Cryptocurrencies the most famous of which is Bitcoin, are the first type of currency in history to be completely released by a central bank or by the financial institutions of a state, and therefore in all respects an alternative to traditional currencies, and more.
They constitute not only the currency of exchange but at the same time represent an online payment method built based on an undoubtedly revolutionary mechanism. The cryptocurrency markets are therefore decentralized Cardano Exchange compared to traditional ones. This means that there is no central body that issues them, protects them and controls their dissemination.
What are cryptocurrencies and how are they managed
Cryptocurrencies are managed directly by the individuals who hold them, thanks to the achievements of digital cryptography systems, the latest of which is represented by blockchain technology. Not just a simple virtual currency, therefore, but a real system that:
- it is not linked to the economic and financial performance of a particular country in the world;
- it is not linked to interest rates or national and international monetary policies;
- guarantees the value of the cryptocurrency thanks to its immutable cryptographic units, or their specific code.
A cryptocurrency is not a digital currency. The latter has the same characteristics as traditional currencies, as these are therefore issued by a central authority and exist only in the digital market. Among the more than 2000 cryptocurrencies existing today, most of which are of little value, the main ones are:
- Bitcoin cash;
- Bitcoin gold;
- Stellar (XLM)
Bitcoin is also the first cryptocurrency ever created, whose domain was registered online in 2008 and the first transaction ever took place in 2009. Only a few years after the total capitalization of cryptocurrencies, during what appeared as a real bubble, has reached around 800 billion dollars. When it deflated in 2018, the total stalled at 220, half of which were linked exclusively to Bitcoin. Compared to the latter, the two currencies Ethereum and Ripple represent a further step forward in technology and their operation.
The first is the name of the system connected to a currency called Ether, a network within which you can even create smart contracts that are considered digital money in all respects. Ripple, on the other hand, is not just a cryptocurrency, but an open-source internet protocol that functions as a payment network, within which to carry out transactions using a currency of the same name.