#TradingTypes101

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 to 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 so much controversy?

1. What are cryptocurrencies?

Cryptocurrencies are encrypted financial assets that rely on blockchain technology, which is a decentralized digital ledger that records all transactions securely and transparently. They are characterized by their independence from any central bank or government control, 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:

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 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, such as Bitcoin mining.