A full Guide to Understand Cryptocurrency

A full Guide to Understand Cryptocurrency

Posted by: kshitij lunthi | 13 Oct 2022

A full Guide to Understand Cryptocurrency

Full Guide To Cryptocurrency

What is crypto currency

Cryptocurrencies are digital or virtual currencies that are supported by cryptographic systems. In this way, secure online payments can be made without the need for third parties to act as intermediaries.

 The term “crypto” refers to a variety of encryption algorithms and cryptographic techniques that safeguard these entries, such as elliptical curve encryption, public-private key pairs, and hashing functions.

There are several ways to obtain cryptocurrency, including mining it or purchasing it from cryptocurrency exchanges. Some e-commerce sites do not allow cryptocurrency purchases. The fact is that cryptocurrencies, even popular ones such as Bitcoin, are hardly used in retail transactions. 

Cryptocurrencies have become popular as trading instruments due to their skyrocketing value. They are also used to facilitate cross-border transfers to a limited extent.

How Cryptocurrency Works : 

how cryptocurrency works
how cryptocurrency works

Cryptocurrencies are based on a distributed ledger called a blockchain that consists of a record of all transactions that are updated and held by the holders of the currency.

Cryptocurrencies are created by the mining process, which involves using computer power to solve complicated mathematical problems. Cryptographic wallets are also available for users to purchase the currencies from brokers, then store and spend them as they please.

Cryptocurrency does not have any tangible value. Essentially, you own a key that enables you to move records or units of measurement between individuals without the involvement of a trusted third party.

What is Crypto Mining ?

Cryptocurrency mining is a process of creating new digital tokens. However, that is the extent of its simplicity. In order to recover these coins, complex puzzles must be solved, cryptocurrency transactions must be verified on a blockchain network, and these transactions must be logged on a distributed ledger.

Blockchain Cryptocurrency Correlation : 

Blockchain networks provide the basis for cryptocurrencies. A blockchain is essentially a digital ledger that consists of expanding blocks of information.

In a blockchain, records are maintained across multiple computers connected to a network. Each computer is referred to as a node, and these nodes verify and store data. Each new transaction is added to a “block” of data, and this block is then added to the chain. As new transactions are recorded, the entire ledger can be updated.

It has been suggested that blockchain technology may underpin the next evolution of the internet, sometimes referred to as web3. Blockchain technology can be used in a variety of applications, such as gaming, finance, and others. Additionally, you must be able to pay the appropriate fee in the corresponding cryptocurrency in order to complete a transaction.

Pros & Cons of Cryptocurrency

Pros & Cons of Cryptocurrency
Pros & Cons of Cryptocurrency

Advantages Of Cryptocurrency : 

Self Governed : Managing and maintaining a currency are also key factors for its development. Developers and miners store cryptocurrency transactions on their hardware, for which they receive the transaction fee as a reward. Because the miners now own the cryptocurrency, they maintain up-to-date and accurate transaction records, ensuring the integrity of the cryptocurrency.

Decentralized : Cryptocurrencies are primarily decentralized, which is one of their major advantages. Most cryptocurrencies are controlled by developers who use them and those who own significant amounts of the coin, or by companies that develop the coin before it is released.

It is the decentralization that keeps the currency monopoly in check, so nobody organization can determine the flow and therefore the value of the coins, which, in turn, will ensure their stability and security, contrary to the government-controlled fiat currencies.

Swifter Mode of Payment : It has always been the case that cryptocurrency has been an optimal solution for transactional purposes. Whether international or domestic, cryptocurrency transactions are lightning fast. The reason for this is that the verification process takes only a limited amount of time because there are only a few barriers to overcome.

Disadvantages Of Cryptocurrency :

Unretreivable if lost : It was very crucial for the developers to make ASCII documents virtually untraceable, strong hacking defenses, and impenetrable authentication protocols. Putting money in cryptocurrencies would be safer than keeping cash in a bank vault or in physical cash.

However, a user can never retrieve their private key if they lose it. In addition to the number of coins within the wallet, the wallet will remain locked away. It may result in the loss of the user.

Can Get Hacked : In spite of the fact that cryptocurrencies are very secure, exchanges do not appear to be as secure. The majority of exchanges store the wallet data of their users in order to determine their user ID accurately. Hackers often steal this data, allowing them access to a large number of accounts.

Illegal Transaction : Due to the high level of privacy and security associated with cryptocurrency transactions, it is difficult for the government to track down any individual by their wallet address or monitor their personal data. 

Best Cryptocurrency to invest in October 2022  : 

Best Cryptocurrency to invest in October 2022
Best Cryptocurrency to invest in October 2022

These are the 5 best cryptocurrency that you will not regret to invest in October ;

Ethereum : The Ethereum platform is both a cryptocurrency and a blockchain platform, making it a favorite among programmers because of its potential applications, such as smart contracts that automatically execute when certain conditions are met, and non-fungible tokens (NFTs).

The growth of Ethereum has also been phenomenal. Its price increased by more than 27,000% from about $11 in April 2016 to over $3,000 at the beginning of March 2022.

XRP : It was created by some of the same founders as Ripple, a digital technology and payment processing company. It can be used in the same network to facilitate the exchange of a variety of currencies, including fiat currencies and other major cryptocurrencies.

The price of XRP was $0.006 at the beginning of 2017. In March 2022, its price reached $0.80, an increase of more than 12,600%.

Solana : As a decentralized finance system (DeFi), decentralized application (DApp) and smart contract platform, Solana utilizes a hybrid proof-of-stake and proof-of-history mechanism to process transactions quickly and securely. The platform is powered by SOL, Solana’s native token. 

It was started with a price of $0.77 & in march 2022 its price reached around 100 $.

Tether : Unlike conventional cryptocurrencies, Tether is backed by fiat currency, such as U.S. dollars and Euros, and has a value equivalent to one of those currencies. 

This means that Tether’s value should be more stable than other cryptocurrencies, which is why it is preferred by investors who are wary of the extreme volatility of other cryptocurrencies.

Pando Token (PTX) : PTX is a cryptocurrency that represents the technology developed by PandoLab. This technology enables video streaming costs to be reduced by as much as 70% through the use of blockchain technology. The application utilizes IPFS, private computing, and streaming technology in conjunction with blockchain technology.

PTX here combines all future prospective solutions into one platform, from P2P money to video decentralized infrastructure, to end-user privacy and reward opportunities for all users.

In September 2022 its price was $0.01332 and right now its price has reached to an amount of $0.048 that is a 261.8% growth in a month. The time is right to invest in PTX, or you may regret your decision in the future.

If you are still unclear about how to invest then read our investing guide to pick the best cryptocurrency.

Cryptocurrency Payment Gateway :

Cryptocurrency Payment Gateway
Cryptocurrency Payment Gateway

Crypto currency payment gateways function similarly to payment processors, gateways, and acquiring banks that accept credit cards as payment methods. Using cryptocurrency gateways, you are able to accept digital payments and receive fiat currency in exchange immediately.

By partnering with these companies, you will be able to offer more payment options to your customers and eliminate any uncertainties or reservations you may have about cryptocurrencies.

There is no need for digital currency payment gateways. The use of your personal wallet to accept cryptocurrency payments is perfectly acceptable; however, gateways remove the burden of exchanging cryptocurrency and managing a wallet.

Payment flow in an crypto currency payment gateway :

4 step workflow in cryptocurrency gateway ;

  1. During checkout, your consumer can choose to pay in cryptocurrency (in-store, online, or in the app).
  2. During the transaction, they pay you the fair market value of the digital currency.
  3. Cryptocurrency payment services convert your payment into the currency of your choice in real time.
  4. Your provider deposits funds into your bank account at intervals determined by your service contract.

Benefits and Disadvantages of crypto currency payment gateways :

Advantages of Cryptocurrency Payment Gateway :

  1. By using a payment gateway, you are able to remove the anonymity of your transactions while maintaining the preferences of your customers.
  2. If there is a problem with the payment, you have someone to contact.
  3. Payments can be accepted from anywhere in the world, in any cryptocurrency your provider accepts.

Disadvantages of Cryptocurrency Payment Gateway : 

  1. Cryptocurrencies were originally designed to circumvent third parties, such as payment gateways.
  2. In order to receive payments from around the world and in different time zones, you need to rely on the provider to maintain uninterrupted services.
  3. As gateways provide a service, they market themselves in a manner that makes it appear as if you need their services.

Cryptocurrency payment gateway at Uniblok ;

Cryptocurrency payment gateway at Uniblok
Cryptocurrency payment gateway at Uniblok

What is Uniblok :

Uniblok provides a platform for innovators to locate the most appropriate teams or resources in order to implement their ideas.

Uniblok’s Payment Gateway :

Currently, the existing generation has difficulty paying in work marketplaces, which is why at Uniblok, clients and talent can pay using cryptocurrency in addition to fiat currency. In this way, users will be able to make cross-border payments more conveniently and at a faster pace.

Step By Step Guide of Making Payment at Uniblok :

Without wasting your time, let me quickly explain how the client pays talent whenever the talent raises an invoice.

Step 1

Clients are given the option of paying in fiat currency or in cryptocurrencies upon clicking the “pay now” button.

Step 2

If you prefer to pay in fiat currency, you can use your debit or credit card to make the payment. Or if you want to pay with cryptocurrency, you will need to connect to the Metamask wallet first. But if you don’t have one then create one.

Step 3

The Metamask wallet will allow you to pay with PTX, Ethereum, Polygon, and USDT when you connect it. You will be offered a discount or rebate if you choose PTX.

Step 4

Choose the cryptocurrency that you wish to use. Now your chosen cryptocurrency’s wallet balance, along with the amount you must pay, will be displayed.

Step 5

Metamask wallet will notify that payment has been requested, and the transaction will be completed once the payment has been received.

Conclusion :

Throughout this article, you will gain a full understanding of what cryptocurrency is, how to pick the best cryptocurrency, and how Uniblok operates as a decentralized marketplace providing its users with the ability to pay using cryptocurrency in order to receive payments more quickly through the platform.

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