A crypto-currency is simply a virtual currency used to exchange goods and services through an electronic transaction system that does not require any intermediary. This is how cryptocurrencies are called decentralized. Cryptocurrencies incorporate cryptography standards, making them secure and anonymous currencies in addition to being decentralized.
Crypto-currencies have certain characteristics compared to the standard currencies of the various States and central banks that we use on a daily basis, such as the euro, the dollar or the yen.
The characteristics of cryptocurrencies
Decentralization: No central bank, state or government can control a cryptocurrency.
No intermediary: Transactions in crypto-currencies are carried out directly from individual to individual and do not require any intermediary, bank or organization.
The speed of transactions: Sending cryptocurrencies to another person only takes a few seconds to a few minutes and the process is therefore much faster than the money transfers that financial institutions like banks allow and which can take up to several days.
Voluntary use: The use of a crypto-currency is voluntary and is therefore not made compulsory, unlike traditional currencies such as the Euro, which is the reference currency and used by all within the countries of the European Union. ‘European Union.
speed of transactions
Cryptocurrencies are revolutionary currencies and they have many advantages compared to bank fiat currencies, but the major advantage is that there is no institution behind a cryptocurrency and no one can control it. When it is a question of euros or dollars, the States determine the value of these currencies and try to control them thanks to the emissions of currencies, the banks thus create currencies artificially.
When it comes to cryptocurrencies, the value depends on several factors, partly supply and demand, the amount of electricity needed to secure the currency on the blockchain (mining / mining), the level of difficulty in undermine the cryptocurrency but also from the influence of the media, investors and the project or innovation to which this cryptocurrency is linked.
Cryptocurrencies can be used to buy goods and services or to transfer money between people, they are also volatile instruments that are highly speculative and on which traders bet up or down in order to to take advantage of their price movements and generate profits. Anyone can therefore invest in crypto-currencies through a crypto-currency broker .