In a simplified way, we can define this parameter as the resistance to mine a certain crypto.

The importance of the hardware

To an inexperienced eye, it may seem that the value of extraction of a hardware is constant over time, but certainly,it is not. For hardware there are two aspects to keep under control:

1. the wear of components over time (which diminish their performance)
2. the constantly increasing extraction difficulty.

If the algorithm remain the same,why the difficulty increases? The answer lies in the concept of blockchain data mining itself.

When we try to extract crypto we enter into competition, for the resolution of a block and then to be paid, with other miners.This implies that, especially in the short term, luck has a significant weight. The higher number of more people thattry to extract a cryptocurrency, the higher the difficulty will be. In other terms, it will be more difficult for us to achieve results.

Mining Bitcoin

Equally intuitive is to understand that the increase of miners focusing on one crypto rather than another often relates to its increase in price. Blockchain data mining of Bitcoin, for example, has become a real “challenge” because we are going to collide with big entrepreneurs. Mainly in China, who even rented Boeing 747 to bring faster components to their “Farm”.

Another parameter to keep in mind is that the technological world is constantly evolving. Therefore, buying a hardware that has been present on the market for some time may not be a disadvantage. When a more performing solution comes out, our results could be far lower.

For more information on the world of cryptocurrencies read the other articles on our site.

L'articolo Blockchain data mining: what is the difficulty? proviene da Crypto Age.

What is a Bitcoin

Bitcoin is a cryptocurrency born in 2009.

Anonymous creator known under the pseudonym of Satoshi Nagamoto. The concept of cryptocurrency (based on cryptography) introduces important innovations in the financial sector. Indeed, it is the first decentralized payment system, whose value depends exclusively on market rules (supply / demand).

Does Bitcoin have an actual value?

The lack of an actual bitcoin value is one of the criticisms that is most moved to this project. First, it is worth to notice that noweven the value of fiat coins. Simply, the laws of market establish the value of this money and therefore the so-called “holders” people.

How can I buy Bitcoins?

There are now several exchange platforms, which once registered and after having confirmed your identity. These platforms allow you to exchange different currencies in bitcoins and with different payment methods: bank transfer, credit card.

Do I have to buy at least one of it?

No, it is a fractionable currency. Specifically, the units are the “satoshi” (named after the inventor of bitcoins) which correspond to 0.00000001 BTC.

Is Bitcoin a bubble?

Probably yes, just like all the great technological innovations of the last years – including internet itself. It is not necessarily a bad thing, as important innovations often generate high interest. Currently, because of the lack of association with precious materials but having only nominal value. We can consider every payment system we use daily a bubble.

Is Bitcoin a Ponzi scheme?

Absolutely no. The pyramid schemes offer gains to new entrants in varying percentages on invested capital. Until new people continue to enter the scheme by providing liquidity to pay for those who had previously entered. When the system is saturated and there are no new entrances, everything falls. Bitcoin does not guarantee anything to anyone, who invests to speculate, does it at his own risk. Moreover, the success of the operations does not depend on the system but simply on the market.

How Bitcoins are created

Extraction is the process to create Bitcoins. ASICS systems are currently very popular. That are able to solve the mathematical problems deriving from cryptography. Moreover, they add new blocks of currency to the system. However, it requires a high-energy consumption.

You can find all the information you need about cryptocurrencies on our site.

L'articolo Bitcoin: The most frequently asked questions proviene da Crypto Age.

What are Altcoins

Bitcoin was the first crypto introduced in the market. Over the years have developed many other projects, among the most famous Ethereum, Ripple etc. To today, there are over 1.500 cryptocurrencies. You can check the present valuation on many websites but the main is coinmarketcap. Generally the first coins in the coinmarketcap ranking are the top altcoins.

How cryptocurrencies work

The concept of digital currency is not so innovative because even FIAT currencies (i.e. euro, dollar, yen, etc.) are mostly traded digitally. Nevertheless, the crypto bases on the innovative blockchain technology system. This technology guarantees decentralization of the system because it DOES NOT depend on physical persons but on unalterable mathematical rules. The advantages of this type of system are various.

How many bitcoins will be extracted

The maximum amount of bitcoins that will be available on the market is 21 million. Analysts estimate that the last bitcoin will be coined around the year 2140. The resource scarcity is one of the best features of bitcoin, so much to compare it to gold.

Earn with bitcoin and other cryptocurrencies

Especially in the last two years, the market has been strongly bullish. It has seen an exponential growth in the value of several coins. There were annual increases of over 30.000% (see Ripple, one of top altcoins in 2017). That is why you have to invest consciously and always keep the risks in mind.

What is an ICO?

ICO stands for Initial Coin Offer is a public offer through which any person can invest in a project that he considers valid. An ICO allows entering a project in the early stage. In the past, many ICOs have given different satisfactions to those who have supported them. However, following the wave of enthusiasm in recent times there are hundreds of ICO. Unfortunately, many of these are attempts of fraud. Therefore, you must always be aware of what you are investing in. An ICO can become a top altcoins only if it has a solid and serious project.

What is a wallet?

You will find it written in many places that a wallet is the portfolio in which to keep your coins. This is not properly correct. The wallets are keychains. It keep your private keys safe, allowing you access to your funds. There are different types: mobile, hardware, software paper and everyone has different characteristics. In this world, you are your own bank. Therefore, you must absolutely worry about all the aspects related to security of your money. So if stolen nobody will refund you.

You can find all the information you need about cryptocurrencies on our site.

L'articolo Top altcoins: frequently asked questions proviene da Crypto Age.

Bitcoin as currency

Bitcoin is the first crypto currency, created by the famous and mysterious Satoshi Nagamoto. This project opens the doors to the fantastic world we live today. It is a currency because its main purpose is to transfer value from one subject to another. Moreover, we talk about “crypto” as it is based on cryptography that guarantees security. So make a bitcoin investment equivalent to invest in a currency.

How to make a bitcoin investment

There are different ways to make a bitcoin investment. To invest you need to buy a certain number of coins. Mainly there are two ways of buying: wallet and exchange. The wallet allows you to keep coins on your PC or mobile phone. The exchanges are born as platforms for trading. In recent times they have evolved allowing the creation of portfolios. With exchange wallets we have the ability to instantly convert our coins into other currencies. For other currencies we mean not only virtual but also Euro and Dollar.

Blockchain

The main innovation brought by Bitcoin is the technology on which it is based, called blockchain. The blockchain is a “chain of blocks” in continuous evolution. In fact, a block is added to the rest of the chain once completed with a total number of transactions validated by the work of the miners (for a deepening on mining go to our dedicated mining section).

Nobody can  remove in any way a validate transaction in the Ledger. Furthermore, all nodes in the network have a copy of the transaction, so the system can easily detect a fraud attempt.

Advantages

The Blockchain offers also the great opportunity to give up, during a transaction, the need of an intermediary.  This is because the trust needed to guarantee the transfer is provided by known and non-modifiable mathematical algorithms. This brings numerous advantages, or better cancels all the disadvantages that the human component involves in this area.

L'articolo Bitcoin investment: why is it so important? proviene da Crypto Age.

We have already said that technical analysis gives satisfying results only when applied to Bitcoin chart. Moreover, it cannot be the unique source of information. It is  an important resource to have more elements for the trading strategy. So, it is essential to look for news to analyze the various projects. These news give visibility and attract the attention of investors on projects. This article briefly analyzes two types of digital currency news. News on partnerships and airdrops can often bring important benefits to our cryptocurrencies.

Partnership formalizations

Cryptocurrencies’ world is young and therefore cannot offer the same guarantees of consolidated sectors known for several years. A cryptocurrency gains visibility and stability when associated with a well-known and established company. This involves an increase in value. Obviously the more high-sounding the name of the main partner, the higher will be the attention generated by the agreement.

To exploit this kind of news, first we need to be aware of the validity of the news. Indeed, fake news often circulates only with the aim of generating hypes.

Secondly, it is important to be able to assess the possible duration of a partnership. A short duration leads to a temporary increase in value. Long-term duration allows continuous growth of value. This last point will define our trading plan: in the first case, we will prefer short-term speculation with a precise target set. In the second case, we can instead define long-term objective. We set reviews sessions in which analyze the evolution of both the project and the partnership.

Airdrops

In some circumstances there is a free distribution of the new coins. This benefit is generally granted to those who have coins in their wallet for a long time. The ways in which you can get them are different. Holding a certain token for a certain timeframe, or sometimes simply filling out specific questionnaires or forms.

It is worth to specify that this “gifts” are very often in the order of few cents. A gift is always welcome and who knows if in a few years that handful of tokens will be worth a nice nest egg!

To find news regarding Bitcoin and other cryptocurrencies there are many sites. Before making any decision, it is essential to verify the truthfulness of the news on which we base our actions.

Find out more about our cryptocurrency site.

L'articolo Digital currency news: how the value changes proviene da Crypto Age.

Coinmarketcap

It is crucial to know the principal information to gather about a project:

A good starting point is the analysis of the available scenario through the website coinmarketcap. The page provides various data about several listed coins, such as their price, available supply, trade volume over last 24 hours or market capitalization. The website updates statistics every 5 minutes. Clicking on the link you are automatically redirected to the crypto currency’s official website.

Once that a project is selected, the first question to answer regards the quality of the idea at its base. We should ask ourselves:

• what is the mission of the project?
• does it solve an existing or future problem?
• is the idea applicable?

Cryprocurrency whitepaper

If the answers sound reasonable, then we can proceed examining the whitepaper of crypto currency . A document which states all the useful information, including technological data and. If this is satisfying we can move further evaluating the road map.

It is important that the road map includes a plan for at least 18 months and that the project aligns with the previous milestones.

Importance of team collaboration

Subsequently, one the most crucial element is the team, both developers and marketing members. Investigate their profile on different social and professional platforms (e.g. Facebook, Instagram, LinkedIn) from which you can get information about their background. For a deeper research you can also check for any feedback from peers on dedicated forums like Bitcointalk, Reddit, Youtube or even Google search, to notice details or information escaped from the previous analysis.

Final recommendations

If all the information collected convinced us, we probably found a good project to invest in.

However, I want to clarify that a project for which is hard to gather data often does not represents a good investment!!

You can find all the information you need about cryptocurrencies on our site.

L'articolo Cryptocurrency projects: do you know how to analyze them? proviene da Crypto Age.