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Getting Started With Cryptocurrencies

WHAT IS CRYPTOCURRENCY

What is Cryptocurrency

Cryptocurrency (or Crypto) is decentralised digital money designed to be used over the internet. Cryptocurrencies can be used to buy goods or services or held as part of an investment strategy.

The first cryptocurrency Bitcoin, which launched in 2008, remains by far the biggest, most influential, and best-known of all Cryptos. Other popular cryptocurrencies, by market capitalization are Ethereum, Bitcoin Cash and Litecoin.

Who controls Cryptocurrency?

Cryptocurrencies are usually not issued or controlled by any government or other central authorities. They’re managed by peer-to-peer networks of computers running free, open-source software. Therefore Cryptocurrencies can’t be manipulated by any central authority, simply because there isn’t one. No matter what happens to a government or a banking institution, your cryptocurrency will remain secure.

What is a Blockchain?

A Blockchain is a list of transactions that anyone can view and verify. A cryptocurrency blockchain is similar to a bank’s balance sheet or a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain which makes it difficult or impossible to change, hack, or cheat the system.

Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger.

The decentralised database managed by multiple participants is known as Distributed Ledger Technology (DLT). Blockchain is a type of DLT in which transactions are recorded with an immutable cryptographic signature called a hash.

This means if one block in one chain was changed, it would be immediately apparent it had been tampered with. If hackers wanted to corrupt a blockchain system, they would have to change every block in the chain, across all of the distributed versions of the chain.

Blockchains such as Bitcoin and Ethereum are constantly and continually growing as blocks are being added to the chain, which significantly adds to the security of the ledger.

Blockchain technology is also exciting because it has many uses beyond cryptocurrency. Blockchains are being used to explore medical research, improve the sharing of healthcare records, streamline supply chains, increase privacy on the internet, and so much more.

What is Ethereum?

Ethereum, which launched in 2015, is the second-biggest cryptocurrency by market cap after Bitcoin. Ethereum, like Bitcoin, is an open source project that is not owned or operated by a single individual.

Ethereum is a decentralized computing platform that takes the security and openness of blockchains and extends those attributes to a vast range of applications — including the entire universe of DeFi (Decentralized Finance).

Decentralized finance is a blockchain-based form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments, and instead utilizes smart contracts on blockchains, the most common being Ethereum.

Ethereum has become a popular investment vehicle and store of wealth (and can be used, like Bitcoin, to send or receive value without an intermediary).

Ethereum-based apps are built using “Smart contracts.” Smart contracts, like regular paper contracts, establish the terms of an arrangement between parties. But unlike an old-fashioned contract, smart contracts automatically execute when the terms are met without the need for either participating party to know who is on the other side of the deal — and without the need for any kind of intermediary.

What is a Token?

A “Token” often refers to any cryptocurrency besides Bitcoin and Ethereum (even though they are also technically tokens). Because Bitcoin and Ethereum are by far the biggest two cryptocurrencies, it’s useful to have a word to describe the universe of other coins. Another word you might hear with virtually the same meaning is “altcoin.”

Altcoins are specific virtual currencies that have their own dedicated blockchains and are primarily used as a medium for digital payments. On the other hand, the crypto tokens operate on top of a blockchain that acts as a medium for the creation and execution of decentralized apps and smart contracts, and the tokens are used to facilitate the transactions or represent an asset or utility.

Most often, they are used to fundraise for crowd sales, but they can also be used as a substitute for other things, for example, one can have a crypto token that represents x number of customer loyalty points on a blockchain that will be exchanged for another type of an asset (i.e. Amplivo’s FLP for CSR token).

Tokens can also be held or traded like any other cryptocurrency.

CSR TOKEN

CSR Token

Corsair has engaged Amplivo Ltd to create and distribute the Utility Token called “CSR” on the Ethereum blockchain.

CSR is a token that will allow the Holder to access the service and products related to a number of environmental projects including, but not limited to, Plastic Waste to Fuel recycling, Reduction in Air and Water pollution, new energy resources, travel, hospitality and discount offers on the Merchant cooperation platform.

There are several channels from which CSR can be acquired including, but not limited to, various public crypto exchanges. Primary distribution channel will be Amplivo’s FLP reward program and the main crypto exchange where token holders can trade the CSR token is CSR Live (https://csr.live/).

ADDRESSES, WALLETS & KEYS

Cryptocurrency Address

A Crypto address is a unique identifier that serves as a virtual location where the cryptocurrency can be sent. However, the Crypto address is not intended to be permanent, but just a token for use in a single transaction. Unlike a digital wallet, a Crypto address cannot hold a balance.

Cryptocurrency Wallet

Unlike a normal wallet, which can hold actual cash, crypto wallets technically don’t store your crypto. Your holdings live on the blockchain.

A cryptocurrency wallet is a device, physical medium, program or a service which stores the public and/or private keys. They come in many forms, from hardware wallets like Ledger (which looks like a USB stick) to mobile apps like Metamask or Coinbase, which makes using crypto as easy as shopping with a credit card online.

Public & Private keys

The Public and Private keys prove your ownership of your digital money and allow you to make transactions. The keys are the tools required to ensure the security of the crypto economy.

A Public key is a cryptographic code that allows users to receive cryptocurrencies into their accounts.

It’s called a public key because it is meant to be shared publicly and enables you to receive funds.

A private key is a large (256 bits) secret number that allows Crypto to be unlocked and sent. Each private key creates a unique signature that authorizes the transaction of Crypto for the owner.

It’s called a private key because it is meant to be kept private and not shown to other people.

If you lose your private keys, you lose access to your money. That’s why it’s important to keep your hardware Crypto Wallets safe or use trusted Wallet providers like Metamask or Coinbase.

CSR LIVE CRYPTOCURRENCY EXCHANGE

CSR Live Cryptocurrency Exchange

A cryptocurrency exchange, or a digital currency exchange (DCE), is a business that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money or other digital currencies. The cryptocurrency exchange platforms match buyers with sellers. Like a traditional stock exchange, traders can opt to buy and sell their cryptocurrencies by inputting market orders. There are two types of cryptocurrency exchanges – centralized and decentralized.

Centralized cryptocurrency exchange

A centralized cryptocurrency exchange is a platform where you can buy or sell digital assets. Here, you have to trust a third party to monitor the transaction and secure the assets on behalf of the buyer and the seller. Their deals aren’t tracked on the blockchain.

Decentralized cryptocurrency exchange

The Public and Private keys prove your ownership of your digital money and allow you to make transactions. The keys are the tools required to ensure the security of the crypto economy.

A Public key is a cryptographic code that allows users to receive cryptocurrencies into their accounts.

It’s called a public key because it is meant to be shared publicly and enables you to receive funds.

A private key is a large (256 bits) secret number that allows Crypto to be unlocked and sent. Each private key creates a unique signature that authorizes the transaction of Crypto for the owner.

It’s called a private key because it is meant to be kept private and not shown to other people.

If you lose your private keys, you lose access to your money. That’s why it’s important to keep your hardware Crypto Wallets safe or use trusted Wallet providers like Metamask or Coinbase.

CRYPTOCURRENCY DEPOSITS & WITHDRAWALS

Cryptocurrency Deposit

Most people who want to trade their cryptocurrency for another type, use a website called an Exchange. When a user deposits crypto into an Exchange, what they are actually doing is transferring their funds from external wallets to the Exchange in a form of a smart contract, which will be fulfilled once a counter-party has similar interests but in the opposite direction of the trade.

Cryptocurrency Withdrawal

Withdrawal is the process of moving the funds from your Exchange wallet to some external wallet address. This can be your hard wallet address, exchange address, mobile wallet address etc.

Please note that Deposits and Withdrawals may carry fees by the Exchange.

CRYPTOCURRENCY TRADING

Cryptocurrency Trading

Cryptocurrency trading involves buying and selling cryptocurrencies for profit. Unlike the traditional stock exchange that closes at the end of the day, cryptocurrency trading is a 24-hour market, 7 days a week.

Trading is the basic activity of all investors or investment services – it’s simply the buying, selling or exchanging of assets. In financial markets, people trade securities such as shares, currencies, commodities and derivatives.

Trade involves the transfer of goods or services from one person or organisation to another, often in exchange for money. A network that facilitates trade is called a market.

There’s always a buyer and seller of the asset who both believe they are getting a good deal. As a trader, you’re always trying to gain profit from any buying or selling that you do.

The easiest way to think of the buying process, or as they call it in trading terms, ‘going long’ is to think that whatever asset you buy is at price ‘X’ and you hold onto this because you think the market is going to rise and give you profit. If that happens, you then sell the asset for price ‘Y’.

A trade example

You’ve bought the watch for €100 and you do this because you believe the price is going to rise. After you purchase the watch there are suddenly a lot of buyers who are interested in this particular watch, meaning there are more buyers than there are watches, so the price rises to €110 – you’ve made a nice €10 profit!

Obviously, when you buy any asset, you are hoping for the price to rise – but what if that doesn’t happen?Let’s go back to our watch for this one. You buy the watch for €100 and you expect it to rise in price. However, there are suddenly way more sellers of watches than buyers. As a result, the price of watches fall to €90. You’ve now lost €10 on the trade.When you “short” the market (sell) you enter into an agreement with another party and say “We will sell to them at the current price come time in the future”. The buyer agrees as they believe the market is going to increase, however, you believe that is going to fall. If the market does fall and the watch is now valued at €90 and you already agreed to sell for €100 per point, you can fulfill the agreement and net a €10 profit (winning!).

But, if watch prices rise to €110 you still have to sell it at the agreed price and make a loss of €10. As a starting point, this example should give you a roundabout idea of how trading works and there are 2 general points to remember:There is always a winner and a loser Your aim as a trader is to be on the winning side.

Trading in cryptocurrencies carries risks!

Every type of investment involves certain risks. In trading, risk is defined as the potential failure of an investment to deliver the anticipated return. That could mean getting lower profits than expected, losing all the original investment, and in some cases losing more than the original investment.

Never invest more than you can afford to lose!