And I mean LITERALLY explain like I’m 5, I literally know nothing of the technical terms and such
In: Economics
There are 2 ways:
Mining – You run a program on a computer that runs a bunch of calculations. If you are lucky the result your computer comes up with “wins” and you are rewarded with crypto currency.*
Reselling – Instead of mining, you buy crypto at a price. Say you spend $10 to buy one “coin”. Then you look around for other people wanting to buy that coin and try to sell it to them for more than $10. Most of this is done using marketplaces similar to how the stock market works.
*Many crypto currencies are trying to move away from this type of setup since it consumes MASSIVE amounts of electricity performing what are essentially busy work calculations with no value. The calculations don’t really mean anything and the results are useless after being checked to see if they “win”.
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