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Cryptocurrency Expert - Tedi Ticic
Cryptocurrency Expert - Tedi Ticic
Cryptocurrency Expert - Tedi Ticic
Table of Contents
Disclaimer....................................................................................................4
Introduction.................................................................................................5
History of cryptocurrency............................................................................6
Advantages of Cryptocurrency....................................................................15
Disclaimer
©Copyrights 2021
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book.
CRYPTOCURRENCY EXPERT
Introduction
Cryptocurrency (or Cryptography) is a contentious digital commodity meant to serve as
a cryptographic means of exchange for securing transactions, transferring assets, and
acquiring more monitor units. Digital currency, alternative currency, and virtual
currency are all examples of crypto values. Instead of a centralised electronic money
system and central banks, cryptocurrencies employ decentralised control.
Each cryptocurrency has decentralised governance thanks to blockchain, which is the
foundation for public transactions and acts as a distributed record.
The crypto may, according to Jan Lansky, is a system that fulfils four criteria:
The policy governs the creation of new cryptocurrency units. If new
cryptocurrency units can be created, the system associates the source's
characteristics with the new units' ownership.
If two distinct orders for modifying the purchase of the same cryptographic units
are placed, the system will only carry out one of them.
The system permits transactions to be carried out in such a manner that the
cryptographic unit's owner is replaced. Only an entity that can prove the present
owners of these units may make a statement transaction.
Exclusively on cryptographically, ownership of cryptocurrency units may be
demonstrated.
Decentralized cryptography develops the whole system of cryptographic services at a
rate that is predetermined throughout the system's development and is open to the
public. Under centralised banking and economic systems, such as the Federal Reserve
System, administrative organisations or governments oversee the supply of money by
issuing units of fiduciary funds or requiring complementary digital records. In the case
of decentralised cryptocurrency, governments or businesses cannot generate new units,
and they are incompatible with other enterprises, banks, or organisations that have
property values. The underlying technical framework based on decentralised
cryptocurrencies was created by Satoshi Nakamoto, a group or individual.
As of May 2018, there were over 1,800 crypto clear specifications. By using their
computer to confirm the time of the transaction and adding it to the registry under a
specified time-
CRYPTOCURRENCY EXPERT
stamps scheme, a network of mutually sceptical parties known as minors maintains the
system of crypto-currency, security, integrity, and balance records.
The majority of crypto clones aim to reduce the currency's production over time by
limiting the total amount of coins in circulation. Authorities may find it more difficult to
capture crypto than traditional money held by banking institutions or cash on hand. The
abuse of encryption technologies has resulted in this problem.
History of cryptocurrency
Years before the first digital alternative currencies appeared, cryptocurrency existed as
a theoretical notion. Early cryptocurrency proponents shared the ambition of using
cutting-edge mathematics and computer scientific concepts to address what they saw as
“traditional” fiat currencies' practical and political flaws.
The technological underpinnings of cryptocurrency may be traced back to the
early 1980s, when an American cryptographer called David Chaum developed a
"blinding" method that is still used in current web-based encryption. The method
enabled parties to communicate safe, unalterable information, setting the
framework for future electronic currency transactions. A white paper on b-money, a
virtual currency design that featured many of the essential components of current
cryptocurrencies, such as advanced anonymity safeguards and decentralisation,
was released around 15 years later by an experienced software developer called Wei
Dai.
B-money, on the other hand, was never used as a medium of trade. More traditional
digital finance intermediaries arose in the late 1990s and early 2000s. PayPal, which
gained Tesla inventor and notable cryptocurrency enthusiast Elon Musk his first
fortune and proved to be a forerunner of today's mobile payment systems, which have
risen in popularity over the last decade, was one of them. However, until the late
2000s, when Bitcoin arrived on the scene, there was no actual cryptocurrency.
Bitcoin is usually considered the first modern cryptocurrency, since it was the first
publicly used medium of exchange to combine decentralised control, user privacy,
blockchain based record keeping, and built-in scarcity. Satoshi Nakamoto, a
pseudonymous person or group, initially proposed it in a white paper released in
CRYPTOCURRENCY EXPERT
2008.
7
From early 2009, Satoshi Nakamoto made Bitcoin available to the general public, and a
small core of ardent believers started trading and mining the currency. By late 2010, the
first of hundreds of copycat cryptocurrencies, including popular alternatives like
Litecoin, had appeared. Around the same time, the first public Bitcoin exchanges
debuted. WordPress became the first large shop to accept Bitcoin payments in late
2012. Others followed, including Expedia, Microsoft, and Tesla, an online electronics
shop. Thousands of shops now accept the world's most popular cryptocurrency as
a valid payment option. And new cryptocurrency applications sprout up at an alarming
rate. As one example, Cryptomaniaks takes a close look at the rapidly expanding
world of cryptocurrency sports betting platforms. Despite the fact that few
cryptocurrencies other than Bitcoin are generally accepted for merchant payments, a
rising number of active exchanges enable holders to trade their cryptocurrencies
for Bitcoin or fiat currencies, offering vital liquidity and flexibility. Big
business and institutional investors have been keeping a close eye on what they refer
to as the "crypto sector" since the late 2010s.
All online cloud wallets, most mobile and software wallets, and exchanges are
considered hot wallets. Hardware wallets, offline maintained paper wallets, USB and
offline comparable data storage devices, and even actual bearer goods like actual
Bitcoins are examples of cold wallets.
Cold and hot wallets are used by the majority of cryptocurrency users. Hot wallets are
convenient for frequent trading, but cold wallets are ideal for long-term crypto asset
storage. But before we get into the various wallets, let's go over why it's not a smart idea
to retain your digital assets on exchanges in the first place.
Types of Cryptocurrency Wallets
Paper, hardware, software, and internet cloud wallets are the four types of cryptocurrency
wallets. Let's take a look at each of them individually.
Paper Wallets
Cold storage is the standard classification for paper wallets. A tangible copy or
paper print of your public and private keys is referred to as a "paper wallet." It
may also refer to software that generates a pair of keys as well as a digital file for
printing. In any event, paper wallets may provide you with a great degree of
security. To transfer your money, you may either import your paper wallet into a
software client or just scan its QR code. If your preferred cryptocurrency has a
paper wallet, you'll most likely find instructions on how to create one on the
project's website or community page. MyEtherWallet is a one-stop shop for
creating a paper wallet for Etherum and other ERC-20 currencies. To create a
paper wallet for Bitcoin, use the Bitcoin Paper Wallet Generator.
Paper wallets are chilly, but they come with their own set of concerns. Paper wallets,
for example, are readily damaged, burnt, copied, and photographed, and need mutual
confidence if you aren't producing one yourself. People laminate paper wallets, print
many copies and keep them in separate places, engrave them on metal or other
durable materials, and so on to make them less fragile. Keep in mind that keeping
electronic copies of your paper wallet on your computer is a poor idea. The paper
wallet's private key should always be stored offline. Keeping your paper wallet files
online is just as safe as using a hot wallet.
Cloud Wallets
9
By definition, online wallets are hot. Your money may be accessible via a cloud wallet
from any computer, device, or location. They are very handy, but they keep your
private keys online and are thus vulnerable to third-party control. As a result, they
are by design more prone to assault and theft. Among the most popular cloud
wallets are:
Guarda
Coinbase
Metamask
Blockchain.info
Non-custodial online wallets are a safer variant of cloud wallets. They're available via
the web and applications, but the service provider doesn't have access to your
personal information. In most instances, exchange platforms have non-custodial
wallets, which allow you to trade your currencies in a safe and secure way. Cloud
wallets from the following companies are examples of non-custodial cloud wallets:
Crypto.com DeFi Wallet
LocalCryptos
Bitwala
Software Wallets
On a personal computer or smartphone, software wallets are downloaded and
installed. They've got a lot of cash in their wallets. Both desktop and mobile
wallets provide a high degree of protection; nonetheless, they cannot protect you
against hackers and viruses, therefore you should attempt to keep malware-free
as much as possible. Mobile wallets are often smaller and simpler than desktop
wallets, however both may be used to manage your assets. Furthermore, some
software wallets enable you to access your cash from many devices at the same
time, such as cellphones, computers, and even hardware wallets.
Jaxx
Freewallet
Exodus
Electrum Wallet
Infino Wallet
CRYPTOCURRENCY EXPERT
10
Hardware Wallets
Hardware wallets, unlike software wallets, save your private keys on an external
device such as a USB drive. They are completely chilly and safe. They're also
capable of making online payments. Some hardware wallets accept various
currencies and are compatible with web interfaces. They're designed to make
transactions simple and straightforward, so all you have to do is connect it into
any Internet device, unlock your wallet, transmit currency, and confirm the
transaction. Hardware wallets are said to be the safest way to store crypto. The
only disadvantage is that they are not available for free. Among the most popular
hardware wallets are those made by:
Ledger
Trezor
KeepKey
The most secure method is to purchase a hardware wallet straight from a
manufacturer. Purchasing it from others, particularly those you don't know, is
risky. Even if you purchase a hardware wallet from a manufacturer, you must
always initialise and reset it. Typically, the wallet you choose is determined by
your investment portfolio. Every significant project should have its own native
wallet, which should be available on its website, however a multicurrency wallet
may be more convenient in certain cases. It's important to note that not all
multicurrency wallets support all cryptocurrencies. Even hardware wallets can
only handle a certain number of coins. Popular cryptocurrencies like Bitcoin and
Etherum, on the other hand, have no lack of wallets.
You'll need to secure your private recovery seed phrase after you have a
(hardware) cryptocurrency wallet. CryptoTag, which enables you to store seed
words on almost indestructible titanium plates, is one of the most trustworthy
seed word preservation technologies.
cryptocurrency. Aside from these two currencies, there are a few others to consider, including
Ripple ($28 billion), Litecoin ($17 billion), and MIOTA ($13 billion).
Because Bitcoin was the first to market, there are a plethora of Bitcoin exchanges all around
the globe. BitStamp and Coinbase are two well-known exchanges where one can buy
different cryptocurrency and they’re established in the United States. Bitcoin.de is a well-
known exchange in Europe where one can also buy cryptocurrency. If you want to trade
other digital currencies in addition to Bitcoin, a crypto marketplace is a site where you can
locate all of them in one spot. There are a number of different cryptocurrency platforms
where trading is simple and you can also buy different cryptocurrency too, some of them are
Binance, CoinBase, Kraken, Gemini, Crypto.com, Robinhood, BlockFi Etc.
exchanges in order to obtain your login information. Always double- the webpage
check address to be sure it's right.
Use HTTPS Plugins: is the secure version of HTTP. Only log in to websites that
have a valid HTTPS certificate. The majority of legitimate websites have one. Use
browser extensions like "HTTPS Everywhere" for further security.
Make sure you're connected to a secure Wi-Fi network: Never use public
WiFi to access your online wallet, exchange account, or any other sensitive
information. Make sure your WiFi access point employs strong encryption, such as
the WPA-2 protocol, even if you're in a supposedly secure location.
Make a distinction between your assets and your liabilities. Do not store all of your
crypto assets in a single location. Using one or more cold storages for long-term
holdings and at least one hot wallet for trading and transactions is the best method to
deal with it.
Authentication using two factors: Always use two-factor authentication to
protect your accounts. Instead of SMS, use software or hardware 2FA equipment
wherever feasible.
IP addresses and withdrawal addresses should be whitelisted: If you have
a static IP address, make advantage of it. Ensure that only you have access to your
money and accounts.
Crypto Addresses should be double-checked: When you submit a transaction,
certain malicious apps may alter and paste an incorrect transaction address. The new
address is usually associated with an attacker. It's preferable to be safe than sorry.
Use Security Measures You're Comfortable With: Some individuals never feel
safe, therefore they go to great efforts to keep their cryptocurrency safe. They forget,
however, that their security tools might potentially lose crypto. Hackers aren't the
only ones that lose access to their accounts, assets, or wallets. If you're not into
security in the first place, don't overcomplicate things. Strive for a good combination
of complexity and security.
On the road to being your own bank, mastering the art of keeping your cryptocurrency safe
and secure is essential. It's best if you learn it as soon as possible.
CRYPTOCURRENCY EXPERT
13
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15
Advantages of Cryptocurrency
In a number of instances, cryptocurrency offers a digital alternative to using credit cards
or cash to make routine payments. It continues to develop as a viable alternative to
existing payment systems, but it need greater stability before it is completely accepted
by the general public. Let's look at some of the numerous benefits of adopting
cryptocurrency:
Minimal Fraud Rate: Because cryptocurrency is digital, any issues with fraud
are kept to a minimal. This eliminates the possibility of a reversed or
counterfeited payment. Because of charge-backs, this sort of activity might be
problematic with other typical payment methods, such as credit cards.
Identity Theft: When utilising cryptocurrency, there is no need to provide
personal information that might lead to identity theft. Even for a minor purchase,
if you pay with a credit card, the retailer receives a lot of information about your
CRYPTOCURRENCY EXPERT
16
credit line. A pull transaction is also used for credit card payments, in which a
certain amount is requested from an account. The transaction is based on a push
basis with a cryptocurrency payment, giving the account holder the choice to
merely transmit the precise amount due with no more information.
Flexible usage: A cryptocurrency payment may simply be made to conform to a
particular requirements. A digital contract may be used to make a payment
contingent on the completion of a task at a later date, to reference external facts,
or to get third-party approval. This form of payment is still highly quick and
efficient even with a particular contract in place.
Easy accessibility: Anyone with internet connection can use cryptocurrency. It
is becoming more popular in certain areas of the globe, such as Kenya, where
over a third of the population uses a digital wallet provided by a local
microfinance institution.
Low rates: Completing a cryptocurrency transaction without paying additional
fees or charges is feasible. However, there is likely to be a tiny fee if the
cryptocurrency is stored in a digital wallet or via a third-party service.
Global transaction: This sort of payment is not subject to country-specific
taxes, transaction fees, interest rates, or currency rates, making cross-border
transfers very simple to perform.
Adaptability: With approximately 1200 different cryptocurrency kinds available
on the worldwide market, there are lots of options for finding a payment method
that suits your demands. Even though there are many ways to utilise coins in
regular life, there are some that are designed for a specific purpose or business.
17
Furthermore, the Chinese government has made it illegal for financial institutions to
provide cryptocurrency services.
Despite this, cryptocurrency prices have been steadily rising since then. In reality,
according to a CNBC storey, Bitcoin prices climbed roughly 4% in the afternoon of May
24 after Elon Musk tweeted that he had talked to North American Bitcoin miners about
the currency's long-term viability. Regardless, cryptocurrencies have had a fantastic
year. As of May 28 morning, values of prominent cryptocurrencies such as Bitcoin,
Ethereum, Cardano, and Dogecoin had increased by more than 100% over the
previous year, according to Coinbase statistics. Furthermore, the cryptocurrency
market is projected to continue its upward trend. In a GlobeNewswire publication,
ReportLinker reported that the cryptocurrency industry is predicted to reach $2.2
billion by 2026, up from $1.6 billion in 2021, at a CAGR of 7.1 percent.
So, what has caused the demand for cryptocurrencies to skyrocket so quickly? The
explanations vary, but the bottom line is that cryptocurrencies provide a decentralised
type of transaction that eliminates the need for an intermediary, making them more
convenient. Furthermore, cryptocurrencies use blockchain technology, which is deemed
secure and safeguards the user's identity. Meanwhile, cryptocurrency transaction fees
are far cheaper than those levied by conventional banking systems.
Various organisations are joining the cryptocurrency battlefield as a result of the
potential that cryptocurrency offers. According to another CNBC report, technological
behemoth Facebook has been seeking to create a digital currency, and after
encountering multiple setbacks, it is planned to debut Diem in 2021, a stable coin
tethered to the US dollar. Meanwhile, according to another GlobeNewswire report,
cryptocurrency mining start up Riot Blockchain, Inc. RIOT recently announced that
it has finalised the purchase of Whinstone from Northern Data. Whinstone created
the biggest Bitcoin hosting facility in North America, as measured by developed
capacity, beginning in early 2020, according to the report, and Riot Blockchain
expects to quickly raise the property bought to its current capacity of 750
megawatts.