Jan 9, 2017 12:10 PM (This post was last modified: Jan 9, 2017 01:18 PM by J. McCarthy.)
Introduction
What Are Crypto Currencies?
A crypto currency is the “new” money. In an ever-expanding digital era, the existing solutions for online payments were not enough for many people. Therefore, a more secure, anonymous, decentralized, and irreversible solution was created. The first of many to come Bitcoin soon became a sensation after starting at a value of less than $1 a coin has recently traded for more than $1,000 per coin. Check out this fun explanatory video below.
What are altcoins?
Essentially an alternative coin or altcoin for short is any coin besides the original, Bitcoin. Anyone can develop an altcoin and hundreds of them have been created, though not all have succeeded.
Popular Coins
Here’s the current Top 5 listing for today’s cryptocurrencies.
Jan 9, 2017 12:15 PM (This post was last modified: Jan 11, 2017 12:44 PM by J. McCarthy.)
Wallets
A cryptocurrency wallet is just a digital representation of the physical item we all use now. Different wallets are required for different types of crypto currencies and can be utilized in multiple different forms. The most popular of these include: Desktop, Online, Mobile, and Cold Storage. Each will be explained in more detail below with multiple options for each. Please take the time to watch the short explanatory video below.
Online Wallets
An online wallet is simply a wallet which can be accessed from an online website. This type of wallet is the most convenient and accessible from almost anywhere, However, it’s also the least secure type of wallet. Below are a few of the most popular Online wallets.
Blockchain is a Bitcoin wallet which can be accessed via Desktop, iOS, and Android apps on any device, anytime, anywhere. The systematic Security Center helps you backup your funds, and protect them from unauthorized access. They’re are not a bank. Cannot view your balance, see your transactions
or make payments on your behalf. You retain complete ownership of your money.
Get instant alerts for every transaction, track audit logs, and get detailed reports for your bitcoin holdings. All their wallets use industry standards of multi-sig (P2SH) for security and HD (BIP32) for financial privacy.
Coinbin is an open source web based wallet written in JavaScript and released under the MIT license which means it's free to use and edit. They support regular addresses as well as multisig and stealth, with access to your own private keys!
Desktop Wallets
A Desktop is a more secure form of cryptocurrency wallet; however, this type of wallet is not as easily accessible from a website as the online wallets are. This type of wallet is downloaded to your computer and must be opened as an application for each use.
Core Wallets
A core wallet is just the original wallet that was created for a cryptocurrency. For example, Bitcoin’s original wallet can be found on their website and was created by the original developers. Bitcoin Core Ethereum Core Monero Core
MultiBit makes setting up your bitcoin wallet fast and easy. After installation, a wizard guides you through the process of creating your wallet and its backup. In no time at all you will be ready to participate in the Bitcoin economy. You control your wallet and your funds: they reside encrypted on your computer and never with a 3rd party.
Jaxx supports many of the leading cryptocurrency platforms. It’s their goal to offer as much choice as possible in the new, emerging world of blockchain. All keys are created on your local device and never sent to any servers. This means you have full control of your wallet and Jaxx neither holds nor has access to your funds.
Electrum is fast, because it uses servers that index the Bitcoin blockchain. Split the permission to spend your coins between several wallets. You can export your private keys and use them in other Bitcoin clients.
Mobile Wallets
A mobile wallet is the same as a desktop wallet except it’s downloaded and used on your mobile device rather than a computer. These are also more secure than an Online wallet and possibly more accessible than a Desktop wallet due to our constant usage of mobile devices.
Jaxx supports many of the leading cryptocurrency platforms. It’s their goal to offer as much choice as possible in the new, emerging world of blockchain. All keys are created on your local device and never sent to any servers. This means you have full control of your wallet and Jaxx neither holds nor has access to your funds.
BlockChain is a Bitcoin wallet which can be accessed via Desktop, iOS, and Android apps on any device, anytime, anywhere. The step-by-step Security Center helps you backup your funds, and protect them from unauthorized access. They’re are not a bank. Cannot view your balance, see your transactions
or make payments on your behalf. You retain complete ownership of your money.
Cold Storage
The following passage is from WeUseCoins.com
Bitcoin cold storage is achieved when Bitcoin private keys are created and stored in a secure offline environment. Cold storage is important for anyone with bitcoin holdings. Online computers are vulnerable to hackers and should not be used to store a significant number of bitcoins.
There are three ways to create secure Bitcoin cold storage: paper wallets, hardware wallets, and offline computers using software wallets.
Paper wallets were the most popular form of cold storage before hardware wallets and offline software wallets hit the market.
Creating a 100% secure paper wallet requires some technical knowledge, an offline computer or bootable operating system, a USB flash drive, a printer, and some patience.
Coinbase also opened its own exchange used for trading cryptocurrencies on the fly. Like a stock market exchange. It’s named gdax and can be found at Gdax.com
Poloniex is perhaps the most popular exchange for Bitcoin, Ethereum, and Monero trading purposes. Poloniex features the typical exchange, a margin trading tab, and a lending tab allowing you to make loans.
xCoins.io is a popular platform most commonly used to sell Bitcoin on. This system works as a “secured lender” compared to the traditional exchange. The site descriptions provides the following information: Secured lending is just like exchanging, only better. It allows you to get bitcoin quickly. Most bitcoin exchanges do not allow payments with credit cards or make you wait several days before receiving bitcoin. In contrast, xCoins is instant! The entire process takes only a few minutes. To Learn More about How This Works Click Here To Purchase Bitcoin Using PayPal & CC Click Here
ShapeShift.io is established as one of the most popular ways to quickly exchange between cryptocurrencies. The site offers a very large number of currencies and exchange options that are labeled as “Quick” or “Precise”. To View the Full List of Accepted Coins, Click Here
Jan 9, 2017 12:16 PM (This post was last modified: Jan 9, 2017 01:10 PM by J. McCarthy.)
Mining
Cloud Mining
Cloud Mining is used as a “Virtual” form of mining. It’s most useful for people whom do not have equipment and cannot afford to purchase any effective equipment. There’s no added electricity costs to your home or difficulties with space. You also do not need to be technically advanced to utilize the benefits of cloud mining which is a plus for many users. However, cloud mining comes with multiple risks such as potential fraud by scammers, lower profits, lack of control, and non-transparent mining operations. There’s three popular types of cloud mining
Hosted Mining
Leasing a machine which is hosted by a provider.
Virtual Hosted Mining
Creating a VPS and installing mining Software.
Leased Hashing Power
Leasing a specific amount of hashing power without having a VPS or physical computer. (Most popular form)
By hardware mining I simply mean to say you’ll be using your own systems, hardware, and electricity to do the mining. This is the most expensive form of mining but it’s also the safest and potentially one of the most profitable forms. Currently ASIC mining cards are the most effective form of equipment.
BotNet Mining is a form of illegal mining. To utilize Botnet mining the miner would need to establish a Botnet of hacked computers. Then with tens or hundreds of thousands of users the Hacker can setup mining software on the victim’s computer. Although this is illegal it can be one of the most profitable forms of mining.
Jan 9, 2017 12:17 PM (This post was last modified: Jan 9, 2017 01:01 PM by J. McCarthy.)
Investment Trading
As of recent Crypto Currencies have been used for a variety of reasons. Many people don’t actually use the “currencies” as a currency. Rather, they use them as an investment opportunity in trading. So, what is Crypto Currency Trading?
The most Popular forms of Monetizing from Crypto Currencies Are:
One of the most popular uses for crypto currency, Bitcoin specifically, on HackForums is the online gambling potential. Although it is asked you don’t use this section for any gambling information but rather please post in the JackPot Warriors Section.
A few of the most popular forms of crypto gambling currently are
Jan 9, 2017 12:18 PM (This post was last modified: Jan 9, 2017 01:08 PM by J. McCarthy.)
Faucets
A Crypto faucet is a reward system, in the form of a website or app, that dispenses rewards in the form of a satoshi, which is a hundredth of a millionth BTC, for visitors to claim in exchange for completing a captcha or task as described by the website. Source
These have died out a lot now since a few years back however in the HF market it essentially is a miner which runs “silently” on someone else’s computer.
Can I mine using my Laptop?
It’s possible to setup a miner, however, it’s essentially useless. Not suggested.
Can I mine using my VPS or RDP?
If they do not have a graphics card then no it’s not worth it. Mining with a CPU is outdated.
Is Mining Profitable?
Yes, it can be profitable for people, however for many it’s not.
What’s the current difficulty of Bitcoin?
To find information such as difficulty, network hash rate, etc. then please Click Here
Where can I check current prices?
Every exchange will display its own pricing information. One popular source for prices is Preev.
What is a private key?
A private key in the context of Bitcoin is a secret number that allows bitcoins to be spent. Every Bitcoin wallet contains one or more private keys, which are saved in the wallet file. The private keys are mathematically related to all Bitcoin addresses generated for the wallet. Source
Is Cryptocurrency Legal?
Well, it depends on your country. In almost every country the usage of Crypto Currency is legal, however there may be different stipulations on the legality and usage of it. To View Legality by Country, Click Here
Do I have to pay tax on Crypto Currencies?
Again, it will depend on the country. In the United States, the IRS requires you to pay tax on gains from Bitcoin or other crypto currencies.
What is a confirmation?
A confirmation is given when a new block verifies a transaction. For more information Click Here
Why is Ethereum different than Bitcoin or other Alt Coins?
Ether is different because unlike a typical crypto currency ether is based on something called “Smart Contracts” and acts as a type of vps. For more information Click Here
Is Bitcoin or any other Crypto Currency reversible?
No, they are irreversible. However, if an online wallet can control your money such as CoinBase they may be able to hold or reverse your spending. Therefore, it’s not recommended to hold bitcoin on Coinbase.
Credits
I would like to thank a few people for assistance on this Thread Fade for Exchange Information Kill Joy For Exchange Information RastaX For Place Holders Boing for some of the FAQ Valor for giving me the idea to make this
(Jan 9, 2017 06:12 PM)Kill Joy Wrote: Please remove freewallet for Monero. It is not open source and is kinda sketchy. I'll post some news when jaxx releases their version.
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