La cryptocurrencies or virtual currencies that are used to exchange goods and services through an electronic transaction system in which the presence of an intermediary is necessary. This could be a simple definition of cryptocurrency.
Compared to other electronic money proposals, cryptocurrencies add the principles of cryptography to achieve in this way an anonymous, secure and decentralized economy.
The first digital currency that began to operate in the electronic market was the Bitcoin in 2009. From there, different cryptocurrencies emerged and the market continues to grow steadily.
What are virtual coins for?
The 2008 global crisis and the development of the Internet led to the emergence of an alternative currency. There have been attempts in the past at electronic money, but it was not until the appearance of Bitcoin that the concept of electronic currencies completely changed.
Cryptocurrencies allow you to make payments in a safe and anonymous way. In fact, there are more and more platforms that allow transactions with them, especially with Bitcoin. In fact, there are web pages that support them, but also some physical stores, such as Destinia or Dell.
These electronic currencies are presented as a reliable alternative to conventional payment methods. To know a little more in depth the use of cryptocurrencies, it would be convenient to influence their advantages:
- Anonymous: at the time of making any transaction, privacy is maintained. No one will know the identity of the buyer.
- Decentralized: these virtual currencies are not controlled by any bank, state or economic body.
- International: ability to be used anywhere in the world.
- Without intermediaries: commercial operations take place directly between people.
- Security: these electronic currencies belong to a person and nobody can intervene them.
- Speed: as there are no intermediaries, buying and selling operations are faster.
- Voluntary use: use is voluntary, and unlike conventional currencies, they are not imposed by force.
Cryptocurrency mining it means discovering new electronic currencies. And it is that these currencies are not created as is the case with the foreign exchange market that we know, where institutions decide to create them as necessary. However, in the cryptocurrency system, it is necessary to mine or discover it to enjoy it. Know the different types of most important cryptocurrencies that you can find.
Types of virtual currencies