✔️ Information reviewed and updated in March 2024 by Pedro Martínez González

What are cryptocurrencies?

You have probably heard of cryptocurrencies, cryptocurrencies, or perhaps you have heard its name in English, cryptocurrencies. You may also have heard them by the name of digital currencies or simply altcoins (it should be noted that altcoins are all cryptocurrencies other than the most popular, Bitcoin).

 

Cryptocurrencies and cryptocurrencies

 

Well, you are probably wondering, what are these cryptocurrencies? Well, let's take for example the most popular, Bitcoin. Bitcoin (or really any of the digital currencies) is a medium of exchange, just like any currency, for example the dollar. But designed to be able to be exchanged digitally, and this is possible due to the principles of cryptography (hence the name, cryptocurrencies). Cryptography is used to be able to carry out transactions and create new currencies, safely.

The first cryptocurrency created was Bitcoin, in 2009. And since then, its popularity has not stopped growing. And the interest is not only part of the enthusiasts of new technologies, but also of traders or economists. Why are they becoming so popular? We believe that it is because with this type of currency it is possible to carry out transactions all over the world, without the need to carry out the usual currency exchange. Since, this year, the cryptocurrency surpassed the barrier of 2000 USD, its popularity has not stopped growing.

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Another very interesting fact about cryptocurrencies and that shows the increase in their popularity, is that at the beginning they could only be used in internet or online transactions. Now it is also possible to buy in "the real world", that is, in physical stores that accept payment with Bitcoins.

To keep it simple, cryptocurrencies are a currency, such as the dollar or the euro, but they are made of lines of code with monetary value.

What are some of the advantages of cryptocurrencies?

-Don't pay transaction costs of any kind, or very, very low fees

-There is no intermediary that handles your money (like a bank), this also means that when paying, we must not sign, or enter a pin or card code, but a code that only we will know and nobody else

-They are transferred between users, there are no banks, or brokers as intermediaries

-You can use them all over the world

-THE ARE YOURS, there is no electronic system where your money is deposited. Take Paypal for example, if for some reason the company decides to "freeze" your account, they have the power to do so. With cryptocurrencies, you have your password, and no one else

And what do you think of cryptocurrencies?

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About the Author: Pedro Martinez Gonzalez

I'll tell you a little about myself! I am a financial analyst and economist with a master's degree in finance.
About my studies: I studied at the University of Salamanca for a Degree in Economics and then did a Master's in Finance in Madrid.
Do you want more information? You can read more about me here in my biography.

21 comments on «What are cryptocurrencies or cryptocurrencies?»

  1. Marcelo Reply

    What platform do you recommend that I make a profit, investing in cryptocurrencies?

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