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Don't confuse cryptocurrency with digital currency

Cryptocurrencies are digital assets based on blockchains, they are vehicles for transferring value in decentralized networks and applications.

 

Digital currencies are any form of money in digital form, for example, virtual money backed by a central bank  

How many types are there?

According to Forbes Advisor, to date, there are 21.750 cryptocurrency projects representing the entire 852 billion crypto market. 

How does it actually work?

Central to the appeal and functionality of cryptocurrencies is blockchain technology. As its name indicates, a blockchain is essentially a set of connected blocks or an online ledger.

 

Each block contains a set of transactions that have been independently verified by each member of the network. Every new block generated must be verified by each node before being confirmed, making it almost impossible to forge transaction histories. 

What is the point of cryptocurrencies?

Cryptocurrencies are a new paradigm for money. Their promise is to streamline existing financial architecture to make it faster and cheaper.

 

Their technology and architecture decentralize existing monetary systems and make it possible for transacting parties to exchange value and money independently of intermediary institutions such as banks.

Everything you wanted to know about cryptocurrencies, but were too afraid to ask

The best cryptocurrencies to invest in 2022 by Forbes Advisor

Bitcoin

Created in 2009 by Satoshi Nakamoto. Considered the original cryptocurrency. In 2016 you could buy one for around $500 by November 2022 the price is around $416,936. Growth of 3,287%. 

 

Market capitalization: $325.3 billion. 

Tether

It is considered a stable currency that is backed by fiat currencies such as the US dollar and the euro. 

 

Market capitalization: $66 billion. 

Binance

It is one of the largest cryptocurrency exchanges in the world between Binance, Ethereum, and Bitcoin. 

In 2017 BNB had a price of $0.10, at the end of November 2022 its price was $279. Generating a gain of 278,925%. 

 

Market capitalization: $444.6 billion. 

Ethereum

It has potential applications such as smart contracts and non-fungible tokens (NFT). From 2016 to 2022 it has shown tremendous growth from $11 to $1,272, increasing by 11,463%. 

 

Market capitalization: $155.7 billion. 

Cryptocurrency

A digital asset that uses cryptographic encryption to guarantee its ownership and ensure the integrity of transactions preventing someone else from making copies. 

It can circulate without centralized authority from banks or the government.

Binance

Its market is mainly Asian. It has more than 140 altcoins to choose from and offers easy price tracking and cryptocurrency trading.

Related apps

Coinbase

Investment platform. It is easy to register, and they give you bonuses, its interface is very intuitive, and it has a price alert system. 

Kucoin

This application is used to publish cryptocurrencies that have potential, it is very intuitive. 

The best cryptocurrencies to invest in 2022 by Forbes Advisor

Bitcoin

Created in 2009 by Satoshi Nakamoto. Considered the original cryptocurrency. In 2016 you could buy one for around $500 by November 2022 the price is around $416,936. Growth of 3,287%. 

 

Market capitalization: $325.3 billion. 

Tether

It is considered a stable currency that is backed by fiat currencies such as the US dollar and the euro. 

 

Market capitalization: $66 billion. 

Binance

It is one of the largest cryptocurrency exchanges in the world between Binance, Ethereum, and Bitcoin. 

In 2017 BNB had a price of $0.10, at the end of November 2022 its price was $279. Generating a gain of 278,925%. 

 

Market capitalization: $444.6 billion. 

Ethereum

It has potential applications such as smart contracts and non-fungible tokens (NFT). From 2016 to 2022 it has shown tremendous growth from $11 to $1,272, increasing by 11,463%. 

 

Market capitalization: $155.7 billion. 

Book recommendations

The Age of Cryptocurrency
Paul Vigna, Michael J. Casey

“The Age of Cryptocurrency. How Bitcoin and Digital Money are Challenging the Global. Economic Order
words, “currency” and “money,” are often used interchangeably. But a very important distinction is lost in doing this, and one of the great contributions of Age of Cryptocurrency is the way the authors keep the distinction in mind, and explain so clearly why it matters.
A “currency” is the physical, or least notional (it could be digital), stuff that we use in transactions and to save. The usual things matter: universally accepted medium of exchange, unit of account, store of value, hard to counterfeit. And the units or name of the currency are important. “Money,” on the other hand, is the set of institutions that a society, a financial system, or an interconnected set of global markets use to clear transactions”.

Digital Cash
Finn Brunton

“I think people who are crazy about Bitcoin have an almost religious attitude to it and see it as a kind of revelation. But, of course, the truth is that Bitcoin is part of a much longer evolutionary family tree of electronic cash technologies, which because of my great age, I’ve been involved with for a very long time. What Brunton does very well is to talk about this longer history and context—where did Bitcoin come from? It built on all of these previous developments and came out of a certain context. It talks about the cypherpunk groups and the libertarian ideologies that underpinned these earlier developments”.

Paid: Tales of Dongles, Checks and Other Money Stuff
Bill Maurer, Lana Swartz

“This book’s subtitle is Tales of Dongles, Checks and Other Money Stuff and it talks about cheques, credit cards and dongles and smartphones, not from a technical perspective, but trying to ask, ‘what do these mean?’ And for somebody like me, who’s not an expert on that side of the subject, it’s a very nice introduction to thinking about money objects in a different way. Recently, I was at the annual conference of the European Association of Social Anthropologists. They very kindly invited me to take part in a session about digital money and I’m just very fascinated by all of that stuff. If you’re interested in a topic, dipping your toes in the anthropological side of it is very useful.”

Disclaimer: the information provided is for informational purposes only and is not intended as a recommendation or endorsement of any particular product, service, or course of action.

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