The 4 years is not a hard and fast time period. Rather, Bitcoin halving takes place after every 210,000 blocks – which works out to approximately 4 years. By the year 2140, all 21 million bitcoins would have been mined.
Some examples of altcoins include ethereum, ripple, dash, zcash, monero, litecoins and others. There are several different reasons why these altcoins have been developed and each fulfills a specific purpose.
Of course, Bitcoin remains the most popular choice. However, more and more traders are choosing to get involved in the trading of other types of cryptocurrency in order to take advantage of the particular benefits that each type offers.
Monero is another unique cryptocurrency that is focused on maintaining the privacy of its users and the privacy of the transactions that occur on its network.
Nevertheless, Monero is quickly catching up and has serious potential to become a widely used digital currency. Its main competitor is another recently introduced cryptocurrency that focusses on preserving the privacy of transactions, namely Zcash which you can read more about here.
Originally founded as Xcoin in 2014, shortly thereafter renamed to Darkcoin, and since 2015 known simply as Dash, is an open-source peer to peer cryptocurrency.
First things first, let’s start from the beginning.
Ripple was released in 2012 by the Ripple company, then named Opencoin. Unlike other digital currencies, Ripple’s primary purpose is not to be a medium of exchange (such as Bitcoin) or a platform for creating smart contracts (such as Ethereum), although both are possible on its network too.
In reality, Bitcoin and Litecoin generally have the same properties. Both have a finite number of coins that can be ever produced, both use the proof of work method to verify transactions, and both use the blockchain technology to secure the network.
The differences between Litecoin and Bitcoin are more in the nuances than at face value. For instance, Bitcoin’s maximum number of coins is 21 million, whereas for Litecoin the maximum number of coins that can ever be created is set to 4 times that of Bitcoin or 84 million.
Ethereum is not the typical cryptocurrency like, for example, Bitcoin. Rather, Ethereum is a blockchain platform that primarily has the purpose to allow the creation and management of smart contracts and distributed applications.
Bitcoin is a peer-to-peer form of electronic cash that does not require any third party to be involved for a transaction to take place. A revolutionary invention, the Bitcoin digital currency aims to cut the middle man and give the power to the regular consumer when it comes to sending and receiving money. It does this by substantially cutting fees and limits compared to the usual way to send and receive money (e.g. using a bank).
By now, we are sure that everyone has heard of cryptocurrencies and Bitcoin, but not everyone knows about blockchain or understands what exactly it is.
Essentially, blockchain is a decentralized and publicly available register of all data in the network that is open for viewing to all users at all times, but no one can edit or alter any of the information that has already been recorded in the database. This is achieved by cryptographically securing the network which makes it practically unbreachable and is exactly what makes the blockchain technology so powerful.
Cryptocurrency mining is a procedure that is used to validate cryptocurrency transactions and, at the same time, to create new units of the cryptocurrency.
As cryptocurrencies continue to gain traction, more and more people are interested in trading them or investing in them. At the moment, there are mainly two ways one could invest in or trade cryptocurrencies.
It’s been nearly a decade since the first cryptocurrency, Bitcoin, was introduced to the world in 2009. From then onwards, Bitcoin has amassed a huge following and thousands of other cryptocurrencies emerged on the scene to join the cryptocurrency hype.
So, let’s start from the beginning by first discussing “what is a cryptocurrency?”.
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