain, inaahidi kuboresha taratibu za biashara kati ya makampuni, kupunguza "gharama ya uaminifu" kwa kiasi kikubwa. Kama matokeo, inaweza kutoa mapato bora zaidi kwa dola iliyowekezwa kuliko uwekezaji wa ndani wa jadi. Cryptocurrencies ni ishara kutumika kwa ajili ya kutoa thamani na kulipa kwa ajili ya shughuli ndani ya mitandao blockchain na kutoa mitandao ya vichocheo. Kwa kuongezea, unaweza kuwafikiria kama chombo cha blockchain ambacho kinaweza kutumika kama rasilimali au huduma au hata kuhariri umiliki wa mali. Jinsi ya kununua cryptocurrency? Kwa kuzingatia kasi ya kupitishwa kwa crypto, kuna njia kadhaa za kununua cryptocurrency. Bidhaa za crypto-native zinatoa bidhaa nyingi za dijiti za kununua na kuuza. Katika ulimwengu wa kawaida, PayPal hutumika kama jukwaa moja la mfano ambalo washiriki wanaweza kununua na kuuza mali fulani za dijiti. ATMs Crypto kama vile ATMs Bitcoin pia zipo katika sehemu mbalimbali za dunia. Kwa upande wa malipo ya mali, majukwaa hutoa ununuzi wa crypto kupitia uhamisho wa benki, uhamisho wa crypto, au kadi za mkopo, kulingana na jukwaa. Ununuzi wa crypto kwa fedha taslimu katika mtu-kwa-mtu mtindo pia inawezekana. Upatikanaji wa kununua na kuuza crypto kwenye jukwaa lolote, hata hivyo, inaweza kutofautiana kutoka mkoa hadi mkoa. Je, cryptocurrency ni taxable? Ingawa sarafu kama vile Bitcoin ni sarafu halisi, wao ni kutibiwa kama mali kwa ajili ya faida ya mtaji kodi madhumuni, na wawekezaji "kawaida" ambao kununua Bitcoin kama uwekezaji uzoefu faida ya mtaji au hasara wakati wao kubadilishana kwa ajili ya fedha ya jadi, bidhaa, au huduma. Kodi ambazo zinaweza kutumika kwa sarafu za sarafu ni pamoja na: Kodi ya Shirika: Faida au hasara kwenye harakati za kubadilishana sarafu ikiwa ni pamoja na sarafu za virtual zinatozwa kodi. Faida na hasara za kampuni inayohusika katika shughuli za cryptocurrency zitatambuliwa katika vitabu na kutozwa kodi chini ya kanuni za kawaida za kodi ya kampuni. - Kodi ya mapato: Faida na hasara kutoka kwa shughuli za cryptocurrency lazima zionyeshwe katika akaunti za biashara zisizojumuishwa na zinapaswa kulipwa kodi au kuruhusiwa chini ya sheria za kawaida za kodi ya mapato. Mapato ya Bitcoin au cryptocurrency nyingine (ambayo si ndani ya faida ya biashara) ni malipo au kuruhusiwa kwa kodi ya faida ya mtaji kama wao accrue kwa mtu binafsi, au kwa kodi ya kampuni juu ya mapato ya malipo kama wao accrue kwa kampuni. Je, sarafu za sarafu ni uwekezaji mzuri? Cryptocurrency ni uwekezaji mzuri ikiwa unataka kupata mfiduo wa moja kwa moja kwa mahitaji ya sarafu ya dijiti, wakati mbadala salama lakini uwezekano wa faida kidogo ni kununua hisa za kampuni zilizo na mfiduo wa sarafu. Ingawa mafanikio ya mpango wowote wa cryptocurrency hayawezi kuhakikisha, ikiwa inakidhi malengo yake, wawekezaji wa mapema wanaweza kupewa thawabu nzuri kwa muda mrefu. Ili kuonekana kama mafanikio ya muda mrefu, mpango wowote wa cryptocurrency lazima kwanza ufikie kupitishwa kwa wingi. Kwa kawaida, sarafu kama Bitcoin hazina uhusiano mkubwa na soko la hisa nchini Marekani, kwa hivyo kuwa na baadhi ya sarafu hizo kunaweza kusaidia kupanua mkusanyo wako. Ikiwa unaamini kwamba matumizi ya cryptocurrency itakua katika umaarufu kwa muda, labda ni wazo nzuri kuwekeza katika crypto kama sehemu ya kwingineko yenye usawa. Hakikisha una thesis ya uwekezaji kwa kila cryptocurrency unayonunua. Hii itakusaidia kuelewa kwa nini sarafu itasimama mtihani wa muda. Uchimbaji wa cryptocurrency ni nini na inafanyaje kazi? Mchakato wa kukusanya cryptocurrency kama thawabu kwa kutatua kazi ngumu na kurekodi data kwa blockchain inajulikana kama madini ya cryptocurrency. Lakini, kwa nini watu binafsi madini cryptocurrency? Jibu la wazi zaidi ni kwamba watu wengine wanatafuta chanzo cha pili cha mapato na wengine wanataka uhuru zaidi wa kifedha bila kuingiliwa na serikali au benki. Kwa mfano, wachimbaji wa crypto wanathibitisha uhalali wa shughuli kwa kubadilishana na Bitcoin kama thawabu kwa juhudi zao. Blockchain cryptocurrency ni kujengwa juu ya msingi wa shughuli. Blockchain ni mkusanyiko wa vifungu vya data vilivyounganishwa ambavyo vinajumuisha habari muhimu kama vile hashes za cryptographic. Vipande ambavyo huunda blockchain ni makusanyo ya shughuli za data zilizoongezwa kwa mwisho wa ledger. Hii inaongeza kiwango cha uwazi, kuruhusu washiriki wa mtandao kuona shughuli zao aliongeza (chained) kwa blockchain. Hatua ya pili katika mchakato wa uchimbaji wa crypto ni kukusanya orodha ya shughuli zote, ambazo baadaye zinajumuishwa katika block mpya ya data isiyoidhinishwa. Inazuia matumizi maradufu ya sarafu yoyote na inaweka rekodi ya kudumu na ya umma kwa kuongeza shughuli zao kwa blockchain, mara tu utaratibu wa uthibitisho umekamilika. Rekodi hiyo haiwezi kubadilishwa, yaani, haiwezi kubadilishwa au kuharibiwa. Mara baada ya kuna shughuli za kutosha katika block, habari zaidi ni aliongeza kama vile header data na hash kutoka block ya awali katika mlolongo na hash mpya kwa ajili ya block ya sasa. Miners mtandao kisha kuangalia hash kuona kama block unconfirmed ni halali. Hii ni wakati wa sherehe kati ya wachimbaji wa crypto kwa sababu uthibitisho wa kazi umekamilika hatimaye. Kutoka kwa mtazamo wa mtumiaji, hii kimsingi ina maana kwamba uhamisho wa cryptocurrency wa mtumaji kwa mpokeaji umethibitishwa na utaongezwa kwenye blockchain kama sehemu ya block. Jinsi ya kutumia cryptocurrency kwa ajili ya kufanya ununuzi Unaweza kufanya mambo mengi na sarafu za sarafu, kulingana na ambayo unamiliki. Kwa kiwango cha msingi, ufafanuzi wa mali ya cryptocurrency ni kwamba inaweza kutumika kutuma thamani kutoka kwa mtu mmoja hadi mwingine au kulipa bidhaa na huduma. Kila mali ina thamani, mara nyingi bei katika dola za Marekani, ambayo inaongoza kwa kesi nyingine ya matumizi: biashara na uwekezaji. Mbali na stablecoins, ambayo inatafuta kuimarisha kutoeleweka kwa sarafu za sarafu kwa kuunganisha mali kwa kitu kingine, kama vile dola ya Marekani, sarafu nyingi za sarafu zinabadilika mara kwa mara kwa bei. Unaweza kufanya biashara kati ya sarafu za sarafu na sarafu za kitaifa (inaitwa sarafu za fiat) kwenye kubadilishana, kulingana na jozi za biashara zinazopatikana kwenye jukwaa la chaguo. Kama wewe ni mfanyabiashara, unaweza pia kukubali mali digital kama malipo moja kwa moja au kupitia processor malipo au huduma ambayo ni rahisi zaidi na inaongeza uwezo. Baadhi ya huduma hutoa chaguo la kubadilisha sarafu zilizolipwa kuwa fedha taslimu moja kwa moja kwenye mwisho wa nyuma, wakati kuna pia makampuni ambayo hutoa kadi za debit za crypto ambazo haziwezi kutofautishwa na kadi nyingine yoyote ya plastiki ili kulipa bidhaa au huduma. Kwa kuongezea, unaweza kuchimba sarafu za sarafu. Uchimbaji wa madini hutumia kompyuta yako au vifaa vilivyoainishwa kusaidia kuendesha mitandao inayorudisha mali za crypto. Kuendesha kazi kwenye kompyuta yako au vifaa moja kwa moja na kuendelea baada ya kuanzishwa, hufanya mchakato wa uchimbaji na inazalisha mapato, kusaidia kuthibitisha shughuli ambazo zinafanywa kwenye blockchain, kulingana na nguvu ya kompyuta iliyoainishwa. Watu wanaweza pia kukopa mali ya crypto kwenye majukwaa mbalimbali na kupata riba kwa kukopa mali. "Kuna aina ya cryptocurrency inayojulikana kama ""decentralized finance"" au ""DeFi.""" Kwa kuzingatia DLT, majukwaa mbalimbali yanawezesha kukopesha na kukopa crypto bila kuhitaji mtumiaji kujisalimisha kwa udhibiti wa chombo cha kati. DeFi pia inajumuisha mambo mengine kama vile kubadilishana decentralized, au DEXs. Nini ni siku zijazo za cryptocurrency? Cryptocurrency imekuja njia ndefu katika muongo uliopita, ikiendelea kwa kasi ya mwanga. Thamani inaweza kuhifadhiwa, kuhamishwa na kutumiwa kwa njia tofauti kupitia mali na suluhisho tofauti, wakati DeFi imeweka njia kwa njia mpya za kukopa na kukopa. Baadhi ya makampuni ya kawaida pia kuangalia teknolojia blockchain yenyewe na maslahi, kutathmini matumizi mbalimbali kama vile mlolongo wa usambazaji. Wakati ujao wa cryptocurrency na teknolojia inayohusiana na hiyo inaonekana kuwa na mwangaza, kwa kuhukumu ukuaji na kupitishwa ambayo imeonekana tangu 2008 wakati Nakamoto alichapisha mfumo wa mali ndogo inayoitwa Bitcoin.