Qtum is a platform designed to operate a smart contract created on the Bitcoin encoding and PoS algorithm. The overall concept of the platform allows the exploitation of contracts in free access, without creating a personal account.
In addition, every program based on a platform such as Ethereum can be seamlessly transferred to the Blockchain of any smart contract, project.
Many newcomers to the cryptocurrency world, faced with little-known currencies, including Qtum, wonder what is Qtum? It is worth noting that Qtum is a cryptocurrency from an Asian developer. To date, it is trying to solve two main problems:
The technical problem is quite complicated. In order to understand it, it is necessary to have a lot of knowledge and skills in working with blockchain technology. That's why let's go straight to the financial-economic problem. The main goal of Qtum is the process of integration of blockchain technology in a number of industries, including financial, social, gambling, online materials, and others. Because of this QTUM developers decided to create a flexible, easy-to-use network.
The main advantage of blockchain is the ability to use smart contracts, which are both off-chain and on-chain.
The creators of the trading floor managed to significantly expand the scripting languages from Bitcoin Core, which, in turn, made it possible to launch smart contracts that function based on UTXO protocols. By the way, in order to make an agreement between both interested parties, there is no need to have a personal registered account from now on. It is also worth noting that today all existing Ethereum systems can synchronize with Qtum with minimal edits in the encoding.
To conclude, a number of the following technical points should be highlighted:
- The project base is the generic Ethereum architecture, which operates using a Bitcoin protocol called UTXO;
- The presence of an effective system that provides complete security, which is called Blank Coins Proof Of Stake (version 3.0);
- The trading platform uses a number of the latest developments in Bitcoin, as well as all available extensions, which in one way or another relate to blockchain technology;
- The presence of fast synchronization with the programs from Ethereum, which, in turn, makes it possible to transfer already existing projects directly into QTUM;
- Providing the opportunity to make any monetary transaction directly from your smartphone, without specifying personal account data;
- By the end of the year the developers have promised to add a lot of other additions.
It is worth considering that the main role of algorithms with proof of ownership is the composition of classic Proof-of-Stake (PoS) protocols, which reliably protect blockchains from possible hacker attacks, as well as rewarding all users who have digital coins.
What is Cryptocurrency and how to use it?
QTUM and other cryptocurrencies have many tangible advantages over traditional finance. To use them effectively and safely, you need to understand the features of decentralized technology.
What is cryptocurrency?
Cryptocurrency should be understood as a digital version of money that functions on the basis of cryptographic technology. That is, it is a currency that has no physical counterpart and is a code that no one can change.
All information concerning cryptographic digital money is recorded in a blockchain, a decentralized database. It consists of a sequence of information blocks, each containing information about a series of successful transactions. At its core, blockchain is a large and ultra-secure ledger of transactions and arrangements. It cannot be hacked or the data already entered cannot be changed.
For example, if a user purchases 5 coins, the blockchain will include a record of the change in ownership of those coins. The information entered will remain in the blockchain forever. After selling 5 coins to another user, a record of the successful transaction is created again.
The cryptocurrency itself is mined through complex calculations. Such a process is called mining.
Users who provide their technical resources to carry out the necessary computational processes are miners.
Cryptocurrency is an asset that exists only on the Internet, and it can be attempted to be taken by hackers. But it is possible to do this only if there is access to special codes kept by the owner of the coins. We are talking about public (open) and private (closed) keys. So anyone who owns bitcoins and other digital currencies has to protect their assets properly.
There are already solutions on the market that provide secure storage of codes that are used for cryptocurrency transactions.
There are 2 groups of cryptocurrency wallets most in demand:
- Hardware. These are special devices, which are loaded with private keys - a secret combination of characters required to confirm transfers with digital money.
- Programmatic. This is a special application that is installed on a PC or smartphone/tablet. Such wallets may have additional useful functions.
Hacking the blockchain itself in order to steal funds is not possible. The reason is that it is public and decentralized. This is easily explained using bitcoin as an example. To make changes to the records already created, you need to gain control of at least 51% of the computing power that powers the network.
It should be understood that all of the miners' PCs are scattered across different countries. And their total number is 1+ million. That is, hackers will need to find and hack more than 500,000 computers. But even in this case, they will not get full control over the operations with cryptocurrency.
Therefore, users should not worry about the reliability of the network itself. We need to focus more on finding reliable wallets to work with the digital currency.
Types of cryptocurrencies
Cryptocurrencies can perform different functions and not all of them are suitable for investing. Here are the main types of digital assets by mode of use:
- Payment systems in the form of cryptocurrencies. Such currency is used for mutual settlements and can also act as an object of investment. These coins are decentralized, anonymous and easy to use. The most obvious examples are Bitcoin, Ethereum and others.
- Internal tokens of cryptocurrency projects. This is the name of the digital financial instruments needed to develop smart contracts and their subsequent execution. A smart contract is a program that automates the execution of various transactions in full compliance with established agreements. They are good because they provide a high level of reliability of transactions without intermediaries. All users have to do is define the terms of the transaction.
- Internal tokens of trading platforms. These are digital coins created by cryptocurrency exchanges to pay for transactions and various services within their platforms. One example is BNB, which is a token of the Binance exchange. The same coin is used in the Binance Smart Chain blockchain.
- Digital National Currency (CBDC). It is a cryptocurrency, which is an analogue of the financial system of a separate state. An example is the digital yuan (DCEP). The task of such currencies comes down to ensuring the control of the authorities over the financial flows in the country. Central banks' digital currency is as fast and convenient as conventional cryptocurrencies, but it is centrally managed and does not provide anonymity.
In addition to the way they are used, cryptocurrencies can also be divided by how they are created. For example:
- Coins (regular cryptocurrencies). These are digital currencies that can be mined. They are created based on a separate blockchain. They can be used to pay for various goods and services. Examples are Litecoin, Zcash, Ethereum.
- Tokens. Not mined by mining, but issued immediately with a full issue. These are digital assets with which a user gets a share in a project or access to its services. They are also used to pay for services within sites. Examples are BNB, BUSD, Dai, Uniswap.
- Forks. Coins that were created as a result of an offshoot of the main blockchain. Forks can also be created by changing the code of a selected cryptocurrency. Example - Bitcoin Cash, Bitcoin Gold.
A fork is essentially a type of coin, as it too can be mined and has its own blockchain.
Technology is constantly evolving and the list of new cryptocurrencies is growing. Successful projects are those that competently close one or more of the needs of modern users.
How to use cryptocurrency?
The uses of digital currencies can be different:
- Payments within an individual project;
- Payment of transactions on a cryptocurrency exchange;
- Conservation of capital;
- Gaining profit from the growth of value;
- Paying for services or goods;
- Active trading as a way to earn money.
To make transactions to external accounts and receive funds from other users, you will need to select a special wallet.
Also, to work with some coins you need to download their blockchain to your PC. But this condition is not always necessary.
If small amounts are transferred, you can work with web wallets. In this case, everything will happen online, without installing software on the computer. When you have to transfer or receive tangible amounts of money, it is better to choose among hardware and desktop wallets.
To send digital currency, you just need to follow a simple sequence of actions:
- Obtain a public key (address) from the user who accepts the payment.
- Enter the received address in the wallet interface.
- Confirm the transfer.
To receive the cryptocurrency, it is enough to transfer your public key to the sender.
Every transaction in the blockchain must be signed by the user sending the funds. A private key, which is stored in the wallet, is used for this purpose.
It is possible to earn profits on changes in the value of virtual assets. To do this, you need to have an understanding of the behavior of the "market crowd" and the ability to analyze fundamental news. These are the basic skills of a trader.
Negative news has a tangible impact on digital money quotes. For example, if a politician or the head of a large company makes a bad comment about a particular blockchain project, the value of the cryptocurrency based on it will drop noticeably. Not everyone will be able to calmly withstand such a drawdown.
Crypto trading is only worth pursuing if you are willing to be thoroughly immersed in streams of information. Because you will have to keep track of the news on a daily basis. Plus, events need to be analyzed competently - wrong conclusions lead to heavy losses.
To understand the characteristics of the formation of the value of assets, you need to take the market history of popular coins and carefully study the periods of their strong ups and downs. With a competent analysis you can identify the causes of dramatic changes in quotations.
How to invest in Qtum in New Zealand?
Buy Qtum through a cryptocurrency wallet.
You can buy Qtum in New Zealand on many exchanges. To buy, you will need to open a cryptocurrency wallet on the exchange of your choice. To store QTUM cryptocurrency, official wallet versions have been developed:
- Qtum Core and Qtum Electrum - desktop versions;
- Qtum Core - mobile version;
- Ignition Mainnet - online wallet.
You can also choose other crypto wallets.
Buy Qtum via CFD contract.
You can also invest in Qtum via cfd contract. You can do this through a brokerage trading platform, registration on which takes no more than five minutes.
Cryptocurrency CFDs are contracts for the difference in prices of digital assets. You can earn without owning, buying or selling the cryptocurrency itself.
Those who have already tried to work on financial markets know CFD for traditional assets - shares, currencies, raw materials. Their main advantage is that due to leverage, professional traders can earn even with small amounts.
Crypto-CFDs reinforce these advantages because the price movements in cryptocurrencies are more significant. And it is the price movements that generate profits in CFDs. Greater volatility provides traders with greater earning opportunities.