What are the Cryptocurrencies and Algorithms


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Since the founding of the first cryptocurrency – Bitcoin in 2008, many cryptocurrencies appeared. Cryptocurrencies differ in different parameters – anonymity, security, block size, etc. The nuances of cryptocurrency associated with the algorithm on which the system works. Use the most popular mining service as 01node.

The most popular cryptocurrencies

Currently, the most popular cryptocurrencies that have the highest exchange rate and market capitalization are:

  • Bitcoin (Bitcoin) – the very first and most expensive cryptocurrency, with the highest market capitalization.
  • Ethereum (Ethereum) – rapidly burst into the top of the cryptocurrency, probably the second most popular cryptocurrency after Bitcoin.
  • Litecoin (Litcoin)
  • Dash
  • Bitcoin Cash
  • Zcash
  • Monero
  • Ripple

There are new interesting Coin. For example, Cardano, Ripple, NEM, NEO cryptocurrency and many others. At the moment there are more than 2,000 cryptocurrencies and new ones constantly appear.

Most popular algorithms

Each cryptocurrency has its own algorithm of work. The most popular cryptocurrency algorithms:

  • SHA-256
  • Scrypt
  • X11
  • Dagger-Hashimoto (Ethash)
  • Equihash
  • Cryptonight

What is Bitcoin?

Bitcoin is the first cryptocurrency in the world, which appeared in 2009. Its developer is an anonymous programmer or a group of programmers under the pseudonym Satoshi Nakamoto.

At the development stage, many programmers were interested in the Bitcoin project, but few believed in such success, and Bitcoin and cryptocurrency in general are so popular now.

Bitcoin has the highest rate and the largest market capitalization among all cryptocurrencies.

But due to the fact that Bitcoin is the first cryptocurrency, it has a number of technical imperfections. Bitcoin uses the SHA-256 algorithm. Due to the large number of transactions creates a large load on the network. In order for the transaction to have the priority of confirmation and to be executed, you need to pay a large commission. Since the Bitcoin rate is high, this commission is too high and it is not very convenient to make small payments through Bitcoin.

At the moment, Bitcoin is more interesting as an investment tool than a means of payment.

How to make money on cryptocurrencies and Bitcoin?

You can earn on cryptocurrency in different ways. The greatest earnings will be when trading on the stock exchange, but this requires large investments. So, consider the ways of making money on cryptocurrency.

Mining – mining cryptocurrency. Cryptocurrencies can be generated by mining. Mining can now be done using different tools. Consider the most popular.

  • Mining on video cards. Cryptocurrency generation is carried out using computer video cards. However, not all video cards are suitable for these purposes. 
  • Mining on ASIC devices. ASIC is a special device that is created for mining. Such devices are designed only for specific algorithms, not all cryptocurrencies can be mine. Most cryptocurrencies are mined by video cards and their algorithms provide protection against mining by ASIC devices.
  • Cloud Mining. The point is that you are not generating your cryptocurrency with your powers, but buying mining powers for special services. The difference between the received cryptocurrency and payment for capacity will be an income.

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