What is Cryptocurrency? Cryptocurrency Definition from A to Z
The term crypto money, which has been a term that has not been heard anymore in the last few years, seems to constitute more of our lives in the future.
Although cryptocurrencies are very popular, according to researches, a maximum of 5% of the world is familiar with the world of crypto money, and still, questions such as what is crypto money on the internet, how crypto money emerged are increasing day by day.
In this content, we will try to give you all the details about crypto money, especially the answer to the question of what is crypto money.
What is Cryptocurrency?
Cryptocurrencies; They are anonymous digital assets that can only be used virtually with the encryption method called cryptography.
Crypto money, which does not have any physical existence, can be used by many people with terms such as virtual money, digital money, electronic money instead of crypto money, since it is completely in the digital environment.
Since it gained its popularity with Bitcoin (BTC), the history of cryptocurrencies, also called coins or coins as an alternative name, dates back much earlier than Bitcoin.
There are certain features that cryptocurrencies should or are believed to have. These features are:
- Transaction and account records,
- Terms of creating a new cryptocurrency,
- Anonymity, that is, the privacy of the owner of the cryptocurrency and wallet,
- All transactions can only be made by the owner of the cryptocurrency or wallet,
- Realization and recording of only one transaction in multiple transactions with the same entity.
Crypto assets, which can meet the above conditions and are called crypto money, must also have a value or be able to evaluate a value.
How Did Cryptocurrency Come Up?
Crypto money technology, which many people think started with Bitcoin, was first created by the American David Chaum in 1983, and the created crypto money was called eCash. eCash, which was realized by Digicash company in 1995 and used as a micro payment system until 1998, could not receive the necessary attention and ended as a result of some lawsuits.
The idea of crypto money, which started with eCash, attracted more attention with a statement called How to Print Anonymous Cryptocurrency published by the US National Security Agency (NSA), followed by a statement called b-money published by Wei Dai in 1998. In the same year, Nick Szabo created the first anonymous cryptocurrency, which became known as bit-gold.
Again in 1998, Hal Finney; With the inspiration of Wei Dai and Nick Szabo, he developed the Proof of Work (PoW) protocol that anyone can use and which is Turkish for Proof of Labor.
When all the crypto money ideas and cryptocurrencies that emerged until 1998 did not gain any popularity and success, the idea of crypto money, which remained silent until 2009, flared up again as if it would never go out again, with the creation of Bitcoin by the person or group whose nickname is Satoshi Nakamoto.
Bitcoin, a semi-anonymous cryptocurrency based on SHA-256 and using the Proof of Work (PoW) protocol, and the blockchain of Bitcoin was revealed by Satoshi Nakamoto. Bitcoin is not a fully anonymous cryptocurrency, because in Bitcoin transfers, it can be followed from which account to which account the crypto money, namely Bitcoin (BTC) is sent. Since it is not known who the accounts belong to, Bitcoin is considered a semi-anonymous cryptocurrency.
The cryptocurrency frenzy that started with Bitcoin began to gain popularity with the emergence of other cryptocurrencies, later called altcoins for short, or alternative cryptocurrencies or alternative coins (coins).
In 2011, a cryptocurrency called Litecoin was created, which uses the Scrypt basis instead of Bitcoin’s SHA-256 basis. Litecoin; Unlike all other altcoins, especially Bitcoin, it has come to the fore by using Scrypt instead of SHA-256.
Due to the energy and difficulty required by the Proof of Work (PoW) protocol, which allows mining Bitcoin and all other cryptocurrencies using the protocol, the Proof of Stake (PoS) protocol emerged in 2012 and a crypto currency called Peercoin made its name using both PoW and PoS. succeeded in making it known.
IOTA, which emerged in 2016, stood out as a cryptocurrency that uses a cyclical graph called Tangle instead of blockchain.
The first concrete step in cryptocurrencies, which attracted the attention of many large countries in 2018, was taken by the Marshall Islands. Marshall Islands; He issued the first national cryptocurrency, called the Sovereign, and declared it the official currency of the country.
With the participation of corporate companies in the crypto money world after 2018, crypto money markets (crypto currency exchanges), crypto currencies, crypto money analysis and crypto money news have started to be the most searched terms on the internet.
What is a Cryptocurrency Wallet?
Cryptocurrency wallets are digital wallets where owned cryptocurrencies can be stored and kept.
Thanks to the crypto money wallets that vary as Cold Wallet and Hot Wallet, the crypto money owned can be stored and sold from the wallet or transferred to another wallet at any time.
A cryptocurrency wallet has two addresses or codes called keys. These addresses, which consist of completely complex codes and are almost impossible to memorize, are called Public Key (Public Address) and Private Key (Private Address).
The Public Key is a publishable address and money transfers to the wallet can be received through this address. Private Key, on the other hand, is a code that only the crypto wallet owner should know. Without a private key, the wallet cannot be activated and therefore cryptocurrencies in the wallet cannot be used.
With hot crypto wallets that can be used online and are usually provided by crypto exchanges, transactions can be made at any time, but as the wallets are created by crypto exchanges, the private key codes of the wallet are not shared with the wallet owners and are kept on the exchange.
Cryptocurrency wallets, which are called cold wallets due to their offline use, are activated only by the private key used during the transaction, transactions are carried out and can be made offline again.
Frequently Asked Questions About Cryptocurrency
We are aware that there are hundreds of unanswered questions about cryptocurrencies. In this section, we will answer the most frequently asked questions for cryptocurrencies, and we will regularly update this section in line with your questions and requests.
How to Buy Cryptocurrency?
It varies according to the method of buying crypto money and the characteristics of the crypto exchange to be used.
How to Analyze Cryptocurrency?
In order to analyze cryptocurrencies, it is necessary to have the ability to analyze the stock market. Cryptocurrency analysis, like stock market analysis, is not a process that can be summarized in just 3-5 sentences. For this reason, it would be the most logical option to find a reliable crypto money analysis training and get training.
What is Cryptocurrency Market?
Cryptocurrency market, also called cryptocurrency exchange, are special platforms where crypto assets can be bought and sold.
Every crypto asset has a price in the cryptocurrency market or exchange, and these prices change instantly and daily. Cryptocurrency or tokens can be purchased in exchange for the money invested in cryptocurrency exchanges or markets, which are also the easiest and fastest options for purchasing cryptocurrencies.
How is Cryptocurrency Produced?
Cryptocurrency production varies depending on the maximum supply of the relevant cryptocurrency and the encryption technology. Basically, the production mechanisms of the cryptocurrencies obtained by completing each block on the blockchain can be different from each other.
In the crypto coins produced according to the Proof of Work (PoW) protocol, crypto money mining equipment is at the forefront. new cryptocurrencies are obtained.
What Does Cryptocurrency Do?
Cryptocurrency provides a very fast way to send money from one end of the world to the other, as an alternative to the difficulties and delays experienced in international money transfers. In addition, cryptocurrencies stand out as a unique option for people who want to remain anonymous.
How Does Cryptocurrency Rise?
Cryptocurrency prices rise for multiple reasons. The main reasons are; The belief provided by the crypto money project, the demand for the crypto money, the total supply amount and volume of the crypto money.
Cryptocurrency Which Country’s Currency Is It?
Cryptocurrencies do not belong to any country or center and are completely independent. Except for the crypto assets created by countries and companies for themselves, cryptocurrencies do not belong to any country.
What is Cryptocurrency Mining?
Cryptocurrencies with the Proof of Work (PoW) protocol and mechanism can be earned by a method called cryptocurrency mining. Cryptocurrency mining, which is an alternative answer to the question of how to earn crypto money, is done depending on hardware and energy consumption and is a subject that should be examined under a completely different heading.
How to Get, Create or Open a Cryptocurrency Wallet?
A cryptocurrency wallet is not something that can or should be bought.
Cryptocurrency wallets that can be created for free; It can be obtained free of charge through crypto exchanges, with crypto wallet hardware, or with cryptocurrencies’ own wallet creation systems.
How to Make Cryptocurrency?
In order to make crypto money, first of all, it is necessary to have sufficient software and coding knowledge.
Today, crypto assets called tokens can be easily created with just a few transactions, but making or creating crypto money requires software and coding knowledge.