Those who follow the market, even from a distance, have certainly been surprised by the ups and downs of digital currencies in the news. The most famous is Bitcoin, but many others also have relevance and the favor of investors. But after all, what is a cryptocurrency and how do these assets work?
Generally, a cryptocurrency is a type of money like other currencies we deal with daily, with the difference of being entirely digital. Moreover, it is not issued by any government (as is the case with the euro or the dollar, for example).
With Bitcoin, you can transfer funds from A to B anywhere in the world without ever needing to trust a third party for this simple task, unlike the traditional market that uses an intermediary (financial institution / BANK) as a transaction mediator, along with the need for high bureaucracies in case of high-value transactions.
Cryptocurrencies can be used for the same purposes as physical money itself. The three main functions are serving as a medium of exchange, facilitating commercial transactions; store of value, to preserve purchasing power in the future; and long-term investments, prioritizing appreciation over time.
In addition to Bitcoin, we have the availability of other cryptocurrencies that stand out as "mother assets or pillars of cryptos" such as Ethereum, BNB, among others. For those seeking long-term investments, it is always good to keep in mind established crypto assets for potential wealth growth.
