cryptopoker is not gambling in the traditional sense of the word. It’s not about what cards you have or where the casinos are. Cryptocurrency is a different animal altogether, and like any other new technology, it takes time for people to come to terms with it properly. There are several methods through which one can get involved in Cryptocurrency trading. Let’s explore the four main ways in which anyone can start into Cryptocurrency trading.
How does Cryptocurrency work? To use Cryptocurrency, you do not need to fully understand it (much like you would have to fully understand the financial system to fully understand currency) – but you also need to understand the underlying concept of digital currency, the theory ofblockchain, and how Cryptocurrency works in practice. Digital currency is based on ledger systems, much like the system that underlies stock trading, where there are ledger sheets that show the movement of money from one hand to another. In this case, one could say that the Ledger sheets are records of the activities of the Cryptocurrency’s users, including their balance, investment status, and what they are buying or selling.
How does Cryptocurrency work in practice? This can be seen in the way that most of the major work. There are the Cryptopia (Litecoin and Peercoin), which are the first of its kind (the first two are forks of the original Litecoin project). There are also the Hybrid Cryptocurrencies (the latter include Namecoin and Scryptopay), and then there are the Historical Cryptocurrences, which include the old standbys like Gold, silver, and copper. Then there are the new ones, which include Namecoin and Bitcrystals.
What do all of these currencies have in common? They are all built on top of a ledger system, and each one is controlled by private users who manage the ledger themselves (this is called a “blockchain”). There is the Cryptocurrency Smart Contract that underlies all of the various Cryptocurrencies. A Smart Contract is essentially a special contract written by the owners of a certain Cryptocurrency and executed by their users, which is then enforced by the entire network of Cryptocurrency users.
A typical Cryptocurrency Smart Contract would allow for the transfer of money from one address to another. For instance, an investor may be interested in putting some money into a profitable digital currency called litecoin. He could do this by first getting himself a litecoin wallet, which would be his private and secure place to store his litecoin investment portfolio. Next, he could use his private wallet to make an investment in an online marketplace called an “alt marketplace” where he could then trade his litecoin for ether, which is the common currency used throughout the world. The investor would be making his money by trading in one currency for another, so his profits would also be in the same currency.
To wrap things up, how does Cryptocurrency work is pretty simple – the owner of the litecoin wallet owns the entire portfolio and can initiate transactions in any way they choose. Any user can then use his or her private key to sign off on these transactions, and once the transaction is done, the owner of the wallet is then given back his or her previous ownership of the digital currency. This process is repeated for any other Cryptocurrency. Pretty much, it’s like using your credit card or bank account to make payments on the Internet – only instead of money, you’re buying digital currency.