Cryptocurrency can be defined as a financial balance or a virtual currency that can be owned and dealt with electronically via the Internet. Therefore it does not have a physical presence and cannot be kept in our hands, so it is sometimes called “digital currency.”
Investing in cryptocurrencies
Cryptocurrency can be defined as a financial balance or a virtual currency that can be owned and dealt with electronically via the Internet. Therefore it does not have a physical presence and cannot be kept in our hands, so it is sometimes called “digital currency.”
Cryptocurrencies work in the form of data, but they are used according to high encryption technologies, so they are entirely safe and immune from hacking. The most prominent of these technologies operates according to the “blockchain” technology.
With the spread of these digital currencies in recent years, many international commercial companies have begun to accept dealing in electronic currencies. Thus, purchasing goods and services via the Internet using these currencies and, even more so, the trading process in financial markets has become possible.
The most popular cryptocurrencies to invest in 2023
One of the most popular cryptocurrencies in the world is Bitcoin (BTC), which is the most famous currency in the history of digital currencies. It has infinite popularity worldwide and is considered the highest value in all cryptocurrencies.
The price of the Bitcoin currency at the beginning of its appearance was about 1309 BTC for one dollar. Still, the currency has witnessed a remarkable development in recent years, as the price of one Bitcoin currently reaches about 47320.90 USD.
Although there are many other cryptocurrencies, such as Dogecoin Ethereum, Ethereum, Litecoin, and others, Bitcoin is the most popular and famous.
In general, digital currencies have witnessed a significant increase in the value and numbers of cash liquidity, resulting in significant interest by investors worldwide in cryptocurrencies.
However, it is noted that although cryptocurrencies have quick financial returns, investing in them may result in significant and rapid losses, so it was necessary to be careful while trading in these currencies and to study the currency and the project based on this currency before investing in it.
How does Blockchain work?
Cryptocurrency is traded via blockchain technology, or “blockchains,” which are described as “multiple computers to come to a consensus on a set of information.”
The “blockchain” works through cryptography, where each block in the chain is cryptographically linked to the last part, where each block of the chain is stored and shared through a network of peer-to-peer nodes, similar to “torrent” files for file sharing.
Blocks are cryptographically secured against tampering. This makes it very difficult for hackers to modify or lock them down.
Thanks to blockchain technology, bitcoin and other crypto transactions may be more secure than other digital transactions, such as online banking, money transfers through digital wallets, or peer-to-peer payment services.
But it is important to stress that these services use the latest encryption technology to protect your money digitally.
This does not mean that bank money is not safe. Most banks offer fraud protection so that the bank will return your lost money if your account is hacked.
On the other hand, there is a huge problem with the massive security system of cryptocurrencies: if you lose or forget your password, unlike bank accounts, you will never be able to recover your coins.
How to encrypt with a public key
The method of encryption via the public key lies in the fact that carrying out the encryption process with the public key requires the sender to use the public key to encrypt the data and information, while the receiver decrypts it using the private key, and the reason for this is that these keys are entirely different from each other, however, the key can be shared.
The public key is securely apart from the security of the private key, as well as each pair of asymmetric encryption keys is unique and special, and this would make the message that was encrypted by the public key can only be viewed and read by the person who holds the corresponding private key.
Also, how to encrypt via the public key includes that asymmetric encryption algorithms create key pairs related to mathematics, where the main lengths are very long compared to those in symmetric encryption, and this length usually ranges from 1.024 to 2.048 bits, which creates great difficulty in calculating the private key. And this only happens via the corresponding public key.
One of the most famous asymmetric encryption algorithms is the RSA algorithm. In this algorithm, the keys are built through a coefficient obtained by multiplying two numbers, often two large numbers, which means that the standard builds two keys, a public key that can be shared and a secret private key that cannot be shared, and the famous algorithm RSA It was discovered and described in 1977 by several scientists, namely Rivest, Shamir, and Adleman so that the name of this algorithm is derived from the initials of each of these scientists.
