Cryptocurrencies are digital or virtual currencies that use cryptography to secure financial transactions and control the creation of new units. Unlike traditional currencies, such as the euro or the dollar, cryptocurrencies are not issued by governments or centralized financial institutions, but are decentralized and based on a technology called blockchain.
Blockchain is a distributed digital ledger that stores all transactions in a secure and transparent system. Cryptocurrencies are protected by cryptography, which makes it very difficult to counterfeit or manipulate them.
There are thousands of cryptocurrencies, but the main ones are divided into a few categories:
#Bitcoin(#BTC): The first and most well-known cryptocurrency, created in 2009 by a person or group under the pseudonym of Satoshi Nakamoto. It was conceived as a decentralized currency without the need for banking intermediaries.
Altcoin: Terms that indicate all cryptocurrencies other than Bitcoin. Some popular examples include:
#Ethereum(#ETH): A decentralized platform that enables the creation of smart contracts and decentralized applications (dApps).#Ripple(#XRP): A cryptocurrency focused on speed and international transactions between banks.#Litecoin(#LTC): An alternative to Bitcoin that offers faster transaction times.
Stablecoins: Cryptocurrencies that are pegged to a stable asset, such as a traditional currency (e.g., the dollar). The goal is to reduce the volatility typical of cryptocurrencies, such as Tether (USDT) or USD Coin (USDC).
Tokens: These are cryptocurrencies that operate on the blockchain of another cryptocurrency, such as Ethereum. Tokens can represent a variety of assets, such as stocks, voting rights, or digital assets.
