Cryptocurrency or cryptocurrency is being talked about the most as a natural alternative to a centralized financial system and as an ideal haven for years to come. Would you like to know the leading cryptocurrencies and how to invest in them?
However, with so much noise on social networks and other media, we can certainly feel confused and need help understanding precisely what these cryptocurrencies or crypto activities are based on and how they work.
The guide will discuss cryptocurrencies, their principles, and the leading market capitalization.
Table of Contents
What are Cryptocurrencies or Cryptocurrencies?
Cryptocurrencies or cryptocurrencies are digital or virtual currencies designed to function as a medium of exchange.
These currencies have the same function as daily money since they are used to pay for products or services. Now, as it is digital technology money, this can be hackable, which is why crypto comes into play.
Cryptography is the science responsible for encrypting a message so that the appropriate recipient can only read it. In this way, when we send a cryptocurrency to a person, we ensure that the currency cannot be intercepted and stolen through cryptography.
Characteristics of Cryptocurrencies
Its main characteristics, as we have said, are:
- A cryptocurrency or cryptocurrency is a form of digital asset based on a network distributed over a large number of computers. It makes it decentralized (it does not depend on an enormous central computer).
- It is not physical money (although it is a canister stored on hard drives or external memories).
- Its creation is base on unique cryptography.
- They do not depend on anybody or the government responsible for generating this type of currency.
Cryptocurrency Features
Cryptocurrencies are systems that allow secure online payments denominated in terms of virtual “ tokens.” Which are represented by internal accounting entries of the system.
“Crypto” refers to the various encryption algorithms and cryptographic techniques that protect these inputs. Such as elliptic curve encryption, public/private key pairs, and hash functions.
How Many Cryptocurrencies or Cryptocurrencies are There?
Today there are more than 10,000 virtual currencies worldwide and counting. In addition, a new one appears every so often, which is creat through a process call ICO.
What sets all these currencies apart is the technology, encryption, and philosophy. Most cryptocurrencies use blockchain technology, but it is not the only one.
With the making of new cryptocurrencies, new platforms have appeared to send. Receive and buy different cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. However, we must not confuse these networks with wallets or cryptocurrency buying and selling platforms. There are platforms such as Coinbase and Binance that both buy and sell venues. And digital wallets that allow you to operate with cryptocurrencies or cryptocurrencies quickly and safely.
The latest news of the Blockchain boom predicts more and more the consolidation of virtual currencies and the arrival of more and more investors (even governments have already started buying these assets). We tell you which are the cryptocurrencies of the moment and those that seem to have more future.
The Ranking of the Some Most Famous Cryptocurrencies
Bitcoin
Indeed Bitcoin is the cryptocurrency or cryptocurrency that you have heard the most about. However, the recognition of this digital currency remains that it is a pioneer. In 2008 it was creat by several people under the name Satoshi Nakamoto. But, of course, it did not have the value it now has at its launch, and most could not even think that it would reach this data.
Ethereum
ETH is the application currency of the Ethereum network, similar to Bitcoin in nature. These are some of the characteristics of ETH that make it different from FIAT money or government money (such as euros or dollars):
They are your strict property; they are not manage by custodian entities (commercial banks).
It is protect by the science of cryptography and by your private keys.
They are a P2P (Person to Person) payment system which means that you can send your money to any other person in the world. Without intermediaries such as banks or governments.
Ethereum currently presents a scalability problem that makes the transactions executed in its network increase in cost. To address this issue, Ethereum is working on Ethereum 2.0, a set of interconnected updates that make it a more secure and scalable network.
Conclusion
A cryptocurrency, crypto-currency, crypto, or coin is a digital currency design to work as a medium of exchange through a computer network that is not reliant on any central authority. Such as a government or bank, to uphold or maintain it.