Today, perhaps, there is not a single sphere left inlife, which would not be affected by new information technologies. Even finance, in fact, can now be virtual. What is meant? Let's talk about currency. It is customary for us to perceive this concept as a certain monetary unit of a state. So, in our country the national currency is the ruble. The currency can be collective. This is the euro. There is a large number of classifications for this concept. But what is a crypto-currency, in simple terms, it's harder to tell.

what is a crypto currency in simple words

The concept of crypto currency

Digital or electronic currency has a largedemand among users of the Internet space. At once it is necessary to differentiate concepts of electronic currency and system of Internet money. The main difference is that the equivalent of the latter is the real currency, for example rubles. This is how the "Yandex Money" system works, Qiwi.

And the Webmoney system has its own electronic currency, which works only within itself. That is, when money is transferred to the purse of this system, they turn into its own currency.

A separate niche is occupied by crypto currency. This is a digital currency, the exchange, issue and accounting of which are based on cryptography, that is, encryption. If we sum up what was said, what is the crypto currency in simple words and what is its difference from other types of electronic currencies? Unlike money in electronic form, for example, "Yandex Money", it does not have physical embodiment. And unlike electronic currencies, for example Webmoney, the crypto currency is decentralized, that is, it is not controlled by a single server that belongs to a bank or an organization.

how to earn money on crypto currency in simple words

How did the crypto currency come about?

For the first time crypto currency appeared in the paymentsystem "Bitcoin". This happened in 2009. The system was developed by a group of people or a person under the pseudonym of Satoshi Nakamoto. It has been constantly updated, changed, still bitcoin is dynamic.

In 2010, the first purchase ofbitcoins. One of the Americans for 10 thousand bitcoins bought two pizzas. Note that initially bitcoin cost $ 0.1, and then soared to 1,300 dollars for one and even higher - up to three thousand US dollars in the summer of 2017.

What is the basis of the crypto currency?

What is the basis for the existence of crypto currency? To explain what a crypto currency is in simple terms and what lies at its base, let's compare cryptonyms with gold coins.

Like the gold reserve, the number of cryptonymsis limited, this is a kind of protection against emissions. Crypto-currency was originally created using such technology, which will not allow it to fall. Bitcoins, like gold, can not be faked. Like gold, you can buy or even get a crypto currency yourself. Again, as with real gold, the number of bitcoins is limited (21 million coins are available, more than two-thirds are already in circulation).

What is crypto currency in simple words

The algorithm for creating virtual money is the following:

  1. Each computer stores a public database.
  2. To make a translation, you use a key that is created only once.

Crypto currency bitcoin: what is simple words

Bitcoin is the very first type of crypto currency. What is a crypto currency in simple words? This bitcoins, since they became the first crypto currency. In principle, bitcoin in another way can be called a computer program that creates a virtual currency. The principle of operation of bitcoin can be compared with the principle of the operation of torrents. Several people immediately install a program on their PCs, and then transfer files without anyone else's control. The difference with torrents is that they are not transmitted files, but "virtual glasses".

In cash machines, bitcoins can be exchanged for real money. They can also pay for goods and services.

Most popular crypto-currencies

In addition to bitcoin, the founder of crypto-currency, there are other types of crypto-currencies:

  1. Ethereum. Appeared in 2013. As of August 2017, its rate is $ 300.
  2. Litecoin. Appeared in 2011. Limited to 84 million. Course - 40 dollars.
  3. Zcash - currency unit is equal to 200 dollars.
  4. Dash, is 210 dollars.

According to different sources, from 200 to 800 kinds of crypto-currencies now exist in virtual space. All of them, in one way or another, are based on the principle of bitcoin.

Ethereum as a kind of crypto currency

In 2013, a programmer from Canada,Vitaliy Buterin created a new kind - the crypto-currency etherium. What it is? In simple words, this is, in fact, another analog of bitcoin, but with new possibilities. The etherium platform can be used to create new crypto-currencies. On the etherium, as well as on bitkoin, you can be engaged in mining.

crypto currency that this is simple words

Mining, or How to Earn Money on Crypto-Currency in Simple Words

The process of mining the crypto currency is called mining. It comes from the word "mine" - "to excavate." The method, of course, is different from gold mining. To implement the mining, take a motherboard, server or other power supply, hard drive, monitor and video cards. A special mining program is selected and installed, then it starts, then the fork and pool are selected and the process of mining begins.

Further on that simple words, how do they extractcrypto currency. The program installed on your PC will create tasks that it must solve. For this action the computer will receive virtual money. So, in bitcoin, the program produces no more than 3,600 cryptonyms per day.

Each time the tasks to be performedThe miner's PCs become more complex, and the miners have to create more powerful machines to solve them. The main point is that whoever decides first will get bitcoin. To date, there is a huge number of so-called "farms" - machines for solving the tasks of the program.

A safe and very promising way to earn a crypto currency - ICO

One of the newest and most popular ways of earning moneycrypto currency and bitcoin is ICO (Initial Coin Offering). What is ICO? ICO has the same principle as IPO, namely the principle of investing in company shares and making a profit. With the help of a block of cash, anyone can invest. He may not even have extensive knowledge in this area and simply study the investment project before investing. The projects from the USA are the most safe for investments. In the United States, they have long been serious about crypto-currency and lock-up and are controlling them at the state level.

One of the successful investment projects is DragonChain, which has collected over two weeks already more than 3,500000 USD. ICO is currently in the process, and it is possible to invest in it until November 3. The main advantages of the project is that it is certainly reliable, because The blockbuster platform and developers have been working for more than 3 years on Disney. And that already says a lot.

ICO is an excellent application of blocking technology, allowing companies to quickly find investment, and investors are making good money.

How to exchange crypto currency?

There are two ways to exchange crypto currency. Further about that simple words, that it is an exchange kriptovalyut. In the virtual space there are special services for the exchange of such money. Easier - exchangers. First of all, when selecting one, pay attention to the course and commission.

how to earn the crypto currency in simple words

Advanced users put first Here you will need to enter your mail and come up with a password. If we want to exchange bitcoins, go to the "exchange" menu. Specify the number of bitcoins that want to be exchanged. The system will show us the course. To complete, we press "exchange".

Another exchanger is Similarly we go through the registration, confirm through the mail and activate the account. Next, we also enter the number of bitcoins, which we want to change. You can immediately transfer to a card in the bank. To do this, enter the card number, owner's name and other data.

The third most popular exchanger is We register the same way as in the previous versions. Press "Exchange", enter the number of bitcoins that we want to change. You can withdraw the exchange money to "Yandex., Purse." To do this, you need to specify the purse number and mail.

Exchange as a means of exchanging crypto currency

The EXMO Exchange is very popular among Russian miners. The exchange operates with 6 types of currencies:

  • USD.
  • EUR.
  • LTC.
  • BTC.
  • RUB.

exchange kriptovyalyut what is it in simple words

You can perform exchange operations with the help of payment systems:

  • "Yandex money".
  • WebMoney.
  • QIWI.

The commission is 0.2 percent of the transaction amount.

On the official website of the exchange click the button"To begin". So we start the system. Registration is held in the section "Profile" - "Verification". Here you will need a passport. You need to download it scan-copy.

The site works in English and Russian. In the "Trades" tab, you can see the exchange rate.

EXMO works with both conventional and crypto-currencies.

LiveCoin is an exchange created in 2014. Supports the following trading pairs:

  • BTC / EUR.
  • BTC / USD.
  • BTC / RUR.
  • EMC / USD.
  • EMC / BTC.
  • LTC / BTC.
  • LTC / EUR.
  • LTC / USD.

On this exchange, you can not only acquire or give currency, you can simply exchange. The site is in English and Russian.

Crypto-currency in Russia

Unequivocal position in our state regardingcrypto currency is not. But still most compare them to financial pyramids. What is it - the crypto currency in Russia? In simple words, it is called surrogate money.

The Ministry of Finance prepared amendments to the legislation on punishment for the use of crypto-currency, making deals with it.

In Russia, the concepts of crypto-currency andblockage. If the first is sharply negative, then the second case is different. Technology blockade is considered just as a technology. It is proposed to develop the block for further use in the banking system or registers. At present, the use of crypto currency by legal entities is considered as counteraction to legalization of proceeds from crime.

Reviews about криптовалюте

Reviews about the existence of crypto currency are ambiguous.Those who make money on this, talk about the future of the crypto currency. According to reviews, the crypto-currency (what it is, in simple words we told above) is a phenomenon similar to the financial pyramids. There are examples of deceived virtual investors. For example, the Hong Kong stock exchange My Coin collapsed in 2015. As a guarantee to cover up fraudulent actions, depositors were given contracts, but there were no physical agreements.

Crypto currency etherium what is it in simple words

Scammers in their actions use electronic wallets and crypto currency. So, to create online purses there is a site-collector. After a certain amount appears in the wallet, it disappears.

Some manage to earn on bitcoins,Moreover, this occupation even in Russia has become extremely popular (confirmation of that - the soaring prices for video cards used in the mining, and the excess supply by demand). Of course, reviews about the crypto currency of such people will be positive. Others, having tried the cranes, complain that the earnings are very low and there is no point in doing this. In general, the reviews are diametrically opposed.

Summing up. What is it - a crypto currency - in simple words? A virtual currency that exists in a virtual space. If you have the knowledge and experience in it, then you can also work with the crypto currency. If you are an ordinary PC user, use the standard means of payment.