Cryptography: The Technology That Digital Currencies Use

Cryptocurrencies (digital currencies, virtual currencies, crypto currencies, among others) have become a source of interest for many people thanks to the precursor, bitcoin (BTC or XBT).

Cryptocurrency the future - image explaining what they are
Image created by Market Business News (Copyright ©).

The cryptographic technology, unlike what many people believe, did not start at the same time it was conceived and created BTC, but it already existed years ago. This technology is what allows digital currencies, among other things, a high degree of security or to send and receive «money» without blockchain being corrupted.

What Is the Difference Between Cryptocurrency and Fiat Money?

These points can be applied to both Virtual Currencies and bitcoin.

  1. without intermediaries. We can make and receive payments “avoiding” third party commissions. Payments with cryptocurrencies have commissions, but they are lower than those that a bank or other type of processor would have.
  2. They are anonymous. When we make a payment or receive it, we do it from anonymity. Although it is true that it is possible to see where a payment has been sent and have information about it, digital currencies give their users great anonymity.
  3. Decentralized. They are not governed by any government or country.
  4. Internationals. They can be used from anywhere in the world, we only need internet access.
  5. Payments at any day and time. We can make and receive payments, any day, any time.
  6. Fast. Payments are received in a few minutes.

Bitcoin History (BTC or XBT)

We have to distinguish between Bitcoin (with a capital B) that refers to the entire network or the concept, between bitcoin (with a lowercase b) that is used to refer to the unit, that is, the currency.

Bitcoin image 493929349

Satoshi was the nickname of its creator or creators. Bitcoin was invented in 2009 and uses Blockchain «block chain» technology. In itself this technology is a distributed registry resistant to synchronization and without the need of the trust of the members that make up the network.

BTC fulfills all the points we saw above and is the precursor to all the other currencies we are familiar with these days, such as Ethereum, Doge, Ripple, Litecoin, Monero, Dash, NEM, and hundreds more.

Trading with Cryptocurrencies and Bitcoin

Many traders (trading lovers) and investors are opting for this variant. There are several points that undoubtedly make them very appealing for expert traders and investors. Let’s see some:

What Positive Points Do Cryptocurrencies Have for Trading?

  • They avoid third party commissions.
  • They are very volatile.
  • In case of losing our operation, we will always keep the currency. Which we can expect to sell in the future, Crypto Engine has many advantages in trading of the bitcoin.

How to Make Money Trading with Cryptocurrencies and Bitcoin

Bitcoin trading - making more money out of nothing article 23 image adapted by Market Business News.

The trading (buying and selling) with virtual currency is virtually identical when tradeamos with other assets or currencies. It is about predicting whether the price of a currency will rise or fall. In general, the most used system is to buy coins at a price that we think is low. We will go into buy when we see that the trend becomes bullish. We will sell when the trend begins to change, or when we believe that we can obtain the maximum benefit.

Virtual Currency Trading Techniques

A technique that we use quite a bit at a particular level is the following:

In this example, we buy the X coin at 1,000 satoshis when the trend has turned bullish. This is indicated by the indicators, the oscillator and the Bollinger Bands. As we know the trend can change suddenly. It can also happen that we are not ahead monitoring just when it changes and begins to become bearish.

Something interesting would be to get rid of a part of our coins when its price rises for example to 1,100 satoshis (we sell 20%). The price continues to rise and a few hours later it reaches 1,250 satoshis, we could sell another part (we sell 30%). With the remaining 50% we can “speculate” a bit more and wait for it to continue rising. If not, and the trend suddenly drops, we will have already made a considerable profit.

Video – Cryptocurrencies


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