With the increase in value gained in 2017, crypto coins, which broke the memorization in the economy markets and became a new area, have been the dream of those who want to be rich in the recent times. Therefore, the number of questions about crypto coins also increased. All you need to know from A to Z about crypto coins.
What Does Crypto Money Mean?
Crypto and currency (currency) words created by the combination of this term, encrypted money. There is no centralized institution where these funds are produced or controlled, and the money is generated over the internet. Digitally encoded and coded coins are recorded by blockchain method.
How and How to Produce?
The mechanism that determines the amount of production of crypto coins is the consumer. These funds are produced and sold according to demand and balance. Firstly, these coins started to be produced in 2008 and they are produced by the algorithms of the software. The money produced is stored in electronic wallets.
How are the transactions recorded?
The head of the software that manages this currency comes from the blockchain. This software, which means block chain, performs many basic operations such as production, sale and operation of crypto coins. The network security is also provided by this blocking system for the money received and sold anonymously.
Who Can Produce Crypto Money?
In theory it can be said that everyone can generate crypto money on everyone’s computer, but it is necessary to apply “mining” technique very quickly. The production mechanism of these coins is in the hands of Chinese companies. The software in the hands of these companies, the individual does not be able to do more and quick mining. It is more preferable to get ready for personal production.
Where are Crypto Coins Stored?
Coins stored in the Blockchain network can be controlled via personal digital wallets. Wallet information is written to the network called public key. You can manage your wallets with software like Exodus. If you want to keep your money in a safe way, you need to keep your private key information, not share it with anyone, and get your money from reliable sources.
Is There Physical Reserve?
It is not possible to use crypto coins as concrete or banknotes. But this money has a currency like euro or dollar and you can cash your crypto money at any time.
How Many Pieces Has Crypto Currency?
New crypto currencies appear almost every day . In addition to brands such as Bitcoin , Ethereum, Ripple, Litecoin, there are more than 1500 crypto currencies.
While the crypto currency has a solid firewall, some errors can occur due to its anonymous feature and human factor.
Is it Legal or Illegal?
Although crypto coins are banned by some countries, they are free to use in countries such as the USA, China, Japan. But it can also be used illegally because of money laundering and illegal transfer.
How Much is a Crypto Money Buying Value?
The value of crypto coins can undergo rapid changes depending on different elements.