The rise and the fall of cryptocurrencies: a guide from beginner to crypto, coins, capitalization and assets
Over the past decade, the world of finance has undergone a significant transformation with the emergence of cryptocurrencies. From Bitcoin to Ethereum, and from Litecoin to Dogecoin, these digital currencies have captured the imagination of millions in the world. But what is cryptocurrency? How do parts work? And why are they so precious? In this article, we will immerse ourselves in the world of crypto, explore its key concepts and provide an overview of capitalization and assets.
What is cryptocurrency?
Cryptocurrencies are digital or virtual currencies that use cryptography for secure financial transactions. They are created via a process called Blockchain Technology, which records all transactions on a large public book called the Blockchain. Each piece has a unique address, a private key and a public key, allowing users to send and receive funds safely.
The best known cryptocurrency is Bitcoin (BTC), launched in 2009 by an individual or a group using the pseudonym Satoshi Nakamoto. The other popular cryptocurrencies include Ethereum (ETH), Litecoin (LTC) and Monero (XMR). Cryptocurrencies operate on a decentralized network, which means that no central authority controls them.
Coins: the key to the crypto
A part is simply a digital currency that uses cryptography for safety and decentralization. Each piece has its own unique characteristics, such as:
- Private key : A private key allows users to receive funds from other accounts.
- Public key : A public key allows users to spend parts for transactions.
- Blockchain : The blockchain records all transactions on a large public book.
The parts are stored in digital wallets, which can be based on software (for example, Metamask) or based on hardware (for example, Ledger). Users can buy, sell and exchange parts using online exchanges or markets between peers.
Capitalization: the value of cryptocurrencies
Capitalization refers to the price of a cryptocurrency. It is calculated by multiplying the total offer of a room by its current market value. In other words, capitalization is a measure of the quantity of investors ready to pay for a particular room.
The price of cryptocurrencies fluctuates quickly due to various factors such as:
- Senture of the market : The emotions and opinions of investors influence prices.
- supply and demand : the balance between buyers and sellers determines the price.
- Regulatory changes : Government policies or laws may have an impact on market stability.
- Technical developments : New features, updates or partnerships can increase prices.
To give you a better idea of capitalization, here are some current values for popular cryptocurrencies:
- Bitcoin (BTC): about $ 43,000
- Ethereum (ETH): about $ 3,500
- Litecoin (LTC): about $ 200
crypto assets: the future of finance
Cryptocurrencies are not only digital currencies; They are also a new type of asset. An asset is an item that can be purchased, sold, exchanged and stored.
The concept of cryptographic assets is built on the underlying technology of cryptocurrencies, which provides:
- Decentralized : cryptocurrencies operate independently of central banks.
- Secure : Transactions are encrypted and protected by cryptography.
- Transparent : All transactions are recorded on a large public book called the blockchain.
While the value of cryptocurrency continues to grow, we can expect to see the emergence of new cryptographic assets, such as stablecoins (which aim to provide a stable price for cryptocurrencies) and non-loot tokens (NFT).
Conclusion
Cryptocurrencies have gone a long way since their creation in 2009. From Bitcoin to Ethereum, Litecoin in Dogecoin, these digital currencies have captured the imagination of millions in the world.
