Investing in crypto-currencies implies a significant risk. Never invest more than you can afford to lose. And it's not even in your flair or skills, but the fact that the whole industry is still in alpha. Because of a mistake in a smart contract, for example, even projects that lose security are losing money.
With what amount should I start
Do not start with too small amounts, otherwise a significant part can go to the commission.
Commission in bitcoin
Each transaction in the bitcoin network can have several inputs and outputs, and the difference is considered a commission, which will receive a minor, which included the transaction in the block. The commission does not depend on the amount, but only on the size of the transaction in bytes. For example, you transfer 1 bitcoin, having previously received ten transfers of 0.1, uses 10 inputs and one output. In this case, the transaction size and commission will be greater than if you received 1 bitcoin and it would be enough for all outputs.
For a transaction to pass, it must be included in the block. The new unit is produced on average once every ten minutes and holds about two thousand transactions. The commission can be put any, but the miners prefer transactions with the maximum commission. Since the beginning of the year, commissions have grown from a few cents to six dollars, but have now fallen to one.
Transaction confirmations are nothing more than the number of blocks extracted after the block in which it is included. Each block contains a link to the hash of the previous block, so an attacker trying to rewrite a transaction will have to retrieve this block and all subsequent ones until the rest of the network extracts one block. In practice, such an attack was never committed.
Commission in the etherium
In the etherium network, blocks are generated every 15 seconds, but may include fewer transactions. Because of the smart contracts, the code of which is executed on each node of the network, the commissions work differently. They consist of two parts - gas price and gas limit. The gas limit is the maximum number of operations that can be performed before the transaction ends with an error. In case of error, the broadcast will return, and the entire commission will burn. The price of gas is the price for one operation. Accordingly, the commission is a product of these two parameters.
The commission will almost always be less, because with a successful transaction only the actually spent gas will be written off, which will be less than the limit. The price of gas is often indicated often in gwei. One ether is 10 ^ 18 wei, respectively, gwei is nothing more than a gigaway or 10 ^ -9 ether. It turns out that a transaction with a gas limit of 200 thousand and a price of 50 gwei can spend a maximum of 0.01 ether or less, if it passes successfully.
Usually, wallets allow you to calculate the necessary amount of gas without sending a transaction to the network and show the distribution of the price for gas. The cost of transactions in the etherium network is now on the order of a few cents and is increasing during the large ICO.
Exchange Commission
The exchanges charge commissions for each transaction made in the order of 0.1-0.2%. Some exchanges charge a commission for creating a new purse for deposits or deposits themselves, some for withdrawal of funds. Usually this is a fixed commission, not depending on the amount.
Security
When working with crypto-currencies, only you are responsible for your safety and the safety of your funds. Therefore, it is extremely important not to store large amounts on exchanges or in such purses where someone else has access to private keys.
What other private keys
Crypto-currencies basically use public key cryptography, it has several interesting possibilities. Each address consists of a pair of keys, public, this is the address itself, and private, allowing from this address to spend money.
Accordingly, in order to spend money, you need to sign a private key transaction and send it to the network. In this case, the device on which the key pair is generated can never connect to the network at all and still it will work. The signature can be verified by knowing only the public key.
The second feature is the ability to encrypt a message for the owner of a private key using his public key. This allows you to send a message that only the recipient can read.
About mnemonic phrases
For generation of key pairs, a seed-phrase consisting of 12 English words is most often used. It produces the main key pair, from which you can already generate key pairs in a certain path like m / 0 '/ 0/0, m / 0' / 0/1, m / 0 '/ 0/2 and so on. See how it looks here.
How to store bitcoins
Use full wallets, storing 160 GB of blockade, it makes little sense. Light wallets that use SPV (simplified payment verification) have exactly the same level of security and do not need to load entire blocks and store the block to work.
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