Famous Cryptocurrency.The alternative to traditional money exists and is represented by digital currencies or cryptocurrencies.Do you know an alternative to traditional money ? In recent times, we hear more and more often about Bitcoin , Litecoin or Ethereum . In fact, very often there is confusion about these terms and often it is not known what they are really talking about. These are cryptocurrencies or virtual currencies . Knowing all cryptocurrencies, therefore understanding what they are, how they work and how to buy them can be of fundamental importance since they could be the coins of the future.
In the midst of this boom, the peculiarity of these currencies is to be decentralized , which means that there is no government, no bank that can control the flow of operations . Underlying transactions, information is stored and transmitted only to system participants.
Almost all cryptocurrencies are able to guarantee a high level of security and anonymity in the exchanges that take place between users. In this guide, in addition to understanding how it works, you will also discover which are the most important cryptocurrencies!
- What are cryptocurrencies
- How cryptocurrency works
- How do you buy cryptocurrencies?
- List of the most famous cryptocurrencies
What are cryptocurrencies
The term cryptocurrency consists of two words: crypto and currency . These are virtual currencies encrypted behind an encrypted code.
Cryptocurrencies are therefore digital currencies designed to carry out any type of online transaction. It is decentralized and encrypted digital money that is transferred via peer-to-peer technology .
Cryptocurrencies were born precisely to make the monetary system decentralized, that is to avoid that financial institutions and governments themselves can influence the currency of the currency. To decide everything are the users themselves who are part of the system and who think in the same way. Hence, these digital currencies can be used both to purchase goods and services and to convert traditional currencies such as the euro, yen or dollar.
How cryptocurrency works
Well! Now that we know what cryptocurrencies are, let’s find out how these virtual currencies work .
Virtual coins are generated by computers which have to solve complex mathematical problems. These currencies were designed to introduce new units of currency into the system but with quantitative limits, for example in the case of Bitcoin this operation, called mining , will stop when 21 million units are reached.
Finding out in detail how cryptocurrencies work can be important. They rely on a network of interconnected computers to carry out transactions. These transactions contain codes generated by the sender, the receiver and the amount of the translation. Subsequently it will be transmitted within the network and to ensure that it is successful it must be confirmed by the miners , who make the computing power of their computers available to the network.
Once the transaction is confirmed, it can no longer be modified and becomes part of this public register of transactions: the “blockchain” .
How do you buy cryptocurrencies?
While virtual, cryptocurrencies are used to buy and sell products or services online and to make money transfers. To use and exchange cryptocurrencies, one must turn to platforms, called Exchange , where it is possible to buy and sell cryptocurrencies .
The e xchangers allow us to exchange cryptocurrencies such as dollar, euro, etc. directly on the platform. When you decide to buy on these platforms, you need to be particularly careful as it is very often not convenient to buy coins on them (so before making any purchase, check the official price of the digital currency in this way you will avoid nasty surprises).
2020-03-10
List of the most famous cryptocurrencies
After seeing what cryptocurrencies are and how they work, surely you are wondering which are the most important digital currencies?
Here is a list of all the most important cryptocurrencies:
- Bitcoin: It was the first decentralized digital currency to enter the cryptocurrency market.
Introduced in 2009 by the mysterious Satoshi Nakamoto , today it is the most loved cryptocurrency in the world with a quotation above 6,000 dollars; - Ethereum: It is considered the rival cryptocurrency of Bitcoin. Created by a young Russian in 2014, Ethereum is among the most important cryptocurrencies in the financial market. In addition to being a digital currency it is also capable of issuing contracts.
- Litecoin: Born in 2011, it is a valid alternative to bitcoins. It is a cryptocurrency that uses a so-called “open source” protocol that sends payments instantly. So unlike bitcoins, transactions are much simpler.
- Ripple: It is another great digital currency that was developed in 2004, but only in 2012 was it actually launched. Ripple in order to speed up payments and transactions uses the blockchain.
In recent years this cryptocurrency has grown more and more also because unlike bitcoins, it processes transactions faster. - Monero: Issued in 2014, Monero is a cryptocurrency that guarantees the total anonymity of the users who exchange the virtual currency. In order to purchase Monero it is necessary to have a wallet that is used to control and keep your private key through an encryption system.
