In recent years, cryptocurrencies have become very popular among people, because although many earn enough money with it, there are those who also lose a lot of money, for this reason, you need to know about what are cryptocurrencies? and how does it work?
What are cryptocurrencies?
Also known as crypto foreign exchange, it is basically a virtual currency that is generated by a computer code. Thats happen because, it is an intangible money, which is used to perform different transactions on the internet network.
The great feature that cryptocurrencies have is that they are not supported by any organization or country, thus giving a positive and a negative aspect. The positive is that it is not under any regulation or law regulated by the government, however, the negative aspect is that it is used in many cases to carry out black market transactions that are illegal.
Cryptocurrencies are mainly obtained from a process known as “mining”, where users who are called “miners” through a computer, generate a code to encode, which allows the system to always be protected.
Why are cryptocurrencies so used? The main advantage that people who use cryptocurrencies is, that they can make transactions immediately to different platforms, and it is a very important feature, because people use them to do different businesses.
On the other hand, in order to understand the great advantages of using cryptocurrencies, it is very important that some factors will be analyzed, since that way, you might know why they use cryptocurrencies so much?
Although money circulating throughout the world must be backed by a competent institution, cryptocurrencies have the characteristic that they are independent and for that reason they are not under the supervision of any type of government, which forces those who use cryptocurrencies Be governed by the credibility of the users who use them.
Clearly, nobody would like to lose their money! That is because for cryptocurrencies to be recognized initially, there was a fairly rigorous job, since assuring people that their money will be secure by a computer-generated code was not easy, but today it is a great advantage since it does not taxes must be paid for having money in the accounts.
Cryptocurrencies are a fundamental part of the economy worldwide, and it has some characteristics that make them stand out, for example: the transaction process has very interesting aspects that people who use cryptocurrencies like.
Transactions with cryptocurrencies are irreversible, in this way, people who use virtual currency do not suffer scams or withholdings of money that doing that you to lose your money; Also It has a certain level of confidentiality, so you will not have any direct link with the person you buy or pay.
They are much faster than normal transactions, this is because the money backed by central banks must be approved and that process takes about a couple of minutes, but with virtual currencies you only need to give a couple of clicks to make a transfer; the scope of the transfers can be anywhere in the world since being a cryptocurrency has no limitations or restrictions.
Although the money is not backed, you will be safe because you are always guarded by a code that is generated by the same users, and the best option is, it has not restrictions on legal margin, so you do not have to fear for suffering some demand.
Why is it beneficial to have cryptocurrencies? Because your money will always be under the control of the computers that are affiliated with the system, that way your money will be taken care of and controlled 24 hours a day. Best of everything is that, you will not have debts for having the money stored there.
How is the operation of transactions in cryptocurrencies?
The movement of cryptocurrencies is always constant since at the time of making a transaction the public codes that are assigned to the users’ accounts (better known as private keys) must match.
These transactions are recorded in a ledger that is known by users as “blockchain”, in that book you can see each one of the transactions that are made on the platform, without being able to see the number of the person’s identity card you have made the transaction.
The blockchain is the one that is responsible for protecting and keeping control of each one of the virtual currencies that are in the system, in this way the book is always constantly updated since each one is added sequentially by means of the computers.
Best cryptocurrencies in the market
Although there is a wide variety of cryptocurrencies around the world, it is important to know which digital currency are the best !, and the most recommended by users, since in this way you will have a quality service and you will not have any problem with your money
– Bitcoin, also known as the BTC, considered like the best cryptocurrency in the world, and with the largest number of users, this virtual currency has a very variable value which changes due to the law of supply and demand, born in 2009 by an association known worldwide as Satoshi Nakamoto. Its value varies depending on the amounts of transactions made in real time.
– Ethereum, considered by many people like the second best-priced cryptocurrency worldwide, this is the main competence of the BTC, offering different advantages to its users, such as: safer programming codes, mining blocks in record time and greater storage capacity.
– Litecoin, is also known as LTC, for those users who are looking for an excellent alternative to the traditional virtual currency BTC, this is their best option, since you can transfer funds without the need for an intermediary, making this process much faster and with a Better storage efficiency.
– Ripple, finally we bring you another of the most recommended virtual currencies in the market, it is also known as XRP, unlike the others Ripple seeks a validation of codes by means of tokens, and its main objective is that its users can cancel any type of service through your system.
Price of cryptocurrencies
The price of cryptocurrencies is never fixed and is usually in constant movement. In the following list you can see the current price of them.