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When you make a wire transfer (or any transaction, ed.), your issuing bank doesn’t actually take the money from your account right away and transfer it to the recipient’s account. The bank simply keeps information about the payment in its database for as long as it needs and is comfortable. Only the balance in your bank account and possibly the beneficiary’s balance changes instantly. Money now moves on the principle of changing records in databases, not physically.

In order for cryptocurrency to function independently of any centralized intermediary, all participants in the process need to have a way to record and store financial transactions to eliminate the problem of double debiting, which allows you to pay twice with the same crypto token, that is, to “buy” goods for twice the amount available. In doing so, the problem should be solved without the use of some central server and base, as is done in banks.

Most existing cryptocurrencies use an open cryptographically secure distributed transaction registry called “blockchain. A blockchain is a chain of blocks of transaction records that are linked together and secured using cryptography. Each block contains its own unique cryptographic identifier that points (links) it to the previous block in the chain.

Once added to the blockchain, the blocks can no longer be changed without losing data about the entire chain that follows, which immediately lets other users know that there has been a third-party tampering to bypass the rules. This makes it possible to simply refuse to use the modified version of the chain (because without recognition of the modified block by most participants in the process, it is useless) and continue to work with the original branch.

Electronic cryptocurrency wallets can be linked to the blockchain to ensure that their balance is true, and new transactions are verified using data in the blockchain to ensure that each one is real and was produced by a cryptocurrency that actually belongs to the payer (or his wallet).

Digital currency is divided into coins and tokens.

Coin. This is the monetary unit of cryptocurrency, which works in its own blockchain. It can be mined by mining – providing the system with the computing power of your computer. Coins can be transferred to other blockchain users and sold for regular currency. Some companies accept them as payment for goods and services. For example, Microsoft sells the Windows operating system and the Xbox game console for bitcoins.

There are also coins that run on a rewritten bitcoin blockchain. They are called altcoins, alternative versions of bitcoin.

Token. This cryptocurrency monetary unit is created from an existing blockchain. They cannot be mined, but can be bought or received for activity. Tokens cannot even in theory be paid for; they are used to give the user access to the functions of the platform. If a coin is a bill, a token is a ticket. But if you put a token on an exchange, it can be exchanged for regular money at the current exchange rate.

Tokens can be used as an investment tool and proof of business rights, they can be used to participate in votes or surveys.

Tokens have more possibilities, but tokens are more valuable to investors because they are harder to create.

The success of investing in cryptocurrency depends on the right choice of digital money. Here, it is important to use a profitable cryptocurrency that will not lead you to losses. When choosing, evaluate the following factors:

Popularity. Find out how popular the cryptocurrency is among users. Great interest, availability on exchanges, rising value – all this indicates the popularity of digital money.
Mobility. Choose a currency that can be easily moved. It should have easy-to-use wallets.
Security. A good cryptocurrency should be protected from fraudsters.
Many modern cryptocurrencies have such characteristics. The most common in terms of investment, of course, is Bitcoin.

Bitcoin is the most valuable cryptocurrency for investors. It has been around for 12 years and has become the definitive standard for alternative remittances, surpassing all other cryptocurrencies.

Bitcoin is secure, mobile and incredibly popular with small and large investors. Over the past year, its value has increased dramatically, as you can see in the chart.

How to invest in Bitcoin?
Buying on Matbi. The first way is to use an exchanger. The exchanger “Matbi” offers a very favorable rate, which changes in real time. It should also be noted that there is no commission on “Matbi” to deposit by the most popular methods, including “Sberbank”. Since there is an exchange of rubles for cryptocurrency, this operation may well be called a purchase. But on “Matbi” it is also possible to make the sale of coins, as well as the exchange of one cryptocurrency for another. All this happens in automatic mode, without human involvement, and therefore – as quickly and seamlessly as possible.

Matbi supports work with several types of cryptocurrencies simultaneously, namely Bitcoin, Litecoin, Dash and ZCash. Matbi is the best service for those who are starting their acquaintance with cryptocurrency. In case a user has any questions, the Matbi team has prepared a detailed video tutorial. Matbi main

Buying on the exchange. The most profitable way to invest in BTC is to buy it on exchange. We use CEX.IO – it’s one of the few exchanges where you can quickly buy cryptocurrency with your bank card. For the first purchase the most simplified interface is suitable:
CEX exchangeCryptocurrency exchange at CEX.IO

Cloud mining. You’ve probably heard that mining cryptocurrency at home is unprofitable and mining is only possible by huge industrial farms. But no problem! Remote mining service IQ Mining offers you to earn bitcoins by mining other highly profitable coins. So-called “smart” mining automatically switches between the most profitable coins, which are then converted to bitcoin at the most profitable rate. This method of mining is by far the most profitable.

Trading. Speculative trading on the exchange requires certain knowledge and skills. Our guide will help you understand the basics of this business. The Binance exchange is currently the best suited for trading. It has everything: plenty of cryptocurrency pairs, huge trading volume, low commissions and high limits. You can also invest in other cryptocurrencies if you wish.

Step 1: Analyze the market. Every cryptocurrency has periods of growth and decline, there are always up and down trends in the market. Study the market and choose the investment direction that appeals to you the most and is relevant.

Step 2: Choose one or more cryptocurrencies to work with. The payback period and the amount of income depends on this.

Step 3: choose the size of your investment. Investing in cryptocurrency is a high-risk investment. For beginners, it is recommended to allocate an amount that you are not afraid to lose.

Step 4: Examine the risks involved. The high volatility of cryptocurrencies allows for quick gains and equally quick losses. The issue of legal regulation is also not clear yet. Study all potential risks of the market so you know what you can face in your business.

Step 5: Choose a secure vault. A cryptocurrency wallet will be needed for buying and selling transactions as well as withdrawals from services. We like Coinomi mobile wallet for daily use and Ledger Nano S hardware wallet for long-term storage of funds.

Step 6: get registered on the exchange. You can work on one or several exchanges. To choose a worthy exchange, you have to do your own research and compare all the options on the market. It is necessary to take into account the reputation, safety standards, study the commissions and the availability of the tools offered. We recommend choosing CEX.

Step 7: Buy a cryptocurrency. Bide your time to buy digital money at the lowest rate possible. Buy the currency on a downturn.

The first mention of cryptocurrency appeared in 1983, but everything remained “on paper” until 2008. Ten years ago, the oldest cryptocurrency appeared – bitcoin (Bitcoin). Almost five full years its competitors used its algorithm for creating their own versions (altcoins). When bitcoin jumped sharply in 2017, however, discussions began about who actually invented bitcoin and what it was for.

How bitcoin came to be
The idea for the cryptocurrency came about through the development of a cashless transfer system. The key challenge for the creator of bitcoin was to develop technology that would allow for transparent yet anonymous payments over the Internet. The challenge was to keep the information about the payer and the recipient confidential, but to allow third parties to present the payment data.

Basic algorithms to protect against fraud were developed long before the first Bitcoin coin appeared:

1983 – Blind Signature algorithm, e-cash protocol was created (David Chown worked on them).
1997 – Hashcash system appeared (spam protection developed by Adam Black).
It is worth mentioning Nick Szabo, who worked on the Bit Gold decentralized financial system project. He is sometimes attributed the authorship when discussing who created bitcoin. But the programmer himself denies it. He was only the first to try a similar technology, and unsuccessfully.

History of the progenitor of cryptocurrencies
It is officially believed that the founder of the cryptocurrency is Satoshi Nakamoto. That’s how the anonymous developer who wrote the protocols for a brand new currency, which he himself dubbed Bitcoin, called himself. The year 2009 became the starting point for mining the first digital coins. The author of the system created the first bitcoin wallet and generated the first block. Initially, due to the lack of material support, the value of one monetary unit was counted by the cost of electricity.

It took only two years for Bitcoin exchange services to open for real money. Afterwards, there were proposals to trade the cryptocurrency on the exchange, on a par with the U.S. dollar, pound or euro. Even the founder of Bitcoin did not anticipate such dynamics. The leading media, stock exchanges and corporations paid attention to the new way of paying for goods. There was also some criminal activity: until 2013, the Silk Road criminal group, which sold illicit goods for bitcoins, was active on the U.S. market.

After the arrest of its creators, the cryptocurrency began to be taken seriously. That, in the opinion of experts, provoked a sharp rise in the exchange rate of bitcoins. On the one hand, the governments of many states are trying to take control of an anonymous payment system. On the other hand, it attracts investors and maintains the high rate of the cryptocurrency.

Versions about the Bitcoin developer
The key theory about the person who invented the cryptocurrency is its anonymous existence. Most likely, Satoshi Nakamoto is a pseudonym. After all, the translation of these words means the following (very similar to the abstract description of the bitcoin project):

Satoshi – resourcefulness, wisdom, clear thinking;
naka – interconnection, inner environment;
moto – origin, basis, foundation.
There is no point in revealing the creator’s identity. His fortune, according to some versions, is estimated at 1 million bitcoins (more than 2.5 billion U.S. dollars). There is no need to draw attention to yourself with such wealth. The more so because the creator of the cryptocurrency stated back in 2010 that he was switching to other projects and bitcoin would be handled by different people.

The Reasons of Bitcoin’s Popularity
None of the listed candidates provided reliable evidence that he is the developer of the cryptocurrency. The question remains open, and the bitcoin exchange rate holds at an impressive level. No currency has ever managed to become that expensive. Even platinum has almost 8 times the official rate.

The reasons for its high popularity are several important features:

Complete anonymity of the system. Transactions are conducted without transmitting personal data, without identity confirmation.
High security. It is easy to trace the fact of payment in the archive of transactions. All transactions on the transfer of coins are stored forever from the moment of their production.
Decentralization of storage. Cryptocurrency does not depend on any country, political or economic power. No single state or individual is able to directly affect the rate or performance of the system.
What adds to the popularity of the creator of Bitcoin is also the ability to get the cryptocurrency on their own. Anyone who is interested in this field can take part in the creation of new coins and, over time, get rich. The main thing is to adhere to the basic safety rules when creating a bitcoin wallet, storing the savings in it.