Cryptocurrencies can be used for the same purposes as physical money. The three main functions are to serve as a medium of exchange, facilitating commercial transactions; store of value, to preserve purchasing power in the future; and also as a unit of account, when products are priced and economic calculation is based on it.

What are the main characteristics of cryptocurrencies?

Cryptocurrencies operate entirely in the digital environment, are secure, independent, experience significant price fluctuations, and can be purchased for various purposes. Now, let's understand the differences between these digital currencies and conventional ones:

Diverse purposes

Through specialized platforms in this market, anyone can buy, hold, and sell cryptocurrencies. Moreover, they can be converted into another existing currency, such as the kwanza, real, dollar, or euro when desired. Another distinctive feature is the existence of various platforms that offer digital services linked to digital currencies, including games, streaming, marketplaces, and social networks.

100% digital

Regardless of location in the world, as long as you have internet access, you can perform cryptocurrency transactions, whether for buying, selling, or exchanging. It's important to note that everything will always occur in the digital environment, including transactions and storage.

Secure

Cryptocurrency transactions are protected through a combination of encryption and blockchain. Encryption is a security tool that scrambles all available information so that only authorized individuals can access it. We'll discuss blockchain in more detail in the next post.

Decentralized

Most digital currencies are decentralized. This means there is no organization or government responsible for controlling or regulating the operations and transfers. Quite interesting, isn't it?

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