What is cryptocurrency?

Cryptocurreny is a kind of digital currency, which is often used as an alternative monetary system for the regular money types. Cryptocurrency is based on cryptography (encryption systems) and is accompanied by a proof of work schedule used to generate the money, to check for authenticity and to deal with it. In fact, cryptocurrency consists of a piece of encrypted code in which the transactions are stored. Whenever there is a transaction, the code is supplemented or changed with a new encrypted block code. Because there are people doing transactions, the code is getting longer or changing every transaction. Promoting rewards in the form of value, when someone with a special mining program has cracked a piece of code, new monetary value is being "dolvenated". The value is also linked to the money because the cryptographic encryption of the coin makes it difficult to decipher it, and so it takes a certain amount of time for someone to find the key. To do this, computers must be deployed, and the computer owners who succeed in decrypting a piece of code will be paid a certain amount of crypto money instead.

There are already many products and services for sale that can be paid with cryptocoins. From a cup of coffee to online purchases of all kinds of goods. Cryptocurrency has no central bank, is not regulated by a government or centralized. With cryptocurrency you can pay everyone in the world, directly from wallet to wallet, without customs, tax, import duties or anything else.

What is a bitcoin?

A bitcoin is a form of cryptocurrency. One of the many coins there are today, but the biggest in terms of total assets on the market. You often read or hear about bitcoins because this is the most popular and very first of it's kind cryptocurreny coin.

With cryptocurrency (bitcoins for example) you can make electronic payments:

• Via the Internet
• From person to person
• For very low transaction costs
• Within a few minutes
• Just as easy as sending an email
• Without the intervention of a bank or agency

To make it simple, bitcoins are digital money and you can use them just as you would do with euros or dollars. You can buy goods, exchange them, receive them in return for a service, speculating whether they exchange for example euros. And that's just a few of the almost countless applications.

Decentralized.

Bitcoin is the first digital currency that is set up in a decentralized manner, which means that no banks or other agencies will be used to exchange bitcoins. The bitcoin network consists entirely of other users who, like you, use bitcoins. This decentralized design, combined with scarce encryption, makes Bitcoin a safe and free currency.

(Nearly) no transaction fees

If you pay with bitcoins there is no intermediary, transaction costs are minimal or non existent if you want to. There are no long waiting times until your money is transferred and Bitcoins are also (as good as) infinitely divisible, so you can transfer 1 bitcoin or 1-thousandth bitcoin.

Tips for beginning bitcoin users:

• Bitcoin is still in its infancy, making yourself aware of all odds and all the risks associated with Bitcoin.
• As in the stock market, we say: "Do not stop money in Bitcoin that you can not miss"
• Always encrypt your wallet with your Bitcoins.
• Regularly back up your wallet and / or private keys.
• Take care with online Bitcoin services, do not put up too much money.
• Always use different complex passwords for all your accounts.
• The Bitcoin rate can fluctuate violently, keep that in mind.
• A Bitcoin payment is irreversible, always check the data if you make a payment.
• Keep in mind that the tax office may ever interfere with Bitcoin.
• With Bitcoin you have everything in your hand, but you are also responsible.

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