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Total Supply, Market Capitalization, Public key

Published by Terlumun Aondover on February 13th, 2025.

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Understanding the Basics of Crypto: A Guide to Cryptocurrency, Supply, Price, and Public Key

The world of cryptocurrency has exploded in recent years, with a growing number of investors and users alike flocking to the space. But amidst all the excitement, it’s essential to understand the fundamentals of this complex market. In this article, we’ll delve into the basics of crypto, including total supply, market capitalization, public key, and more.

What is Crypto?

Cryptocurrency is a digital or virtual currency that uses cryptography for secure financial transactions. It’s decentralized, meaning it’s not controlled by any government or institution. Instead, transactions are recorded on a public ledger called a blockchain. The most well-known cryptocurrency is Bitcoin (BTC), but other popular coins include Ethereum (ETH) and Litecoin (LTC).

Total Supply

The total supply of a cryptocurrency refers to the maximum number of units that can be created. This can vary depending on the underlying protocol or algorithm, such as Bitcoin’s original 21 million supply. For example:

Bitcoin: 21 million

Ethereum: 120 billion (with a theoretical limit of 1 trillion)

Litecoin: 84 million

Market Capitalization

Market capitalization is the total value of a cryptocurrency’s outstanding shares. It represents how much money investors are willing to invest in that particular coin. The market capitalization of Bitcoin, for instance, has fluctuated significantly over time.

| Date | Market Capitalization (in USD) |

| — | — |

| March 2017 | 7,000 – 8,000 |

| June 2020 | $2.5 trillion |

Public Key

A public key is a unique identifier for a cryptocurrency that can be used to verify transactions on the blockchain network. It’s essentially a digital fingerprint of an individual’s account or wallet.

Public Key (PK) is usually represented as a pair, consisting of a private key and public key.

Private key: Only the holder has access to this private key, which allows them to transfer funds.

Public key: Anyone can verify transactions on the blockchain network using their public key.

How it Works

Here’s an example to illustrate how crypto works:

Alice creates a new cryptocurrency called “Bitcoin” and shares her wallet address with Bob.

When Bob wants to send Bitcoin to Charlie, he uses his private key (Alice’s public key) to create a transaction on the blockchain network.

The transaction is broadcast to the network, where it’s verified by nodes using complex algorithms.

Once verified, the transaction is added to the blockchain and confirmed as valid.

Charlie receives Bitcoin from Alice and can use it to purchase goods or services.

Conclusion

Total Supply, Market Capitalization, Public key

Understanding the basics of crypto is essential for anyone interested in this space. By grasping concepts like total supply, market capitalization, and public key, you’ll be better equipped to navigate the complex world of cryptocurrency trading. Remember, investing in crypto carries risks, so always do your research and consult with a financial advisor before making any investment decisions.

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