Module 1 (2/3) learning with binance

Types of cryptocurrencies:

1. Proof of Work (PoW) coins: Bitcoin, Litecoin, etc.

2. Proof of Stake (PoS) coins: Ethereum, Cardano, etc.

3. Tokens: Cryptocurrencies built on an existing blockchain.

Advantages of cryptocurrencies: Security, Transparency, Decentralization, Global Access, and Financial Freedom.

Disadvantages of cryptocurrencies: Volatility, Risk of loss, Scalability, Regulation, and Limited adoption.

Examples of cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Cardano (ADA), Stellar (XLM), and Dogecoin (DOGE)

In short, cryptocurrencies are decentralized digital currencies that offer an alternative way to make transactions and store value.

Definition Decentralized digital currencies: These refer to electronic currency systems that operate without centralized control, that is, they are not managed by a government, financial institution or single entity.

Key features of decentralized digital currencies:

1. Decentralization: There is no central point of control.

2. Autonomy: Users have full control over their funds.

3. Security: They use cryptography to protect transactions.

4. Transparency: All transactions are recorded on a public blockchain.

5. Independence: They do not depend on traditional financial institutions.

Advantages of decentralized digital currencies: Financial freedom, Global access, Security and privacy, Censorship resistance and Efficiency and speed in transactions

Disadvantages of decentralized digital currencies: Volatility in value and Risk of loss

Definition of Cryptography: It is the study and application of techniques to protect the confidentiality, integrity and authenticity of information. In the context of cryptocurrencies.

Cryptography is used to: Encrypt transactions, Verify identity, and Control the creation of new units

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