The year 2022 can perhaps be considered the heyday of cryptocurrencies and blockchain. The reason is, throughout this year the adoption of crypto assets in various sectors is increasing, as well as the increasing number of traders and investors who are interested in making a fortune through Bitcoin and other types of cryptocurrencies . As time goes by, more and more people are starting to trade crypto .
For those of you who are interested in trying to invest in crypto assets or are still beginners in the world of cryptocurrencies , here are things you need to know before starting crypto trading .
Get to know Cryptocurrencies and What is Crypto Trading
Cryptocurrency or crypto asset is a digital asset that uses an online ledger with strong cryptography to secure online transactions.
Crypto assets work using a technology called blockchain. Blockchain is a decentralized technology that functions to manage and record transactions of crypto assets robot tranding binance. Part of the appeal of blockchain technology is its level of security.
According to the CoinMarketCap website , as of this writing, there are already more than 10,000 types of cryptocurrencies listed and traded publicly. This certainly indicates that more and more companies or projects are making crypto asset tokens or coins along with the increasing number of users investing in crypto assets. Thus, cryptocurrencies continue to proliferate, one of which is by applying for funding through an initial coin offering or ICO.
Meanwhile, crypto trading is a transaction activity using crypto assets. Such as exchanging crypto assets with other crypto assets, selling or buying crypto assets with the aim of making a profit. To be able to trade crypto assets, you need to create an account on the exchange platform and store some crypto assets in your wallet .
Wallets are perfect for storing various crypto assets that you own based on transactions or crypto asset trades that you have made.
How Do Crypto Assets Work?
Cryptocurrencies are digital assets backed by blockchain. Blockchain technology stores a ledger of every crypto asset transaction on every node that drives the blockchain. Nodes are computers connected to the Bitcoin network for mining crypto assets, such as Bitcoin. If any of the miners tries to enter a fake transaction, the transaction will be canceled by the correct ledger .
The correct ledger is determined by most record miners . In theory, you can hack a blockchain by controlling 51 percent of the crypto asset blockchain network in a process called a 51% attack .
In order to make transactions or trades using crypto assets, you must have a set of public and private keys . These two keys are passwords generated by your crypto asset wallet . Your public key is linked to your wallet address and can make it easier for anyone to send you any number of crypto assets. While the private key is used to approve transactions sent from your wallet and only you have access to your private key .
