cryptocurrency Telegram Group Link

    cryptocurrency Telegram Group

    Cryptocurrencies, or virtual currencies, are digital means of exchange created and used by private individuals or groups. Because most cryptocurrencies aren’t regulated by national governments, they’re considered alternative currencies – mediums of financial exchange that exist outside the bounds of state monetary policy. Bitcoin is the preeminent cryptocurrency and first to be used widely. However, hundreds of cryptocurrencies exist, and more spring into being every month.

    According to Jan Lansky, a cryptocurrency is a system that meets six conditions:

    • The system does not require a central authority, its state is maintained through distributed consensus.
    • The system keeps an overview of cryptocurrency units and their ownership.
    • The system defines whether new cryptocurrency units can be created. If new cryptocurrency units can be created, the system defines the circumstances of their origin and how to determine the ownership of these new units.
    • Ownership of cryptocurrency units can be proved exclusively cryptographically.
    • The system allows transactions to be performed in which ownership of the cryptographic units is changed. A transaction statement can only be issued by an entity proving the current ownership of these units.
    • If two different instructions for changing the ownership of the same cryptographic units are simultaneously entered, the system performs at most one of them.

    What is ICO?

    ICO stands for “Initial Coin Offering”. In a nutshell, ICO is a process to raise fund for a specific project in terms of cryptocurrency, such as Ethereum or Bitcoin, in return for its tokens that can be used in its specific services or applications.

    Similar to initial public offering (IPO), instead of money in terms of fiat currencies e.g. U.S. Dollars is being raised, cryptocurrency is raised to support the project for ICO. In return, a certain number of tokens that is built on its specific application blockchain technology will be allocated to the contributors instead of shares. These tokens can be traded on some private exchanges.

    Alternatively, some may describe ICO as an alternative mean of crowdfunding to support blockchain-related projects by means of token sale, of which the tokens can be applied to their services and applications.

    How Does ICO Work

    From a creator’s perspective, a service or application is to be built based on blockchain technology with protocol, set of rules and white paper being established. Afterwards, the creators will bring forward the white paper, which will illustrate the details of the project e.g. project idea and mechanism, implementation schedule, capital required etc; and arrange token pre-sale, sale, marketing and listing through various communication means and private exchanges.

    ICO will be opened for a fixed amount of token sales within a certain period, which usually varies from a few weeks to a month. Some may open for various rounds of token sales with limited amount of token to be sold during each phrase. Furthermore, some ICO may offer pre-sale for privileged or selected investors at a discount before the actual sales date. In general, the token issuers will be transparent regarding the token mechanism and token allocation, which will usually state in the white paper.

    Acquire Bitcoin or Ethereum through Registration with a Cryptocurrency Online Exchange

    To participate in ICO or token sales, you need to obtain Bitcoin or Ether, which are more commonly accepted for ICO, as ICO or token sales usually will not accept fiat currencies like US dollars. Since most of the project idea and application of the ICO are leverage on the Ethereumplatform, hence Ether may be more popularly acceptable in general while Bitcoin or even some other altcoin can still be acceptable depending of different ICOs.

    If you do not own any cryptocurrency, you can consider registering an account with an online cryptocurrency exchange, and then purchasing Bitcoin or Ether through the online exchange. It usually takes a few days, which varies from different online exchanges, for a normal person to register with the online exchange service providers because of the Know-your-customer (KYC) and Anti-money Laundering (AML) regulations. Due to KYC and AML regulations, you are usually required to provide your personal particulars e.g. name, date of birth etc., official identity proof e.g. passport copy, and address proof to open an account with the online exchanges, which they will then process and validate your information

    After you successfully registered an account with the online exchanges, you can purchase for Bitcoin, Ether, or any other available cryptocurrencies with your USD, EUR etc. as transferred to the online exchange. The cryptocurrencies that you purchased will be sent directly to your online wallet of the online exchange that you registered.

    As you will rely on the online exchanges to keep your cryptocurrencies for you, it may be risky to store your cryptocurrencies with them, of which you may lose your cryptocurrency, due to counter-party risk such as the online exchange may collapse or being attacked or hacked by others. Therefore, it may be safer to store your cryptocurrencies in a more secure software or hardware blockchain wallet that is under your control.

    Establish your Cryptocurrency Wallet

    Since most of the ICO or token sales are held on Ethereum platform, it is better to have an Ethereum-based wallet. Do note that not all blockchain wallets are suitable or compatible for ICO as some may only support Bitcoin storage but not Ethereum-based cryptocurrency.

    MyEtherWallet is slightly different from traditional web-based wallets, which does not hold your private keys. Therefore, the wallet owner will have the control of the Ethereum’s private key. It is an open-source wallet with inbuilt blockchain and ethereum facility. The wallet can also connect with other hardware wallets e.g. Ledger Nano S or Trezor, which you can access to your funds in these hardware wallets via MyEtherwallet browser

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