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An intro to common cryptocurrency terms

What is a cryptocurrency?

A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.

What is Bitcoin?

Bitcoin is a digital currency created in January 2009 following the housing market crash. It follows the ideas set out in a whitepaper by the mysterious and pseudonymous Satoshi Nakamoto. The identity of the person or persons who created the technology is still a mystery. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government-issued currencies. (For more information go to https://www.investopedia.com/terms/b/bitcoin.asp).

What is a blockchain?

  • Blockchain is a specific type of database.

  • It differs from a typical database in the way it stores information; blockchains store data in blocks that are then chained together. 

  • As new data comes in it is entered into a fresh block. Once the block is filled with data it is chained onto the previous block, which makes the data chained together in chronological order.

  • Different types of information can be stored on a blockchain but the most common use so far has been as a ledger for transactions. 

  • In Bitcoin’s case, blockchain is used in a decentralized way so that no single person or group has control—rather, all users collectively retain control.

  • Decentralized blockchains are immutable, which means that the data entered is irreversible. For Bitcoin, this means that transactions are permanently recorded and viewable to anyone.

What is an exchange?

​A cryptocurrency exchange, or a digital currency exchange (DCE), is a business that allows customers to trade cryptocurrencies or 

digital currencies for other assets, such as conventional fiat money or other digital currencies. Exchanges may accept credit card payments, wire transfers or other forms of payment in exchange for digital currencies or cryptocurrencies. A cryptocurrency exchange can be a market maker that typically takes the bid–ask spreads as a transaction commission for is service or, as a matching platform, simply charges fees.

What is a swap account?

Are online cryptocurrency exchange services, which will provide you with anonymous, safe and fast cryptocurrency swaps.  Typically offer hundreds of different coins to chose from, do not require any personal data, no accounts creation or registrations.  Fully automated exchange system with no place for human factor error; but comes with a FEE for the convenience, typically can be 5% or more of the total transaction.