Bitcoin is not the sole currency in circulation, contrary to popular opinion – many currencies are on the rise. Bytecoin is among them, and is particularly impressive on the privacy front – it gives users opportunities to use anonymous and impassive transactions.
What is Bytecoin?
This is a cryptocurrency, but is interesting because it is unrelated to Bitcoin or its forks, instead developing independently using CryptoNote technology. Founded in 2012, the aim of this currency is giving people better anonymity than transactions that use fiat currency such as credit cards. This is because fiat currency can still be useful in tracking user identities with sufficient analysis.
Why is Bytecoin different?
The blockchain technology of Bitcoin acts as a basis of improving Bytecoin. This is through examining the manner that Bitcoin blockchains store public addresses and transactions of the users. Here is an issue that make Bytecoin stand out, especially from Bitcoin.
To enhance user privacy, Bytecoin uses CryptoNote, a ring signature algorithm. This analyses transactions and the blockchain cannot deduce individuals since many people use the same blockchain.
Alternative coins to use
Bytecoin has the potential for increasing popularity with time. However, other coins provide viable alternatives, and we have put a list of some of them.
Lisk – founded in 2016, it aims to simplify development of blockchain technology, therefore allowing for faster transactions.
Bitcoin/XBT – the most famous cryptocurrency, from 2009. It is similar to Bytecoin because of blockchain application system.
Ripple/XRP – based on open-source internet protocol currency, and formed in 2012.
Cardano – thought to be an open-source digital currency, and constantly evolves itself from research and scientific philosophies.
Ethereum/ETH – this is a 2015 decentralized software platform allowing smart contracts to operate without interference from third parties.
NEM – this is another blockchain currency from 2015, and utilizes Java script in its coding.
How Bytecoin works
The algorithm for the Bytecoin is less efficient than the Bitcoin mining system – this is because it uses the x86-microprocessor AES command system and is memory-intensive.
The market cap of Bytecoin is $184.47 billion, and results in the value increase of BCN tokens with time. The emission of BCN tokens is open – that means it uses computing power from all members of the networks, and this is similar to the mining process. You can actually mine BCNtokens at various pools, including Eobot and MinerGate.
Every member of the network (miners) makes sure that all transactions are correct – transactions happen after every 120 seconds. The miners will in addition, give cryptographic attention that relates to transactions and personal data. This does not mean our privacy is non-existent however; miners do not have access to user financial data. Bytecoin makes sure to hide all-important information regarding the participants in the transaction, as well as the amounts transferred.
Trading in Bytecoin currency
Similar to other foreign exchange investments, Bytecoin investments work in the same way – market forces of demand and supply dictate the prices.
Just like various cryptocurrencies, you will require digital wallets for you to transact Bytecoin tokens. The only drawback with Bytecoin wallets is that it only accepts to store BCN tokens, as opposed to other wallets that allow you to store and transact in various currencies.
How do you trade BCN tokens however? Here is a summary of what happens.
Installing a Bytecoin official wallet.
Getting the address of the recipient, which you enter into the Bytecoin wallet
After you ensure you have the necessary funds, enter the amount you have agreed on with the recipient and send the coins.
It will take some time for a miner to verify the transaction, but once you do this, the funds that the recipient can use are unlocked.
Making money with Bytecoin
Investing in Bytecoin
Bytecoin is still newer than other cryptocurrencies, so investing in it is the best way to make money with it. Exchanges are useful when you want to acquire BCN tokens, and if their value increases, your investment value will increase.
Transacting with BCN
Accepting BCN as payment along with other fiat and cryptocurrencies allows your users to pay using the most favourable method. You can then change the Bytecoin assets into fiat currency through online exchanges.
Bytecoin prices and trading history
Bytecoin is similar to other cryptocurrencies in price volatility, particularly benefitting from CPU mining that makes it difficult to trace the participants of Bytecoin transactions. The price has not ventured above the $1 mark, with its current value being $0.0037. This value however, is set to increase especially with increasingly limited supply of the tokens.
Is it worth trading in the coin?
This question is complicated, since even experts generally see investing in cryptocurrency as a risky venture with low returns. The reasons given usually cite the highly fickle nature, and the unpredictable rises and falls in value.
The success of investment will depend on the uptake by individuals and businesses. The currency offers you security in transactions as well as dividends to businesses, payable in fiat currency – this means it is liquid. Only you can access your investments, and as long as you are a large investor, you have more options.
The rise of Bytecoin promises to make a difference in the financial world by giving users greater security and anonymity. Achieving this through the CryptoNight ecosystem, it will possibly become one of the top cryptocurrencies in the future.