Have you been paying attention to the news lately? Got a chance to check through your news feed on what’s the latest update? Then you’ve probably noticed how cryptocurrency is taking the world by storm. It also wouldn’t come as a surprise if you are interested to learn how this innovation works and how you can be a part of it. If that’s the case, you are in the right spot! Read on for a crash course on how cryptocurrency works and how you can use it to gain profit.
What is cryptocurrency?
First things first, what is cryptocurrency, and why is everyone talking about it? Cryptocurrency is a digital currency which uses encryption techniques to regulate its use as well as generate its release. As compared to fiat currency like euros and US dollars this digital currency is not regulated by the government or the bank. In its place, cryptocurrency depends on the Internet to process transactions and guarantee its value. To verify every transaction, participants will need to use a network, and those transactions will then become a public record. This is how cryptocurrency prevents the same coin or digital currency from being used twice by the same person.
How are the cryptocurrency records stored?
All transactions in cryptocurrency are recorded in a digital public ledger called blockchain. It uses heavy-duty encryption, including involving public and private keys so there’s need to worry about frail firewalls or suspicious bank employees. The data and records are saved across a network, and it runs on computers of different volunteers around the world. These factors stop blockchain from being susceptible to manipulation of hackers or any system failure.
The records on the blockchain is also known as blocks. After a block is submitted by a participant to a network, it will be verified by the network as a valid transfer before it’s added to the blockchain. Once the transaction verified, the block can no longer be changed.
What is cryptocurrency mining?
Cryptocurrency mining involves the process by which the the transactions are verified and added to the blockchain. It is also how the cryptocurrencies are released to the world. Anyone who has Internet access and has a suitable hardware can take part in the mining process.
What is an ICO (Initial Coin Offering) and How Does it Work?
An initial coin offering is almost the same as an initial public offering regarding concept because the two are the processes that companies use to raise capital., while an ICO gives the investor a token or crypto coin as opposed to initial public offering that gives securities to investors.
How Does an ICO Work?
ICOs are usually split into two main periods namely the public sale and pre-sale periods with a cap of funding that must be attained for the project to start. A pre-sale is a type of token that is reserved for institutions or individuals on the whitelist and is allowed to buy the coins before they are floated to the public. It gives bonus coins to participants who are required to contribute a certain amount of money. A pre-sale is a way to reward initial supporters by allocating those tokens and helps to build the attention of the entire project. The public sale period is longer compared to the pre-sale period.
Obviously, this is just an introduction and basic guide to those who are interested in cryptocurrency. If you want to start an ICO marketing company or want to better understand cryptocurrency, there are many companies that offer these services. One company you should consider is Kryptoia. This company creates ICO from scratch and offers various cryptocurrency services such as consultancy and fundraising. Check out their website to learn more about how they can help you.