Many people are talking about cryptocurrencies. Do you know what they are? Have you heard of them? Don’t worry, here we will tell you about what they are, the way they work and the most popular ones on the market.
Cryptocurrencies are known as a digital asset that has a cryptographic encryption. Thanks to this encryption, they can guarantee ownership and verify that the integrity of each transaction is kept safe. In addition, it has a control that does not allow copies to exist, being a single unit in existence.
Bitcoin is one of the digital currencies that everyone is constantly talking about because of its importance. Thanks to the birth of this cryptocurrency, it has been possible to send and receive money quickly, without commissions, in a global way.
The truth is that this is presented as a currency of exchange within the digital world and that it has a lot of security. Something that in recent years has managed to increase its popularity to the point of being a legal currency in countries like El Salvador.
Now we are going to show you what these new digital opportunities are. So you can make the decision to enter this new type of economy.
If after this you want to expand your knowledge, you just have to join the Basic course of cryptocurrencies of MegaAcademy. You can have all the concepts and tools related to these currencies thanks to our online course.
What are cryptocurrencies?
Cryptocurrencies can also be found under the name of cryptoactives, This refers to the fact that they are currencies that will work as an alternative to fiat money in each of the transactions. It is developed through cryptographic methods that allow transactions to be much more secure through the chain of blocks or blockchain.
They are an alternative to the transactions that we know and that can be decentralized or not. This is one of the main reasons why many people are betting on these new ways of making secure transactions.
The main mission of cryptocurrencies is to be able to ensure the integrity of each transaction that is made. Also, these currencies are fully digital, the only way to store them is in an electronic wallet. Clearly giving way to the technological future without the use of a physical currency, something that is gradually being adopted.
How do cryptocurrencies work?
The first thing that we will mention in relation to cryptocurrencies and their operation is that they do not work under traditional systems. As we already mentioned, all its development is based on blockchain technology, which allows it to be decentralized.
If you don’t know, the chain of blocks or blockchain is nothing more than a registry network where the connected nodes have copies of all their information. Furthermore, these blocks contain data from the previous block that is passed to the next one by means of cryptographic techniques.
It is through this that it will be possible to have a control of the transactions and a shared accounting record. On the other hand, there is no regulatory body, there is no bank or entity that supports each of your transactions or is an intermediary.
Once a transaction is made there is no way to cancel it, the only option is to make another one in the opposite direction. The data cannot be erased within the blockchain, as a complete record of the movement.
It is important to note that transactions occur through exchanges, these are platforms that allow the exchange of currencies, be it US Dollars or Euros, to Bitcoin or another cryptocurrency. So each transaction generates data that is recorded on the blockchain, leaving a record.
Which was the first cryptocurrency?
The first cryptocurrency to be created was Bitcoin in 2009. Its creator is Satoshi Nakamoto, although this is only a pseudonym, since the person’s real name is not known.
It all started with an article published in which these P2P payment systems with a different vision than the one known.
After a few months, the software that could manage the network of this type of currency was officially born. This caught the attention of many people within forums, giving it popularity and a totally irreversible impact.
Since the birth of Bitcoin, thousands of alternative digital currencies have been created, generating a cryptocurrency market. The value of all these depends on the trust they can generate in users. In addition to the security in the transactions that can be offered, being constantly variable.
Most popular cryptocurrencies today
Over the years, many alternatives to Bitcoin seek to have the same popularity as this currency. However, they have not managed to achieve the value that it has, but they have developed important reputations. This is how each one has managed to attract the attention of investors who drive their volatility.
Among the most popular cryptocurrencies we find the following
- Bitcoin with 40% of the market capital
- USD Coin
These are only the top ten within the cryptocurrency market, the ones with the largest capitalization. However, there are more than 17 thousand cryptocurrencies that exist within the market, some being better known than others. They all compete for high values, presenting themselves as alternatives to the currencies we know from each country.
Cryptocurrencies as a new world market
It is a reality that cryptocurrencies are becoming a very popular market all over the world. These allow transactions to be made from anywhere in the world with almost instantaneous speed. One of the main attractions for companies and institutions that make international purchases.
In addition to this, the large investments and uses that can be given to them end up giving more value to each one. We can already see projects that give way to its use within social networks or even in new technologies such as the metaverse. All this together ends up adding great value to this type of market that seeks to be the most used in the future.
Now that you know more about these digital currencies, it is time for you to deepen all this information and we are ready to help you. Through MegaAcademy’s Basic Cryptocurrency course you will be able to have all the information about this interesting world that continues to grow. Do not miss it and join, it does not matter if you do not have previous knowledge, you can start from the Basic level. We have a large number of audiovisual resources so that you can learn and become an expert in the Crypto World . Do not miss this great opportunity!