#CEXvsDEX101

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 to their success? And why do they provoke all this controversy?

1. What are cryptocurrencies?

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

Decentralized: Not controlled by any single entity.

Secure: Uses encryption to protect transactions.

Global: Can be used across borders without restrictions.

The most famous ones are:

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

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

Other coins like Solana (SOL) $SOL and Cardano (ADA) and Ripple (XRP)

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 the form of new coins (like Bitcoin mining).