Cryptocurrency is simply an encrypted electronic currency (also known as digital currency, cryptographic currency or virtual coin). Digital currencies are a distributed cryptographic system that stores information about the number of units of a given currency. The state of currency ownership is directly related to specific system nodes, i.e. wallets in such a way that only the holder of the specific private key has control over the wallet so that it is not possible to use the same unit twice.
Cryptocurrency technology is based on open source software. Open source – blockchain network. So what is blockchain? Blockchain or, in other words, a block chain is a distributed and decentralized database on the Internet network with a peer-to-peer (P2P) architecture without central computers. It does not have a centralized place for storing and processing data, used to record individual transactions, payments or accounting entries. The blockchain network is encrypted using cryptographic algorithms. In fact, blockchain is a decentralized platform and transactional register in a distributed network infrastructure.
At this point, it’s hard to say that electronic currencies have features of real money. Unfortunately, the spread of cryptocurrencies is progressing quite slowly, and the possibilities of paying them are quite limited. Although this issue is still developing.
Due to the fact that the source code is based on free software, in fact, every programmer can create his own cryptocurrency.
From the project financing point of view, the creation of cryptocurrency may be associated with the so-called ICO (Initial Coin Offering) procedure, i.e. the first offer of coins. It aims to accumulate the initial capital necessary for the further development of the entire cryptocurrency project. Be careful here though. Many projects turn out to be so-called Scamami, or simply scams. People who buy a specific electronic currency will never recover their funds again. This is due, inter alia, to the lack of ICO regulation in many countries and the difficulty in tracking portfolio owners due to their anonymity. Therefore, Facebook and Google have limited advertising for new cryptocurrencies, which means that in recent months their supply has been weakening because they cannot be successfully promoted.
Often, cryptocurrencies operate based on the same source codes in which the designers made only small changes, e.g. the maximum amount of coins or the processing time of blocks. However, more and more often there are projects completely original and having applications in specific industries.
We hope that we were able to answer your question – what is cryptocurrency and now it is clearer for you
Bitcoin – total capitalization – $ 67 752 816 680, current average price – $ 3 858.0, every bitcoin exchange can trade. And what is Bitcoin?
Ethereum – total capitalization – $ 14 491 142 250, current average price – $ 137.97
XRP- cryptocurrency capitalization – $ 13 098 352 463, average price on cryptocurrency exchanges – $ 0.316648
EOS – total value – $ 3 155 701 195, average price – $ 3.48
Litecoin – cryptocurrency capitalization value – $ 2 756 561 312, price on exchanges – $ 45.44
Bitcoin Cash – stock market capitalization – $ 2 358 296 657, price of one unit – $ 133.65
Tether – cryptocurrency value – $ 2 045 229 915, unit price of this cryptocurrency – $ 1.01
Stellar – total value – $ 1,657,031 644, average price on cryptocurrency exchanges – $ 0.086279
TRON – capitalization of this digital currency – $ 1 613 915 439, unit price – $ 0.024203
Binance Coin – total value – $ 1,410,140,520, average cryptocurrency price – $ 9.99. It was introduced by the world’s largest cryptocurrency exchange.
Bitcoin SV – cryptocurrency capitalization – $ 1 231 299 089, price on digital currency exchanges – $ 69.79
Cardano – total capitalization – $ 1,122,968,676, cryptocurrency price on exchanges – $ 0.043313
Monero – capitalization – $ 836 691 800, average unit price – $ 49.74
IOTA – the value of all units – $ 799 731 226, the price of this cryptocurrency – $ 0.287722
Dash – cryptocurrency exchange value – $ 710 144 590, price per one item – $ 82.05
Maker, stock market capitalization – $ 649 093 088, price for one unit – $ 649.09
NEO, electronic currency capitalization – $ 594 124 078, average cryptocurrency price on stock exchanges – $ 9.14
Ethereum Classic, capitalization – $ 475 991 493, average unit price – $ 4.38
NEM, cryptocurrency capitalization – $ 396 547 250, price per unit – $ 0.044061
Zcash, total value – $ 312 728 250, average price on cryptocurrency exchanges – $ 52.23
We hope that you now know “what is cryptocurrency?” and how it is created and what are the largest cryptocurrencies in the world.