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Cryptocurrencies: everything you need to know about the world of digital money

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Cryptocurrencies: everything you need to know about the world of digital money

The digital age He came to change the world and position himself as a star for the future. New technologies not only changed the ways of working, communicating and relating, but also revolutionized the way we use money with the arrival of cryptocurrencies. In this note we will show you everything you need to know about the digital money.

Since the appearance of Bitcoin In 2009, cryptocurrencies continued to grow exponentially, giving rise to new digital currencies and currently the list of cryptocurrencies continues to boom more than ever.

What are cryptocurrencies?

Cryptocurrencies are digital assets that have cryptographic encryption to ensure the ownership and integrity of transactions, as well as to control the creation of new units. Unlike traditional money and the type of currencies we are used to handling, cryptocurrencies They do not have a physical existence, they are stored on digital platforms.

How do they work?

The main differences that cryptocurrencies have compared to conventional currencies is that they are not regulated or controlled by any centralized institution, in the same way that There is no need for an entity or intermediaries to carry out the different transactions.

For this it has a system of databasehe Blockchainalso known as the accounting record, which is responsible for recording and verifying the transactions carried out.

With regard to regulation, since they do not have support granted by central banking entities or government authorities, cryptocurrencies are not considered means of payment and are not protected by registered mechanisms.

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Once cryptocurrencies are acquired, it must be taken into account that all transactions are irrevocable when they were confirmed in Blockchain, since this technology does not allow the deletion of data.

Finally, it is advisable to use digital walletsNowadays there are many applications designed for this, which allow all acquired cryptocurrencies to be stored safely.

Some of the most well-known and used cryptocurrencies:

Bitcoin (BTC): It is the first cryptocurrency and the best known on the market. Uses a electronic cash system which allows direct transactions between users without the need for intermediaries such as banks or governments. It uses blockchain technology to ensure the security and transparency of transactions.

Ethereum: Not only is it a type of cryptocurrency, but it is a decentralized platform that allows the creation of smart contracts and decentralized applications. Through its token you can pay transaction fees and services on the Ethereum network.

Ripple: It is both a payment platform and a cryptocurrency, designed to facilitate fast money transfers and low cost globally. The Ripple network is controlled by a private company.

Litecoin: It was created in 2011 and is a cryptocurrency that shares many similarities with Bitcoin, but transacts faster and has a maximum coin supply four times larger.

Bitcoin Cash: Born in 2017 when there was a separation from Bitcoin, with the aim of increase the network’s capacity to process transactions faster and at a lower cost.

Cardano: It is a third generation blockchain platform that focuses on scalability, interoperability and sustainability. It strives to offer a more inclusive and transparent financial infrastructure.

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Polkadot: It is also a blockchain network that allows communication between different blockchains. Your goal is facilitate the creation and connection of custom blockchains for specific applications.

Stellar: It is a payment platform that connects financial institutions and payment systems worldwide. Its objective is to facilitate the transfer of assets.

Dogecoin: It got its start informally, starting as a joke in 2013, but has gained popularity as an accessible cryptocurrency. Used for online tips and charitable donations.

The world of cryptocurrencies is constantly evolving, with new currencies and technologies frequently appearing on the market. As more people and companies adopt and begin to use the full potential of digital currencyit is very likely that innovations will continue to appear within this space of the world of money.

Currently there are a wide variety of virtual currencies, more than 10 thousand in total, and new ones continue to be created all the time. Although their functions and utilities are very similar, what differentiates them is the technology and encryption they use.

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