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What are the Key Features of Cryptocurrency and it’s Working?

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Features of Cryptocurrency

What are the key features of cryptocurrency and its working?

Cryptocurrency is the buzzword today. Many investors are showing interest in investing in digital currencies to make considerable profits in the future. It is the digital, encrypted, and decentralized currency.

Millions of people are using digital currency in retail stores and many other places to buy things. Around 1.5 million cryptocurrency wallets are active as per the recent reports. Satoshi Nakamoto is the person who has first created bitcoin.

It is a decentralized cash system where there is no third party to govern or manage your transactions. The invention of digital currencies was a huge hit.

As per bitcoin app, the key features of cryptocurrencies include:

Available in the Digital Environment

Cryptocurrencies are available only in the digital environment. The currency can be accessed on the computer or mobile device provided with internet connectivity.

There is no physical form for this currency, like the traditional one. You cannot feel the cryptocurrency like the cash. You must store this currency in the digital wallets, a software program that allows you to send and receive bitcoins or cryptocurrencies.

Operate using a Decentralized Network

There is no server for cryptocurrencies. There are many computers and devices on which this currency would be available. There is no authority such as government, person, bank, or any group to control the cryptocurrency transactions.

Part of Peer-to-peer Network

The cryptocurrency would depend on the peer-to-peer network. This network will make sure that the transactions are carried out safely.

The decentralized network will avoid fraud and interference of third parties in between. It makes the transactions quick and secure. This network allows the user to pass the bitcoins or other cryptocurrencies to the other user directly.

Others can see the transactions of two people in the network with the bitcoin address. When the transaction is completed successfully, it is recorded on the ledger. This ledger is visible to all the users on the network and is also called a blockchain.

Use Encryption

The data that is encrypted would be in the form of code and is secured. It can only be accessed by the people who have the private key. You can convert any piece of information into a secret

Features of Cryptocurrency

code, which is known as cryptography. It is the method that is widely used in the cryptography exchange to ensure that the transactions are highly secure, anonymous, and are not controlled by any authority.

Permanent Transactions

The transactions that you carry out would be recorded on the ledger. You cannot modify the data on the records. It is permanent.

Keep the Transactions Anonymous

The identity of the people who are involved in the transaction would not be revealed except the address of the cryptocurrency. The encryption would hide their identity.

Working of Cryptocurrency

Bitcoin is the most widely used cryptocurrency. You can transfer the bitcoin in one wallet to another wallet without the involvement of any third party like banks. No one manages or monitors your transactions. When you install the digital wallet on the desktop or mobile, you will get an address.

This address must be shared with the person with whom you want to carry out the transaction. When the transaction is completed, the other users are called miners. They must verify their bitcoin address on the ledger.

The miners will verify the transactions by solving the problem related to the exchange. You must solve the problem to verify the transaction. The transactions that are verified would be added to the blockchain, i.e., the ledger. There are multiple blocks, and each block would hold many transactions.

Miners who verify the transactions would get bitcoin rewards to put a lot of effort into solving the mathematical problem. They also get the transaction fee by the exchange. The double spending can be kept at bay with the public ledger.

For instance, you want to pay for a friend by duplicating the currency using one for paying a friend and the other for buying things online. It is not going to work. Every transaction would be recorded on the ledger. It becomes easier for the miners to learn that you are using the same currency multiple times.

The cryptocurrency is legal to use in the US, and there are other countries such as Australia and Canada, who are allowing people to use this currency. The decision is pending on whether or not to use cryptocurrencies by European unions

Source: https://e-cryptonews.com/what-are-the-key-features-cryptocurrency-and-its-working/

Blockchain

Analysis: Current Bitcoin Rise Due To New Money Entering Crypto (And Not Altcoins Sell Off)

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Bitcoin is enjoying several consecutive bullish days, resulting in a break above $12,000. The movement may surprise some. A few days ago, news broke that the popular cryptocurrency exchange OKEx had suspended withdrawals after reports emerged that its founder was taken away by the police.

In early October, the owners of another large platform, namely BitMEX, were charged by the US CFTC with illegally operating a derivatives exchange.

Similar developments typically lead to adverse consequences for the cryptocurrency market. Although Bitcoin’s price indeed dipped briefly, the asset recovered swiftly. Moreover, it actually started accelerating.

On October 2nd, when the BitMEX news came out, BTC slumped to $10,400. With its price set above $12,200, this represents a 17% increase in less than three weeks. Since last Friday alone, when the OKEx events transpired, Bitcoin has gained about $1,000 of value.

Apart from building optimism within the community that a new 2020 high of above $12,500 is coming, BTC’s impressive performance raised questions about the nature of the funds going into Bitcoin.

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New Capital Enters

Popular cryptocurrency commentator Alex Saunders published a graphic on the matter called “Crypto Market Cycle Capital Flows.”

Crypto Market Cycle Capital Flows. Source: Twitter
Crypto Market Cycle Capital Flows. Source: Twitter

Saunders specified that the blue represented the entire cryptocurrency market cap, the black – BTC’s market cap, and the orange was the cumulative market cap of all alternative coins.

He outlined several periods when Bitcoin’s performance contrasted altcoins. This implies that when BTC was heading up, investors were swapping their altcoin positions for more significant exposure to Bitcoin and vice-versa.

However, the latest price increase for the primary cryptocurrency doesn’t fall under the same category. Saunders concluded that the data he collected “suggests the capital entering Bitcoin is new money rather than a rotation from Altcoins.”

Alternative Coins Stay Still

By examining the price performance of the altcoin market, one could see merit in his words. Although some alts have lost value lately, most have remained relatively stable.

On a weekly scale, Ethereum has lost less than 1%, while Ripple has dropped by about 2%, according to data from CoinMarketCap.

The altcoin market cap hovered around $148 billion a week ago and is slightly down to $147 billion now. The monthly scale even sees an increase from about $135 billion.

Altcoin Market Cap. Source: CoinMarketCap
Altcoin Market Cap. Source: CoinMarketCap
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Source: https://cryptopotato.com/analysis-current-bitcoin-rise-due-to-new-money-entering-crypto-and-not-altcoins-sell-off/

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Cardano Prepares To Break Out As Investors Watch In Disbelief

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Cardano prepares to break out as the sentiment around it creates a valuable profit opportunity while remaining dormant as the price action gets capped by the 200 and 50-hour moving averages as we are reading further in our Cardano coin news.

The on-chain metrics show that Cardano prepares to break out above the resistance level which will not be easy. The current state of the disbelief of the ADA traders could be a positive sign from the counter sentiment perspective as Cardano is going through a stagnation phase and the rest of the market aims for higher highs. As the investors shift their attention to pumping coins, ADA will go higher and will make a breakout again.

adausd
ADAUSD on TradingView

Cardano has been stuck in the 200 and 50-twelve hour moving averages so these critical hurdles have limited the price action to a smaller trading range that is getting even narrower time after time. ADA’s inability to bust through the support and resistance makes this area a no-trading zone. With Bitcoin’s impressive rally at $13,000, it is safe to assume that a breakout will soon happen but the IOMAP model shows that moving past this resistance will not be easy. Based on the on-chain metrics, about 5,200 addresses previously purchased 2 billion ADA coins between $0.11 and $0.113 so with an impressive rally like this one, a barrier could have the ability to keep the rising prices at bay. Holders in this price range will try to exit the previously recorded underwater positions which will push the prices back down.

iomap
InOut of the Money Around Price by IntoTheBlock

Because of the heavy resistance ahead, the long-term sentiment around Cardano was pessimistic. Most of the market participants believe that ADA will not create a strong enough buying pressure to break out. they seem to be waiting to catch long positions at lower prices. Going against the wider opinion proves to be a profitable strategy especially in the crypto market. From a counter sentiment perspective, this state of disbelief is bullish as the odds for another breakout that will get the traders behind their backs increases drastically.

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If Cardano manages to turn the $0.11 and $0.113 resistance into support, the IOMAP model shows no bearish traps ahead that will prevent it from rising more towards $0.13. it is also worth mentioning that if the overhead resistance rejects more upward price action, the $0.1 level could act as stiff support. More than 18,000 addresses already hold 2.5 billion ADA according to IntoTheBlock’s IOMAP model.

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]

Source: https://www.dcforecasts.com/cardano-news/cardano-prepares-to-break-out-as-investors-watch-in-disbelief/

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Bitcoin Price Moons to New 2020 Highs on PayPal News

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Newfound bullish momentum is omnipresent with Bitcoin’s price throughout the last few days. The cryptocurrency has increased by more than $2,000 since October 6th, and it shows no signs of slowing down.

Bitcoin Price Breaks 2020 Highs on PayPal News

Throughout the entire month of September, Bitcoin’s price was somewhat stagnant, with a few minor exceptions. This became a cause for increasing worries among cryptocurrency analysts and traders, many of whom were worried that the price would head lower and fill the (still) unfilled CME gap down at $9,600.

All of this changed on October 6th when BTC started its ascend. Since then, the price has increased by more than $2,000, with the momentum culminating today on some major news coming from PayPal.

The world’s largest online payment processor announced that it would enable its customers to buy, sell, and store Bitcoin and other cryptocurrencies as soon as the “coming weeks” for US-based accounts and the first half of 2021 for other countries.

Naturally, the market reacted in a positive way. Today, Bitcoin’s price has surged from a low of around $11,910 to a high of $12,888 on Binance Futures, before retracing to where it’s currently trading at $11,750. With this sudden move, Bitcoin broke the previous 2020 high marked on August 17th when the price reached almost $12,500.

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btcusd_Chart
BTC/USD. Source: TradingView

The Rest of the Market Stalls Against BTC

Somewhat expectedly, altcoins are bleeding heavily against Bitcoin. The market dominance of the world’s leading cryptocurrency is increasing aggressively over the past few days, as it’s now sitting at 61.%, up about 3% in the last month.

BTC_dominance_chart-min
Bitcoin Dominance. Source: CoinMarketCap

As CryptoPotato reported yesterday, BTC’s market dominance is sitting on a 2-month high, while altcoins are already feeling the pressure.

Moreover, a recent analysis indicated that the latest increase in the price of Bitcoin comes from fresh capital, and it’s not a rotation of funds from alts. This shows that the new money entering the space goes into Bitcoin, rather than alternative cryptocurrencies.

On an entirely positive note, it’s worth mentioning that this seems to be a news-driven event. The fact is, however, that PayPal still hasn’t allowed its users to buy Bitcoin, meaning that there might be more positive developments once the feature is rolled into the platform’s services. Moreover, the company has also stated that it will push for the adoption of using digital assets with its vast merchant network in the following year.

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Source: https://cryptopotato.com/bitcoin-price-skyrockets-to-new-2020-highs-on-paypal-news/

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