Do you know what cryptocurrencies are? Surely you have heard of them, and maybe you have some doubts, such as what they are for, how they work or what is the difference between traditional currencies. Below, we are going to answer all these questions.

1. Cryptocurrencies are digital currencies

These are digital currencies that were created as a means of digital exchange. This type of digital currency has been on the rise and more and more companies are starting to accept payments with cryptocurrencies. We find different types of cryptocurrency, but the first digital currency that was created was the famous Bitcoin.

2. Cryptocurrencies do not depend on the government
The great feature of cryptocurrencies that makes them attractive is that they do not depend on governments, ownership is based mainly on user names, which allows for greater privacy. In addition, digital currencies are associated with mathematical algorithms that guarantee the security of transfers.

3. There are different cryptocurrencies

There are different types of cryptocurrencies, as we have mentioned above, it all started with Bitcoin but then new ones were incorporated such as: Ripple, Litecoin, Dashcoin o Ethereum.

 4. You can use them to make payments

Yes, although its use is still limited, there are already some companies that accept this type of digital currency. For example, on the website of Bitcoin they mention some merchants that accept cryptocurrency payments.

 

5. The level of fluctuation is very high
Apart from their security system, cryptocurrencies are also characterised by a very high fluctuation of their value.  You may be wondering why, well, the value of a cryptocurrency depends on its use, i.e. on supply and demand. Some of the peaks that have occurred with cryptocurrencies are due to investments made by large companies.

If you want to invest in cryptocurrencies, we advise you to take all these points into account. We leave you with some interesting publications for more information, such as the article by Antes de invertir en criptomonedas.

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