In simple words forex trading is like exchanging currencies, like you have 1 dollar that you didn’t spent on your last foreign vacation and that time that one dollar was equals to 62 Rs and now that 1 dollar = 72 Rs so you earned 10 Rs that’s the simplest example of Forex ( currency ) trading. So now you got the profit and you didn’t do anything and this is nothing but the effect of currencies value fluctuating due to “GDP” and its like an economic snapshot of a country, shows the estimate size of an economy and growth rate of country but it only effects stable currencies like dollar, euro, rupee etc. its also effects cryptocurrencies but on a very low scale.
WHAT IS BLOCK CHAIN?
Block chain can be described as a data structure that holds transnational records and while ensuring security, transparency, and decentralization. You can also think of it as a chain or records stored in the forms of blocks which are controlled by no single authority but everyone is owner and have right to access his money.
It works on a large distributed network of Block chain on a special program on computers and each block has stored information or group of information so this is called ledger. And each block has basic three information 1.Data 2. Hash 3. Hash of previous block or proof of work
Data- address of sender , address of receiver and amount of currency
Hash- its like fingerprint or address and each hash is different from another and it changes continuously with transactions.
Hash Of Previous block- Record of previous hash including data or proof of work.
Example:- it starts from block 1 which is called genesis block with zero hash and now If you make changes on block two it changes the hash of third block and makes following blocks invalid so if its not enough to prevent breach you have to search for matching hash and now a days computers are very fast they can calculate thousands of hash per second so you can effectively make changes and find your matching hash and complete the block again and again you can make changes on other blocks and complete the chain and in bitcoin it takes about 10 minutes to complete one bitcoin block so blockchain has something that we called “proof of work” and this block represents the transaction now if freshman requests a new transaction then see how blockchain works given below:-
Some of the top most common cryptocurrencies are:-
- Bitcoin (BTC)
- Ethereum (ETH)
- Ripple (XRP)
- Tether (USDT)
- Bitcion cash (BCH)
- Litecoin (LTC)
- Eos (EOS)
- Doge coin (DOGE)
- Monero (XMR)
In our next topic I will explain about these in brief till then stay tuned………..
This is my journey from nothing everything this bitcoin thing just changed my life. After completing my engineering I was looking for a job and I got that but deep down I wanted to create my own side hustle and I tried many businesses on a low scale but they failed due to some reasons and in 2017 I heard about bitcoin but I didn’t paid much attention but again and again it was crossing my mind in different times so in July of 2017 I started my research on bitcoin and from that day regular irregular I continued my research and went through many questions like what is cryptocurrency? and how can I get these internet currency?, how can I invest on these? And at that time I was newbie but I continues my research I came into contact with some other miners, crypto gamblers, traders, some of them were genuine and some of them were not and at that time they were earning like 100-500 dollars per day but as you know magicians never reveals his tricks so they didn’t gave me much knowledge and asked me to invest through them but I was going through some financial crisis so I dropped this offer and started working on my own skills with this experience, so in mid of 2018 I get to know about mining and how it works so I started that too and it gave little profits and confidence that I needed most at that time but then I realized that it also has some limitations like you have to calculate energy consumption according to your mining RIG ( mining system ) and also you have to keep in mind many other factors, but I didn’t loosed my hope and continued my research on cryptocurrency and bitcoin and now I know almost everything about crypto and bitcoin and created my side business that I am willing to make my full time job because it can give me financial support and freedom to do anything that I wanted to do in my life so my intention behind writing this article that I don’t want to suffer anyone for this information because out there you will get so much information but they in my experience they all are very confusing and hard to understand for everyone and in other countries where cryptocurrency was already legal and they are earning real money way before we know about it and getting rich so why not we? So I will explain everything in my articles so read and do research by your own and create new doors of income.