CRYPTOCURRENCY FOR BEGINNERS

In order to be well-informed before investing in a cryptocurrency, you can learn the basics with Miracle Cash&More’s education center.

1INCH

WHAT IS 1INCH?

Decentralized exchanges (DEXs) are part of the decentralized finance (DeFi) ecosystem that allow traders to exchange crypto assets without an intermediary. DEXs allow traders to maintain custody over their funds in their wallets, without sharing personal identifying information. 1inch is a decentralized exchange aggregator that aims to provide traders with the best price and lowest fees on their transaction. It does this by collecting real time pricing data from various DEXs and allowing traders to identify the optimal price across the market and capture trading opportunities within a single platform.

Bitcoin

WHAT IS BITCOIN?

Bitcoin is a revolutionary invention that introduced a new way to manage a digital money supply outside of government or bank control. The Bitcoin protocol enables computers to manage a data set and enforce rules that make it scarce and valuable.

The Bitcoin protocol uses public-key cryptography, peer-to-peer networking, a finite supply, and the blockchain to function. The public key is used by the protocol to prove ownership of bitcoins. The private key ensures that only the owner of the bitcoins can access them. The nodes review transactions in the network to ensure the software’s rules are being followed. The miners then compete for the right to batch these transactions into the blocks added to the blockchain. The blockchain is a full record of the network’s history that is validated by individuals running the Bitcoin software.

Because bitcoins are limited, divisible, and transferable, they are used as money.

Chainlink

WHAT IS CHAINLINK?

Chainlink is a cryptocurrency that aims to incentivize a global network of computers to provide reliable, real-world data to smart contracts running on top of blockchains. To date, most smart contracts have relied on external data sources to execute their terms, but Chainlink aims to address this issue by incentivizing data providers to act as a bridge between blockchain smart contracts and external data sources.

Chainlink is a decentralized oracle network that incentivizes nodes to provide accurate data by assigning reputation scores and rewarding them with cryptocurrency. The project is working towards supporting all smart contract blockchains. As of 2020, Chainlink is seeking to support all blockchain-based smart contract networks.

Chiliz

WHAT IS CHILIZ?

Chiliz is a cryptocurrency that allows sports fans to have unique experiences with their favorite teams. Fans can purchase the Fan Tokens of their favorite teams using the CHZ token and each team can customize the real world experiences their Fan Tokens provide. Fan Tokens can grant holders influence over decisions presented by the team such as new uniform designs, celebration songs, stadium names, and starting lineups.

Fans can now engage with their favorite teams by purchasing Fan Tokens. Chiliz allows teams to monetize their fan base in new ways, providing special experiences for loyal supporters.

Dogecoin

WHAT IS DOGECOIN?

Dogecoin is a cryptocurrency inspired by a popular meme of a Shiba Inu dog. It was launched in 2013 and rose to popularity in 2014, due to its personality and accessibility bringing new possibilities to Bitcoin’s invention. Dogecoin is still a popular cryptocurrency and is mostly used for tipping online content creators or for crowdfunding efforts.

Ethereum

WHAT IS ETHEREUM?

Ethereum is a blockchain project that seeks to decentralize products and services in a wide range of use cases beyond money. Ethereum’s goal is to enable programs users can interact with and create. The project’s team would create its own virtual machine and scripting language, raise funding through the sale of its own new money, and introduce a concept called “state”.

Ethereum is a platform that tracks changes to state through smart contracts and decentralized applications, which could one day be used to create software that mimics the behaviour of internet companies.

Amazon can be thought of as a state service that connects buyers to a massive, ever-updating inventory stored on databases. In this case, a for-profit company plays the role of middleman and technology steward. Ethereum can be viewed as an attempt to create competitive markets governing different parts of these monopolistic services. As of 2020, Ethereum’s developers are in the early stages of delivering on this idea and preparing an overhaul of its core code called “Ethereum 2.0” that will usher in new changes.

Litecoin

WHAT IS LITECOIN?

Litecoin was the first “altcoin”, or cryptocurrency that was inspired by Bitcoin. It reduced the amount of time it took for new blocks of transactions to be added to the blockchain, making it more appealing to merchants.

In the mid-2010s, investors and merchants lost interest in Litecoin. In order to maintain competition with Bitcoin, the project developed cutting-edge technologies like the Lightning Network and Segregated Witness. The market has largely viewed these efforts as in line with Litecoin’s values, with the project often being portrayed as the silver to Bitcoin’s gold.

Storj

WHAT IS STORJ?

Storj is a platform for decentralized, peer-to-peer cloud storage. It allows users to sell their unused hard drive space to users looking to store files. The system is powered by the STORJ cryptocurrency, which users can use to pay or get paid for storing files.

Storj regularly audits its network by sending requests to node operators. If operators can prove they still have the data, they receive a payment. These audits maximize file storage quality and ensure the network stays decentralized. As of 2020, the network is comprised of over 6,000 active nodes.

Sushi

WHAT IS SUSHISWAP?

SushiSwap is a decentralized finance platform running on Etherium that allows users to buy, sell, and swap cryptocurrencies. Users lock up their assets in smart contracts and traders then buy and sell from the liquidity pools. Decisions are made by SUSHI token holders, and anyone with a balance can propose changes to how the software operates and vote on submitted proposals.

Tether

WHAT IS TETHER?

Tether is a company that issues blockchain-based assets, or stablecoins, backed by government money. Tether currently supports USDT, CNHT, EURT and XAUT. Each USDT is redeemable for a corresponding U.S. dollar held by Tether. The total value of all USDT is said to be equal to the reserves held by Tether.

Stablecoins are a new class of cryptocurrency. They are used to avoid the extreme volatility of the cryptocurrency markets. USDT is the largest and most widely used stablecoin as of 2019. Facebook announced in 2019 that it was seeking to launch its own stablecoin, named Libra.

Theta

WHAT IS THETA?

Theta is a decentralized video streaming platform that incentivizes users around the world to relay video streams using their spare bandwidth and computing resources. Existing CDNs can’t keep up with increasing stream quality due to their location restrictions, so Theta allows its users to relay videos and rewards them for doing so.

Theta’s two native cryptocurrencies are THETA coin for voting on protocol changes and TFUEL for executing transactions. Theta is open-source software that anyone can build on.

Tron

WHAT IS TRON?

Tron has been successful in reaching a global group of investors and developers with its vision for how cryptocurrencies could reshape the internet. In contrast to many other projects that launched at the same time, it distinguished itself with its marketing communications that resonated well with its audience. For example, it did not advertise any advances in cryptography or network design, but rather, the basic building blocks of Tron were pioneered by other projects. Tron went so far as to make components of its technology compatible with Ethereum.

In 2018, Tron gained mainstream attention when the non-profit spearheading its development, the Tron Foundation, acquired peer-to-peer networking pioneer BitTorrent. This acquisition preceded the launch of a BitTorrent token on the Tron blockchain in 2019. The token gives Tron the ability to market a new cryptocurrency to millions of existing users.

Uniswap

WHAT IS UNISWAP?

Uniswap is a decentralized exchange that incentivizes users to maintain an exchange where cryptocurrencies can be bought and sold. The difference is that Uniswap has no central operator or administrator. Rather than maintaining a central order book, it uses liquidity pools. Liquidity providers contribute to Uniswap by locking two assets into a smart contract. For example, DAI/ETH liquidity pool consists of equal values of DAI and ETH.

Provider liquidity pools maintain a balance of cryptocurrencies like BTC and ETH and are rewarded with a percentage of trading fees. Users can buy and sell from the pools, swapping one token for another. Anyone can list a token on Uniswap as long as there is a liquidity pool for traders. Users can stay up to date on Uniswap’s development by following its official blog.

VeChain

WHAT IS VECHAIN?

VeChain is a software platform that aims to incentivize a network of computers to operate a platform allowing business to build and run decentralized apps. The platform also allows better digital collaboration between businesses by giving them new tools for efficient data transfer and supply-chain management.

VeChain is a blockchain platform that companies use to track products. Some of the companies that use VeChain are BMW, LVMH, and Walmart. The two native cryptocurrencies are VET for voting on changes to the protocol and VTHOR for executing transactions.

XRP

WHAT IS RIPPLE?

XRP aims to complement traditional payments by migrating transactions from databases controlled by financial institutions to a more open infrastructure. One of the more ambitious cryptocurrencies to go live, XRP is notable for its design and the ongoing discussion about how blockchains can be architected. Unlike Bitcoin, the XRP Ledger grants this power only to approved participants.

At launch, all 100 billion XRP were created and distributed to individuals and companies through gifts and online giveaways. Ripple, a for-profit company, acts as principal steward in the funding and development of the XRP Ledger.

Zilliqa

WHAT IS ZILLIQA?

Zilliqa is a blockchain platform that uses sharding to increase user scalability. It is competing with other blockchain platforms, such as Ethereum, Tron, and EOS. The platform splits its infrastructure into several inter-connected blockchains to support more transactions.

Zilliqa is a blockchain platform that has launched Scilla, a programming language that focuses on security and enables developers to write customizable dapps. ZIL is the network’s native cryptocurrency and is used to execute programs, send transactions, and incentivize actors that support the network.

WHAT IS CRYPTOGRAPHY?

Cryptography is the study and practice of sending secure, encrypted messages ordata between two or more parties. The sender encrypts the message, which obscures its content to a third party, and the receiver decrypts the message, making it legible again.

Cryptocurrencies use cryptography to allow anonymous, secure, and trustless transactions. Computers and networksare constantly encrypting and decrypting data.

Why is cryptography important?

Cryptocurrencies, like Bitcoin, are based on cryptographic ideas. The creator of Bitcoin, Satoshi Nakamoto, solved the double-spend problem by using public-private key encryption.

Bitcoin and other cryptocurrencies use public-private key encryption for trustless transactions. This means strangers can securely exchange money without a trusted intermediary like a bank.

WHAT IS DEFI?

Decentralized finance (DeFi) is a term for financial services on public blockchains, particularly Ethereum. These services include earning interest, borrowing, lending, buying insurance, trading derivatives and assets, and more. DeFi is faster, more global, peer-to-peer, and pseudonymous than traditional banking.

Why is DeFi important?

Decentralized finance (DeFi) expands on the idea of Bitcoin, creating a digital alternative to Wall Street that is open, free, and fair.

How does it work?

DeFi is decentralized financial services, with dapps being the most common way of engaging with these services. Unlike conventional banks, no application or account is needed.

DeFi is the term for decentralized financial applications that include lending, borrowing, trading, saving, and buying derivatives.

People are using DeFi to engage in these activities today:

Lending: Earn interest and rewards every minute instead of once per month.

Getting a loan: Instant without filling paperwork including extremely short term “flash loans” those traditional financial institutions don’t offer.

Trading: Peer-to-peer trades of certain crypto assets.

Saving for the future: Better interest rates than you’d typically get from a bank.

Buying derivatives: Make long or short bets on certain assets.

WHAT IS A NON-FUNGIBLE TOKEN (NFT)?

NFTs are tokens that are unique and can be used to authenticate ownership of digital assets like artworks, recordings, and virtual real estate or pets. In February 2021, a 10-second video by an artist named Beeple sold online for $6.6 million, and in March, Christie’s announced that it would be selling a collage of 5,000 “all-digital” works by the Wisconsin-based artist for $100. The collage sold for $69 million.

Each piece of artwork in the Beeple series is paired with a unique non-fungible token. This token attests that the owner’s version is the real one. The artwork is sold for a lot of money, with collectors getting the NFT instead of a physical manifestation of the artwork.

Why are NFTs important?

NFTs are like certificates of authenticity for digital artifacts like collectible trading cards, video clips, and tweets. They are also being used to sell virtual real estate, memes like “nyan cat”, and more.

NFTs are digitized assets that can be stored on an open blockchain, and anyone can track them as they are created, sold, and resold. NFTs are valuable because of their smart-contract technology, which can be set up so that the original artist continues to earn a percentage of all subsequent sales.

WHAT IS A STABLECOIN?

A stablecoin is a cryptocurrency that is pegged to a stable reserve asset such as the U.S. dollar or gold. Stablecoins are designed to reduce volatility compared to unpegged cryptocurrencies like Bitcoin. They bridge the gap between cryptocurrency and everyday fiat currency by providing a form of digital money better suited to everything from daily commerce to transferring between exchanges.

Stablecoins like USD Coin have become popular ways to store and trade value in the crypto ecosystem thanks to their combination of traditional asset stability with digital asset flexibility.

Why are stablecoins important?

USD backed stablecoins are stored in segregated accounts with US-regulated financial institutions, and they are backed by dollar-denominated assets. They operate on the Ethereum blockchain and benefit from the same advantages as non-pegged cryptocurrencies, such as openness, global reach, speed, low cost, and security.

WHAT IS A TOKEN?

Token is another word for cryptocurrency or cryptoasset. It can have two meanings depending on the context. It can mean all cryptocurrencies except for Bitcoin and Ethereum, or certain digital assets that run on another cryptocurrency’s blockchain. It can also refer to any cryptocurrency coin that’s not used as a utility token. They have a wide range of potential functions, from helping with decentralized exchanges to selling rare items in video games.

“Token” can refer to any cryptocurrency besides Bitcoin or Ethereum. Tokens can also mean any assets that have been tokenized, including assets like real estate or fine art, or even regular company shares. The word has increasingly taken on two specific meanings: any cryptocurrency besides Bitcoin or Ethereum, and assets that have been tokenized.

The token is a specific type of cryptocurrency that runs on top of another cryptocurrency’s blockchain. Decentralized finance (DeFi) tokens like Chainlink and Aave run on top of Ethereum’s blockchain and can be traded or heldlike any other cryptocurrency .

Why are tokens important?

There are many types of cryptoassets with “token” in their names. DeFi tokens are new cryptocurrency-based protocols with tokens that can be traded or held like any other cryptocurrency.

DeFi governance tokens are non-fungible tokens that give holders a say in protocol development. Compound issues all users a token named COMP, which gives users a say in how Compound upgrades. These tokens represent ownership of a unique digital or real-world asset. Non-fungible tokens can be used to make it more difficult for digital creations to be copied and shared. Digital artworks or virtual assets such as rare items in a video game can be issued using them. They’re also used to sell unique virtual goods. Security tokens are a new type of asset that can be used to sell company or other enterprise shares without a broker. Security tokens are being investigated by companies and startups as a possible alternative to other fundraising methods.