What is Cryptocurrency?
A cryptocurrency is a type of digital currency created on blockchain technology using cryptographic protocols. The first cryptocurrency, Bitcoin, operates on a decentralized structure, independent of any authority. Inspiring many initiatives, Bitcoin has led to the creation of millions of cryptocurrency projects today and has brought a new industry and a new way of thinking into our lives.
What is Cryptocurrency?
Cryptocurrency is a digital currency fortified with cryptography. It serves as an exchange medium, it can be used for buying and selling transactions like regular cash, and it can also be exchanged for fiat currency. However, unlike traditional currencies, it has a secure ownership history recorded by participants on its network.
The biggest and most significant example of cryptocurrencies is Bitcoin, which operates on a decentralized model on its blockchain, instead of being subject to central authorities like central banks or governments.
Cryptocurrency, Token, and Coin Differences:
The terms cryptocurrency, token, and coin are often used interchangeably. However, the differences between these terms are generally not well-known. Let’s take a look at the differences between the terms.
What is Cryptocurrency?
A cryptocurrency is a digital currency fortified with cryptography. Cryptocurrency serves as an exchange medium, it can be used for buying and selling, just like regular cash, and can also be traded for fiat currencies. Of course, unlike traditional cash, it has a secure ownership history recorded by participants on the network.
What is a Coin?
Coin is a term used for cryptocurrencies created to be used on a developed independent network or blockchain. The first coin that inspired the development of others created thereafter is Bitcoin (BTC).
What is a Token?
Tokens are cryptocurrencies that are not built on their own independent blockchains or networks. They operate on existing, established blockchains, making them much easier and faster to create.
How Do Cryptocurrencies Gain Value?
The value of a cryptocurrency is influenced by multiple factors. Long-term plans for cryptocurrencies, the realism of these plans, and the planning of the costs to be encountered are key factors in long-term evaluations. Additionally, it is possible for cryptocurrency projects to be affected by positive or negative developments in the areas they operate. Such developments can have significant impacts on the price in the short term. Since cryptocurrencies operate transparently on the blockchain, the value of a cryptocurrency can be understood by analyzing the data on the blockchain, allowing for the examination of parameters such as the project’s supply and demand balance, costs, and transaction volume.
Why is Volume Important in Cryptocurrencies?
The transaction volume in cryptocurrencies refers to the total value of buying and selling transactions of a cryptocurrency during a specific period. Transaction volume in cryptocurrencies indicates how much a cryptocurrency has changed hands by investors within a certain time frame. Transaction volume in cryptocurrencies can be calculated for a period of 24 hours, daily, weekly, monthly, annually, or even longer.
Assessing the transaction volume of a cryptocurrency can be beneficial for potential investors looking to invest in it. Understanding and comparing how much interest investors have shown in that cryptocurrency in the past can be important for predicting its future value.
What is a Cryptocurrency Exchange?
The term “exchange” is not exclusive to cryptocurrency markets. Exchanges are organizations or platforms that operate on a marketplace logic, where parties can buy and sell specific financial assets. In the world of cryptocurrencies, exchanges are platforms where investors conduct cryptocurrency transactions using fiat currencies. Cryptocurrency exchanges serve as intermediaries between users who buy and sell cryptocurrencies.
What is Market Cap in Cryptocurrencies?
Market Cap is a term derived from the abbreviation of the English phrase “Market Capitalization.” It refers to the total market value of assets. The high market value of a cryptocurrency is an indicator that can elevate its prominence in cryptocurrency rankings.
What is Volatility in Cryptocurrencies?
Volatility is a term used to describe price fluctuations that occur rapidly in either direction, whether up or down, within a short period in cryptocurrency prices. Volatility is a term used both in financial markets and in the cryptocurrency market for the same purpose.
Types of Supply in Cryptocurrencies
Supply levels in cryptocurrencies indicate the maximum amount of a cryptocurrency that can be produced and how much of the produced cryptocurrency is in circulation. Supply levels are an important factor that influences the values of cryptocurrencies.
In cryptocurrencies, circulating supply and total supply are two different concepts. Circulating supply refers to the cryptocurrencies that are actively traded on the market and available for buying and selling by users. Total supply, on the other hand, indicates the total amount of a cryptocurrency unit, including both the circulating supply and the amount that has not yet been released into the market.
How to Store Cryptocurrencies?
Cryptocurrencies are not physically carried as they are not used physically like fiat currency. Instead, they are stored in cryptocurrency wallets. Cryptocurrency wallets assist users in storing their private keys. There are many different uses for cryptocurrency wallets.
You can store your Bitcoin and all your cryptocurrencies safely on BtcTurk | Global.
Types of Cryptocurrency Wallets
Cryptocurrency wallets are divided into different types based on the needs of users, offering multiple options for users to choose from. Users select the type of wallet that suits them best for storing their cryptocurrencies. Cryptocurrency trading platforms also offer wallet services to users, allowing them to store their cryptocurrencies on the platforms where they conduct transactions.
In addition to cryptocurrency trading platforms, users who want to store their cryptocurrency assets can do so in various types of wallets such as mobile wallets, web wallets, and hardware wallets.
How to Buy Cryptocurrency on BtcTurk | Global
With the BtcTurk | Global application, you can easily buy and sell Bitcoin and cryptocurrencies.
Step 1: Log in to your BtcTurk | Global account
Visit the BtcTurk | Global platform and log in using your registered email address and password. If you don’t have an account, signing up is quick and easy — just click “Sign Up” and complete the registration process.
Step 2: Deposit Cryptocurrency
● Navigate to the “Deposit” section.
● Select the cryptocurrency you wish to deposit.
● Follow the instructions to complete your deposit securely.
Step 3: Buy Cryptocurrency
Once your account is funded, you can purchase cryptocurrency:
● Choose between the Basic Trade or Advanced Trade options, depending on your experience level.
● Select a cryptocurrency trading pair.
● Enter the amount you want to buy and confirm the transaction.
Categories of Cryptocurrencies Available on BtcTurk | Global
Cryptocurrencies listed on BtcTurk | Global are classified into various categories.
Metaverse Cryptocurrencies
The trading of land, buildings, avatars, clothing, items, and even usernames in metaverses occurs using the cryptocurrencies specific to that universe.
GameFi Cryptocurrencies
GameFi represents the integration of financial systems into video games.
● It creates a revenue model for players through the play-to-earn (P2E) model.
● Components within the game are bought and sold using the game’s native cryptocurrency.
DeFi Cryptocurrencies
DeFi refers to decentralized financial systems that operate on blockchain technology in areas such as financial investment, insurance, and many other services.
Web 3.0 Cryptocurrencies
Web 3.0 represents a decentralized and blockchain-based internet process, characterized by decentralized connectivity, data security, and the principle that data should not be monetized. These aspects have increased the popularity of Web 3.0.
What is the Crypto Fear and Greed Index?
The cryptocurrency ecosystem is highly dynamic. News about the cryptocurrency sector is constantly being published. While some of these news articles may be positive for the cryptocurrency sector, there are also many negative news and developments affecting the sector. News flow about cryptocurrencies also affects cryptocurrency prices. Positive news can lead to rapid upward price movements in cryptocurrencies, while negative news can trigger sudden downward price movements. The dynamic nature of the cryptocurrency sector reflects changes in investor sentiment. Negative news can make investors fearful and concerned, while rapid price increases in cryptocurrencies can stimulate investor appetite and prompt them to invest. Users can experience FOMO (Fear of Missing Out) due to sudden price movements.
The general emotional approach of users to the current state of the cryptocurrency market is measured by a graph called the Crypto Fear and Greed Index. This graph scores users’ fear and greed levels.
What are Consensus Algorithms in Cryptocurrencies?
Consensus algorithms are a set of decisions accepted by a community or group to manage a system or community. Consensus algorithms are used to govern the majority and unite them under a common idea. When creating consensus algorithms, one of the primary concerns is the benefit of users. Consensus algorithms also aim to ensure that all users have equal rights.
Proof of Work (PoW)
Proof of Work is a protocol designed primarily to prevent attacks on a system’s operation and to prevent unwanted messages, known as spam, sent via email.
It emerged in a different form from previous applications in the Bitcoin Technical Document published by Satoshi Nakamoto on October 31, 2008. The document, “Bitcoin: A Peer-to-Peer Electronic Cash System,” demonstrated how a reliable payment system and cryptocurrency could exist thanks to the Proof of Work protocol.
Proof of Stake (PoS)
Proof of Stake (PoS) emerged as an alternative to Bitcoin’s Proof of Work (PoW) protocol, considering digital asset ownership instead of computational power.
Proof of Burn
Proof of Burn is one of the algorithms that enables all participant nodes to agree on the state of the blockchain network. Users participating in the Proof of Burn protocol burn the cryptocurrencies they own belonging to that blockchain.
Proof of History
Proof of History is a protocol that attempts to prove the order of transactions on the blockchain and whether transactions are progressing correctly.
Cryptocurrency Chart Patterns
Triangle Formation
The ascending triangle formation is used to indicate a technical analysis method that predicts the continuation of an uptrend in the chart.
The descending triangle formation is another technical analysis method that predicts the continuation of a downtrend in the price chart of a cryptocurrency.
In symmetric triangle formations where buyers and sellers are in balance, prices move along a tightening line.
Wedge Formation
The rising wedge formation indicates a technical analysis method predicting a downward trend in prices.
The falling wedge formation is the opposite of the rising wedge formation and indicates a wedge formation where prices are predicted to follow an upward trend.
Flag Formation
The bullish flag formation is a chart pattern used to interpret whether a cryptocurrency is likely to continue its upward trend by examining the consolidation area following a strong upward price movement.
The bearish flag formation is a chart pattern used to interpret whether a cryptocurrency is likely to continue its downward trend by examining the consolidation area following a strong downward price movement.
Hammer Formation
The hammer formation is a technical analysis method where a price chart is interpreted using candlesticks. The hammer formation refers to the candlestick shape that occurs when the price chart reverses from its lowest point and starts to rise.
