The currency was developed by Satoshi Nakamoto in 2009, a mysterious figure who developed its blockchain. Bitcoin: Bitcoin was the first and is the most commonly traded cryptocurrency to date.What are the most common cryptocurrencies?
Transactions including bonds, stocks and other financial assets could eventually be traded using the technology. Users can also buy the currencies from brokers, then store and spend them using cryptographic wallets.Ĭryptocurrencies and applications of blockchain technology are still nascent in financial terms and more uses should be expected. Units of cryptocurrency are created through a process called mining, which involves using computer power to solve complicated maths problems that generate coins. They run on a distributed public ledger called blockchain, which is a record of all transactions updated and held by currency holders. How do cryptocurrencies work?Ĭryptocurrencies use decentralised technology to let users make secure payments and store money without the need to use their name or go through a bank. Here is everything you need to know about cryptocurrencies. These digital currencies are associated with cryptography, the process of converting legible information into an almost uncrackable code, to track purchases and transfers.Ĭryptography was born out of the need for secure communication, but it has evolved in the digital era with elements of mathematical theory and computer science to become a way to secure communications, information and money online. Ethereum, Dogecoin, Ripple and Litecoin are some of its most prominent rivals. There has been a proliferation of cryptocurrencies in the past decade and there are now thousands available on the internet, but Bitcoin remains the most well known. The first cryptocurrency was Bitcoin, which was created in 2009 and is still the best known.
Investors have made huge sums by throwing their cash behind new digital currencies, but their volatile nature means savers can just as easily lose their money. Cryptocurrencies – a kind of online money – have continued their march into the mainstream over recent years with the stock exchange listings of American brokers Coinbase and Robinhood, and adoption by mainstream investors and even countries, such as El Salvador.