Cryptocurrency
Cryptocurrency
Getting Cryptocurrency from Bybit:
Bybit is a popular cryptocurrency exchange where you can buy, sell, and trade various cryptocurrencies, including Bitcoin, Ethereum, and more. Here are the steps to get cryptocurrency on Bybit:
Bybit also provides features such as margin trading and futures contracts for more advanced users.
Bitcoin is a decentralized digital currency that was created by an anonymous person or group of people under the pseudonym Satoshi Nakamoto. It was introduced in 2009 as an open-source software, allowing people to send and receive payments over the internet without the need for intermediaries like banks. Bitcoin transactions are verified by network nodes using cryptography and recorded on a public ledger called the blockchain. Bitcoin is often referred to as "digital gold" due to its finite supply and store of value properties.
Ethereum is a decentralized platform that runs smart contracts, which are applications that run exactly as programmed without any downtime, fraud, or third-party interference. Ethereum was proposed by Vitalik Buterin in 2013 and launched in 2015. Unlike Bitcoin, which is primarily used as a store of value, Ethereum allows developers to build and deploy decentralized applications (dApps) on its blockchain. Ether (ETH) is the native cryptocurrency of Ethereum, used to pay for transaction fees and computational services on the network.
To buy Ethereum, follow these steps:
Initial Coin Offering (ICO) is a method used by cryptocurrency projects to raise capital. During an ICO, a project sells its native cryptocurrency tokens to early investors in exchange for funds, usually in the form of other cryptocurrencies like Bitcoin or Ethereum. ICOs are similar to Initial Public Offerings (IPOs) in the stock market but are typically less regulated, making them riskier for investors. ICOs are often used to fund the development of new blockchain projects or applications.
Key Terms
A cryptocurrency exchange traded fund is an ETF that tracks a single cryptocurrency or a basket of different digital currencies, and has similar benefits to a traditional ETF—including lower cost of ownership and greater diversification. The first cryptocurrency ETF, the ProShares Bitcoin Strategy ETF, started trading in October 2021.
A blockchain is a distributed database that is shared and verified via a computer network. That database makes up the underlying infrastructure of cryptocurrency systems, such as Bitcoin and Ethereum, for a decentralized record of transactions.
Bitcoin mining is the process of creating new bitcoin by using computers with specialized chips to solve complicated mathematical puzzles. The first so-called miner to solve the puzzle can earn bitcoin rewards by running such programs using systems that use massive amounts of electricity to mine the cryptocurrencies—a process that has come under criticism because the mining process is not considered environmentally friendly.
Digital currency is a form of currency that is also popularly known as digital money, electronic money, electronic currency, or cybercash, because they only exist in electronic form, versus a physical form such as paper cash or metal coins.
Altcoins generally speaking are cryptocurrencies other than Bitcoin. They share characteristics with Bitcoin but are also different in terms of how they are created and verified. According to CoinMarketCap, Bitcoin and Ether alone accounted for nearly two thirds of the total cryptocurrency market, with altcoins making up the rest.
A hot wallet is a cryptocurrency storage application that is always connected to your computer and cryptocurrency network, and as such they tend to be more vulnerable to cybersecurity breaches and theft than so-called cold storage methods. Hot wallets are used to send and receive cryptocurrency, and manage tokens you possess. Hot wallets are linked with public and private keys that serve as security measures.
Decentralized finance, also known as DeFi, uses new technology to remove third parties such as banks and other traditional financial institutions in financial transactions. By removing centralized control by banks and other institutions over money, financial products, and financial services, the new financial applications may lower related maintenance costs and fees charged by banks—and also increase the speed of such services.
A virtual currency is a digital representation of value only available in electronic form, and is also known as digital currency. Such cryptocurrencies can be issued by private organizations or companies and its benefits over hard currencies include fast transaction speeds and ease of use.
