Understanding the basics of cryptocurrencies: Cryptocurrency guide, supply, price and public key

The world of cryptocurrency has exploded in recent years, and the growing number of investors and users has arrived in space. But among all emotions it is necessary to understand the basics of this complex market. In this article, we delve into the basics of cryptocurrencies, including total supply, market capitalization, public key and others.

What is Crypto?

Cryptocurrency is a digital or virtual currency that uses cryptography for safe financial transactions. It is decentralized, which means that it is not controlled by any government or institution. Instead, transactions are registered in a public book called blockchain. The most famous cryptocurrency is Bitcoin (BTC), but other popular coins include Ethereum (ETH) and Litecoin (LTC).

total supply

Total Supply, Market Capitalization, Public key

The total supply of cryptocurrency refers to the maximum number of units that can be created. This may vary depending on the basic protocol or algorithm, such as the original delivery of 21 million bitcoins. For example:

  • Bitcoin: 21 million

  • Ethereum: 120 billion (with a theoretical limit of 1 trillion)

  • Litecoin: 84 million

market capitalization

Market capitalization is the total value of overdue cryptocurrency actions. He represents how much money investors are ready to invest in this particular coin. For example, the Bitcoins market capitalization has changed significantly in time.

|. Date Market capitalization (in USD)

|. — | — |

|. March 2017 | 7,000 – 8,000

|. June 2020 | $ 2.5 trillion

public key

The public key is a unique cryptocurrency identifier that can be used to verify transactions in the blockchain network. This is basically a digital fingerprint of the account or portfolio of the unit.

  • The public key (PK) is usually represented as a couple, consisting of a private key and a public key.

  • Private key: Only the holder has access to this private key that allows them to transfer funds.

  • Public key: Anyone can verify transactions in the blockchain network using a public key.

how it works

Here is an example illustrating how Crypto works:

1

  • When Bob wants to send Bitcoin to Charlie, he uses his private key (Alice public key) to create transactions in the blockchain network.

  • The transaction is broadcast to the network, where it is verified by nodes using complex algorithms.

  • After verifying, the transaction is added to blockchain and is confirmed as important.

  • Charlie receives Bitcoin from Alice and can use it to buy goods or services.

Application

Understanding the basics of cryptocurrencies is necessary for everyone interested in this space. By grabbing the concepts such as total supply, market capitalization and public key, you will be better prepared to move around the complex world of cryptocurrency trading. Remember that investing in cryptographic risk, so always conduct research and consult a financial advisor before making investment decisions.

Additional resources

  • Coinmarketcap: a comprehensive cryptocurrency database, including market data, prices and market capitalization.

  • Cryptocompary: a platform that provides real -time exchange courses, market data and tools for cryptocurrency investors.

  • Investopedia: Trusted online resources for investing in cryptocurrency and other financial markets.

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