#Liquidity101

Cryptocurrencies: The Financial Revolution That Changed the World

In the last decade, cryptocurrencies have emerged as one of the most important technological and financial innovations in modern history. From Bitcoin to Ethereum and thousands of other coins, these digital assets have become an integral part of the global financial system. But what is the secret of their success? And why do they provoke such controversy?

1. What are cryptocurrencies?

Cryptocurrencies are encrypted financial assets that rely on blockchain technology, which is a decentralized digital ledger that securely and transparently records all transactions. They are characterized by not being under the control of any central bank or government, making them:

Decentralized: Not controlled by any single entity.

Secure: Use encryption to protect transactions.

Global: Can be used across borders without restrictions.

The most famous ones include:

Bitcoin (BTC) $BTC: The first cryptocurrency and the most valuable.

Ethereum (ETH) $ETH: Enables smart contracts and decentralized applications.

Other coins like Solana SOL $SOL and Cardano XRP and ADA.

2. How do cryptocurrencies work?

Cryptocurrencies rely on a blockchain network, where

. Transactions are recorded in blocks and linked together in a chain.

. Miners or validators verify the validity of transactions.

Rewards are distributed to participants in the network in new coins (such as Bitcoin mining).