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? Keep reading for more details.
Accessibility
Cryptocurrencies provide financial alternatives for everyone with internet access. Without any geographical barriers or the need for a banking institution, it's possible to perform transactions and negotiations. It's becoming increasingly fascinating.
Anonymity
It's possible to make transactions with cryptocurrencies without the need to provide any personal information. This aspect is likely to be well-receivedâconducting transactions without revealing one's identity is truly convenient.
Volatility
Volatility is the variation in the values of an asset over a certain period. For instance, the exchange rate of the dollar in relation to the kwanza undergoes various fluctuations over months, years, and even within a single day. In the case of Bitcoin and other cryptocurrencies, they exhibit high volatility, showcasing remarkable value fluctuations since their inception. Initially worth less than $1, it has recently exceeded $60,000.
đ„Discover cryptocurrencies and embrace another convenience in the digital world.
Cryptocurrencies present an opportunity for you to learn something new in an environment you've been frequenting for a long time: the internet. They are innovations happening every day, everywhere in the world, with the advantage of being much more secure.
