What is Crypto currency

 

1. Cryptocurrency is a digital asset or simply put an online money.

They are created using mathematical codes that are secured by the Blockchain network.

2. There are a lot of Crypto currencies.

Not all of them are good.

The first crypto is bitcoin created 2009.

Today there are lot and lots crypto/coins.

All other coins outside bitcoin are refered to as altcoins.

As coins begin to gain value and acceptability, they are allowed into certain markets for trading.

These markets are called exchanges

 Examples are Binance, Huobi, Kucoin, Kraken etc but binance remain the most trusted and rank number 1.

With every new technology, comes a new scam or a new way to scam people. Crypto is not left out. There are alot of crypto scams since it came into existence. Outside using crypto to scam people without trace, there are certain coins created with the sole purpose of ripping the public. You must have heard of "pulp and dump".

For this reasons not all coins you will find on certain trusted exchanges like Binance.

Before Binance will list a coin in its market, it must have a gain a level of acceptance and value.

3. Coins are stored in wallets. Meaning every coin has its wallet.

So if you have binance, you have wallets for all the coins listed on binance.

4. When you buy a coin or deposit a coin, it goes into the wallet.

Each coin/wallet has networks that they support.

If you're sending coin from one wallet to another wallet. Two things are very crucial 1. wallet 2. network. they must correspond. 

Crypto currencies in general are secured in a network called Blockchain( Blockchain Technology). Inside this big network, every coin has their own networks. 

One coin can have multiple networks even up to 5

Let's take a theoretical Example

E.g, btc has the btc network, has the erc20 network, has the trc20 network and the bscbep20 network

If I am sending you bitcoin, you will need to send me your bitcoin wallet address and let me know the network it belongs to. Any mismatched images any of these two will result to coins lost without trace. 

If you are receiving etherium (ETH) from someone abroad or anywhere, what you must send the person is your ETH wallet address and let the person know the network it belongs to incase he/is using is send from a platform that doesn't automatically detect the network. 

if you send ETH to a bitcoin wallet address , your coin is lost without trace. 

if you send ETH to an ETH wallet address, but you didn't select the right network the address belong to, your coin will be lost without trace. 

for a successful transaction, you must send eth to a an eth wallet address operating on same network. 

same goes for Bitcoin and all other coins.