What Are Altcoins and How Are They Different from Bitcoin? 1020

altcoin hand blue

This year, the cryptocurrency industry will celebrate its first anniversary. Bitcoin, the world’s #1 cryptocurrency will be exactly 10 years old In October. During this time, a large number of different coins have appeared on the market, which tried to improve or replace BTC. In this article we’ll talk about such a concept as altcoins, find out why we need them, when they were invented and what kind of future awaits for them.

Contents:
(please, click the topic to scroll down to it)

  1. What are altcoins?
  2. Why create altcoins?
  3. Promising altcoins of 2018
  4. Conclusion

1. What are altcoins?

This concept is rather familiar to most of the experienced market participants. In fact, an altcoin is any cryptocurrency other than Bitcoin. It will make sense if you refer to the etymology of the word (altcoin – an alternative coin). Altcoin is not a specific coin, but implies a whole separate species, which already has a couple of thousand coins.

2. Why create altcoins?

New altcoins are designed to replace, improve or supplement #1 cryptocurrency. It is worth noting that the vast majority of these projects have not been successful, but there are also quite successful cases. If you look at this in terms of the years passed, you can confidently state that the key to success is not to copy blindly BTC with minimal corrections, but to create truly original projects.

So, let’s analyze the main parameters of altcoins that differ them from Bitcoin:

– The speed of transactions. This is one of the weaknesses of the cryptocurrency flagship, since the network is designed to handle only seven transactions per second, so they can be delayed for two to three hours. Some developers have succeeded in creating altcoins with high network bandwidth and with the ability to scale the user base.

– Hashing algorithm. All cryptocurrencies are built on the technological base of blockchain. Coin systems need to hash transaction data and enclose them in blocks to work correctly. Bitcoin works on the SHA-256 algorithm, which takes about 10 minutes to generate one block. This is by no means the only algorithm, there are other, faster and more efficient ones, such as scrypt, X11, X13, X15, etc. They spend much less time creating a single block, which allows for greater transaction speed.

– Altcoin mining algorithm. The extraction of alternative coins often does not have any fundamental differences from Bitcoin mining. Since altcoins are less popular, they are mined by fewer participants, so the overall complexity of the network is smaller. Therefore, it is much more profitable to mine altcoins than to mine BTC. There are coins that are not available for mining, since the developers initially produced a full emission.

3. Promising altcoins of 2018

Each year there appear new interesting decentralized projects that collect impressive amounts at the ICO stages. Not only can they bring their depositors insanely big money, they can also change the development vector of the industry as a whole. For example, the same thing happened with Ethereum.

If we mark some specific promising altcoins at a given time, we should point out the following:

Ethereum;

Ripple;

Bitcoin Cash;

EOS;

Waves;

Monero;

Dash.

Almost all of them are in the TOP-10 of the global CoinMarketCap rating, but all these projects have not yet fully revealed the capabilities of their technologies, so they are still quite promising for investments.

4. Conclusion

Altcoin is not a definite coin, it is any cryptocurrency, except Bitcoin. Each of them was created as a counterweight, addition or replacement of BTC. Different projects solve various problems of the original blockchain. Many altcoins can have a great future, as some of them have every chance to outshine Bitcoin.

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Where is it Better to Exchange Coins: On the Stock Exchange or In the Exchanger? 565

exchange coin

The vast majority of all operations with the cryptocurrency is carried out on exchanges with multi-million turnover. And what are the exchangers offering promising conditions for buying / selling the cryptocurrency? How do they differ from exchanges? We will consider it in this material.

Content:
(please, click the topic to scroll down to it)

  1. What is the exchanger?
  2. How does the online exchange of cryptocurrency work?
  3. Principal differences between the stock exchange and the exchanger
  4. Where is it better to buy/sell cryptocurrency
  5. Advantages of online exchangers
  6. What should a safe exchanger look like?
  7. Conclusion   

1. What is the exchanger?

The name gives the answer – it is the place where you can exchange the cryptocurrency for fiat or for other coins. There are two types of exchangers:

  • Online. This is a site where a visitor can make a purchase / sale of a cryptocurrency at a fixed rate.
  • Offline. Here, the currency can be exchanged for real money, having received a cache in the specified place – at the checkout or office.

Exactly the same is the work of known to all exchangers, working exclusively with fiat money.

2. How does the online exchange of cryptocurrency work?

The main condition for someone who wants to buy a coin is the presence of a cryptowallet. If any, the procedure is simple:

  1. Simple and not always compulsory registration;
  2. In the menu, find the currency you want to buy or sell;
  3. Fill in the fields with the requisites;
  4. Agree with the exchange rules and click “Exchange”.

You will be notified of the operation by e-mail notification. Cryptocurrency exchangers work in different modes:

  • Manual mode assumes that each operation is processed by an operator. It’s always long.
  • In semi-automatic mode, Bitcoin exchange can last half an hour or more, depending on the exchanger.
  • In the automatic mode, currency cranes operate with immediate withdrawal of funds.

The cryptocurrency exchanger has little to do with a stock exchange, with its adjustments, quotations, orders. But the investor is more interested in the price than the technical side of the exchange.

3. Principal differences between the stock exchange and the exchanger

At the exchange there are traders who determine the price of coins. In the exchanger, trading is inappropriate, because the course is determined by the owner of the resource. Is it good or bad?

On the one hand, there is no place for exchange speculation on the exchanger. On the other hand, there is always a real coin price on the stock exchange, which rarely coincides with the exchanger’s rate.

4. Where is it better to buy/sell cryptocurrency

If it is a matter of profit, then on the exchange with its market rate. The owner of the exchanger, of course, is guided by stock quotes, but his rate is always higher. By the way, the commission in the online cryptocurrency exchanger can differ from the stock exchange in the tens, and even hundreds of times.

In terms of convenience, the exchange also looks preferable, as it works around the clock without days off, which cannot be said about many exchangers.

An important point is the amount of currency reserves. If there are no problems for an exchange with a multimillion-dollar daily turnover  to make almost any transaction , then a poor exchanger can sometimes offer to wait an hour or two before the required amount of bitcoins or fiat appears. The security of the exchangers also raises doubts. If the top-level exchange is guaranteed to be protected against cyber attacks, then how this issue is decided by the owner of the exchanger is known only to him.

5. Advantages of online exchangers

All of the information mentioned above does not exclude the essential advantages of the cryptocurrency exchangers:

  • User-friendly interface. Registration procedure is extremely simplified, and often completely absent.
  • Any exchanger is fully integrated with all popular payment systems.
  • For registered customers, there is a program that provides an incremental discount for each subsequent exchange.

But all these advantages do not matter if the exchanger offers a disadvantageous course.

6. How should a safe exchanger look like?

A successful exchanger must work at least for a year. To be confident in successful exchange, you should take an interest in reviews on independent resources. In view of the volatility of the cryptocurrency, it is necessary to give preference to exchangers with automatic or semi-automatic mode. A good exchanger has enough reserves of cryptocurrency and fiat, it and its support work around the clock.

7. Conclusion

Online exchanger is a fast service for buying or selling coins. But it is completely unfit for trader strategies, since its commission can eat all the potential profits.

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What Is the Process of Tokenization or How Can Any Person Create His/Her Own Token? 1440

tokenization

In this article, we will consider such a concept as tokenization. We will learn how it is used by various companies and how the technology of blockchain is used here.

Contents:
(please, click the topic to scroll down to it)

  1. The concept of “tokenization”
  2. The process of tokenization in the modern sense
  3. Tokenization in tandem with blockchain technology
  4. Conclusion

1. The concept of “tokenization”

Initially, tokenization technology was used to implement secure online payments. With its help, you can encrypt the data of real details and replace them with the generated hash code – a token. This is how the first concept of tokenization looked like, and the modern designation, which is now widespread in blockchain projects, has gone from there. Today the word “token” refers to a unit of an asset in a certain company.

2. The process of tokenization in the modern sense

Tokens can be compared to the labels that fill the desktop of each computer. Shortcuts are created in order not to litter drive “C” with heavy files, but at the same time to have quick access to them. Shortcuts are just the way to the program, folder, etc. If you delete a file where the shortcut leads, then the latter will not represent itself any more.

So, by analogy with the creation of shortcuts on the computer, in our time, the business is tokenized in various spheres of activity. Tokens can be created for anything (electricity, oil, gold, cattle, wheat, real estate, part of any enterprise’s funds, intellectual property, etc.). Tokenization works with both physical and virtual objects. This practice greatly simplifies and accelerates the mobility of assets, because you need logistics, a certain amount of documentation to move a real object, and the converting of the token is slightly more than nothing.

Tokenization of homogeneous objects is a fairly simple task. For example, one token is equal to 1 gram of gold, but it can be further divided into smaller parts. It is necessary to increase the liquidity of the asset. Tokenization problems arise if the items that need to be transferred to the digital space have different values ​​(real estate, art objects, etc.). In this case, this process becomes a little more complicated, since it requires the contribution of additional variables. Platforms that offer to tokenize heterogeneous objects already exist (Artex, Atlant, etc.), but each of them is confined to its own narrow niche.

3. Tokenization in tandem with blockchain technology

Probably, it seems strange, but in fact, the technology of blockchain is not mandatory to produce a tokenization of the project. Actually, anyone can make an issue of tokens, backing them up with any of their tangible or intangible property. To do this, you only need to run the platform, where you can transfer the rights to own the asset in the token.

Then why do the overwhelming majority of projects use blockchain technology for the tokenization of their own assets? It’s all due to the transparency that this technology provides. With its help, it is guaranteed that there is no third-party intervention in the data registry. ICO tokenization in tandem with blockchain eliminates the issue of confidence in the developers. Also, the undeniable advantage of using this technology is the absence of intermediaries between buyers and sellers of assets, which simplifies and significantly speeds up the exchange process.

4. Conclusion

The process of tokenization involves the transfer of tangible or intangible assets into the digital space (tokens). This significantly increases the liquidity and mobility of the asset. With the help of blockchain technology the process can be completely transparent and safe, and also you can remove any intermediaries from the chain.

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The Essence of the Blockchain Technology and Cryptocurrency 717

essence of blockchain and cryptocurrency

In the last couple of decades, technological progress has accelerated its full-scale expansion on pretty much all spheres of human life. Every year there appears something new that can change the world and make it a little easier and more efficient. One of such inventions is the technology of blockchain and the new payment system created on its basis – cryptocurrency. In this article, we will try to explain what the blockchain technology is and why cryptocurrencies will change the world in the next 5-10 years.

Contents:
(please, click the topic to scroll down to it)

  1. The essence of the blockchain technology
  2. Cryptocurrency types and their difference from other payment systems
  3. How are coins extracted?
  4. Forecasts for the cryptocurrency market
  5. Conclusion

1. The essence of the blockchain technology

Blockchain is quite a young technology, the first application that was launched on its base was Bitcoin, thus, blockchain is often referred to as a purely transactional network. In fact, the practical application of this technology is unlimited. Now there are blockchain applications that work in the fields of logistics, medicine, law, trade, rent, etc.

In short, blockchain is a chain, which consists of a large number of blocks, where various information can be stored. Each subsequent block stores data about each previous one in an encrypted form. The uniqueness of the technology lies in the fact that the entire register of data is decentralized, and its copies are simultaneously stored on tens of thousands of computers around the world. This provides the highest level of protection from third-party interventions. The data stored in the system is almost impossible to compromise, replace or delete.

Let’s review an example of where you could introduce a blockchain system. In order to achieve full transparency in the presidential elections (parliament, senate, etc.), they can be held on blockchain. If the government of any country dares to take such a step, it will be possible to consider that these are the first 100% non-falsified elections in the history of mankind. The technological base is already there, the matter remains for the world leaders, but most likely they will not be quite happy about such prospects.

With the help of this technology, intermediaries can be removed from the chain of interaction between buyers and sellers of goods and services, which makes cooperation more profitable and effective. The technology of blockchain has a great future, many analysts compare its importance to humanity with the invention of the Internet. It will be able to fully reveal its potential in the third decade of the 21st century.

2. Cryptocurrency types and their difference from other payment systems

As it has already been mentioned above, cryptocurrencies became the first mass applications that were built on the basis of the blockchain technology. The first one was Bitcoin, but in almost 10 years since its creation, about 2500 different coins and tokens having different value and performing different functions have been released. Some coins are designed purely for making payments, others can act as the domestic currency of a certain application, the third are able to guarantee dividends from developers for their holders. Types of coins are too numerous, you can read more about them in our article.

The main difference between cryptocurrency and traditional payment services is their decentralization. That is, coins do not have a specific center that can monitor the network. All participants of the system interact on the principle of equality, where each member of the community acts as a user and as a server at the same time.

Advantages over traditional payment systems:

  • Significant reduction of the commission and time of international transfers due to the absence of intermediaries. For example, a transcontinental payment for $99 million was recently made in the Litecoin network, the commission was only 40 cents, and the transaction took 10 minutes. Within the traditional payment systems, this would require 7-10 working days, and commission fees would be at least $100k.
  • Anonymity. Digital technologies both give us freedom and take it from us. Using a MasterCard or Visa, a person stops being anonymous. If you want, you can track the entire history of his/her purchases, his/her location, etc. Some cryptocurrencies guarantee total anonymity.
  • Absence of outside intervention. Any bank can freeze its client’s funds if it sees it fit. Since cryptocurrencies do not have a single center, such intervention in the work of individual wallets is almost impossible. Of course, it all depends on the type of wallet. For example, you can freeze your account at the exchange, but if the coins are on a hardware cold wallet, no one else has access to it, except its owner.

3. How are coins extracted?

Bitcoin is often compared with precious metals, in particular gold, because they have a number of similar characteristics:

  • limited amount (a total of 21 million BTC will be released);
  • the need for extraction (mining) and the gradual increase in the complexity of this process.

Some coins (such as Bitcoin, Ethereum, Litecoin, etc.) need to be mined. Let’s discuss what kind of process it is and how it works. So, coins are awarded to the miners who installed a certain amount of computer equipment and provided it for the system’s operation. You can obtain cryptocurrency in a variety of ways, even using a PC, but you should not wait for any serious earnings in this case. Miners often use more powerful hardware, such as video cards or ASICs. The computing power of miners ensures the operation of the system and the timely conduct of transactions.

4. Forecasts for the cryptocurrency market

It is worth noting that the market is now in a phase of deep correction in comparison with its peak values, which were observed in the January this year. But even if you look at the annual chart, you can see that the assets are showing good growth (about 250%). According to the two-year chart, the growth rate of capitalization is 21760%, and so on. So do not panic like most of the media. The fact is that there are many people who invested in late November-December 2017. Their outrage is justified, they lost 70-80% of their contributions, but it is unfair to make a conclusion from this that the cryptocurrency industry is collapsing.

Many analysts predict growth for this year by 20-30 times of today’s value. In general, analyzing the cryptocurrency market is a rather difficult task, and nobody can say for sure what rate will be at the end of the year. Let’s just say, there are no fundamental reasons for the collapse. As soon as the news background improves, the market should start to grow and possibly even reach new historical highs.

5. Conclusion

Many people interpret the technology of blockchain as a transactional-only network, but this is not true. The application spheres of this technology are numerous. Cryptocurrency is only the tip of the iceberg. Analysts predict the widespread introduction of decentralized applications in the 2020s.

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A Chinese Mining Giant Bitmain Invests $12 Billion Into EOS 676

bitmain invested in eos

As we reported earlier, one of the major cryptocurrency companies Bitmain was included in the list of official EOS block producers. These producers are required to let the main network of EOS operate without interruptions. However, Bitmain’s leader, Jihan Wu, decided to go beyond the status of a block producer and became an investor of the platform.

Block.one, a software developer company working on the EOS protocol, will receive an impressive investment worth $12 billion from Bitmain and an American businessman Peter Thiel.

According to Jihan Wu, he sees EOS as a quite potential platform which will be very beneficial for lots of other startups and products in future.

He stated:

The EOSIO protocol is a great example of blockchain innovation. Its performance and scalability can meet the needs of demanding consumer applications and will pave the way for mainstream blockchain adoption.”

Meanwhile, the representative of Block.one are also pretty enthusiastic about the cooperation. They are interested in finding strong partners to advance and improve their project.

Actually, it is not the first large investment of Bitmain in the recent months. The cryptocurrency mining company has also contributed $50 billion to the web browser Opera.

We would like to remind you that Opera became the first among the top web browsers to implement its own cryptocurrency wallet.

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What Is a Cryptocurrency Pump or How Not to Waste All Your Money? 691

Bitcoin pump

There are a lot of methods of earning money at the cryptocurrency market, and they often differ depending on the size of the participant’s investment portfolio. Large investors can afford dishonest methods of increasing their own capital, for example, by creating an artificial demand for a certain asset. In professional terminology this is called pumping. In this article we will consider the mechanism of this process. We’ll tell you how to keep your assets safe and not fall into the trap of manipulators.

Contents:
(please, click the topic to scroll down to it)

  1. The concept of pumping
  2. Pumpers’ working methods
  3. How to recognize a pump and not lose your money?
  4. Conclusion

1. The concept of pumping

A cryptocurrency pump is the artificial inflation of its rate, carried out by buying a large number of coins, creating an agiotage among ordinary traders, while cryptocurrency dump is its unexpected sale at a peak of value and the rate collapse. This is an “excellent” option for earning for single large investors or a group of medium traders.

Manipulators often choose smaller and little-known coins with low market capitalization for these purposes. Bitcoin or any other coin from the top-10 can only be pumped by multimillionaires.

Pumps rarely happen during the general growing trend, since the main task of a pumper is to purchase assets at the lowest prices.

Ideal conditions for manipulation:

  • a pretty new currency with a good news background and a good idea, which you can use;
  • the coin value is below average;
  • global downstream at the market.

2. Pumpers’ working methods

Manipulators who earn on cryptocurrency pumps get as creative as humanly possible in order for their trick to work. The ways which they use to achieve artificial growth of an asset price are quite numerous. In our article we will consider only the main and the most common ones:

  • One-time contribution. An asset rate skyrockets in a short period of time. Depending on the capitalization and the amount of the investment, this index can vary from 40% to 300%.
  • Gradual “pumping” of coins. In this case, besides buying coins, manipulators create a positive news background. This is necessary to ensure that as many investors as possible believe in the natural growth. Long-term pumps can last several months, after that pumpers quickly sell off their assets, leaving investors with nothing.
  • Using trading robots. This method of manipulation is very similar to the first one, but it is implemented through the use of special software. It is the shortest one in terms of time, as the market can quickly track the similarity of transactions. Anyway, the end of a pump is always the same, and it is not beneficial for ordinary investors.

3. How to recognize a pump and not lose your money?

How should ordinary investors who want to protect their portfolios behave? After all, information about pumps is not available in free access. If you don’t want to fall into the bait of manipulators, read the following list of recommendations:

  • Have a cold mind and do not be guided by emotions. Always be skeptical of the sharp rate jumps. If there is no adequate fundamental reason for this, it is most likely a pampus.
  • Do not count on “long-term” during the rapid growth. Not only organizers can earn on pumps, but for this you need to monitor the dynamics of price changes carefully and not try to catch the last train. If unnatural growth lasts for more than a week, do not buy this coin.
  • Do not use bots for trading, as they are not able to adjust to manipulators.
  • Do not be greedy. It is better to earn 50% than to wait and lose 80%.
  • Learn to filter information, as not all sources can be trusted.

4. Conclusion

A cryptocurrency pump is a pretty frequent phenomenon at the market. It implies an artificial increase in the price of an asset, which is caused by the action of one person or a group of people with the aim of quick enrichment. If you want to earn at the cryptocurrency market, you must learn to recognize such phenomena.

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Mining of the Most Promising Altcoin: What Do You Need to Know About Mining Ethereum? 1865

mining cow UFO

The Ethereum project with its technology of “smart contracts” opened up a completely different path for the cryptocurrency industry. The coin quickly occupied the second position in the global rating of Coinmarketcap, so many miners switched from Bitcoin to Ethereum. In this article we will explain how profitable Ethereum mining is, what it takes to start it and how promising the coin is.

Contents:
(please, click the topic to scroll down to it)

  1. What do you need to start mining Ethereum?
  2. Cloud Ethereum mining
  3. Forecasts for Ethereum
  4. Conclusion

1. What do you need to start mining Ethereum?

Let’s go over the list of necessary things that are necessary for the miner:

– a powerful video card, but the optimal option will be 4-6 pieces within a single farm;

– a PC or a farm, which already has Windows x64 installed (it is very important that the 64-bit version is installed);

– a monitor or its emulator;

– uninterrupted access to the Internet (not necessarily high-speed, but preferably wired, not WiFi);

– a mining pool, as solo mining is a rather complicated process that requires very powerful equipment;

– a wallet that supports Ethereum.

2. Cloud Ethereum mining

If you are too lazy to get into the technical nuances of mining farms or pay a good commission to people who are engaged in their assembly, then there is a simpler and uncomplicated way for you to mine Ethereum. Cloud mining does not require any extra time from you. Specialized companies that own entire data centers will gladly sell (or lease) you their own computing power. How does it work? You just pay for a certain amount of a hashrate and look at the precious coins that appear on your account.

If we talk about the financial component of the issue, everything is not so unambiguous. On the one hand, buying physical mining equipment for the same money, you will get more power and will be able to get more coins. On the other hand, farms can break down sometimes, they will have to be repaired and serviced. And if you decide to supply a large amount of equipment, you will still need to take care of the electrical wiring and the ventilation system of the room. With cloud-based mining, all these related costs are incurred by the data center.

It would seem that this is an ideal investment solution, but there are pitfalls as well. Firstly, it is rather difficult to find a worthy company that can be trusted. Secondly, long-term earnings will be lower than in physical mining.

3. Forecasts for Ethereum

You need to evaluate the prospects for the most large-scale decentralized platform for creating blockchain-based applications should not be done from the point of view of standard criteria for cryptocurrencies, such as: transaction speed and commission size. The future fate of Ethereum directly depends on the development speed of competitive projects (Cardano, Tezos, etc.)

Ethereum is currently the most demanded coin. This is caused by the ICO boom, more than 95% of which are conducted on the Ethereum platform. Competitors are still very far from the stability that is provided by the “baby” of Vitalik Buterin.

4. Conclusion

Ethereum is currently the most promising altcoin for mining. You can start doing it even with a small farm at home. If you do not want to bother with the installation and maintenance of your own equipment, you can do cloud mining.

Mining such a promising coin as Ethereum should be seen as a long-term investment, since the project has fundamental reasons for growth in the coming years. Therefore, we would not recommend selling mined coins here and now

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