Cryptocurrency

Cryptocurrencies (short: crypto) are digital - virtual currencies based on cryptography and blockchain technology.

They are issued in digital form, therefore they can be used for trading, investing in companies and their products, as a method of payment or a form of savings.

The term "crypto" comes from the word "cryptography” or “encryption” (cryptography or encryption usually refers to a mathematical approach for information protection).

The main feature of cryptocurrencies is that they are decentralized. They don’t depend on centralized authorities such as states or banks.

The security and transparency of cryptocurrencies are guaranteed by a decentralized computer network around the world. With the help of blockchain technology, a decentralized computer network prevents the possibility of counterfeiting and manipulation.

For a better understanding of how cryptocurrencies work, you should first become familiar with the concepts of digital currencies, blockchain technology, and cryptography.

Cryptocurrencies are digital currencies that have their own record-keeping system through the online ledger, which is stored on the blockchain.

Cryptocurrencies are transferred from one digital wallet to another. Once you complete a transaction with another person, it is encrypted and broadcast in the network of the very cryptocurrency you are sending. 

After that, the record of that transaction will be added to the public ledger i.e. the blockchain. The process of adding a new transaction to the ledger is also known as mining.

Blockchain is like a "public ledger" that contains records of all transactions and all cryptocurrency changes. The transaction amounts are public, but information about the transaction sender is encrypted. 

Several factors determine the popularity of cryptocurrencies. This is why the list of most popular cryptocurrencies often changes.

One of the most important factor that determines the popularity of the cryptocurrency is the total market value of the circulating supply.

For example, the total market capitalization for Bitcoin is currently over $ 687 billion, making it the most popular and largest cryptocurrency. The total number of transactions made with a single cryptocurrency also determines its popularity.

Also, media exposure and trending on social media can contribute to the popularity of a particular cryptocurrency. The best example of this is Dogecoin.

The most popular cryptocurrencies besides Bitcoin and Dogecoin at the moment are Ethereum, Ripple, Tether, Cardano, Chainlink, Uniswap, Polkadot, Binance Coin, etc.

At the moment, there are more than 5,000 cryptocurrencies available for trading. Depending on their market capitalization and circulation among users, some cryptocurrencies have a higher value than others.

A new cryptocurrency with a new blockchain-based technology appears on a daily basis.

Crypto mining refers to a process by which new cryptocurrencies enter into circulation. Also, it is an important process for maintaining and developing a blockchain network. Bitcoin is the most popular when it comes to cryptocurrency mining.

It’s important to remember that not every cryptocurrency can be mined.

The Crypto mining process is similar to solving a cryptographic puzzle with a computer. A computer that solves a cryptographic puzzle (known as hash) first, receives a reward in the form of a cryptocurrency. 

Besides solving the cryptographic puzzle, the computer/user must add a new block of transactions into the existing public ledger known as blockchain (of a particular cryptocurrency).

This is the easiest way to explain the process of crypto mining. In reality, solving a cryptographic puzzle is much more complex.

Crypto miners are generating multiple numbers until they guess the correct solution of the next block. 

If we use Bitcoin mining as an example, the first miner to find a solution gets a reward that is currently set at 6.25 BTC plus all transaction fees (paid by users so their transactions can be incorporated into the blockchain). 

Given the exponential increase in the number of miners, individual mining devices or even device farms are not powerful enough to find a solution that unlocks the next Bitcoin block.

Solving cryptographic puzzles requires a lot of computing power and a lot of time.

Cryptocurrency mining is the process in which specialized devices try to solve cryptographic puzzles to obtain a little bit of cryptocurrency.

Mining can be done using specialized software on a personal computer, mobile phone, or a computing device that’s specialized for mining — ASIC (application-specific integrated circuit). The more powerful the hardware, the more profitable the mining operation.

There are many different ways of mining cryptocurrency, but the most popular ones are Proof-of-Work and Proof-of-Stake.

Bitcoin mining is based on the PoW (Proof-of-Work) protocol. Proof-of-Work is used for validating transactions and mining new tokens.

PoW mining is basically not profitable for most people because the cost of the mining hardware is extremely high, and it requires huge amounts of energy.

The second mining protocol is called PoS (Proof-of-Stake). It was created as an alternative for the Proof-of-Work protocol.

This concept requires the user to invest in the cryptocurrency in order to become a validator in the network. The user who validates the transaction will be rewarded with the extra amount of that cryptocurrency.

If you want to buy a cryptocurrency with cash in the Bitcoin Store exchange office, you need to prepare:

*Note - All transactions larger than HRK 15000.00 require identity confirmation in the exchange office (via ID card).

If you want to sell cryptocurrencies for cash in the Bitcoin Store exchange office, you need to prepare:

The cash will be paid out upon successful receipt of the cryptocurrency.

With the referral program, you can earn 20% of the Bitcoin Store fees for all transactions of every user that registered through your referral link.

How does the Bitcoin Store referral program work?

Every registered Bitcoin Store user has access to its unique referral link.

For each user who comes to our website via your referral link and successfully completes a transaction, you will earn 20% of the Bitcoin Store fees for that transaction.

For each user who comes to our website via your referral link and creates an account, you will earn 20% of the Bitcoin Store fees for that transaction and all future transactions of that particular user in the next two years.

Your referral earnings will be added to your Bitcoin Store account within 24 hours of the successful transaction.

Participation in the program is free and the number of recommendations is unlimited.

Bitcoin Store reserves the right to change the rules of the referral program.

Yes. You can buy cryptocurrencies on the Bitcoin Store platform via the company. To do that you need to register on the Bitcoin Store platform as a Business account.

You can start trading cryptocurrencies as a company only after the account was verified by a person authorized to represent the company.

Bitcoin Store Merchant is a service that enables companies, service providers and other legal entities to receive payments in cryptocurrencies such as Bitcoin or Ethereum.

Bitcoin Store Merchant is simple to use. It does not require special devices or advanced cryptocurrency knowledge.

In order to start accepting crypto with your business please contact us at info@bitcoin-store.hr or call us at +385 21 209 851.

The best way to protect yourself from scams is through constant education and due diligence.

The most common scams nowadays include unknown people who present themselves as “brokers”. They persuade other people to invest in cryptocurrencies by offering them a quick return of investment.

In reality, fake brokers want to get access to your personal information and money for their own benefit. 

Also, many investment-related websites, while looking legit at first, are actually phishing sites designed to steal your personal information and money.

If you are a beginner in cryptocurrency trading, the first thing you need to do is your own due diligence. Learning which platforms are secure and licensed to trade cryptocurrencies is mandatory.

Always follow updates and warnings issued by Financial regulatory agencies. 

*Note - Never share your personal information over the phone with people who might sound suspicious, or on suspicious websites. 

There is no unique policy in taxing cryptocurrency.

The rules for paying a tax on cryptocurrencies may be different for each country.

This depends on how the laws of each country define cryptocurrency, and what type of tax system is utilized in the particular country. Some countries have flexible regulations on cryptocurrency, while some treat it as a source of income you have to report.

Right now, most countries recognize cryptocurrencies as digital assets or property, which attracts capital gains. This is why you will probably have to pay some sort of income tax or tax on capital gains in the country where you reside.