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What is Cryptocurrency?

cryptocurrency at it's basic is a type of digital money designed to be used over the internet. The most popular one you may recognise is Bitcoin which still continues to be the leading Cryptocurrency.

How does cryptocurrency work?

At the root of how it works is a Blockchain, A blockchain is a list of transactions that People can view and verify and you will learn more about blockchains below. So for example it would be every time someone sends or receives a coin. This list of transactions is very important for most cryptocurrencies because it enables secure payments to be made between people who don’t know each other without having to go through a third-party verifier like a bank. The Bitcoin ledger is split across multiple computers that are on the network and are constantly checking the Blackchain (Transactions) are correct.

How do you buy Cryptocurrencies?

The fastest and easiest way would be to use an online exchange like Coinbase.com,  With online exchanges they offer a wide range of Cryptocurrencies for you to purchase. 

What is an ETF?

ETF Stands for Exchange-Traded funds and are very similar to mutual funds. They generally track the price of an asset (like gold) or basket of assets. They trade on exchanges and can be bought and sold like stock via a traditional brokerage account.

What is Mining?

Mining is the process that cryptocurrencies use to generate new coins and verify new transactions. It involves vast, decentralized networks of computers around the world that verify and secure blockchains – the virtual ledgers that document cryptocurrency transactions. In return for contributing their processing power, computers on the network are rewarded with new coins. Very computers perform the calculations required to verify and record every new bitcoin transaction and ensure that the blockchain is secure. Verifying the blockchain requires a vast amount of computing power, which is voluntarily contributed by miners. 

Crypto mining is a lot like running a big data center. Companies purchase the mining hardware and pay for the electricity required to keep it running (and cool). For this to be profitable, the value of the earned coins has to be higher than the cost to mine those coins.

What is Market Cap?

Market Cap is the total value of all the coins that have been mined. You can work it out by Multiplying the total coins in circulation by the price of one single coin.

What is a Protocol?

A Protocol is basically a set of rules which allow data to be sent between computers. This creates the structure of the blockchain and allows the a distributed database to securely exchange money over the internet.

What is a non-fungible token (NFT)?

NFTs (or “non-fungible tokens”) are a special kind of cryptoasset in which each token is unique — as opposed to “fungible” assets like Bitcoin and dollar bills, which are all worth exactly the same amount. Because every NFT is unique, they can be used to authenticate ownership of digital assets like artworks, recordings, and virtual real estate or pets. A great website to check out would be https://www.binance.com/en/nft/home 

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