Crypto Currency - everything you need to know about steemCreated with Sketch.

in chainbb-general •  7 years ago 

What is Cryptocurrency?

A cryptocurrency is a peer-to-peer, decentralized, digital currency whose implementation relies on the principles of cryptography to validate the transactions and generation of the currency itself.[1][2] At present, all cryptocurrencies are alternative currencies, as no nation has adopted a cryptocurrency alternative to fiat money. Cryptocurrency implementations often use a proof-of-work scheme to guard against digital counterfeiting. While over 30 different cryptocurrency specifications and protocols have been defined, most are similar to and derived from the first fully implemented cryptocurrency, Bitcoin.
Most cryptocurrencies are designed to gradually introduce new units of currency, placing an ultimate cap on the total amount of currency that will ever be in circulation. This is done both to mimic the scarcity (and value) of precious metals and to avoid hyperinflation.Compared with ordinary currencies held by financial institutions or kept as cash on hand, cryptocurrencies are less susceptible to seizure by law enforcement.Existing cryptocurrencies are all pseudonymous, though additions such as Zerocoin have been suggested, which would allow for anonymity. (Copied from Wikipedia :pfft: )

Now the only question which comes into our mind is will we get rich from these currencies ? well the answer is no , no one can say that u can get rich , only a year before BTC was like 100$ and now it is 700$+ it can go 1K+ or it can bounce back to 100 or even low , no one can say , its uncertain , it all depends on you , when u take right decision , to buy or to sell , u can get rich or u loose all ur earnings :)

Now lets start

Bitcoin (BTC)

What is bitcoin? easiest way to know what is BTC is to watch this vdeo


Wikipedia:-

Bitcoin is a peer-to-peer digital currency that functions without the intermediation of a central authority. The concept was introduced in a 2008 paper by a pseudonymous developer known as "Satoshi Nakamoto".
Bitcoin has been called a cryptocurrency because it is decentralized and uses cryptography to control transactions and prevent double-spending, a problem for digital currencies. Once validated, every individual transaction is permanently recorded in a public ledger known as the blockchain. Payment processing is done by a network of private computers often specially tailored to this task. The operators of these computers, known as "miners", are rewarded with transaction fees and newly minted Bitcoins. However, new bitcoins are created at an ever-decreasing rate.
In 2012, The Economist reasoned that Bitcoin has been popular because of "its role in dodgy online markets," and in 2013 the FBI shut down one such service, Silk Road, which specialized in illegal drugs (whereupon the FBI came into the control of approximately 1.5% of all bitcoins in circulation). However, bitcoins are increasingly used as payment for legitimate products and services, and merchants have an incentive to accept the currency because transaction fees are lower than the 2 to 3% typically imposed by credit card processors. Notable vendors include WordPress, OkCupid, Reddit, and Chinese Internet giant Baidu.
Speculators have been attracted to Bitcoin, fueling volatility and price swings. As of July 2013, the use of Bitcoin in the retail and commercial marketplace is relatively small compared with the use by speculators.
Bitcoins are stored by associating them with addresses called "wallets". Wallets can be stored on web services, on local hardware like PCs and mobile devices, or on paper print-outs. Thefts of bitcoins from web services and online wallets have been covered in the media, prompting assertions that the safest way to store bitcoins is on secure paper wallets.

How to earn BTC ?

The first thing you will need is to download BTC wallet

Goto bitcoin.org and download a wallet , i will suggest to download bitcoin-QT

After installation leave it so it download all the blocks , it will take a lot of time , approx couple of hrs. when all the blocks are d/l you are ready with BTC wallet.

now goto receive tab and you will c address this is your BTC address , you can use it to receive BTC , you can generate many address.

You can use a online wallet , its easy to use and you do not have to download blocks as well , most commonly used online wallet is blockchain.info , easy to use and mostly btc miners use it :)

Now you have wallet , lets start with earning BTC

Well the easiest way to earn free BTC is to get from sites which give Free BTC

Here is a thread from our TBN member , this is very useful thread for those who want free BTC , kindly say thanks to the member for this useful thread :)

http://thebot.net/cryptocurrency/235786-catchcoin-earn-bitcoins-without-mining-43-pages/ , this site contains pages of free BTC giveaway site , so u can get free btc from one site ;)

Now the important part Mining BTC.

BTC are earned by mining , what is mining ?

Mining is the process of adding transaction records to Bitcoin's public ledger of past transactions. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.

Mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid. This proof of work is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses the hashcash proof-of-work function.

The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce Bitcoins into the system: Miners are paid any transaction fees as well as a "subsidy" of newly created coins. This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system.

Bitcoin mining is so called because it resembles the mining of other commodities: it requires exertion and it slowly makes new currency available at a rate that resembles the rate at which commodities like gold are mined from the ground. (again Wikipedia :pfft:)

There is two type of mining , one is solo mining this means you mine alone and if a block is generated you will be the only owner of that BTC. and second is Pool mining this means a couple of people unite together and mine this is a fast process for those who do not have good GPU , when a block is generated , award is distributed to all pool miners equally :)

Miners:- There are plenty of software's which help you to mine BTC but in this thread i will use guminer as an example ;)

NOTE: Since the difficulty is very high, unless you have an ASIC mining device and/or a very significant aggregate hash rate (over several TENS OF Ghash/sec or more) you are probably going to spend more on electricity than you can recoup in mined bitcoins, even when mining in a pool! If you have access to free electricity though, then there really is no argument against mining wink(aside from the possibility of shortening the lifespan of your graphics card(s)/mining hardware). For solo mining, you may end up waiting for many months/years to generate your own block and get 25 bitcoins (plus transaction fees), or use lots of electricity to maybe not ever generate a block at all.

Solo mining:-

  1. Go to www.bitcoin.org, download and install the most recent version of bitcoin (the default file path should be fine).
  2. run guiminer.exe.
  3. From the GUIMiner interface, click solo utilities → set bitcoin client path. Point the dialog box to bitcoin-qt.exe; likely located at C:\Program Files (x86)\Bitcoin\bitcoin-qt.exe or C:\Program Files\Bitcoin\bitcoin-qt.exe. Next click solo utilities → create solo password. Pick anything arbitrary for username and password but remember it, as you will need to use this later. Then finally you want to click solo utilities → launch bitcoin client as server.
    This will launch bitcoin ready to be mined with, you must first wait for all the blocks to be downloaded before you can start to mine, and this may take several hours; you can view the current block count here.
  4. Once all the blocks are downloaded, select solo from the server drop down box, then enter the username and password that you used before, then click start mining. Congratulations, you are now mining for bitcoins

Pool Mining:- This thread will help you ;) http://thebot.net/cryptocurrency/23...-own-mining-pool-lets-join-and-earn-some-btc/

Now i think you all know what is BTC and how to earn it , so start your BTC mining today ;)

If you still have any question feel free to ask here :)


Litecoin (LTC)

What is litecoin ?

Litecoin (LTC) is a peer-to-peer cryptocurrency and open source software project released under the MIT/X11 license. Inspired by and technically nearly identical to Bitcoin (BTC), Litecoin creation and transfer is based on an open source protocol and is not managed by any central authority. Litecoin is intended by its developers to improve upon Bitcoin and offers three key differences.

As of November 19th, 2013, 1 LTC is worth approximately 8 USD. This makes Litecoin the second largest cryptocurrency with a market cap of around 220 million USD.

Each Litecoin is subdivided into 100,000,000 smaller units, defined by eight decimal places.(Wiki :pfft:)

Getting started with LTC :- Well LTC is the second most biggest crypto currency in net , BTC is Gold and LTC is silver , to start with LTC , you have to download its client. Download LTC client here :- https://litecoin.org/ (win/linux/mac) . after downloading client , install it and wait for all the blocks to be download , as always it will take time. After that goto receive tab and get ur LTC address.

Now lets start with earning LTC

Free LTC giveaway :- unlike BTC there are very few site which give free LTC , here are few LTC giveaway site which u can use Litecoiner i will add more alter.

As like BTC you will have to mine to earn LTC

Solo mining:- Here is a very good tutorial Litecoin LTC mining guide, cpu

Pool mining :- Download cgminer (just google it) and join any pool and start pool mining.(Ex. pool Litecoin Mining Pool)

Happy Mining LTC :)


Goldcoin (GLD)

Glodcoin (GLD) is a new crypto currency . They are making there market very fast , be a early bird and get some GLD in ur account who knows may be GLD become the next BTC :|

What is Goldcoin:- Goldcoin is a new cryptocurrency just like BTC , LTC

Getting started with GLD:- First download there client from Get Started | GoldCoin (GLD)

Run the installation program that you just downloaded.Start the Goldcoin client

Editing or Checking the Settings in goldcoin.conf

The configuration settings for the Goldcoin client are stored in the gldcoin.conf file which is located here: %appdata%\GoldCoin (GLD)\goldcoin.conf [1].

In Windows Vista, 7 and 8 this is C:\Users<username>\AppData\GoldCoin (GLD)\goldcoin.conf

In Windows XP it is this: C:\Documents and Settings<username>\Application Data\GoldCoin (GLD)\goldcoin.conf

After running the client wait for all the blocks to be downloaded , after that click receive tab this is ur GLD address for receiving GLD :)

Mining:-

Mining of GLD is easy , you can do solo mining with the help of the miner just click mining tab

And for pool mining join and pool and select pool mining in the client add the credentials and click start mining :)

Free GLD:- register here https://www.gldtalk.org/ , post in newbie section and get 100GLD for free , this is promotion offer , at the time of starting this thread this offer was working :)

Now start earning your free GLD ;)


Protoshares (PTC)

PTC is also a new cryptocurrency and it is gaining popularity very fast.

What is Protoshares ? Its just another cryptocurrency but it is gaining popularity very fast.

How to get PTC ?

First download PTC client from here Downloads ? Invictus Innovations Incorporated , install and wait till all blocks are downloaded , goto receive tab and get your wallet address

Earning PTC :-

Solo mining , download any miner and follow the BTC instruction above (not recommended at all)

Pool Mining:- Goto ypool.net and register , after that follow the following steps

Click at the top and change it to Protoshares

After that click to worker and add new worker

After creating new worker , download miner from here http://jhwork.net/ypool/jhprotominer.zip (windows only)

now unzip it.

After that open command prompt , navigate to the unzip folder

For me the downloaded folder path is download > Compressed> jhProtominer> 64bit

As u can c there are 2 folders one is for 32 bit users and other is for 64 bit users , u can use it according to ur PC specs.

So now in command prompt u should open the last folder.

For those who do not know how to navigate to the folder in cmd prompt here is a s.s.

after that type

Code:
jhProtoMiner.exe -o http://ypool.net -u . -p -t 4 -m512
and hit enter

- Your ypool username
- your worker name which you had created before
- Your worker Password

t 4 = Number of threads (we are using 4 u can change it to any amount u want , i will suggest 4)

m512 = usage of memory , well in this we are using 512 mb memory u can change it as u want , best is 512 but if ur pc has low memory than u can use 256 or 126 or u can use high if u have good memory.

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