What are Virtual Currencies and Where

What are Virtual Currencies and Where

The technological revolution of recent years has resulted in the creation of new systems that were unimaginable decades ago. For example, recently, the number of issuance and use of so-called virtual currencies or cryptocurrencies.

Faced with such a phenomenon, there are many governments, banking institutions, commercial companies and people around the world who have shown interest in them. However, it must be recognized that, although this term has been heard many times in the mass media, there are still doubts about what they really are, how they work and their true utility.

Aware of this, we will provide you with information in a clear and fácil way about virtual currencies, if they represent a safe way of making transactions and which exchange platform is the most recommended for their acquisition.

What are virtual currencies?

Although there is no unanimous opinion on its definition, it is still debated whether it is a means of payment or a means of exchange. The European Central Bank has referred to virtual currencies as a type of digital money, whose issuance and control is exercised by its creators, in general, being accepted by determined virtual communities.

We could conceive them as a digital representation of values ​​not endorsed by any central bank or established authority, but which are used by people and companies as a means of exchange, susceptible to storage, transfer and negotiation through electronic channels.

These assets are stored in cryptocurrency walletswhich, unlike traditional bank accounts, are digital only.

Main virtual currencies of the market

Since the birth of the first cryptocurrency, thousands of them have been created all over the planet, some have not lasted long, others have lasted over time.

We will mention at least four of the main virtual currencies in the market, these are:

• Bitcoin. The first and most habitual. Its inventor, Satoshi Nakamoto, devised it as a peer-to-peer computer network that shares information. A kind of totally decentralized electronic payment system, without a central server or authority that controls it. Currently, it is a reference throughout the industry and is widely used as a means of global payment.
• Ripple. A widely used cryptocurrency worldwide. It was created by the Ripple Labs company, which manages its network. It owns a native currency, called XRP, which represents, if you will, IOUs, so it’s debt-based.
• ethereum. Widely distributed in the world. It was the product of the ingenuity of the cryptographer Vitalik Buterin. It is a family of cryptocurrencies, which cánido be used not only as a digital payment system; but it allows to carry out the so-called smart contracts.
• Litecoin. This cryptocurrency was one of the first to appear on the market. It is considered a close relative of Bitcoin, with a faster protocol than this. It is generally offered as a substitute value when Bitcoin fails.

Operation of virtual currencies

virtual currencies they function as a kind of accounting entries in a database. In order to guarantee the security of these operations, the transactions are encrypted, which is why they are called cryptocurrencies. These are recorded in such a way that users only know each other by their virtual currency addresses, not their identity. When confirmed, they become part of records called blocks or blockchain.

The correct operation of this virtual payment system involves keeping track of the accounts, cómputos and movements that are made, to prevent the same amount from being spent twice. Since there is no central authority to regulate this, heThe network servers have a list of all operations, in order to ratify if they are valid or not.

The support of virtual currencies, afín to that of physical currencies, lies in the trust of its users, who assign its value, without there being a central body that controls it.

Present and future utility of virtual currencies

The use of virtual currencies in en línea stores and even in some commercial establishments in many countries is increasingly common. It is very desirable to be able to carry out transactions with people from all over the world more quickly, without being tied to any financial system.

Currently, the use of cryptocurrencies is a very profitable way to savein sharp contrast to physical money which is constantly losing its value in many nations.

Thinking in the future, Experts visualize that the protection of money by cryptographic means will gain more momentum, instead of bank intermediation. As its use continues to become more habitual, people will value more doing their transactions from their computer in an agile and fast way, and that each party has a virtual wallet from which they cánido send or receive virtual currencies.

The fact that they are not anchored to a conventional financial system, to a government or central bank, attracts many because believe their money will be more protected from convenience-induced inflation.

All these factors predict that we perro entrar a new era of programmable money, which is just taking shape and will have unsuspected dimensions.

Where to buy virtual currencies?

If you are just starting out in the world of cryptocurrencies or have been in it for a while, you will know that it is essential to choose the right exchange platform, so as not to be victims of scams.

Since 2012, the coinbase company It has become the most used exchange platform in the world. More than 40 million users, 200 billion dollars marketed, more than 7 billion in assets and its operation in more than 100 nations, testify to this.

Coinbase allows the purchase and sale of cryptocurrencies by various means, such as bank transfers and credit cards. It’s like a bank, but with the advantage that you cánido access it at any time, going to its website to mobilize your money, through an interfaz that you cánido use from your personal computer or Móvil inteligente.

➤ Entering coinbase you will easily buy the main virtual currencies. Through the fácil panel of the web you will vea the prices and the value of your assets at any time or place, be it through its page or the mobile application.

➤ Accounts created will be subject to strict security estándares, including multi-stage verification. In case of loss or theft of your mobile, you perro even lock the aplicación with a passcode or disable it remotely.

If you are starting, coinbase is willing to help you learn more about the fascinating field of cryptocurrencies and provide you with the means to create your virtual currency portfolio. you perro create an account clicking here.

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