It is exchange digital money. That means there are no physical coins or bills, everything is online. You can transfer a cryptocurrency to someone on the internet without an intermediary, such as a bank. Cryptocurrencies use strong cryptography to secure transactions, control the creation of additional units, and verify the transfer of assets using distributed ledger technologies.
Cryptocurrencies are a type of alternative currency or digital currency. There is controversy that cryptocurrencies have to be decentralized control or centralized currencies by central banks or another entity.
The particularity of this asset is that its payment is accepted by a large number of companies and individuals all over the world. Also, since ownership is primarily based on usernames, which allows greater privacy. Most of the existing cryptocurrencies have a specific number of units, which prevents fictitiously generating a greater amount and reducing their value.
The cryptocurrency system is associated with mathematical algorithms that guarantee the security of transfers issued through said system.
The control of each currency works through a decentralized database, usually a chain of blocks (in English blockchain), that serves as a database of public financial transactions.
The first cryptocurrency that began to operate was Bitcoin in 2009, and since then others with different characteristics have appeared such as Litecoin, Ethereum, Bitcoin Cash, Ripple, Dogecoin.
People could use cryptocurrencies to make quick payments and to avoid transaction fees. Some people might acquire cryptocurrency as an investment, hoping that it will increase in value. Cryptocurrencies can be purchased with a credit card or, in some cases, through a process called "mining." Cryptocurrencies are stored in a wallet or digital wallet, either online, on your computer or on another physical medium.
There are many different options when it comes to buying Bitcoins. For example, there are currently almost 1,800 Bitcoin ATMs in 58 countries. Also, you can buy BTC using gift cards, cryptocurrency exchanges, mutual funds, and you can even trade face to face.
When it comes to other less popular cryptocurrencies, the purchase options are not that diverse. However, there are exchanges where you can acquire various cryptocurrencies in exchange for fiat currencies or Bitcoins. Face-to-face trading is also a popular way to acquire coins. Purchase options depend on particular cryptocurrencies, their popularity, and their location.
● It allows you to carry out online transactions anywhere in the world reducing the cost of the transaction, since there is no intermediation.
● Flationary digital asset, limited and safe like Gold.
● The Money of the future, the new way of doing banking.
● You will be able to enter the different Cryptographic Markets, learn about passionate projects that improve humanity through Blockchain technology.
● Reduce times. Although payments online are fast, settlements between the parties take time and the seller receives the amount days after payment. With cryptocurrencies, the delay is of the order of minutes.
● Eliminates the need to use financial agents to transact.
● Saving savings in cryptocurrencies puts them out of political risk.
Also among them, several advanced exchanges stand out that allows us to register, place information and start making transactions. This highly benefits users who trade cryptocurrencies.
● Buy Goods.
● Invest: Many people believe that cryptocurrencies are the best investment opportunity today. In fact, there are many stories of people who have become millionaires thanks to their investments in Bitcoin.
● Mining: Miners are the most important part of any cryptocurrency network. And like trade, mining is an investment. Basically, the miners are providing a bookkeeping service for their respective communities. They bring the power of their computers to solve complicated cryptographic puzzles, which is necessary to confirm a transaction and record it in this distributed public ledger that we call the Blockchain.
● Accept as payment for business: If you own a business and are looking for new potential clients, accepting cryptocurrencies as a form of payment may be a solution for you. Interest in cryptocurrencies has never been greater and is sure to continue to rise. Along with the growing interest, the number of crypto-ATMs located around the world is also growing.
In cryptocurrency systems, the security, integrity and balance of your account statements (accounting) is guaranteed by means of a structured network of agents (segmented file transfer or multi-source file transfer) who verify (distrust) each other called miners , which are, for the most part, the general public and actively protect the network (the fabric) by maintaining a high algorithm processing rate, in order to have the opportunity to receive a small tip, which is distributed randomly.
Breaking the existing security in a cryptocurrency is mathematically possible, but the cost to achieve it would be unaccountably high. For example, an attacker trying to break Bitcoin's proof-of-work system would need computational power greater than that of the entire lattice (swarm-net) of all miners in the system, and still only have a probability of success of 50% (# of authentication round), in other words, breaking Bitcoin's security would require a higher capacity than tech companies the size of google.
As cryptocurrencies become increasingly popular, law enforcement agencies, tax authorities, and legal regulators around the world are trying to understand their essence and how they should fit into existing legal frameworks and regulations.
With the introduction of Bitcoin, the first cryptocurrency, a completely new paradigm was generated. Decentralized, self-sustaining digital currencies that do not exist in any physical form or form and that are not controlled by any entity have generated controversy among the historic regulators.
Authorities around the world are concerned about how attractive cryptocurrencies are to traders of illegal goods and services. Furthermore, they are concerned about its use in money laundering and tax evasion schemes.
As of November 2017, Bitcoin and other digital currencies were banned only in Bangladesh, Bolivia, Ecuador, Kyrgyzstan, and Vietnam, with China and Russia poised to ban them as well.
The real value of cryptocurrencies, in addition to the basic interaction of supply and demand, gives you confidence in them and in general, the more public recognition and acceptance, the higher their price.
The value of a cryptocurrency can change every hour. An investment that today may be worth thousands of dollars tomorrow could be worth only hundreds of dollars. If the value falls, there is no guarantee that it will rise again.