Cat-5 cabling is usually used for Telephone communication.
Cat5 cable
CAT5 or CAT6
Cat5, Cat5e, Cat6, and Cat6e can be used, u can always use a better cable than required, but not the other way around
They're different kinds of wire. A CAT5 wire will not handle the same bandwidth as CAT6, so in that sense, they're not "compatible." However, you can use CAT6 wire in applications where CAT5 is called for, since CAT6 is "better" than CAT5.
Yes you acn use a hub to connect your computers. Just connect a cat5 network cable from each of your computers to the hub. It doesn't matter which port you plug the cat5 cable into on the hub. they are all the same. Also, if you might be interested in making your own cat5 cables. I have added a link on how to do ths.
Plug the cat5 cable in or use the wireless mode--- magic you are networked.
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The most obvious difference is their transfer capability. CAT5 has four pairs of twisted copper wire and supports up to 100m of Fast Ethernet (100Mbps) transfers. Although CAT5 has four twisted pairs, it only makes use of two pairs. CAT6 also has four pairs of twisted copper wire which supports Gigabit Ethernet (1000 Mbps) of up to 100m. Unlike CAT5, CAT6 takes advantage of all four pairs. CAT6 has a 2x transfer rate compared to CAT5 but due to the higher price tag of CAT6.
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10BASE-T can use CAT3 cabling or better, while 100BASE-T requires CAT5 or better (such as CAT5e or CAT6).
UTP (unshielded twisted pair) Cat5 or Cat6.