Crypto , as it is

Although cryptocurrencies have been in our lives since 2009, it has become a hot topic today. Perhaps we are slowly warming up and getting used to it.

Let's start with what crypto is; I will try to explain it as simply as possible.

Cryptology is the science of encryption; In other words, it can be expressed as all of the techniques used to transform readable information into an unreadable by undesirable parties.

Remember Enigma during WWII or just the movie "The Imitation Game. " 😉

The word "Cryptocurrency" means "cryptic money." Cryptocurrency refers to a virtual currency used via the internet and is not dependent on any central authority or intermediary institution. Cryptocurrencies get this name because people can only use them through passwords from virtual wallets placed using specific passwords.

With cryptocurrencies, individuals or institutions can spend or accept money just as they would with real money. We have been familiar with this system for years because we use it for our virtual bank cards or every transaction we make in the virtual environment. For example, in spending we make with our virtual card, we spend money virtually, without physically leaving the bank's vault.

Pretty simple, no?

As I mentioned earlier, Cryptocurrencies are not mint-printed paper currency. For example, for Bitcoin, the term "mining" is used for the production phase, which works with the "proof of work" algorithm. In other words, just as excavations are made to find gold, mathematical problems are tried to be solved by software to find crypto money.

Bitcoin mining operates with a structure and Blockchain technology that provides financial transfers, confirms financial transactions, and enables the production of new Bitcoins. And the question pops up, what is Blockchain? 😂

Blockchain is a type of database. This term, which appears with crypto money, is an information recording system that makes it difficult or impossible to change, hack or deceive the system. The purpose of Blockchain is to allow the recording and distribution of digital information, but not to be regulated. It is a kind of digital ledger.

Now back to mining, people who mine Bitcoin are called "miners." In Bitcoin mining, miners use special software to solve mathematical problems. The mining procedure, which ensures both the security, continuity, and operation of the network, is the most critical part of the Bitcoin network. While a miner carries out the transfer transactions he/she wants to take place; other miners approve this transaction. In this way, transactions on the network are secured, and this transaction is added as a new link to the "blockchain data ledger" network.

I think I covered the major concepts.

So, as the trend goes up, people get caught up in it and start dreaming of getting rich. Okay, some of them actually did.😊 But it doesn't mean everybody will.

I have been following these transactions since 2017 (especially for Etherium, which HODL is my long-term strategy which really worked for me); what I see is whenever high levels are seen in Bitcoin or Etherium, there is a decrease after.

Sometimes there is a significant rise in cryptocurrencies, so a 30 to 40 percent drop is also quite possible—a risky asset by definition. So what should we do?

Financial literacy was an essential concept in the past, and it is still crucial, and now it is upgraded to financial technology literacy. Financial knowledge, knowledge of using hardware, and having a good command of technology are both required. What you actually have to do is to read and research.

It is really fun...

*HODL strategy simply means: don't buy more for now but don't sell what you have.