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If our readers are planning to start trading cryptocurrencies it is useful to understand that, in fact, there is no Bitcoin as such. They do not lie somewhere in a flat pile and are not even on the hard disk. The owner of the virtual coin can’t pick up a bill or point to a digital file and say: “Here they are, my bitcoins!” Instead, he can see or show the balance of the wallet and his transaction history.
All bitcoin transactions, in turn, are carried out in e-wallets and require a digital signature. It is necessary for safety. Each money transfer becomes known to all users of the network, as Bitcoin has an open history of operations. Each transaction is stored in a public book.
The process
BTC transactions are essentially a regular money transfer. It is only carried out much faster. To transfer money, you only need the address of the recipient’s bitcoin wallet. No first and last names. On the part of the user, the operation looks like this: a wallet is opened, the recipient’s address and the amount of the sending are entered, the signature is executed using the private key. Everything, 10-30 minutes – and the money from the recipient. Behind this simple at first glance, the process hides a huge world.
For example, if Alex sends Bob two and a half bitcoins, the transaction will have three pieces of information:
- Entrance. Record with information about where Alex got his bitcoins.
- Amount. The number of transferred coins. In this case, 2.5.
- Output. Bitcoin wallet address of Bob.
If you think that the commission in the implementation of operations with Bitcoin – something beyond the limit and out of the ordinary, take it easy. Banks, payment services, exchanges, you also pay a commission for the implementation of the transaction, even though it is sometimes invisible. Deductions, in this case, make up the profit of the service or go to maintain its livelihoods. In the case of Bitcoin, commissions go to miners who assist you in conducting the operation. Please note that deductions for fees are not required. If you do not pay, your transfer will come true, although it will take a long time to wait.
Transactions take some time
Since the transaction must be checked by miners, sometimes you have to wait until they finish mining the block. Bitcoin protocol regulates mining so that each block takes about 10 minutes.
This can cause difficulties with instant payment for services in stores that accept bitcoins. In most cases, devices are used that deferred conduct transactions. This is normal for low-cost transactions where the risk of fraud is not so great.
Public and private keys
During the creation of a Bitcoin wallet, the user is given a private and public key. The public key is public and serves as an address for transactions. It can be seen by all users who commit transactions to it or track them in the blockchain. The private key is private. He knows only the owner of the wallet and it is on this key is based on the safety of your funds.
There is also a public key unique individual address, which is visible in the blockchain. A public key is a cryptographic code that consists of an encryption algorithm with an asymmetric key, which is used to convert messages into a non-readable format. The Bitcoin public key itself is very long because it is compressed and reduced to the form of a public address. If a user loses his public key, it is possible to recover it using a private key.
Getting Started: Bitcoin mining pool
Bitcoin mining implies participation in the work of the system in order to assist in the computation of cryptographic keys (hashes) that sign blocks of transactions in the blockchain. For finding each key, the system gives a reward in the form of emitted bitcoins. Due to the high complexity of the computations, it is impossible to find the key by yourself, being ahead of other participants, even with high-performance equipment. Therefore, more than 99% of miners, with the exception of those who have the fantastically powerful computing power, work through these sites.
- You will need to download from the official resource the software that is required for the implementation of mining.
- You will need to understand the software, configure it, and design its launch.
- Then everything is simple – test mining on your computer, and calculate how much you can earn on it through this pool.
In principle, everything is extremely simple on this point, nothing complicated is required. But it should be remembered that ordinary users do not have access to some pools, for example, the pool – Bitfüri is private.
Advantages
Distributed computing by a group of miners is much more efficient than a single key search. Together they manage to find the hash faster than it would if they were working alone. For the use of the resource you have to pay a commission of the pool, but this amount is insignificant compared to the increase in profitability due to the joint solution of computational problems.
Commissions
There are cases when unscrupulous owners of the “pools” robbed users, collecting the extracted cryptocurrency and disappearing. In order not to become a deceived entrepreneur, we recommend using the services of proven services. However, the more reliable the pool, the higher the commission and other types of fees. New pools lure users with a low commission and pleasant bonuses during registration, which of course attracts inexperienced miners.
Regulations
Some countries do impose a tax on Bitcoin mining income since they classify cryptocurrency as bond and stocks. Whether your country of residence does that or not you should do research or even better consult with the expert in this field.
Top 10 Mining Pools
The most popular mining services have an English interface, which does not prevent Russian miners from earning successfully with their help. The list of the largest pool of BTC mining associations includes the following resources:
1. BTC.com
Country: China.
Founded: 2015.
Commission: 17.93% of all blocks.
Is it open to the public: Yes.
2. AntPool
Country: China.
Founded: 2015.
Commission: 14.40% of all blocks.
Is it open to the public: Yes.
3. SlushPool
Country: Czech Republic.
Founded: 2010.
Commission: 11.96% of all blocks.
Is it open to the public: Yes.
4. BTC.top
Country: China.
Founded: 2014.
Commission: 9.24% of all blocks.
Is it open to the public: Yes.
5. F2pool
Country: China.
Founded: 2013.
Commission: 9.24% of all blocks.
Is it open to the public: Yes.
6. ViaBTC
Country: China.
Founded: 2016.
Commission: 8.97% of all blocks.
Is it open to the public: Yes.
7. Poolin
Country: China.
Founded: 2014.
Commission: 5.71% of all blocks.
Is it open to the public: Yes.
8. BitFury
Country: Georgia.
Founded: 2014.
Commission: 3.53% of all blocks.
Is it open to the public: No.
9. BitClub
Country: China.
Founded: 2014.
Commission: 2.72% of all blocks.
Is it open to the public: Yes.
10. DPOOL
Country: China.
Founded: 2014.
Commission: 2.45% of all blocks.
Is it open to the public: Yes.
The cryptocurrency market also works in the same way as the world stock exchange. On the chart, you will see exactly the same price fluctuations as on securities or Forex, although there is a distinct feature. To know how to read cryptocurrency charts, you first need to master the understanding of what “Сandlestick chart” or “Line chart” are and how technical analysis models are built on them. Market charts make it possible to smooth out the behavior of the crowd on the stock exchange, to understand which forces, to which they distribute their positions.
An experienced trader will spend a little time looking at the chart for a BTC, ETH or other asset, and a beginner is at great risk for money. Exchange schedules are the most important tool of market analysis, as they present price information in a graphical, visual version, which is the easiest for a general understanding of the market situation than textual or digital information. They allow you to see the mass behavior of the crowd, as well as to assess the balance of power between sellers and buyers, which ultimately makes it possible to understand the potential profitability of transactions.
Understanding Bitcoin charts
Types of Bitcoin charts
There are three types of charts: a line chart, a histogram and a chart called “candlestick chart”
Line chart
This is the basic schedule that a trader has to deal with – it is simply a change in the parameter of a cryptocurrency over time. A chart can track various cryptocurrency parameters, for example, its price or market share. Using such a chart, one can judge the profitability of a coin on the horizon of a month, week, day, or even the last hour.
Candlestick chart
A candlestick chart, or candlestick chart, is also used to describe the price movements of securities, currencies or derivatives; usually, each candle is one day. Among cryptocurrency traders, such charts are the most popular. They are intended for advanced traders, but it is not difficult to understand them. Each “candle” on the chart shows the opening price, the lowest and highest price for a given period of time, as well as the closing price.
Where to find Bitcoin charts
It is a very useful and necessary tool for traders so most of the wallets and exchanges have some sort of charts in their interfaces, but there are also dedicated platforms solely for charts:
- CoinMarketCap
- CoinDesk
- Bitcoin.com
- CCN
- Coinbase
- TradingView
How to understand Bitcoin charts
Each chart has its own properties and after we found out how to find chart platforms, now it is time to learn how to read them.
Line charts
In the linear chart, everything is simple and intuitive, everything is as you see. The upper point of the vertical line here is the highest, and the lower – the lowest price for a certain period of time. The left bar shows the opening price, and the right bar – the close.
Candlestick charts
The size and color of the body of the candle, as well as the length of the shade or wick, are very important because they demonstrate current trends, as well as indicate reversals and future price movements. The candlestick color indicates whether the closing price was higher than the opening price (usually in this case green is used) or lower (usually red). Wicks or shadows, that is, the thin lines that come out of the body of the candle up or down, show the lowest and highest price for the selected period.
Holding and margin trading
Now that you can read charts, you can follow trends every day. Diagrams are very helpful in this because they allow us to estimate the dynamics and not just the current price value.
Recap
However, price analysis is only part of the task, because it is equally important to understand the causes of sudden highs and lows. So do not forget to follow the news that may affect the state of the cryptocurrency market – if something significant happens, no graphs will help to predict the subsequent price jump.
What is the Basic Attention Token?
Blockchain and cryptocurrency are becoming more and more popular, and businesses are starting to look for new problems in the new technologies. Basic Attention Token, or BAT (can be translated as “Basic Attention Token”), was created by the co-founder of Mozilla and Firefox in partnership with the creator of JavaScript and is designed to increase the effectiveness of advertising in the digital environment. The BAT network uses the Ethereum blockchain and the specialized browser Brave. The BAT Token is used on the Brave platform as a currency of exchange between users, advertisers, and content publishers, and it embodies an unobvious, but very important for advertising thing – the attention of users.
Why we need it?
The creators of BAT set themselves the task of completely changing the digital advertising market. They believe that the current situation, when websites are flooded with advertising and spying tools, and that malicious programs appear one after another, is unprofitable for neither users nor advertisers and publishers. Publishers (except for Google and Facebook) earn little money and even suffer losses because of bots that mimic user interaction with content or advertising. Advertisers lack the targeting and information about their customers to focus content more accurately.
Brave web browser
The BAT Token (BAT / USD) is targeted for use on the Brave browser platform. It is an open source browser, designed with a focus on privacy and with built-in blocking of tracking code and malware. For anonymous and secure tracking of users’ attention, the blockchain is used here, and attention is turned into income for publishers. Brave registers the user’s attention, aimed at a particular advertisement or other content, while the creators of BAT emphasize that the user’s personal data and information about his preferences are stored only on his device, guaranteeing anonymity and confidentiality. Advertising publishers are rewarded for the attention of users through BAT, and the more effective their content, the more attention it attracts, the higher their income becomes.
Getting Basic Attention Tokens
As noted earlier, the BAT token is not a full-fledged digital currency; rather, it is a coin created according to the standard based on the ERC-20 on the Ethereum Blockchain. Most of the coins were sold during the ICO, and the balance was divided between the developers and is used for the development of the project, respectively, there is no traditional mining concept within this system. However, tokens can still be obtained for free.
How does it all work?
Brave Browser gets accurate information that allows advertisers to offer their product or services only to those users for whom they are of real interest. Anyone can completely get rid of advertising if it is not important. Thus, comfortable conditions for Internet surfing are provided. Advertisers will use BAT coins to pay for the exchange of advertisements with those who use the Brave browser and at the same time is the target audience for a particular ad.
The main feature of Basic Attention Token is that users are directly involved in the workflow. The browser automatically collects information about exactly what the user is interested in, so the advertiser will be able to determine the circle of the target audience with minimal error and make a newsletter for it.
Where it is going?
The Basic Attention Token cryptocurrency project and the new high-speed browser Brave have significant potential for development. The idea of creation offers the user a comfortable environment for using the Internet, as well as the opportunity to receive rewards for a certain activity. Experts and analysts are optimistic about the potential of Basic Attention Token cryptocurrency, despite the fact that the Brave browser is becoming an intermediary, although it has struggled with the mediation.