Here are five digital currencies to keep an eye on

   

Digital currencies appeared and with them more hope for some, and more anxiety for others, a completely new idea, a genius invention until it is said that its owner deserves the Nobel Prize in Economics.

A new financial system that no one controls or manages, as it is outside the control of countries and traditional economic systems.

But: Will digital currencies withstand the challenges they face, and will they have a presence in the future?

Will digital currencies replace fiat currencies one day?

Will digital currencies pose a threat to the current economic system, or can countries and governments coexist with them?

Why do digital currencies pose a threat in the first place to systems and countries?

This is a sample of the many questions that revolve in the minds of many specialists in economic work, and in the minds of the governments of smart and aware countries. And in the minds of many interested people as well.

Does this give you some hint of how important the topic we're going to talk about today is?

I know that you are mostly here not to get acquainted with the answers to questions from the sample presented above.

But you want to understand what cryptocurrencies are and how they work. And how you can get it, and how it is used and traded through it.

In this article, I will address the issue of digital currencies, from the angle that you, as an aspirant, want to understand a new topic and how to deal with it.

Also, for those who are interested, you will find in the middle of the lines perhaps, or at separate points, some matters related to the questions that were asked above.

It is worth noting that until now no one has clear and confirmed answers to the questions posed above.

But in any case, just asking and thinking about these questions is something very healthy for you as a potential user of these currencies.

Now let's start the topic, and make you understand what digital currencies are easily and simply.

Types of digital currency?

Digital currencies, digital currencies, cryptocurrencies, electronic currencies, and cryptocurrencies are all synonyms for one meaning.

 

 

Digital currencies are currencies that have no physical basis. They are produced, circulated, and used in purchases, often through the Internet.

It is traded in a peer-to-peer manner. That is, there is no mediation in dealing (unlike regular currencies in which banks are mediators)

Digital currencies are decentralized currencies, meaning that no government or regulatory entity manages or issues them.

The recording and monitoring of trading operations in digital currencies are supported by prospectors or miners.

The most important digital currency

Bitcoin appeared in 2009 as the first cryptocurrency, and many netizens associate the idea of ​​cryptocurrency with Bitcoin.

 

They do not know more about the other currencies that appeared after him.

The shocking fact is that there are more than 1,500 cryptocurrencies to date.

But what dominates the scene and is most famous in the world of digital currencies is a small list of currencies, the most important of which are:

Digital currencies list

1. Bitcoin

Bitcoin is the first cryptocurrency, it appeared for the first time in 2009, and the real name of the inventor of this currency has not yet been announced.

 

However, its inventor chose the name Satoshi Nakamoto as his default name, and for the currency to be associated with this name, whose identity we did not know until now.

Due to the importance of this currency in particular, I recently wrote a topic that includes the most important questions about Bitcoin and the answer to them.

2. Ethereum

It appeared in 2015, and it is considered the strongest competitor to the first and comes in the second degree of importance.

 

Its price has now exceeded 900 dollars.

3. Litecoin

It was released at the end of 2011 by Charlie Lee.

Its price ranges between 200 and 300 dollars.

4. Ripple

It was released in 2012 by Ripple.

 

Although its price does not exceed one dollar, it is one of the most important and popular cryptocurrencies.

5. Namecoin

It was issued in 2011 and its price ranges from 3 to 5 dollars.

 

The idea of ​​digital currencies

 

The idea of ​​cryptocurrency is similar to the idea of ​​mining.

If there is a mountain that contains quantities of gold, some companies will likely bring the appropriate machines and start prospecting to obtain gold from this mountain.

Digital currencies are also based on the idea of ​​​​mining, so to start extracting digital currencies, you must obtain high-speed computers.

You download the software for mining and start the mining process.

But here the situation is different in some respects. Mining, or mining in the case of digital currencies, is aimed at solving a set of complex mathematical equations and algorithms.

The benefit here is in the form of grants provided by the cryptocurrency digital currency system to those who can solve these mathematical equations.

As for the benefit of the system itself, it depends on the fact that the miners, or miners, are the ones who record the trading operations on their own devices.

From this stems a strong encryption-based security system.

Here we are talking about how to mine fiat currencies. But this does not mean that mining is the only way to obtain digital currencies.

But there is a large currency market that you can buy through, and you can also sell your product online for digital currencies.

Think of it as a decentralized financial system, in which miners keep the system and record trades between users, and in return, the system gives new currencies to these miners.

In fact, the cryptocurrency system is more complex than that, but you do not need more than what has already been explained.

Benefits of cryptocurrency

 

• It allows anyone, anywhere in the world, to transfer money in minutes to anyone anywhere else.

• It is characterized by privacy, so no one can view your account except you.

• Featuring a genius security system, even large banks can hack their private networks, but cryptocurrency is very difficult if not impossible to hack into.

• This is due to the multiplicity of miners, each of whom has a record of all financial transactions from start to finish.

• There are tens of thousands of devices that maintain the blockchain.  It is a record of all cryptocurrency transactions)

• Absence or, at the very least, a decrease in the percentage of transfer commissions to the lowest possible level, a very small transfer commission that is never compared to commissions that are calculated in traditional financial systems.

• It will work to revive the trade movement, because of the unlimited ease of trading.

Risks and disadvantages of digital currencies

• In the absence of a supervisory authority that can be referred to for arbitration in cases of fraud and fraud, the user is absolutely responsible for his digital money.

• The absence of personal data for currency users, made it a means for suspicious transactions such as arms and drug trade.

• The state cannot charge taxes on commercial operations that take place through digital currencies.

• Taxes are supposed to be one of the most important sources of income for every country, as they provide health and educational services to citizens.

• Then digital currencies can harm the economy of countries in the long run.

• The fluctuation in the price of digital currencies causes concern to many and makes them closer to the speculative market than as an alternative currency.

• It is not completely reliable at this time.

• Billions of people around the world are not good at using the Internet and dealing with technology.

• On the other hand, many have the ability to use digital currencies, but they feel suspicious and suspicious of them.

In the end, I would like to stress that this article is not intended to encourage or intimidate you from using digital currencies.

 

But my purpose here is to give you knowledge.

Digital currencies now have a major role in global trading, so this cannot be overlooked.

At least now, you understand what digital currencies are.

I wish you success and do not forget to participate with us, and we are very interested in knowing your opinion or answering your inquiry, so just write to us in a comment

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