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WHAT ARE CRYPTOCURRENCIES? GUIDE FOR BEGINNERS IN BITCOIN AND OTHER VIRTUAL CURRENCIES

WHAT ARE CRYPTOCURRENCIES? GUIDE FOR BEGINNERS IN BITCOIN AND OTHER VIRTUAL CURRENCIES

The cryptocurrencies have become one of the great trends of the digital world. Virtual currencies are fashionable and, although we all think of Bitcoin, there are many more cryptocurrency that are increasingly gaining importance in what will be the future of the digital economy. Are you new in this world of cryptocurrencies? Get up to date with these keys and sites where you can buy and sell virtual coins.

What are cryptocurrencies? Basic concept –

Although they have become popular recently, especially due to the unstoppable rise in Bitcoin’s price in the last months of 2017, virtual cryptocurrencies have been around for almost a decade and, for many experts, will be essential to understand the money of the future.

Others, however, think that we are witnessing the bubble of cryptocurrencies and that the transition will be much slower. Before going into specific details such as how many cryptocurrencies exist, how to buy and sell virtual currencies or what is cryptocurrency mining, it is convenient to have these basic concepts clear.

What are cryptocurrencies?

According to Wikipedia , the definition of cryptocurrency or cryptocurrency is that of a digital exchange system that is based on security, integrity and balance concepts through a decentralized network of agents that are responsible for validating operations, generating new cryptocurrencies based on the law of supply and demand of a limited number of units (one of the reasons for its high price) in what is known as cryptocurrency mining, check out this AWS mining review.

What is Bitcoin?

If we talk about cryptocurrencies we have to refer to the Bitcoin that was the first cryptocurrency that arose in 2009 by the initiative of Satoshi Nakamoto (a person or group of people) who implanted a virtual currency, which is based on the concepts of open source , decentralization, P2P networks and digital signature.

The advantages of Bitcoin lie in the fact of guaranteeing secure economic operations, outside the circuit of traditional economic agents and without intermediaries through a system of computer algorithms that validate each and every one of the operations in a Block Chain system or Blockchain.

What is the value of a Bitcoin?

Depends, as everything, of the law of supply and demand, although in this case the value of Bitcoin is not determined by a financial or banking authority, but oscillates based on the interest and operations that are made with the virtual currency whose number is limited, specifically 21 million units.

At the beginning of 2010, the value of Bitcoin was less than one cent, but its popularity and the advances in the digital economy have meant that in recent years it has not stopped growing until closing 2017 above 15,000 dollars. Can you imagine what those who in their day decided to invest in cryptocurrencies have won?

A Bitcoin (whose abbreviation is the acronym BTM) can be divided into 1,000 parts which is known as mBTMs (thousandth part of a Bitcoin).

How cryptocurrencies work?

The vast majority of operations operate through this decentralized cryptocurrency mining network that ensures the validity of operations through cryptographic algorithms. Each new operation is added to that chain of blocks to which all the previous operations are incorporated in succession, which guarantees that, whatever happens, the information will not be lost and will be complete.

In this way, an immense virtual book of accounting is created, whose operations are validated and registered by the network of independent agents who are in charge of the mining of cryptocurrencies and who obtain a reward in cryptocurrencies for their work.

Before deciding on a service, do not forget to look at opinions, types of changes, expert advice, recommendations, help forums.

The exchanges are platforms in which you can make any exchange of currency and this includes the cryptocurrencies that increasingly gain more ground and already have specialized platforms for buying and selling. Some examples of these exchanges are Binance exchange, Bittrex,  Virwox, which allows you to buy and sell cryptocurrencies with PayPal, like Paxful or CoinBase of which we have already spoken in this post.

Are you interested in the world of cryptocurrencies? Do you know any other tool that may be useful for those who start? Indicate it in the comments section so we can include it.

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