By Peter Kent, Tyler Bain

Cryptocurrency mining involves the addition of transactions to a blockchain by a crypto miner. But, its a bit more complicated than that. Take a look at decentralization and discover the role of the crypto miner.

Cryptocurrencies are decentralized that is, no central bank, no central database, and no single, central authority manages the currency network. The United States, for example, has the Federal Reserve in Washington, the organization that manages the U.S. dollar, and European Central Bank in Frankfurt manages the euro, and all other fiat currencies also have centralized oversight bodies.

However, cryptocurrencies dont have a central authority; rather, the cryptocurrency community and, in particular, cryptocurrency miners and network nodes manage them. For this reason, cryptocurrencies are often referred to as trustless. Because no single party or entity controls how a cryptocurrency is issued, spent, or balanced; you dont have to put your trust in a single authority.

Trustless is a bit of a misnomer. Trust is baked into the system. You dont have to trust a single authority, but your trust in the system and fully auditable codebase is still essential. In fact no form of currency can work without some form of trust or belief. (If nobody trusts the currency, then nobody will accept it or work to maintain it!)

In the trustless cryptocurrency world, you can still trust the cryptocurrency community and its mechanisms to ensure that the blockchain contains an accurate and immutable unchangeable record of cryptocurrency transactions. Cryptocurrencies are established using a set of software rules that ensure that the system can be trusted, and the mining process is part of this system that allows everyone to trust the blockchain.

Cryptocurrencies have no central bank printing new money. Instead, miners dig up new currency according to a preset coin-issue schedule and release it into circulation in a process called mining.

When you compare cryptocurrency mining to gold mining, why the process is referred to as mining becomes clear. In both forms of mining, the miners put in work and are rewarded with an uncirculated asset. In gold mining, naturally occurring gold that was outside the economy is dug up and becomes part of the gold circulating within the economy.

In cryptocurrency mining, work is performed, and the process ends with new cryptocurrency being created and added to the blockchain ledger. In both cases, miners, after receiving their reward the mined gold or the newly created cryptocurrency usually sell it to the public to recoup their operating costs and get their profit, placing the new currency into circulation.

The cryptocurrency miners work is different from that of a gold miner, of course, but the result is much the same: Both make money. For cryptocurrency mining, all of the work happens on a mining computer or rig connected to the cryptocurrency network no burro riding or gap-toothed gold panners required!

Cryptocurrency miners add transactions to the blockchain, but different cryptocurrencies use different mining methods, if the cryptocurrency uses mining at all. (Most cryptocurrencies dont use mining.) Different mining and consensus methods are used to determine who creates new blocks of data and how exactly the blocks are added to the blockchain.

How you mine a particular cryptocurrency varies slightly depending on the type of cryptocurrency being mined, but the basics are still the same: Mining creates a system to build trust between parties without needing a single authority and ensures that everyones cryptocurrency balances are up-to-date and correct in the blockchain ledger.

The work performed by miners consists of a few main actions:

The preceding cryptocurrency mining process is essential work, needed for the continued propagation of the blockchain and its associated transactions. Without it, the blockchain wont function. But why would someone do this work? What are the incentives for the miner?

The bitcoin miner actually has a couple of incentives (other cryptocurrencies may work in a different manner):

Combined, the fees and subsidy are known as the block reward. In Bitcoin, the block subsidy began at 50 BTC. (BTC is the ticker symbol for bitcoin.) The block subsidy at the time of writing is currently 12.5 BTC. The block subsidy is halved every 210,000 blocks, or roughly every four years; sometime around May 2020 it will halve again to 6.25 BTC per block.

The image below, from the BlockChain.com blockchain explorer, shows a block subsidy being paid to an address that is owned by the miner who added the block to the blockchain. Near the top you can see that 12.5 BTC is being paid as the subsidy; the actual sum received by the miner (the full reward, 13.24251028 BTC) is larger, because it also includes the transaction fees for all the transactions in the block.

For a cryptocurrency to function, several conditions must be met by the protocol. Jan Lanksys 6-factor list is particularly helpful. (Jan is a cryptocurrency academic teaching at a university in the Czech Republic). As can be seen, below, mining (in the mineable cryptocurrencies, non-mineable currencies have different mechanisms) is an integral part of making sure these conditions are met.

If even one of these six conditions arent met, a cryptocurrency will fail because it cant build enough trust for people to reliably use it. The process of mining solidifies and satisfies every single one of these conditions.

Theres a mind exercise known as the Byzantine Generals Problem (or the Byzantine Fault, the error avalanche, and various other things) that illustrates the problem that cryptocurrency consensus algorithms seek to solve.

The overall problem? Youre trying to reach consensus; in cryptocurrency, youre trying to reach agreement over the history of currency transactions. But in a cryptocurrency network, a distributed computer system of equals, you have thousands, maybe tens of thousands of computers (nodes); in the Bitcoin network you currently have 80,000 to 100,000 nodes.

But out of those tens of thousands of systems, some are going to have technical problems; hardware faults, misconfiguration, out-of-date software, misfunctioning routers, and so on. Others are going to be untrustworthy; theyre going to be seeking to exploit weaknesses for the financial gain of the people running the node (they are run by traitors). The problem is that for various reasons, some nodes may send conflicting and faulty information.

So someone came up with a sort of parable or metaphor, the Byzantine Generals Problem. (A guy named Leslie Lamport Shostak first told this story back in 1980, in a paper related to general issues of reliability in distributed computer systems.)

Originally named the Albanian Generals Problem, it was renamed after a long-defunct empire so not to offend any Albanians! (Though in this interconnected world of constant social media offense, there must be at least some offended residents of Istanbul.)

Apparently distributed-computing academics like to sit around and devise these little metaphors; theres the dining philosophers problem, the readers/writers problem, and so on. In fact the Byzantine Generals Problem was derived from the Chinese Generals Problem.

Anyway, the idea is this, as described in the original paper:

We imagine that several divisions of the Byzantine army are camped outside an enemy city, each division commanded by its own general. The generals can communicate with one another only by messenger. After observing the enemy, they must decide upon a common plan of action. However, some of the generals may be traitors, trying to prevent the loyal generals from reaching agreement. The generals must have an algorithm to guarantee that A. All loyal generals decide upon the same plan of action.[and] B. A small number of traitors cannot cause the loyal generals to adopt a bad plan.

(Search online for byzantine generals problem leslie lamport robert shostak marshall pease if youre interested in seeing the original paper.)

Thats the problem that cryptocurrency consensus algorithms, as theyre known, are trying to solve. How do the generals (the computer nodes) come up with consensus (all agree on the same plan of actionor transaction ledger), and avoid being led astray by a small number of traitors (faulty equipment and hackers)?

To have a chance at the mining reward, crypto miners must set up their mining rigs (the computer equipment) and run that cryptocurrencys associated mining software.

Depending on how many resources the crypto miner is committing, he or she will have a proportional chance to be the lucky miner who gets to create and chain the latest block; the more resources employed, the higher the chance of winning the reward. Each block has a predetermined amount of payment, which is rewarded to the victorious miner for their hard work to spend as they wish.

So how is the winning miner chosen? That depends. In most cases, one of two basic two methods are used:

When Bitcoin first started, anyone with a simple desktop computer was able to mine. The would-be miner simply downloaded the Bitcoin mining software, installed it, and let the BTC roll in! As time went on, though, competition increased.

Faster and more powerful computers were built and used for mining. Eventually, specialized processing chips called Application Specific Integrated Circuits (ASICs) were developed. An ASIC, as the name implies, is a computer chip designed for a specific purpose, such displaying high-resolution graphics quickly, running a smartphone, or carrying out a particular form of computation.

Specific ASICs have been designed to be highly efficient at the forms of computation required for cryptocurrency mining for example, for Bitcoin mining. Such a chip can be 1,000 times more efficient at Bitcoin mining than the chip in your PC, so in todays Bitcoin mining environment, its go ASIC or go home!

For high-difficulty cryptocurrencies, such as Bitcoin, the ideal mining environment is one with:

Fear not, though! With many different copies and mimicry of Bitcoin running rampant, Bitcoin is no longer the only game in town, and you can find lots of alternative mining choices, with varying levels of required computing power. Today, some of the most profitable cryptocurrencies to mine are lesser known and can be mined using off-the-shelf computer hardware due to less stringent difficulty levels that are associated with lower popularity and adoption.

Currently, a large portion of the global cryptocurrency mining takes place in China, at perhaps three times the rate of the next closest nation (the United States). A combination of cheap electricity and easy access to cheap computer components for building mining rigs gives China an edge that Chinese miners have leveraged and so far, maintained, even with their governments apparent disapproval of cryptocurrencies.

This is a testament to how resilient and difficult to shut down distributed cryptocurrency systems such as Bitcoin are.

A cryptocurrency has value because a large number of people collectively believe that it does. But why do they believe cryptocurrency has value? The answer is trust.

A holder of Bitcoin can trust that their Bitcoin will be in their wallet a day from now or 10 years from now. If they want to research how the system works, they can audit the code base to understand the system on a deeper level to see how trust is maintained.

However, if they do not have the skillset or the computer science knowledge to audit code, they can choose to trust that other people, more knowledgeable than them, understand and monitor the system; they can trust the overall blockchain community that is managing the particular cryptocurrency.

Without the mining functionality underpinning the distributed peer-to-peer cryptocurrency system, this collective trust (based on the proof of collective work towards the chain) would not exist.

Cryptocurrency mining makes sure that your balances wont change without your authorization. It incentivizes everyone to behave correctly and punishes those who dont. It creates a digital form of value transfer that can be trusted by each individual user as an equal peer in the network because every part of the system is aligned for one purpose: providing a secure way to create, verify, and transfer ownership of digitally scarce cryptographic units.

Peter Kent is a longtime technology author who also created the online course Crypto Clear: Bitcoin & Cryptocurrency Made Simple. Tyler Bain is a professional engineer who specializes on the electrical grid. He is also a Certified Bitcoin Professional who focuses on system resiliency and mining mechanics.

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What is Cryptocurrency Mining? - dummies

As you become involved in the new digital monetary mechanisms known as cryptocurrency, it doesn't take long to recognize there's risk involved in these transactions. And we're not talking about the volatility of the market. Scams are everywhere online, and cryptocurrency exchanges are no different. As you consider investing in different startups and exchange platforms, be aware of the possibilities of losing your cryptocurrency investments.

When you're looking into digital cryptocurrency companies and startups, experts recommend that you confirm that they're blockchain-powered, which means they track detailed transaction data. Also, check that they have solid business plans that solve real problems. Companies should specify their digital currency liquidity and ICO rules. There should be real people behind the company. If the startup you're investigating lacks some of these characteristics, think through your decision even more carefully.

Here's in a look at the more common scams and ways to avoid becoming a victim as you join the exciting future of cryptocurrency.

You may be following a solid tip from someone with a lot of expertise but still become a victim by accidently visiting a fake website. There's a surprising number of websites that have been set up to resemble original, valid startup companies. If there isn't a small lock icon indicating security near the URL bar and no "https" in the site address think twice.

Even if the site looks identical to the one you think you're visiting, you may find yourself directed to another platform for payment. For example, you click on a link that looks like a legitimate site, but attackers have created a fake URL with a zero in it instead of a letter o. That platform, of course, isn't taking you to the cryptocurrency investment that you've already researched. To avoid this, carefully type the exact URL into your browser. Double check it, too.

Another common way scammers trick cryptocurrency investors is through fake apps available for download through Google Play and the Apple App Store. Although stakeholders can often quickly find these fake apps and get them removed, that doesn't mean the apps aren't impacting many bottom lines. Thousands of people have already downloaded fake cryptocurrency apps, reports Bitcoin News.

While this is a greater risk for Android users, every investor should be aware of the possibility. Are there obvious misspellings in the copy or even the name of the app? Does the branding look inauthentic with strange coloring or an incorrect logo? Take note and reconsider downloading.

If you're following celebrities and executives on social media, you can't be sure that you're not following impostor accounts. The same applies to cryptocurrencies, where malicious, impersonating bots are rampant. Don't trust offers that come from Twitter or Facebook, especially if there seems to be an impossible result. Fake accounts are everywhere.

If someone on these platforms asks for even a small amount of your cryptocurrency, it's likely you can never get it back. Just because others are replying to the offer, don't assume they aren't bots, either. You have to be extra careful.

Even if it looks exactly like an email you received from a legitimate cryptocurrency company, take care before investing your digital currency. Is the email the exact same, and are the logo and branding identical? Can you verify that the email address is legitimately connected to the company? The ability to check on this is one reason why it's important to choose a company that has real people working for it. If you have doubts about an email, ask someone who works there. And never click on a link in a message to get to a site.

Scammers often announce fake ICOs, or initial coin offerings, as a way to steal substantial funds. Don't fall for these fake email and website offers. Take your time to look over all the details.

Unfortunately, there are many ways that some Internet users exploit unsecure computing systems to mine or steal cryptocurrency. Learn more about staying safe and protecting yourself in this emerging market before you start investing in cryptocurrency.

What is Cryptocurrency? Cryptocurrency Security: 4 Tips to Safely Invest in Cryptocurrency

Scam websites what they are and how to spot them

How to report a website

How to identify and avoid fake apps

Top 6 online scams

Scams are common online and cryptocurrency exchanges are no different. Read about four common cryptocurrency scams and how you can recognize and avoid them.

See more here:

4 Common Cryptocurrency Scams | How to Avoid ...

Here is a guide to cryptocurrency for beginners. We offer simple answers to questions like what is cryptocurrency, how does it work, what is Bitcoin, what is blockchain, how do I buy cryptocurrency, etc.

Metaphor: Cryptocurrency is a bit like online banking without a central bank. It is software-based, like an online banking platform. There is a ledger (called a blockchain), balances, and account numbers. You access your balances by using a password and can make transactions this way. Just like with online banking, you dont need to know how it works under the hood to use it.

What is Cryptocurrency? Cryptocurrency is a type of digital asset that functions as a currency. The system that makes a cryptocurrency possible is based on cryptography (crypto) and a cryptocurrency is meant to be used like a currency (currency). With that in mind, not every digital crypto asset is meant to be used as a currency like the popular cryptocurrency Bitcoin is.

What is Bitcoin? Bitcoinis a software file stored on computers across the world that acts as a ledger of financial transactions called a blockchain. The ledger contains account numbers called public addresses associated with balances of Bitcoin. People can move around balances of Bitcoin if they have the passwords (or private keys) to those accounts using software called a cryptocurrency wallet (see description below). Bitcoin is the name of both this system and its unit of the currency. You can phrase it like this, balances of Bitcoin tokens are moved around on the Bitcoin blockchain by creating transactions in Bitcoin wallets.

What is Blockchain?Technically Blockchain is first and foremost a database protocol (a set of rules) for sorting data into blocks, but its easier to think of a Blockchain as a type of database. Essentially, it is a spreadsheet where data is stored in cells (or blocks) that are linked together in order by cryptographic codes called hashes. This database is generally decentralized and distributed on many computers instead of being stored in one central location or managed by one central entity. In Bitcoin, blockchain is generally used to describe both the public ledger where all transaction data is stored and technology (the protocol) behind the ledger. Many who arent believers in Bitcoin as a currency / digital asset are supporters of blockchain technology and its many applications both within finance and beyond.

On Being Decentralized and Distributed. Instead of Bitcoin being hosted on one computer or one companys computers, Bitcoin is hosted on many computers by many different entities (it is distributed). Meanwhile, everything is either done democratically or is controlled by algorithms, so there isnt a need for a centralized middle-man like a bank or government (it is decentralized). Bitcoins blockchain is in this sense both decentralized and distributed.

How is Cryptocurrency Different From Fiat Currency? Fiat currency, like the U.S. dollar, is controlled by central banks and controlled by states. It is legal tender and you can pay your taxes with it. Cryptocurrency, like Bitcoin, isnt controlled by a central entity but it isnt legal tender and you cant pay your taxes with it. Otherwise both fiat currencies and crypto currencies act as mediums of exchange and stores of value. With that in mind, some argue that cryptocurrency is a digital asset with exchange value, but not a true currency.

Can I buy things with Cryptocurrency? Cryptocurrency can be used as a payment method for any good or service that accepts cryptocurrency. The most common cryptocurrency used as payment is Bitcoin. As time goes on, accepting Bitcoin and other cryptocurrencies as payment is becoming more common. Check out a list of things you can buy with Bitcoin.

What are the Benefits of Using Cryptocurrency as a payment method? There are a number of benefits of cryptocurrency as a payment method. The main benefits of cryptocurrency in this sense are the often low transaction costs and quick transaction fees compared to other payment systems. On a good day cryptocurrency is the quickest and cheapest way to send money around the globe (XRP is a great example of this). Cryptocurrency is also an easy way to make payments online, especially for peer-to-peer transactions. Another big benefit is that cryptocurrency doesnt require trust, which removes potential worry for both the sending and receiving party. Meanwhile, for some people in some states, cryptocurrency can act as an alternative to a states currency (which can be good if that currency is suffering from rapid inflation for example).

How do I Buy / Sell Cryptocurrency? One can buy and sell cryptocurrencies like Bitcoin via online brokers or exchanges like Coinbase or GDAX. Exchanges are like digital stock exchanges, but for cryptocurrencies. Learn how to trade cryptocurrencyor check out ourcryptocurrency investing starter kit.

Is Cryptocurrency Legal? In general, cryptocurrency is legal in every respect in the U.S. and much of the world. The only rules of thumb are 1. you have to pay taxes on it and 2. anything that would be illegal otherwise is also illegal with cryptocurrency.

Is Cryptocurrency Taxable in the U.S.? Cryptocurrency is taxed as an investment property, that means you have to tally profits and losses at the current market value of a cryptocurrency when you sell it, use it, or trade it and then pay the capital gains tax on profits in a calendar year. Please take time to learn about the tax implications of cryptocurrency.

What is an ICO? An ICO is an initial coin offering, a way for a new coin to raise money by offering a pre-sale of an up-and-coming token. ICOs are controversial. On one hand, some ICOs have been scams, on the other hand some states have worried that ICOs are mimicking securities without following the securities rules. One should do extra research before participating in an ICO.

What is a token? Token is a word that has a few different meanings in cryptocurrency. In simple terms, it just describes a cryptocurrency and its unit of value (a cryptocurrency = a token). For example one could say I have 10 Bitcoin tokens. The term is also sometimes used to describe cryptocurrencies existing on other coins networks. For example, the KIN ICO is a token on the Ethereum network. Lastly, encrypted bits of data that dont contain identifying information are also called tokens, this type of token is also used in cryptocurrencies. In other words, what the term means depends on context.

How Do Transactions Work? Software called a cryptocurrency wallet (see below) is used in conjunction with an account number and password (technically public address and private key). The private key (known only to its owner, like a password) is used to create a signature that allows the owner to move around funds on the blockchain. Transactions are then secured on the blockchain in sequential blocks by miners (see the next section). Almost all cryptocurrencies work like this.

How Do I Store Cryptocurrency? In overly simple terms, you essentially store cryptocurrency in cryptocurrency wallets(see the next point for the technical details). For long term, youll likely want a cold wallet(where you store your private keys offline). For short term use, you might use a range of options or even temporarily keep funds on an exchange (but be careful, if it is connected to the internet, it is a hot target).

What is a Cryptocurrency Wallet? A wallet can be thought of as software that allows one to store cryptocurrency and create cryptocurrency transactions. This is a simple way to think of a wallet even though cryptocurrency isnt technically stored in a wallet (instead public addresses are associated with transactions recorded on the blockchain, and thus are associated with balances, which the wallet software can read and display for you). More technically then, a wallet is software that allows you to store your private keys, view balances associated with public addresses, and create and sign outgoing transactions. With that noted, one must differentiate between wallets where you control your private keys (like the Bitcoin Core wallet), and custodial wallets where third parties host the wallet for you and are in control of the private keys (like the wallets on Coinbase or GDAX).

What is a Node? Since cryptocurrency is distributed many computers around the world have to run the software. Any computer running a copy of the software is a node. A full node runs a full copy of the blockchain.

How are New coins Created? When a transaction is created in a wallet it is broadcast to everyone in the Bitcoin network. For that transaction to be added to the ledger, users running mining software must solve cryptographic puzzles that let them add a block of transactions to the blockchain. The reward for adding a block is newly minted cryptocurrency. Thus mining is cracking puzzles to play digital accountant, and new coins are minted as rewards for mining transaction blocks.

How is Bitcoin Secure? Bitcoin is secure for two main reasons. 1. It uses a lot of one-way encryption that makes everything that is encrypted next to impossible to hack (it requires a ton of work). 2. It is distributed and so there is no central software to hack.

How does the cryptography aspect of Bitcoin work? At the core of Bitcoin, in terms of cryptography, iscryptographic hash functions. Key concepts includepublic-key cryptographyand proof-of-work functions. If you want a crash course in the cryptography behind those terms, clicks those links and try reading the Bitcoin white paper:Bitcoin: A Peer-to-Peer Electronic Cash System.

What Happens If I Lose My Keys or if Someone Steals My Cryptocurrency? If you lose your private key, you lose access to the balances associated with it. If someone gets access to your crypto and they steal it, there is generally no way to resolve this issue. However, if you use a third party platform, like an exchange, and the exchange and not your account is hacked, then you might have recourse. The major exchanges tend to be good about reimbursing users in the case of a hack.

How Can I better Secure My Cryptocurrency? Since losing your keys and theft are real issues, it makes sense to follow some best practices of basic internet security. Keep your keys backed up offline (learn more about secure cold wallets), dont store all your crypto in one location, be careful about URLs (make sure the URL is the real one), use a browser dedicated to crypto, use two factor authentication on any account you can, choose strong unique passwords, and dont use your public email to log into your accounts. Taking just a few of these steps will go a long way to protecting you, taking none of these steps is asking for trouble. As a rule of thumb two-factor authentication is a must, so make sure it is enabled on all platforms that allow it! TIP: Although there are exceptions to this rule, the main security risk with the major cryptos isnt the software (the software takes a ton of work to hack) or the major exchanges (the major ones are ensured, keep most of their funds in cold storage, and have security teams), it is people not taking care to secure their accounts.

Is Bitcoin Anonymous? Bitcoin is pseudo-anonymous. Every transaction is recorded on the public ledger (the blockchain), but no identifying data is used. Everyone can see the transaction and the public wallet address associated with it, but no one knows who made the transaction (unless that person or entity makes that information public). Other cryptocurrencies have more or less focus on privacy than Bitcoin. Some cryptocurrencies, likeMonero are truly anonymous (in theory). With Monero, not even transaction data is public.

What is a smart contract? A smart contract is exactly what it sounds like, a smart (software-based and programable) contract (a set of conditions that when met execute the terms of the contract). Smart contracts can be written to a cryptocurrencys blockchain to create a trustless contract (a peer-to-peer contract that doesnt require a middle-man or trust). Unlike paper contracts a software contract can execute any function that can be executed by the software once conditions are met. This means in theory smart contracts can replace real contracts, but also do anything software can do. Ethereums system relies heavily on smart contracts, anyone can create a smart contract on Ethereum if they have the native Ether token to pay the fee for using the system. TIP: Bitcoin transactions are smart financial contracts, but Ethereum allows for smart contracts for much more than just financial transactions. Ethereums contracts can distribute new tokens, double as insurance contracts, or anything you can think of.

On Being Peer-to-Peer and Trustless. An important feature of cryptocurrency is that it is trustless. The encryption, code, blockchain, etc all comes together to allow for a trustless peer-to-peer distributed and decentralized system. That sentence might sound jargon-y, but it contains some important points. At the core, the idea is that all the aspects of cryptocurrency come together to create a system that doesnt rely on trusting your peers or trusting a middle-man. Contracts written to the blockchain are written in stone, there is no need for trust or middle-men to ensure the execution of a contract once its conditions are met!

Crypto Terms: FOMO is fear of missing out (an emotional response to seeing the price move a lot and wanting in). FUD is fear, uncertainty, and doubt that can affect prices of assets. HODL is a misspelling of hold from an old forum post (it today means hold on for dear life during big price movements). A hard fork is like a fork in the road, a copy and paste of software that allows each copy to branch off in a different direction (when this happens with Bitcoin the ledger is duplicated along with balances, meaning people get the newly forked coins for free). An Airdrop is a method of distributing newly minted coins to the wallet addresses of current coin holders. See a list of crypto jargon.

Did I miss something or do you need something clarified? Just ask me a question in the comments below and Ill answer it.

"Cryptocurrency For Beginners" contains information about the following Cryptocurrencies:

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Cryptocurrency For Beginners - CryptoCurrency Facts

The Indian cryptocurrency industry has been growing rapidly despite the nationwide lockdown and the coronavirus crisis. Two new cryptocurrency trading platforms are launching in India while existing crypto businesses seek clarification from the central bank, the Reserve Bank of India (RBI).

The crypto sector in India is showing significant growth with several crypto exchanges reporting a 10X increase in trading volumes and a substantial increase in new users. Despite the global coronavirus pandemic and the nationwide lockdown, new cryptocurrency trading platforms are launching in India.

Global cryptocurrency exchange aggregator Coinswitch is launching a crypto trading app for Indian users on June 1. Announcing pre-registration for Coinswitch Kuber, Coinswitch explained on Wednesday:

Coinswitch Kuber will ensure the best rates by aggregating liquidity across all Indian exchanges and will support over 100 currencies for Indian users to buy and sell easily using Indian rupees (INR).

Coinswitch aggregates the liquidity of a number of crypto exchanges in India to provide its users with the best rates for cryptocurrencies. The exchanges include Binance, Huobi, Kucoin, and Hitbtc. To access this pooled liquidity, users simply enter the INR amount and the cryptocurrency they want to buy, and the service will provide a list of offers at various exchanges that auto-refreshes every 30 seconds.

The first 25,000 users during pre-launch pay no INR trading, deposit, or withdrawal fees. Users can earn Coinswitch points, or Kuber points, as a part of the new platforms reward program, which can be redeemed from the reward section once the platform is live.

Besides Coinswitch, another cryptocurrency exchange has launched in India. The Bangalore-based Bitpolo announced on Thursday that it is now live. The exchange offers instant INR deposits and claims that withdrawals are within seconds. Chief business officer Suresh Choudhary said:

We were building through the bear market and thought the timing of our launch cannot be more apt than when the world is slowly inching back towards normalcy post a pandemic & recessionary environment.

As we foresee fragilities of traditional asset classes, crypto markets seem to offer the bigger upside and we intend to bring simplicity and solid technology to the screens of Indian traders and hodlers, Bitpolo added.

Ever since the Supreme Court of India quashed the RBI ban, the Indian crypto community has been waiting for more instruction from the central bank. The RBI has not sent any notices to banks regarding the supreme courts ruling, which has led some banks to continue denying service to crypto businesses. According to reports, the central bank is not obligated to issue any updates.

A number of crypto businesses have reportedly approached the RBI seeking clarity on the status of the banking ban and the taxation of cryptocurrency. The cryptocurrency exchanges also want clarity as to whether they are being categorized as commodity, currency, goods or service as this is set to impact the way they get taxed under goods and services tax (GST) framework, the Economic Times reported Monday.

If the digital assets are not exempted from GST, the digital currency exchanges in India are going to have a standoff with the tax authority, Praveenkumar Vijayakumar, CEO of cryptocurrency exchange Belfrics Global, was quoted by the news outlet as saying. He elaborated:

In the wake of the recent supreme court ruling, we have also approached the RBI for clarity on this, as if we pay GST on the whole transaction, then most platforms would not be able to survive.

Several Indian tax authorities have been examining how to tax bitcoin and other cryptocurrencies. The indirect tax department has been investigating whether cryptocurrency could be brought under GST and how much to tax crypto exchanges. The sales tax department and VAT authorities are also looking into cryptocurrency taxation.

What do you think about how fast the Indian crypto sector is growing? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Coinswitch, Bitpolo

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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New Cryptocurrency Exchanges Launch in India as Businesses ...

Would you accept cryptocurrency as a reward for watching ads? How about if you had to prove you had watched said ads by having your brain waves analyzed? It might sound a bit crazy, but its an idea Microsoft lays out in a new patent application titled Cryptocurrency System Using Body Activity Data.

Filed in September 2018, but only recently published by the United States Patent and Trademark Office (USPTO) and highlighted by PC Magazine, the application describes a method of how brain wave or body heat emitted from the user when the user performs the task provided by an information service provider, such as viewing an advertisement or using certain internet services, can be used in the mining process.

As is described by the patent application, instead of the massive computation work that is required by conventional cryptocurrency systems, Microsofts hypothesis is that data generated based on the body activity of users can help solve the computationally difficult problem unconsciously. Other than brain waves and body heat, the system could also potentially monitor body fluid flow and organ activity and movement.

All of this would, of course, require biometric reading of users, potentially via attached sensors. As a reward for wearing these, however, the system would then pay out cryptocurrency for completing certain tasks. As the application notes: The cryptocurrency system communicatively coupled to the device of the user may verify if the body activity data satisfies one or more conditions set by the cryptocurrency system, and award cryptocurrency to the user whose body activity data is verified.

In addition to watching ads for a set amount of time, the patent application also notes how it could track tasks such as social media, using search engines, sending and receiving email, visiting websites, or using chatbots.

Overall, it leaves a whole lot more questions open than it poses answers. Which cryptocurrency? Would the mining of these currencies be the main benefit for Microsoft or would it be the ability to prompt users to use certain services? And, most crucially of all, will this ever transition from a proof-of-concept to a fully fledged product? As with many patents, theres a good chance that this is a defensive patent that will never actually be turned into a user-facing product. Nonetheless, its another reminder that tech giants are always looking for new ways to keep eyes (and brain waves, organ activity, etc.) on their products.

Excerpt from:

Mining Cryptocurrency By Reading Users' Brain Waves ...

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$ 0.4024

$ 145.22 million

$ 0.1871

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$ 0.0883

$ 142.24 million

$ 0.00317

$ 140.27 million

$ 0.2302

$ 138.50 million

$ 1.03

$ 137.35 million

$ 0.9994

$ 136.09 million

$ 0.000757

$ 134.49 million

$ 0.01477

$ 133.11 million

$ 0.00637

$ 128.63 million

$ 0.8282

$ 127.35 million

$ 1.98

$ 125.96 million

$ 4,067.92

$ 121.82 million

$ 0.1836

$ 118.61 million

$ 0.1275

$ 111.49 million

$ 0.0538

$ 108.26 million

$ 0.2498

$ 105.24 million

$ 0.02639

$ 102.40 million

$ 1.27

$ 101.70 million

$ 0.00608

$ 99.08 million

$ 0.2838

$ 98.75 million

$ 1,998.30

$ 96.82 million

$ 0.0966

$ 92.02 million

$ 0.0484

$ 89.59 million

$ 0.1024

$ 88.53 million

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$ 5.32

$ 83.98 million

$ 33.57

$ 83.32 million

$ 0.000392

$ 83.13 million

$ 0.02209

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$ 80.72 million

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Coinranking: Cryptocurrency Prices Live - Rates List Today ...

An Indian government official has claimed that two ministries and the Reserve Bank of India are actively working on a legal framework to ban cryptocurrencies on the subcontinent.

According to an Aug. 4 report from Indian news website Moneycontrol, authorities in India are making preparations to pass a law banning cryptocurrency trading. The site quoted an anonymous official as saying that consultations between the Ministry of Electronics and Information Technology, the Ministry of Law and Justice, and the Reserve Bank of Indiahad begun regarding the framework of such a law.

Once Parliament resumes for the session, we are hoping to get [the law] ratified,the official said. Parliament is expected to reconvene in late August or early September.

The official stated that the government was considering banning crypto through legislative change rather than methods such as the blanket ban from the RBI for banks dealing with crypto firms because it would be more binding. It will clearly define the illegality of the trade, the person said.

In March, the Supreme Court of India struck down a blanket ban on banks dealing with crypto businesses thathad been imposed by the RBI since July 2018. The repeal led to a boom in new exchanges across the country.

However, government officials have been floating the idea of enacting a new law not allowing cryptocurrencies in India in place of the RBI ban.

Ashish Singhal, founder and CEO of Indian cryptocurrency exchange CoinSwitch, said that the chances that the government would impose a blanket ban on digital currencies weremore likely in 2019 than this year. He said there has been a change in the way crypto is perceived across India, hopefully for the better.

Though many parts of India still face some restrictions on movement due to the pandemic since a lockdown was ordered in March, crypto exchanges in the country reported strong growth as some investors moved away from traditional assets.

Cointelegraph reported in May that India-based exchange CoinDCX had ten times the average number of users sign up in the week after the RBI ban was lifted as well as47% growth for Q1 2020. Trading platform WazirX also recorded a month-on-month growth of over 80% in both March and April. Additionally, United States-based crypto exchange Coinbase entered the Indian market, offering crypto-to-crypto conversions and trading services from April onward.

Moneycontrol said that millions of dollars worth of business in cryptocurrency is being done every week, with the lockdown pushing up the volumes.

A growing number of investors have found refuge in virtual currencies as traditional assets have taken a beating over worries about the health of the economy battered by the coronavirus outbreak.

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Indian Government Actively Working Toward New Crypto Ban - Cointelegraph

Diginex has launched a cryptocurrency exchange in Singapore, where it currently operates under a "temporary exemption" from licensing. The move comes ahead of its planned listing on Nasdaq, expected to take place this quarter.

Its Singapore exchange, EQUOS.io, would specialise in crypto derivatives trading and initially offer spot trading, with dated futures, options, and other derivative products to follow. The blockchain technology company added in a statement Thursday that the exchange was operating under an exemption in Singapore's Payment Services Act, and would be a "fair and transparent platform" for users.

It also would introduce an "easy to use" interface for retail investors as well as managed account features designed to improve collateralisation processes, amongst others.

Diginex CEO Richard Byworth said: "Our industry analysis has allowed us to understand the friction points for institutions to trade digital assets and address many of those with new and improved solutions around portfolio management."

The launch comes ahead of the company's planned merger with 8i Enterprises Acquisition, which is expected to be finalised in the third quarter and will see Diginex's listing on Nasdaq.

In its statement, the blockchain tech company added that it had applied for a Major Payment Institution licence in Singapore, where it currently operates under the temporary exemption.

The Monetary Authority of Singapore (MAS) earlier this year published a list of entities that had been exempted from holding a licence under the Payment Services Act, for specific payment services, and a period of either six or 12 months. This exemption would end after the specified period or if the entity applied for a licence.

While based in Hong Kong, Diginex chose to launch its cryptocurrency exchange in Singapore because of the latter's regulatory regime, Byworth said in a Reuters report. He described Singapore as "more flexible" in its views about cryptocurrency.

In January, the country's Senior Minister Tharman Shanmugaratnam said in parliament that the government believed crypto derivative products were not suitable for most retail investors because they did not have intrinsic value and were subject to volatile pricing due to speculation. He said this prompted MAS to regulate crypto derivative products that were listed and traded only on approved exchanges, which were subject to regulatory requirements and oversight.

Tharman noted: "But we do not extend the regulation of crypto derivative products beyond approved exchanges. This would confer misplaced confidence in these highly volatile products and lead to a wider offering of such products to retail investors. Our approach has worked so far as trading in crypto products in Singapore remains limited and only a small number of retail investors are involved."

He said MAS had instructed all financial institutions to comply with additional measures if they offered crypto products to retail investors, such as restrictions on advertisement. The minister had stressed that such measures did not apply to entities not regulated by MAS.

Singapore last November said it was exploring plans to allow payment token derivatives, such as Bitcoin and Ether, to be traded on local exchanges and for such activities to be regulated. The move aimed to address international investor interest in cryptocurrencies.

MAS in 2018warned eight cryptocurrency exchangesagainst engaging in unauthorised trading, specifically, those involving securities or futures contracts. It also had repeatedlycautioned the publicabout the risks of cryptocurrencies and to understand the environment before investing in digital tokens, stressing that these were not recognised as legal tender and functioned in an unregulated environment.

Japan's messaging platform Line in July 2018 launched its cryptocurrency exchange, Bitbox, in Singapore, offering 30 cryptocurrencies including Bitcoin, Ethereum, and Litecoin.

See more here:

Diginex launches Singapore cryptocurrency exchange | ZDNet

As bitcoin passes ,000 for the first time in months, the conversation around crypto is heating up again. The biggest crypto haters are now getting in on the action, most famously JPMorgan CEO Jamie Dimon. Ether, the Pepsi to bitcoins Coca-Cola, came into its own as a separate, distinct and viable long term investment. Many investors are beginning to view cryptocurrency as more than a short term speculation play or a portfolio hedge. There is evidence that the major cryptocurrencies are being used as a play against the falling U.S. dollar. News of Bitcoins new highs came at around the same time as headlines of dollar debasement

During the first mania in December 2017, bitcoin peaked at almost $20,000. Total market capitalization tripled from approximately $250 billion to $750 billion and barged into the mainstream public consciousness. Unfortunately for some traders, the market sold off just as quickly as it had pumped itself up.

The total market cap for the crypto market

Why Crypto is Here to Stay This Time

Professional analysts dont believe that crypto will give back its gains so quickly this time. I tend to agree. The major difference between 2017 and 2020 is cryptos ease of access. When I first bought crypto circa 2015, it was a real David Hasselhoff. The exchange I used, Coinbase, was clunky, slow and illiquid. I was so frustrated with my experience there that I immediately moved my crypto into a private wallet and didnt buy again for a time.

Moving my coins into an off exchange wallet was an experience as well. I remember downloading the entire blockchain to my computer because there were few trustworthy light wallets, and even less information actually explaining what that meant. I bought a separate computer just for my bitcoin. I tried my best to learn hashes and forks. I remember thinking I was a financial genius for being able to capture and claim my Bitcoin Cash. It was a challenge for me!

Today, Coinbase is a much better experience than I remember, and so are many other exchanges. I now have three wallets that are not only easy to use, but are actually fun to use. Fees have been reduced. Trading coins against each other is more like a video game. It is easy to switch coins. You can move in real time, fast enough to catch short term moves. I can basically trade my crypto just like I trade my securities.

Whats more, the establishment has bought in. The Chicago Mercantile Exchange (CME) now offers futures contracts on bitcoin. Banks fought for and received the right to hold crypto quite recently. Pop singer Akon is building an entire city in Senegal based around his own coin, the Akoin. Megacompanies like Facebook and countries like Russia are now trying to create crypto rather than kill it. Regardless of which coins pass the test of time, digital currency has legs. It is here to stay. All the market has to do is attract people in.

Story continues

When it comes to easy access in the crypto market, few platforms give you an easier time than eToro. eToro deals in contracts for differences (CFDs) that serve as proxies for top cryptocurrencies. Whats the difference? When you buy or sell a CFD, you actually never own the crypto. But since the price of the contract is tagged to the price of the coin, you do benefit from good trades and suffer losses for bad ones.

CFDs Versus Crypto

So what are the benefits of trading CFDs rather than real crypto?

First, you are trading on a highly liquid platform with easy entries and exits. Many crypto exchanges suffer from illiquidity and volatile price shifts. You also gain the safety of trading within the auspices of a regulated broker. eToro is regulated through many well known financial authorities including the Cyprus Securities and Exchange Commission (CySEC), the UKs Financial Conduct Authority and holds as Australian Financial Services License.

Second, you dont have to worry about actually buying crypto, which can still be a hassle. Governments are doing their best to regulate crypto, and they are clamping down on the exchanges the onboard ramps. As a result, you have to go through a bureaucracy of sorts to legitimately enter the market. You lose your anonymity, which was the first major advantage of using crypto in the first place.

Third, you can easily trade crypto using leverage. Your limit on eToro is 2X when you trade cryptocurrencies.

Getting in on the Game

As it was in 2017, bitcoin is the number one performing asset class in 2020. This time, society may actually be ready to embrace it. If you are looking for a quick way to get in the market without learning all of the nuances of crypto, eToro CFDs can help.

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2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Is Cryptocurrency Here to Stay This Time? - Yahoo Finance