What is Blockchain?
A Blockchain is a digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly.
What is Bitcoin?
Bitcoin is a digital asset and it was the first one of its kind to be introduced to the global market. Bitcoin has started the revolution of a decentralized form of currency. Bitcoin is also a global payment system that does not collaborate with any central banks or governments. The Bitcoin network facilitates peer-to-peer transactions, and users can participate without dealing with a middle-man. Cryptography verifies the transactions and they are registered on a public ledger, also called a blockchain. An anonymous person by the name of Satoshi Nakamoto created Bitcoin in 2009.
What is a Bitcoin wallet?
A Bitcoin wallet is a digital wallet where a person can store their Bitcoins. Technically speaking, a Bitcoin cannot be stored anywhere, because it comes with a private number for each Bitcoin address. This secret number is then saved in the Bitcoin wallet. Bitcoin wallets allow peer-to-peer transfers and gives ownership equity to the investor. A Bitcoin wallet comes in different structures, such as: mobile, web, desktop, and hardware.
What is Coinbase?
Coinbase is an online platform for transactions. The exchange is secure and facilitates buying, selling, trading, transferring, and saving digital assets. Whether a person would like to send or receive cryptocurrency between digital wallets, friends, family, or merchants it is completely free on Coinbase. Currently, Coinbase has four cryptocurrencies on its platform: Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC).
What are transaction fees?
Transaction fees are costs that are acquired when buying or selling goods and services. Transaction fees take into account that there is labor needed to introduce a good or service to the market. Therefore, there will be a plethora of businesses and industries devoted to facilitating exchanges. In financial terms, transaction fees usually include commissions, broker fees, and spreads. This in turn, creates a difference of price from what the dealer or broker has to pay versus what the buyer has to pay.
What is an exchange?
A Bitcoin or cryptocurrency exchange is a platform where investors can participate in buying, selling, and trading of digital assets. Fiat currency is used to fund these activities.
What is mining?
Mining is the process of preparing transactions in the digital asset system. Records of ongoing transactions, called blocks, are supplemented to the record of prior transactions, known as the blockchain. A Bitcoin is characterized by the digitally endorsed record of its transactions, which started from its formation. Miners use an operating program that connects with their operating capacity to decipher algorithms. Once the algorithms have been solved, the miners are then allocated a number of Bitcoins per block. The blockchain averts attempts to expend a Bitcoin more than one time. Hence, why Bitcoins cannot be counterfeited or copied and pasted.
What is currency?
Currency is a form of money which includes coins and paper notes. Currency is issued by a government and dispersed and accepted by economies. Currency is used for trading, goods, and services, and for anything else that has a price.
What is a cryptocurrency?
A cryptocurrency is a digital asset that uses a feature called cryptography. Cryptography provides security on an intangible asset that still holds monetary value. Because of cryptography, it will be hard to forge a cryptocurrency. A dominant characteristic of a digital asset, is that it is not facilitated by a higher power. Usually, currencies are issued by a centralized power. This makes cryptocurrencies decentralized and restricts governing bodies from controlling it.
What is an Altcoin?
Altcoins are cryptocurrencies that have been launched and created after the revolution of Bitcoin. Typically, they propose to be better alternatives to Bitcoin. Bitcoin's success has created a successful path for other cryptocurrencies to follow. Altcoins are addressing any perceived constraints that Bitcoin has to offer and produces advanced versions that serve as vast improvements. There are an immense array of altcoins, and they keep growing.
What is Double Spending?
A double spend is an attack where the given set of coins is spent in more than one transaction. Sending two conflicting transactions in rapid succession into the Bitcoin network would be an attempt to spend the same funds twice.
How many Bitcoins can I exchange?
Anyone can own as many bitcoins as they desire.