What is Crypto Coin ? What is the best crypto coin to buy right now

Contents

What is Crypto Coin – For those who are new to the world of Crypto, there are certainly many questions related to this field. Eg Crypto Coin what? What is electronic money? Is Crypto Coin Bitcoin?… So, in this article we will share with you details about Crypto Coin.

Find out what is Crypto Coin

Learn What is Crypto Coin?

What is Cryptocurrency?

Cryptocurrency or fully written Cryptocurrency is an English term used to refer to cryptocurrencies, which are also electronic currencies that exist on the internet. These cryptocurrencies are designed to be digital and are not regulated by any government, central bank or centralized organization. They can be distributed and accessible to everyone in the world through the internet.

In 1990, the first ideas about cryptocurrency appeared. But it wasn’t until 2008, almost 20 years later Crypto Coin has actually become more popular around the world. And the most known cryptocurrency is Bitcoin proposed by Satoshi Nakamoto.

bitcoin The world’s first peer-to-peer cryptocurrency – BTC

Bitcoin is also the world’s first peer-to-peer electronic currency. The birth of Bitcoin also marked the formation of a new monetary transaction concept, which is a transaction based on trust between two parties. This means that cryptocurrency transactions will execute on cryptographic proofs and these cryptocurrencies appear as verified transactions, saved on the blockchain.

Types of Cryptocurrencies

There are currently 2 types on the market Crypto Coin. Each type has its own characteristics. Therefore, before investing, you need to learn carefully about each type to be able to identify their potential and risks. Specifically, Cryptocurrency will be based on 2 ways to classify it:

Coins and Tokens Bitcoin and Altcoins

What are Coins and Tokens?

Coin is a cryptocurrency developed on a separate blockchain, operating independently and they were born with the purpose of solving problems such as security, payment, finance, application development, … of the blockchain itself. that.

Eg:

Coin BTC Developed on Bitcoin Network Ether Developed on Ethereum

Tokens are similar to Coins, both are electronic currencies issued on the blockchain. However, the difference between Token and Coin is that it does not have its own blockchain, but is forced to “live” on another blockchain.

Artwork: Coin vs token – what is the next big crypto coin

Eg:

KONO is Konomi’s token because it is stored and traded on the blockchain EthereumMER is a Mercurial token because it is stored and traded on the Solana blockchain.

There are also many cases when the Token project is strong enough, it will aim to develop its own blockchain platform for the Token itself. And then the Token will become Coin. This happened in SOL. Originally SOL is Solana’s token and they are stored and traded on Ethereum. However, later when Solana developed her own blockchain, SOL became a Coin.

Coins and Tokens can be easily distinguished through features and techniques. Specifically:

Feature

Coin: Each blockchain has only one type of platform Coin and this Coin is used as a means to exchange, store, and serve purposes such as investment, payment, project development of that blockchainToken : Inherit the features that the Coin has and have many other utilities, depending on the projects built on the blockchain that issues it

Skill

Coin: Requires a separate wallet or Wallet platform and will charge a fee for sending/receiving transactions. This fee is deducted from that Coin walletToken: Unlike Coin, Token does not have its own Wallet but instead uses the wallet of the platform Coin. Token trading will also incur fees and charges deducted from the Platform Coin

What is Blockchain?

You don’t just need to know Crypto Coin What is blockchain but should also understand what blockchain is. This is a database system that stores and transmits blocks (information) and uses encryption to link. Managing blocks is not by any intermediary but by the system participants themselves.

Understand the concept of blockchain – what is a crypto coin

That is, only when everyone agrees can add to the block of information on the blockchain system. Besides, these blocks can also operate independently and scale in real time.

Distinguish Bitcoin and Altcoins

Bitcoin

Bitcoin, symbol BTC is known as a cryptocurrency or digital currency. They were released in 2009 as open source software by a character named Satoshi Nakamoto. BTC can be exchanged directly on internet-connected devices and has many outstanding features such as anonymity, no transaction fees, and is very popular.

Altcoins

Altcoins (referred to as Coins). Altcoin is used to refer to all cryptocurrencies, except Bitcoin. And most of the cryptocurrencies in Altcoins are improved versions of BTC. These Altcoins appeared after BTC was born in 2009. Some Altcoins such as Litecoin, Dogecoin, Peercoin, etc.

Altcoins are not Bitcoins – what is the best crypto coin to buy

However, Altcoins are created on the blockchain and its own protocols, not based on the open source code of BTC. You can see this very clearly when learning about cryptocurrencies Ethereum, NEO, Ripple, etc.

Altcoins can differ from Bitcoin in one or more ways. It may be different in terms of security, how Coin is distributed, economic model, consensus algorithm, etc. There are also Altcoins that only change a few small parameters or make promises of improvement and are considered. as a version of BTC. Especially Coins that are forked from BTC, such as Bitcoin Diamond, Bitcoin Gold, Bitcoin Cash, etc.

Crypto Exchange

There are many exchanges on the market today Crypto Coin but in general, these exchanges are divided into 2 types, which are centralized exchanges (CEX) and decentralized exchanges (DEX).

Centralized Exchange (CEX)

These are exchanges that operate under the control of 3rd parties. They act as a bridge for traders to exchange their Crypto assets. To be able to trade on CEX exchanges, you need to have an account (ID, password) to log in and follow KYC (Know your customer.)

Binance Binance is a large centralized exchange – what is a crypto coin

Some centralized exchanges with large and reputable transactions are: Binance, Kucoin, BitMax, Huobi, Bittrex, Gate.io, …

Decentralized Exchange (DEX)

DEXs are exchanges built and operated on blockchain and decentralized platforms. They differ from centralized exchange CEX in that you can make transactions, exchange Coins right on your wallet, not moving out anymore. And the transaction is only made when you have been authorized. You are also entitled to hold the Private key.

Uniswap Uniswap . Decentralized Exchange – what is a crypto coin

Today’s decentralized exchanges include: Saber, Uniswap, Sushiswap, …

Popular Cryptocurrency Investment Ways

If you are looking to invest in Crypto Coin, you can choose one of the following two ways or do both at the same time:

Trade

Trade means buying and selling activity Crypto Coin continuous. You can make buy and sell transactions in hours, days or months depending on your preference. However, the cryptocurrency will not be kept for too long.

Trade Coin is chosen by many people – What is Crypto Coin

Traders will often have to learn very carefully about Crypto Coin and know how to do technical analysis, Trade margin, read and understand charts, find reasonable entry and exit points. A good trader can bring himself a profit of 50 – 100%.

Hold

Hold means hold, meaning you will do fundamental analysis and make assessments and predictions about the future to buy assets and then keep them for a long time. Usually 6 months to 1 year. Cryptocurrency holders rely on their own analysis to see the market, compare competitors and make judgments about the potential of the project, then invest.

Hold means to hold the coin and wait for the price to rise – What is Crypto Coin

If the investment is successful, cryptocurrency holders can receive huge profits. The goal can reach 500 – 1,000%. There have even been cases of reaching 10,000%.

Closing and disclaimer

So in the above article we have shared all the basic information about Crypto Coin that any crypto investor knows. Let’s learn more about cryptocurrencies because this is an investment field with many opportunities but also many risks.

Disclaimer: The above information is provided for sharing and reference purposes only. We don’t give any advice so it’s up to you to invest or not!

Currently, the Vietnamese state does not provide legal support for any electronic currency, you still have the right to mine and use it, however, when there is a dispute or conflict, the state has no obligation to assist in resolving these issues. this problem.