Crypto Academy



6 min reading

Discover more about the technology that all cryptos are based on!


What’s cryptography?

With the growth and development of the cryptocurrency industry, more and more people are interested in the crypto market. In order to become an advanced crypto trader, special knowledge is needed. First of all, it is important to know how cryptocurrency is created and the main principles of its functioning. When it comes to privacy, Internet security, and data encryption, the term “cryptography” is often used. As any of the cryptocurrencies are based on cryptographic technologies, you need to know what it is. In the article, we explain what is cryptographic science and how it applies to the cryptocurrency market.  

What is cryptography?

Begin with the meaning of cryptography. Cryptography is the science of mathematical methods of providing confidentiality and authenticity of the information. The subject of cryptography is information, methods of encryption, and secure transmission of messages. Moreover, cryptography develops and studies the algorithms used to encrypt and decrypt messages in an insecure digital environment. The science also examines the identification, authentication (verification), and integrity of data. It also studies the use of cryptographic methods in the context of a cryptosystem. Cryptographic science has developed as there was a need to transmit important information in the most reliable way. Then, the written form of the document was modified so only the initiated person could understand the content. Thus, cryptography provides the security of the content by encryption. It is done by special cryptographic algorithms used by the sender and recipient.

According to the scientists, important messages and military orders were encrypted using cryptography both in the Roman Empire and in the Middle Ages. Julius Caesar used a very simple form of cryptography for his messages, known as the shift code. Each letter in his text was replaced by the third following in the alphabet. Thus, instead of A, they wrote D. The recipient had to know the cipher code to read the words. During World War II, special devices were used to encrypt messages. Cryptography has become much more complex, so it took the military several years to figure the keys out and read messages from other countries.

Elliptic curve cryptography (ECC)

Elliptic curve cryptography (ECC) is widely used in the crypto eco-systems. It employs the mathematical properties of elliptic curves to generate public-key cryptographic systems. ECC is based on mathematical functions that are simple to compute in one direction, but very difficult to reverse like all public-key cryptography. In the case of ECC, this difficulty resides in the infeasibility of computing the discrete logarithm of a random elliptic curve element concerning a publicly known base point, or the “elliptic curve discrete logarithm problem” (ECDLP). Furthermore, the Elliptic Curve Digital Signature Algorithm (ECDSA) is a widely-used signing algorithm for public-key cryptography, employing ECC. However, the benefit of ECC is characterized by the fact that the speed of elliptic algorithms is much higher than that of classical algorithms. 

Hashing and Digital signatures

Moreover, the traditional principles of cryptography have a wide range of functions. The most important cryptography features are hashing and digital signatures. Hashing is a crypto method of converting large amounts of data into short pieces.

It is a key component of blockchain technology concerning the protection and integrity of data in the system and is used to:

    • verify and confirm users’ balances;
    • code wallet addresses;
    • code transactions between wallets;
    • mine blocks.

A digital signature confirms your identity on the network. Digital signatures represent mathematical functions that map to a specific wallet. By attaching a digital signature to the transaction, you prove to all network users that the transaction is yours. Digital signatures are used to get a wallet address and are secretly linked to the wallet’s public and private keys. Your public key is the equivalent of your bank account, while the private key is your PIN. It doesn’t matter who knows your bank account number. Having known your bank account number, users can deposit money into your account. But do not let anyone know your PIN. Since the digital age has led to an increase in the complexity of encryption, computers triggered a dramatic increase in computing power. Due to the increasing computing power of computers, cryptography has become much more complex.

However, cryptography can provide a better level of information security today. Wherever confidentiality is concerned, cryptography is important. If you log in to the site with your password, it is usually encrypted. Moreover, encryption is also used by various messengers. To prevent you from being overheard during a phone call, the phone may also be encrypted. Cryptography is also used in blockchain technology and the cryptocurrency market. 





5 min reading

Learn more about crypto-currency before going into real trading


What Is Crypto-currency?

The fundamental idea behind crypto-currencies is interesting and curious from the point of view of technology and data storage. This article is dedicated to the crypto-currency concept and explains how it works.

What is crypto-currency?

First of all, crypto-currency is a kind of digital currency, where data circulation and accounting are automatic in a decentralized system and is not administered by anyone. The basis of crypto-currency is a blockchain, a place where information is stored with the help of encryption and other cryptographic methods in order to ensure the validity of the work done in the blockchain network (transactions, calculations, etc.) or validate the ownership of crypto-assets (Proof-of-stake).

Features of Crypto-currency

Further, the main distinctive feature of crypto-currency includes the method of their creation or issuance. As you know, each crypto-currency is built on a blockchain system. Cryptocurrencies have no centralized authority and control institution. All operations and transactions that take place within the network are verified and validated by the participants of this network. In other words, the system is self-managed. Moreover, cryptographic blocks in the network are formed from operations that are stacked on top of each other.

 All blocks are connected in a continuous chain, thus new blocks carry cryptographically encrypted information about previous blocks. Important to know, this method provides high crypto-currency security and reliability against hacks since it is impossible to enter information into one block without modifying all subsequent blocks. In general, the formation of new blocks in crypto-currency is called issuance.

This operation is a continuous process of generating new blocks in the crypto-currency network. Thus, there is a difference from traditional currencies where the emission is made by printing and stamping new monetary units, but the emission of crypto-currencies is executed by the mining process.

Important to know, crypto-currency emission occurs in several forms:

    • one-time issuance of all crypto-currency coins, that prevents mining;
    • limited issuance, with the possibility of mining;
    • directly dependent on mining and unlimited issuance.

As you know, the most popular crypto-currency is bitcoin. A vast number of crypto-currency derivatives based on bitcoin source code. However, why are there so many crypto-currencies if they all function the same as bitcoin? A vast number of crypto-currencies took only the source code from the bitcoin project but then they were developed and improved for private goals and objectives. Thus, there are several generations of crypto-currencies that are aimed to improve such functions as the speed of transferring information, transaction speed, decrease commissions and fees, improving safety and privacy, etc. Besides bitcoin counterparts, there are many other crypto-currency projects, such as Ethereum that is second by capitalization position. Nowadays, Ethereum is an example of a crypto-asset with unlimited issuance.

Payment methods

Cryptocurrency transactions are based on unique payment methods. Since there is no administration in crypto-currency, it is impossible to reverse transactions as sometimes happens in banking systems. However, the uniqueness of protection provides the involvement of intermediaries, transactions in the crypto-currency network can not be carried out with the participation of only one party since you always need to involve several users-intermediaries to validate the transaction. Sometimes the participants of the network can block or freeze the funds until all parties come to a consensus. 

Also, all crypto-currencies are based on a pseudonymous transaction method. It means that every user of the network can see all the information about transaction data or account address, but the information about the owner is not available. Despite the facts above, everyone should take care of the security of their crypto wallet. Using reliable platforms, setting 2FA and antivirus will provide an appropriate security level.

However, the development of crypto-currencies is directed towards switching from the pseudonymous method to a completely anonymous one. All the information above proves that the fundamental idea of the crypto-currencies features is based on their generating method, autonomy, reliability, and anonymity. Perhaps, the concept of crypto-currencies will be improved with many new features added in the future.



Exchange Crypto

5 min reading

The article considers the issue of exchanging cryptocurrency. Keep reading if you are interested.

How to exchange crypto

How To Exchange Crypto

The crypto industry develops rapidly and cryptocurrency has all chances to become a means of global payment in the future. If you have bought some crypto, then it is time to exchange it for real money or buy other crypto-assets. In the article, we will consider the issue of exchanging cryptocurrency and how to exchange one crypto for another. 

Market nuances

First of all, keep in mind the fact that the cryptocurrency market is highly volatile and is not regulated by anyone. The asset rates may appear quite unpredictable. Thus, no one can guarantee that you will not lose your money as a result of a failed transaction. There is a wide range of places or services available, where you can exchange crypto coins for your fiat currency. It is only your choice, based on your feelings and recommendations. 

About crypto exchange platforms

The crypto exchange platform is the most popular way to exchange assets. The first cryptocurrency exchangers began to appear actively in 2014 when the crypto market began to grow rapidly and money turnover on it reached enormous proportions. An exchange service functions like a mediator that helps people make transactions with coins and guarantees security. You can pay by bank card or digital money. The exchange platforms work in the following way: having some amount of crypto-assets in your wallet, you can exchange it for other cryptos, using the special form on the site. Keep in mind that some exchange services can raise a commission or fees. It could depend both on the cryptocurrency and the platform. 

You should also take this fact into consideration before conducting transactions on each particular site. While withdrawing the cryptocurrency, its rates can change in the blink of an eye. In order to prevent losses, some exchange services provide their customers with the opportunity to fix the price of the asset for the short time. As a rule, such platforms may take the additional commission for the services. 

Cryptocurrency regulation

Moreover, if you decide to exchange crypto, then you should find information on how your government considers cryptocurrency and are there any taxes on crypto to pay. It is likely that some countries may take the taxes on the income (such as cryptocurrency). There are also such countries that are quite friendly to crypto-assets, like Singapore, Malta, Belarus, Japan, Switzerland, etc. In any case, you should take into account the fact of the legislative regulation of crypto.

Nevertheless, the crypto exchange platforms remain the most reliable and secure services, as you need to go through bank verification in order to make transactions. There are cases when you need to buy some exotic cryptocurrency that can be exchanged only for a particular crypto-asset, not for fiat money. Then, it is better to choose an exchange platform with a wide choice of stocks to buy. Also, before making a deal, check if a desirable crypto-asset is available on the platform and what are the ways of withdrawing money.  Finally, check the information about taxes and fees in your country for cryptocurrency transactions and feedback concerning the exchange platform you want to use.



Sell Crypto

6 min reading

Want to catch the moment and gain profit? Read here how to sell your crypto!

Sell crypto

How To Sell Crypto

The cryptocurrency market may confuse you if you are not familiar with its main principles of functioning. Every trader and investor should know basic rules in order to stay afloat on the cryptocurrency market and not trade in the red. These main factors are when to buy, when to sell or how to catch the best moment, how to trade and invest, and how to analyze the crypto market. The article will consider the issue of selling crypto and how to make a profit from it. 

Market nuances

First of all, you should select the most suitable strategy, understating your needs, goals, and how much you are ready to spend and invest. Also, you should remember that the cryptocurrency market is extremely volatile and crypto rates are unpredictable. Thus, do not invest more than you are ready to lose while practicing.

As the cryptocurrency market is quite a new phenomenon, the rules of it are still not clear for most people. But following recommendations, you can settle there for a short time and not lose your investments. 

How to sell crypto?

You have bought some crypto for favorable rates and now want to sell it? Crypto-assets should be sold at the pick of their rates. But predicting and waiting for the right moment seems not to be easy. If you buy cryptocurrencies at the right moment, you can make a serious gain on your investment. It is not an easy deal, as many factors can affect the price. For instance, some economic or political news could have a significant impact on cryptocurrency rates, it could rise or fall in the blink of an eye. 

But don’t worry, there are plenty of instruments that allow you to make predictions and conclusions about price rates. Technical and fundamental analysis are your new helpers in profitable selling cryptos.

Technical analysis

Speaking about the technical approach of analysis, important to note, that this method requires special skills and knowledge. Technical analysis presupposes monitoring of charts, graphs, indicators. Thus, one of the types of its approach includes evaluating minimums and maximums indicators, which shows you the general tendency of price movement and how the crypto is going to change. 

How does it work?

The direction of the trend movement is determined by the slope of the lines. If they are directed upwards, then the trend is called upward. It means that cryptocurrency trading is conducted with a predominance of purchases. For a downtrend, the opposite is true. A flat trend is a movement in which the resistance or support lines are horizontal and there is an approximate equality of the volumes of sales and purchases. There are heated discussions about the usefulness of indicators and the use of technical analysis of the cryptocurrency market in general. They are used on cryptocurrency exchange platforms in combinations for an endless search for ideal parameters.

Fundamental analysis

The fundamental analysis could be also useful, as the technical one. It requires evaluation of the market, news background, economy of the country, monitoring the political situation, how the state headers treat the status of the cryptocurrency and being able to predict the possible cryptocurrency tendencies.For example, what prospects does a project developing a cryptocurrency have for the near future and what can go wrong, and negatively affect the cost. 

However, it is not always possible to assess all the factors with absolute certainty even with daily news about the crypto market. But still, it increases your chances for success in selling crypto with profit.



buy crypto

5 min reading

Discover how to buy some crypto assets with our article

bying crypto

How to Buy Crypto

The cryptocurrency market develops rapidly and the notion of cryptocurrency gets familiar for everyone. Once you decided to explore the crypto marketplace and are familiar with what is actually digital currency, then it is time to start with the main processes such as buying crypto. In the article, you will get to know how to buy crypto safely, how to choose your first currency to buy, and where to store it. 

Market nuances

Nowadays, there are more than 8,000 cryptos available on the market, according to CoinMarketCap. New coins appear and old ones disappear with the development of the industry. Buying crypto-assets is not an easy deal, as you should think carefully in order not to lose your money and investment. First of all, you should remember, that the cryptocurrency market is extremely volatile and unpredictable. Thus, it is essential to read about what factors can have an impact on price changes and market fluctuation. 

Also, you can buy the currency, based on the conclusion you made by yourself. Hence, do not rely on anyone in choosing the assets to buy, as no one can guarantee you the profit. The fundamental analysis is your friend in this complex task. If you are a broad-minded person, know what is going on in the world, can make a conclusion based on the facts, analyze the news, and how causal link works, then your journey in the crypto world is going to be a bit easier.

How to buy crypto?

Well, if you made up your mind about the crypto to buy, then it is high time to decide what services to use in order to buy crypto. You can use crypto exchange platforms, as a variant. Cryptocurrency exchange platforms work on the same principle: in one field you enter the source currency for exchange, and in another is the desired cryptocurrency (for example, bitcoins) and its quantity. The system calculates and shows the amount you will need to pay for the exchange. If you are satisfied with the offer, click “Exchange” and buy cryptocurrency with your card, e-wallet, or bank account for fiat currency. Thus, we can define such advantages of crypto exchange services as:

    • a wide range of crypto-assets available for buying;
    • you can see all rates changes online;
    • high speed of the client transactions;

Where to store crypto?

There is another point that you should take into consideration such as the place to store your crypto-assets. To store and spend your bitcoins, a bitcoin wallet is needed. In other words, bitcoin is a digital currency and is not stored anywhere. The main task of the wallet is to store your digital keys and provide access to the bitcoin address and the ability to sign transactions.

Types of crypto wallets

By the way, there is a cold and hot type of wallet. Firstly, you can create and then log in to your hot wallet from any device with Internet access. Basically, any registration on a crypto-currency exchange is already the creation of a hot wallet. The cold wallet is a device that looks like a flash drive, with its own software environment inside, storing your private key. 

The wallet can be accessed by connecting the device to a computer without installing any programs on the PC. It is important to choose a secure and protected cryptocurrency exchange, as it guarantees the safety of your money. You can alternatively decide to manage your keys and transfer them to your own physical wallet. Pay attention not to lose it, you would definitely lose access to your crypto. 

How to chose?

It is important to choose a secure and protected cryptocurrency exchange, as it guarantees the safety of your money. You can alternatively decide to manage your keys and transfer them to your own physical wallet. Pay attention not to lose it, you would definitely lose access to your crypto. 

Keep also in mind that cryptocurrency transactions cannot be reversed. The safety of your crypto-assets depends on how thoughtful your choice is.  If you lose or accidentally delete the private key, you will not be able to restore access to the wallet. This is why good wallets offer backup and reliable data protection. 

However, buying bitcoin or any cryptocurrency is not complicated when you are informed about market functioning and its features. Analyzing the news, events in the world, economic and political factors, you have all chances to buy crypto preventing possible risks.





7 min reading

Increase your vocabulary by exploring crypto definitions with bit4you Academy


Train yourself with definitions


    • Altcoins are alternative cryptocurrencies that were launched after the success of bitcoin. Altcoins are created by diverging from the fundamental rules of the cryptocurrency’s network or by developing a new cryptocurrency from scratch.
    • Bitcoin (BTC) is the first peer-to-peer digital cryptocurrency in the world, based on blockchain, launched in 2009 by Satoshi Nakamoto.
    • Cryptocurrency is a type of digital currency based on cryptographic methods and blockchain technology.
    • Ethereum (Ether) is an open-source, blockchain-based, decentralized software platform, launched in 2015 by Vitalik Buterin and used for its cryptocurrency, ether. It enables SmartContracts and Distributed Applications (DApps) to be built and run without any downtime, fraud, control, or interference from a third party.
    • FUD is acro of «Fear, Uncertainty, and Doubt». When the crypto community calls some news FUD, it means that the news is probably not an objective assessment, but a rumor that can affect the price of bitcoin.
    • Scammer is a hacker or “thief” in the crypto world.
    • Token is the unit of cryptocurrency. Tokens are a kind of shares of new companies and cryptosystems. They can be received with the help of buying it during ICO or when entering exchanges.
    • White paper a document describing the main issues and methods of their solution within the framework of the presented project. White paper usually contains a detailed description, information about the current market situation and growth forecasts, conditions for the issuance and use of tokens, a list of team members and project consultants.
    • Initial coin offering (ICO) is an investment attraction procedure based on the sale of the company’s assets. Assets can be either tokens or a cryptocurrency received by emission.


    • ASIC (Application Specific Integrated Circuit) is used in the process of mining cryptocurrency using special equipment. Asics are created specifically for mining crypto. ASICs are engaged in decoding the blockchain and creating new blocks. ASIC calculations are carried out using special chips, and ASIC power is higher than CPU, GPUs in terms of their reduced electricity consumption and greater computing capacity.
    • Cloud mining is a type of mining that does not imply the purchase of equipment. The company buys necessary mining equipment and rents it out remotely.
    • Complexity of mining is a parameter that determines how much computing power is required to find a block in the coin network. The difficulty of mining grows as the hash rate increases.
    • Miner is a person who is mining cryptocurrency blocks with the help of special equipment.
    • Mining is the process of finding a block in the coin’s blockchain.
    • Mining pool is collectively mining cryptocurrency. Many devices are combined to find a block, the reward is shared among all participants.


    • Block is a list of transactions for a certain period of time. Miners receive a reward for the confirmation of these transactions. Blocks are mined and embedded in the blockchain sequential.
    • Blockchain is data storage technology in the form of a list of checked blocks, each of the blocks refers to the previous ones; the storage devices are not connected to the shared server.
    • Fork is a process of creating an alternative blockchain from an existing one. During a soft fork, a modification is made to change the original blockchain.
    • A hard fork splits the original blockchain into two independent ones. The result is a new cryptocurrency.
    • Halving is a process that lowers the reward for mining cryptocurrency. For example, on the Bitcoin network, halving occurs approximately every four years.
    • Key is a password for a cryptocurrency wallet. It consists of a particular list of characters. There is a possibility to lose your crypto in the case of losing the key.
    • Pending transaction is a transaction that has already entered the blockchain and is awaiting processing by miners.
    • Smart contract is a specific algorithm based on the blockchain. Smart contracts are used to conduct complex transactions such as exchanging assets through decentralized applications.
    • Transaction is the process of transferring funds from one account to another.
    • Wallet is a method of storing bitcoins for future use. The wallet stores private keys linked to bitcoin addresses.


    • «to the Moon» is the very rapid growth of price on crypto-asset.
    • All Time High (ATH) is the historical maximum of the value of the crypto-asset.
    • Attack 51% are cryptocurrency blockchain manipulations, which will make it possible to take control over the blockchain. A hacker or a group of hackers connects powerful mining equipment to the network to capture more than 50% of the computing power. It allows them to process transactions that are beneficial to the fraudster, for example, spend more money from the wallet than it has.
    • HODL is a strategy that presupposes buying and keeping an asset for some time, with the hope of its growth in the future. It is an abbreviation from the misspelling of the word “hold” on the forum. 
    • Investment strategy is an approach for the crypto investor to get the best profit, guided by the specific method of investment, assessing risks, capital needs, and goals.
    • Technical Analysis is a set of approaches that allows the assessment of the crypto market and its tendencies by monitoring and analyzing charts, graphs, and indicators. It requires special skills. 
    • Trading strategy is a plan or approach for traders in order to make a profit from deals.
    • Volatility is a rate at which the price of crypto-assets increases or decreases for a given set of returns. Sometimes, it can be turned to make a profit for investors or traders.
    • Whale is a significant market participant with a large amount of funds. It may have enough capital to manipulate the price of the asset in the crypto market.