{"id":676,"date":"2021-04-27T07:53:44","date_gmt":"2021-04-27T07:53:44","guid":{"rendered":"https:\/\/enorcerna.com\/wiki\/what-is\/cryptocurrencies\/"},"modified":"2021-04-27T07:53:44","modified_gmt":"2021-04-27T07:53:44","slug":"cryptocurrencies","status":"publish","type":"post","link":"https:\/\/enorcerna.com\/wiki\/what-is\/cryptocurrencies\/","title":{"rendered":"Cryptocurrencies"},"content":{"rendered":"
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What are cryptocurrencies?<\/h2>\n

Cryptocurrencies are virtual currencies<\/strong> designed to function as means of secure transaction<\/strong>. They are considered a currency type <\/strong>with properties similar to traditional coins.<\/p>\n

These are established from mathematical algorithms that use a large number of servers for their production. This process is known as mining work<\/strong>.<\/p>\n

Characteristics of cryptocurrencies<\/h2>\n

The main characteristics of cryptocurrencies are the following:<\/p>\n

    \n
  • Transaction security:<\/strong> Encryption or encoding techniques (cryptography) are used that provide peace of mind to the parties involved during the transfer of assets, since they avoid the falsification or duplication of the digital currency.<\/li>\n
  • Interchangeable<\/strong>: Like traditional currencies, they can be exchanged for other currencies.<\/li>\n
  • No intermediation<\/strong>: the contact is person-to-person, thus avoiding the costs charged by financial entities.<\/li>\n
  • Privacy<\/strong>: transactions with cryptocurrencies do not require the declaration of identity of any of the intervening parties.<\/li>\n
  • Reduced times<\/strong>: the settlements of your sale are resolved in a matter of minutes. While online payments are generally fast, some traditional online transactions take time.<\/li>\n<\/ul>\n

    Advantages and disadvantages of cryptocurrencies<\/h2>\n

    Advantage<\/h3>\n

    The advantages of cryptocurrencies are as follows:<\/p>\n

      \n
    • Quick transactions<\/strong>: they are more agile than traditional bank transfers.<\/li>\n
    • Safe<\/strong>: minimize the possibility of fraud.<\/li>\n
    • Without intermediaries<\/strong>: There are no intermediaries in the transaction, only the interaction between the initial and final user.<\/li>\n
    • Global<\/strong>: can be used from any country.<\/li>\n
    • Low fees and taxes<\/strong>: transactions carried out through virtual currencies have a minimum tax cost.<\/li>\n<\/ul>\n

      Disadvantages<\/h3>\n

      The disadvantages of cryptocurrencies are as follows:<\/p>\n

        \n
      • Price variability<\/strong>: the price is set solely by supply and demand, which can cause strong changes in its value.<\/li>\n
      • Loss of money:<\/strong> If the private key to access the personal wallet or wallet is lost, it is likely that all the virtual money that was owned will be lost.<\/li>\n
      • Distrust<\/strong>Although the trend has been increasing, many companies have not yet incorporated cryptocurrencies as a means of payment.<\/li>\n
      • Internet connection:<\/strong> It is necessary to have an internet connection, since transactions can only be made through the network.<\/li>\n<\/ul>\n

        Types of cryptocurrencies<\/h2>\n

        Among the main types of cryptocurrencies we can find:<\/p>\n

          \n
        • Bitcoin<\/strong>: It is considered the first cryptocurrency that was available in the market. It was created in 2008 under the pseudonym Satoshi Nakamoto. Each bitcoin unit is made up of 100 million satoshis. Payment processing can be done through two-way channels or networks, such as the Lightning Network. There are various applications for this cryptocurrency in various business fields.<\/li>\n
        • XRP<\/strong>: This virtual currency was created by Ripple Labs to help different financial institutions to use the power of this technology in their international transaction systems. Known as the cryptocurrency of banks, it does not require as many confirmations for its use as Bitcoin.<\/li>\n
        • Ethereum<\/strong>: the ETH protocol was conceived as an improved version of Bitcoin that provided various advances, such as withdrawal limits, financial contracts or gambling markets, through a very popular programming language. The ETH protocol moves faster than its virtual currency and has increased the efficiency of the computing industry.<\/li>\n
        • Litecoin<\/strong>- Fully decentralized open source and global payments network. It enables faster transaction confirmation times and improved storage efficiency, which is why it is seen as complementary to Bitcoin.<\/li>\n<\/ul>\n\n\n\n\n\n
          Bibliography:<\/th>\n<\/tr>\n<\/thead>\n
          \n
            \n
          • Jose Manuel Torres. Cryptocurrencies: what they are, how to use them and why they will change the world<\/em>. Editorial: Gesti\u00f3n 2000. 2019, 1st Edition.<\/li>\n
          • Bitcoin<\/em>. Retrieved from Wikipedia.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n\n\n
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            What are cryptocurrencies? Cryptocurrencies are virtual currencies designed to function as means…<\/p>\n","protected":false},"author":1,"featured_media":677,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-676","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-what-is"],"_links":{"self":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts\/676","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/comments?post=676"}],"version-history":[{"count":0,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts\/676\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/media\/677"}],"wp:attachment":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/media?parent=676"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/categories?post=676"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/tags?post=676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}