What is cryptocurrency and how does it work?

In recent years, states are increasingly interfering in the life of poker fans. They block payment systems, close access to poker rooms, create national reservations. Playing poker is becoming more difficult and more effort is required even for such elementary actions as deposits and cashouts. One of the most effective ways to solve deposit and withdrawal problems is by switching to cryptocurrencies.

What is cryptocurrency?

Cryptocurrency is a virtual currency that exists in the form of information encrypted into a code. Unlike the dollar, euro or ruble, it is not backed by gold or other things of the material world. All information about the cryptocurrency and transactions are stored in a special registry - a blockchain. The main feature of blockchain technology is that it cannot be tampered with and information cannot be overwritten. That is, the register is like a ledger, where all transactions are recorded objectively and no edits are possible.

The essence of cryptocurrencies let's consider the example of the first and most popular of them - bitcoin (BTC). Coins are issued for performing computational operations. This is not some abstract computation, but the process of collecting and processing all the data about the operations that take place with the cryptocurrency. For example, Donald sent Rudolph 3 bitcoins as payment for services. The user's computer, connected to the bitcoin system, captured and processed this information. At some point in the computation, millions of these transactions are concentrated in special blocks. Based on the results, the system awards bitcoins to the people whose technique performed the most mathematical calculations. The process of obtaining bitcoins has been called "mining" on the internet. Users keep the system running with the processing power of their computers, and in return, the system "pays" for the work of their hardware with bitcoins and other cryptocurrencies.

Only time will tell if crypto becomes the currency of the future

The main feature of bitcoin is that the cryptocurrency's code itself contains a finite number of coins. When the bitcoin reaches the 21,000,000 BTC mark, the system stops creating them. This explains the constant growth of bitcoin's value - unlike nation-states, which can turn on the printing press at any moment, there will be no new BTCs.

Benefits of cryptocurrencies

The growing popularity of cryptocurrencies is not only due to the "trendiness" of the topic or the increasing control of traditional money by states. Cryptocurrencies also have their own advantages:

• Minimal deposit and withdrawal fees. The commission does not change depending on the amount of the transfer. Even sending $1,000,000 will cost 20-30 cents.
• Full decentralization of virtual money. The state does not regulate or affect cryptocurrency transfers.
• Anonymity. Deposits and cashouts no one will trace.
• Transfers cannot be blocked, suspended or otherwise affected.
• The scope of crypto is constantly expanding. Among poker rooms RedStar Poker, Ggpokerok, PokerKing, TigerGaming, PokerDom and PokerMatch already work with virtual currency.

Some supporters of cryptocurrencies refers to the advantages of the constant fluctuations of the rate. They say, "as the rate increases, so does the amount of your money". However, the currency can also fall, it is worth considering.

What types of cryptocurrencies exist?

The list of cryptocurrencies is quite wide and their number is constantly growing. Bitcoin has the best reputation as the oldest and most deserved digital currency. The rise or fall in the value of the "bitcoin" is instantly reflected in other cryptocurrencies as well. Other cryptocurrencies act as alternatives to bitcoin, so they are grouped together in the "altcoins" group. The most popular altcoins are Ethereum, Ripple, and Litecoin.

At the moment there are 9358 types of cryptocurrencies and more and more every day

Within cryptocurrencies, there is also a division into 2 large groups: сoins and tokens. The former can be mined and spent on goods. Tokens, on the other hand, are more like shares and certify that part of a project belongs to its owner. When a project enters the market, they are issued as securities. If the project develops, the price of tokens goes up.

How to start using cryptocurrencies?

To start using cryptocurrencies, you need to register a wallet. In the decade since the advent of bitcoin, the technology and infrastructure of digital money is constantly improving, so it is not difficult to get a hold of crypto. There are already 5 solutions for wallets: software wallets, online wallets, hardware wallets, mobile apps, and paper wallets. You can read more about each of them in the article "Where can I store cryptocurrency?" However, the point of wallets is to store digital money, which still needs to be obtained.

The easiest way to get hold of cryptocurrency is to buy it with traditional money on an exchange. In the cryptocurrency world, dollars, euros, rubles, pounds, that is, any national currency is combined in the concept of "fiat money". In 2022, the most convenient option to buy bitcoin or other cryptocurrencies is the Binance exchange. Now the largest number of cryptocurrency transactions are conducted there. Over the years, Binance has never yet been hacked. Together with a convenient set of tools and other useful features, this makes the exchange the easiest way to buy cryptocurrency. To start working on the exchange, you will need to go through the registration procedure.

Where are cryptocurrencies accepted?

In the early days of cryptocurrencies, one of the main questions was, "Will people ever buy anything with them?" Bitcoin was treated with caution, and people were in no hurry to sell real goods in exchange for something incomprehensible. Since 2009, cryptocurrencies have come a long way and gained enormous popularity. Now virtual currency is accepted by Microsoft, PayPal, Skrill, Neteller, Amazon. It is also possible to pay for any product with cryptocurrency on PokerEnergy. If you pay for any product with cryptocurrency, we give you a 5% discount.

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