Blockchain is a commonly used term in computers. Its basic definition is self explanatory. It’s essentially a constantly growing recording medium that is held together by inter-connected blocks. While blockchain is generally associated with cryptocurrencies, it was established as a technology in the 70s. In this post, we will find out more.
The History of Blockchain
The road to the development of blockchain technology was paved by cryptography experts. They started their studies by being inspired by the term “hash tree” in the 1970s, and have managed to approach the concept of blockchain today. Cryptocurrencies, which are created by combining the miners who make up the blockchain, are a blockchain. Miners form the ring of the blockchain.
According to many, Haber and Stornetta created this technology, not Satoshi Nakamoto. However, to tell the truth for its development; Blockchain is as old as Bitcoin, the first successful cryptocurrency. In 2008, it was stated that the basis and infrastructure of Bitcoin, produced by a person or group named Satoshi Nakamoto, is based on Blockchain.
How does Blockchain work?
Blockchain, which has developed over time, has spread over a very wide area. Blockchain is based on many formal and informal agreements, from banks to notaries. Blockchain technology is predicted to revolutionize many types of businesses, and this prediction continues to work successfully today. The fact that it has replaced many methods previously used to provide trust can be shown as the biggest proof of this.
What are some key features of Blockchain Technology?
Thanks to blockchain technology, many procedures in the hands of people have managed to become more transparent and risk-free today. One of the most important features of blockchain technology is that it cannot be hacked and corrupted, there is no such thing as decryption, corruption or hacking of a transaction made through the system. Because this algorithm is not a simple algorithm. It enables the creation of the desired table after the mixed mathematical figures come together.
Take this example: Each of the miners is a part of the blockchain, and it is impossible for an individual miner to produce 1 BTC per day or in a few days alone, and multiple miners must come together to produce 1 BTC. The blockchain brings together the mathematical figures from the miners producing, and while doing this, it does this with an impossible algorithm, and ultimately creates 1 Bitcoin.
Why is Blockchain technology considered hack proof?
Very simple factors lie behind the unhackable and unbreakable nature of the blockchain. In order for the Blockchain, which has billions of copies, to be hacked, all blocks must be changed. Since it is almost impossible to do such a transaction, it is not possible to hack the Blockchain chain.
What is a Blockchain Wallet?
A Blockchain wallet provides storage of cryptocurrencies that many people buy and sell. Transactions made in crypto wallets are protected by the blockchain. Blockchain is the technology that allows you to make cryptocurrency deposits very quickly and securely. At the same time, Blockchain has taken over all the security of your withdrawals.
How to transfer to a different cryptocurrency wallet?
Each cryptocurrency has its own wallet code (Private Key), and each investor’s wallet code is different. With simple logic, we can show the IBAN number that banks offer to their users as an example. How many customers are in a bank, each customer is given a separate IBAN number. However, the cryptocurrency wallet code works with a different logic than the IBAN number. If you do not share your wallet code with someone, no one will know that the wallet code belongs to you, and if it is entered incorrectly while transferring, there will never be a case of withdrawing the crypto money.
You need to use the private key code to transfer to the account of a different cryptocurrency user. Transactions are carried out through stock exchange sites that offer cryptocurrency trading services.
How to Create a Blockchain Wallet?
Creating a wallet in blockchain technology is quite simple and even a one-click process. There are websites that can inform you about the transactions you will make within the Blockchain and learn what to do. After registering to a reliable address from these websites, a wallet code for the crypto money you will receive is automatically generated, and this is the wallet code you need to give when transferring crypto money from elsewhere.
How to increase cryptocurrency and wallet reliability?
The risk of cyber attack includes risk in the crypto money field as it is in every field. That’s why you need to watch and protect your information and wallets more strictly. You can consider the suggestions below to protect your wallet.
You should keep the majority of your assets in cold wallets and keep them well away from the internet. You need to make sure that not only the software suitable for your wallet but also other mobile and operating software are up-to-date.
You should constantly monitor the security vulnerabilities that occur. As you should do in every field, you should not forget to use two-way authentication in this field of technology.
Instead of relying on a single exchange for trading cryptocurrencies, you can distribute your assets across several exchanges.
What is Fundamental Analysis of cryptocurrencies?
Fundamental analysis is to follow the news about a coin (cryptocurrency), to analyze the comments made about cryptocurrencies on social media platforms or related channels, to evaluate the future price movements and the manipulations and speculations about crypto money and to draw a roadmap accordingly.
Fundamental analysis is one of the issues that must be addressed before trading cryptocurrencies. Fundamental analysis actually gives an idea to the investor about how manipulation and speculation in the market will affect crypto money and how to act. This subject, which is at least as important as technical analysis (news spy is known for its great technical analysis), is a subject that requires attention and research rather than education.
What to keep in mind during fundamental analysis?
Technical analysis alone is not enough when analyzing any cryptocurrency. Because one of the factors affecting the mobility of prices is the news in the press, the tweets of big investors about crypto money or the current information and news published by crypto money founders about their projects also direct the prices. Basically, the following issues are addressed when performing fundamental analysis in cryptocurrencies:
- Economic reasons
- Political competition in the world
- Industry issues
- Competition terms
- Financial structures of companies
- Financial structure and efficiency
- Distribution channels
- Management Skill
- Export possibilities
All the reasons listed above are effective in the prices of stocks or cryptocurrencies. This is exactly why investors do fundamental analysis. It is to act by following the movements that may occur in the future by commenting on factors such as news, competition conditions, management skills.
How is fundamental analysis done?
The first thing to consider when performing fundamental analysis is to collect real information about cryptocurrencies or other commodities to be analyzed. After collecting this information, as a result of all the data collected, the real value of the cryptocurrency is tried to be found. Sometimes there can be extreme increments in cryptocurrencies and they can be instantaneous. Fundamental analysis gives very important information in such cases. It is evaluated whether the reason for the rise of the coin is real or a fake rise, that is, instant “pump”. Accordingly, it is understood what the real value is and a decision is made whether to invest or not.
Economic factors are the most important factor in the movement or regression of the market. For example, the sudden rise or fall of a coin may depend on economic factors, but it should be known that the instantaneous occurrence of this does not reflect the real value of the coin. In this case, it is definitely not right to make an investment decision by relying only on fundamental analysis. Expert traders prefer to do technical analysis in the face of such movements because technical analysis gives more precise results than fundamental analysis.
Is fundamental analysis enough on its own?
In order to understand cryptocurrencies or other investment tools and make investment decisions accordingly, it is not correct to only rely on fundamental analysis. As we mentioned above, a part of fundamental analysis is the instant fluctuations in cryptocurrencies. For example, the instant rise of an “X” coin can also occur due to its “pump” eating, and this causes a lot of news about the coin on news channels or social media platforms. However, an expert investor must take all these into account and also make a real price analysis.
Factors to consider while performing fundamental analysis?
When performing fundamental analysis, the cryptocurrency or stock is evaluated in groups from low to high. These groups are standard.
- Economic analysis: allows to examine the general state of the economy and its effects on prices.
- Industry analysis: According to the results we obtained in the first stage, it provides the selection of the most suitable and advantageous sector according to the information and data, and then examines it in depth.
- Company analysis: It provides detailed research on the financial statements and financial situations of the operating companies and presents them to investors.
- Cryptocurrency analysis: By researching and laying out these three phases in a general way, it gives us the true value of real cryptocurrency.