Cryptocurrency Conversion in the new year
A Beginner’s Guide
Are you new to the world of cryptocurrency and feeling a bit overwhelmed by the prospect of converting between different digital assets? Don’t worry, you’re not alone. Cryptocurrency conversion can be confusing for those who are new to the game, but with a little bit of knowledge and the right tools, it’s actually quite easy.
So, what exactly do we mean by “cryptocurrency conversion”? Simply put, it refers to the process of exchanging one cryptocurrency for another, or for fiat currency (i.e. traditional government-issued currency like the US dollar or Euro). For example, you might want to convert your Bitcoin to Ethereum, or your Litecoin to US dollars.
There are a few different ways to go about converting cryptocurrencies, and the best method for you will depend on your specific needs and preferences. Here are a few options to consider:
- Cryptocurrency exchanges: These online platforms allow you to buy and sell cryptocurrencies using a variety of payment methods. Most exchanges support a wide range of cryptocurrencies, and some even allow you to exchange fiat currencies for cryptocurrencies. To use an exchange, you’ll need to create an account, verify your identity (for some exchanges), and transfer funds into your account. From there, you can buy and sell cryptocurrencies as you see fit. Some popular exchanges include Coinbase, Binance, and Kraken.
- Peer-to-peer (P2P) exchanges: P2P exchanges allow you to buy and sell cryptocurrencies directly with other individuals. This can be a good option if you don’t want to go through a traditional exchange, or if you want to avoid paying exchange fees. P2P exchanges typically offer more flexibility and privacy than traditional exchanges, but they also come with more risk as you are dealing with individuals rather than a regulated entity. Some popular P2P exchanges include LocalBitcoins and Paxful.
- Cryptocurrency ATMs: These physical machines allow you to buy and sell cryptocurrencies using cash or a debit card. Cryptocurrency ATMs can be a convenient option if you need to convert your cryptocurrencies quickly and don’t have access to an exchange or P2P platform. Keep in mind that cryptocurrency ATMs often have high fees, so they may not be the most cost-effective option.
- Cryptocurrency brokers: Brokers are individuals or companies that buy and sell cryptocurrencies on behalf of their clients. They can be a good option if you don’t want to deal with the hassle of setting up an exchange account or navigating a P2P platform. However, brokers typically charge a premium for their services, so they may not be the most cost-effective option.
No matter which method you choose, it’s important to do your research and select a reputable and secure platform for your cryptocurrency conversions. Be sure to read reviews, compare fees, and take steps to protect your personal and financial information.
Converting between cryptocurrencies may seem daunting at first, but with a bit of knowledge and the right tools, it can be a simple and convenient process. Whether you opt for an exchange, a P2P platform, a cryptocurrency ATM, or a broker, there are plenty of options available to help you achieve your conversion goals.
A short and full course on money, blockchain, Bitcoin, mining and more
- WHAT IS BLOCKCHAIN?
As you see, trusting a third party is not the best course of action. The cure for this cursed model is a technology called the blockchain. Blockchain – a persistent, transparent, public, append-only distributed decentralized digital ledger within a peer-to-peer network that creates trust in the data.
Translation into anti-nerd: Blockchain is a digital book, which records transactions that are hard to change after they have been added; the book can be seen by anyone anywhere; anyone can have a copy of that book; there is no third-party or middleman, like banks, Amazon, eBay, Alibaba, etc. Only the sender and the receiver. It is the underlying technology that powers cryptocurrency. It can also be programmed to record and track anything of value (land titles, medical records, etc.).
Excluding the middlemen from the equation is good because they create several problems:
- Loss of trust
- Billions of people get excluded from the global economy
- Slow system
- High fees
- No privacy
- WHAT IS CRYPTOCURRENCY?
Cryptocurrencies are like regular currencies, except they are entirely digital and use cryptography for security. The difference between cryptocurrency and blockchain is that cryptocurrency is like US dollars (to check the price, you can visit https://coinepo.com/convert/btc), while blockchain is like the Federal Bank of the US. The other difference is that the cryptocurrencies (not only the BTC) can be used from all countries without any restrictions (United Kingdom, EU, Philippines (SLP TO PHP, as an example), and so on).
- HISTORY OF BLOCKCHAIN AND BITCOIN
Blockchain was first introduced in 1991 by Stuart Haber and W. Scott Stornetta to prevent tampering with document time stamps. It was adapted on the 3rd of January 2009 with the launch of Bitcoin by Satoshi Nakamoto. Nobody knows who he is or who they are.
2.3 ANOMYTITY OF SATOSHI NAKOMOTO
The reason why Satoshi Nakamoto chose to stay anonymous is this. A long time ago there was Gold & Silver Reserve Inc. which operated a digital gold currency called e-gold. It was founded in 1996 by oncologist Douglas Jackson and attorney Barry Downey. The idea was kind of similar to Bitcoin: an encrypted anonymous digital currency that is backed by a fixed supply of $71 million worth of gold; users can make instant transfers as small as 0.0001 gram of gold. At its peak in 2006 e-gold was processing more than $2 billion worth of transactions per year. The problem was that it was run by a corporation, which was formed in the Caribbean. It had hacks associated with it, frauds. In the end, the government took action. e-gold pleads guilty to money laundering and illegal money transmitting charges. In 2008 the company was shut down.
- TYPES OF BLOCKCHAIN
- Permissionless, anyone is allowed to join
- Completely decentralized, all nodes have equal rights
- Transactions are anonymous but transparent to everyone
- Slow transactions
- More secure
- Permissioned, only specific parties can become a node, no anonymity
- Partially decentralized, a single organization as a central authority
- Faster transactions
- Less secure
- Same as the private blockchain, but has multiple organizations, instead of 1
- Faster than Private Blockchain
- More secure than Private Blockchain
- More decentralized than Private Blockchain
- Combination of Public and Private Blockchains
- Some data are public for the nodes, some are private and can be seen only by the central authority
There is not only one blockchain, there are many. What we will discuss here is the Bitcoin’s Blockchain. In future articles, we will examine other ones, like Ethereum’s, Ripple’s, etc.