Crypto currency - what is it? Business online and e-commerce

Electronic gold is sometimes called crypto currency. These digital money exist on the Internet for several years. Some of them cause genuine interest, and many do not even know what they are talking about. It is necessary to understand that the crypto currency is what it is, why it is needed, how it works, and whether it can generate income? Let's find out the answers to these questions.

Crypto currency - what is it?

The meaning of this term is incomprehensible to many who have not encountered digital money. Crypto currency is a special electronic payment tool, the rate of which is supported only by supply and demand. Such electronic money is not regulated by any of the state systems, including the Central Bank. The function of observers and supervisors in this case lies with the users of the Network and the owners of crypto-currencies.

Many believe that the crypto currency is the money of the future. This is confirmed by the fact that some large stores in the US and Europe can already make calculations in the crypto currency. Money transfer systems, such as eBay and Paypal, are already reconfiguring the functionality to work with this electronic payment facility.

Mistrusting skeptics compare the system of digital currencies to fraudulent pyramids like MMM. And others, on the contrary, call electronic money the engine of progress and predict that soon they will be able to completely displace paper money. It is important to note that distrust often arises from the fact that people do not understand this topic.

Features of the crypto currency

The main distinguishing feature of the digital currency in question is its decentralization. The Crypto currency is spread out on the Web and, as already mentioned, does not have centralized management.

The advantage of electronic coins is also their anonymity and the confidentiality of transactions conducted. Purse Crypto-currency is just a set of symbols that is not tied to personal data and can not be the identifier of its owner.

Moving the crypto currency between users (even if it's an international transfer) is much faster than a similar banking transaction. At the same time, the absence of a commission is very encouraging.

The course can not be affected by the work of any financial institutions or political instability.

The specificity of digital money is also that its value is unstable and can change every minute. The converter must be updated every minute, only then it allows you to find out the current value of electronic coins.

Some advantages of crypto currency can be called their shortcomings. For example, anonymity is a good ground for Internet speculation with large amounts of electronic money.

The defect of such a system of mutual settlements is its vulnerability to computer viruses and damage to physical media. And also it is possible to consider differently the irreversibility of transactions with electronic coins.

There is an assumption that the distribution of crypto-currencies can cause a depreciation of the national currency, destructively affect the work of banks and other financial institutions - in short, destabilize the world economy or the economies of individual countries.

List of existing crypto-currencies

For several years of their existence, we have learned about a variety of various crypto-currencies. This list is constantly increasing. Some currencies appear and disappear, but there are also those that function for a long time and are known to us now. Here are the most popular crypto-currencies in the world:

• Bitcoin, BTC (bitcoin).
• Litecoin, LTC (lightcoin).
• Peercoin, PPC (pircoin).
• QuarkCoin, QRK (quarkcoin).
• Feathercoin, FTC (fesercoin).
• Protoshares, PTS (proto-actions).
• Namecoin, NMC (Neimcoin).
• Worldcoin, WDC (Vorldcoyne).

This is only a small part of all existing crypto-currencies. In the period from 2008 to 2015, there are about 600 names of active and already obsolete digital money.

The most common crypto-currencies in the world

What is the most popular crypto currency? That this bitcoin will be answered by anyone who once dealt with the crypto-money market. Bitcoin - the very first appeared crypto currency. It became the basis for the creation of all subsequent electronic coins and to this day is the most popular in the world. Any exchange of crypto currency works with bitcoin.

The second most popular today is lightcoin. It was created by a former employee of Google. This digital currency appeared in 2011. Its creator, Charlie Lee, planned to tie the price of this crypto currency to the prices of silver in the world market, so it is sometimes called electronic silver.

The ratings of the Crypto-currency for 2014 on the third place put pirkoin. But to date, this e-currency is characterized by insignificant inflation - 1% per year.

Purchase of digital currency

One way to get electronic coins is to buy them for money. For this, there is more than one crypto-currency exchange on the Internet. Such resources help to exchange your real money for digital. Having made a purchase, the received digital currency is withdrawn from the exchange on its purse by crypto-currency.

While this scheme works flawlessly only with bitcoins. Direct buying of dollars for other currencies can be problematic. Therefore, it will be necessary to buy bitcoins in the above procedure, on a special exchange, to exchange the Crypto-currency of one for the other, and after that make a conclusion on the purse.

How to get a Crypto currency without attachments?

There is another way to get a digital currency, not involving investments. This method is called mining. But only at first glance it is a cost-free method. In fact, in order to start receiving electronic money with the help of mining, you must be the owner of computer equipment with good computing power. Having established the necessary program, it is possible to begin mining. Its meaning lies in solving algorithms that help to find the required number. In the terminology of the digital currency, this is called "solve the block." The decision of each block helps to release a certain number of coins.

If all operations are performed by one user, this is solo-mining. Recently, this kind of earnings has become practically ineffective, since finding a block takes a lot of time. Miners began to combine the computing power of their computers, thus implementing a pool-mining. The unit is at the same time faster, but the reward is divided into all participants in the process.

Is the earnings on the fluctuations in the exchange rate realistic?

Since electronic coins came out to the masses and began to gain popularity, it was practically impossible to make profit on mining. More and more users are taking the basis for earning a constantly changing course of crypto currency.

In this it will be easier to understand those who are already familiar with the principles of the work of stock exchanges following the example of Forex. Huge course jumps are caused by the constant appearance of new crypto-currencies and the extinction of old ones. For example, the same bitcoin in 2013 changed its value from $ 90 to $ 1,000. The rate of new unstable currencies may fluctuate even more.

This state of affairs makes it possible to make quick money by making timely exchange of Crypto-currency, but the likelihood of losing investments is also high.

Non-standard ways of earning money

Note investing in the organization of mining companies and earning income from "caught" coins. In other words, it is the purchase of computing capacities, which are analogues of shares of mining farms. In fact, this implies investing its funds in order to receive dividends. To such operations it is necessary to be approached with the utmost care, because there are many companies-traps that mimic activity and are not capable of generating revenue.

Ways of earning, indirectly related to the crypto currency, have become widespread on the Internet. Most often, their work is based on attracting broad masses to accumulate bitcoins. This is a variety of entertainment sites that distribute digital coins for registration, news viewing, registration of referrals and other simple transactions. At the heart of the calculations for the completed tasks is the crypto currency. Reviews about the work of such sites are diverse. Some consider this a waste of time, but there are those who get a stable reward in the form of bitcoins, which are subsequently exchanged for "real" money.

Instead of an afterword

And yet, the crypto currency - what is it? Is it worth to pay attention to it and master the new opportunities that it provides? Surely many want to know if there is a useful prospect in this?

At the moment, no one can give an unambiguous answer. Taking into account all the shortcomings of this system of electronic payment means, you can safely refuse any participation and protect yourself from risks. But if we delve into history, we will remember that all the brilliant discoveries of mankind were firstly severely criticized, so that it may happen that the crypto-currency will be a new step in the world financial development.