Cryptocurrencies for Investors.

By MAX EDITORIAL

Cryptocurrencies are a type of decentralized digital currency, which is not issued by any government or financial institution. They are based on blockchain technology , which is a distributed ledger system that guarantees the security and transparency of transactions.

Cryptocurrencies emerged in the 2000s, with the launch of Bitcoin, the first cryptocurrency to be created. Since then, hundreds of other cryptocurrencies have emerged, each with its own characteristics and functionalities.

Cryptocurrencies have the potential to revolutionize the financial system by offering an alternative to traditional currency systems, which are controlled by governments and financial institutions. They can also be used for innovative applications such as crowdfunding and creating peer-to-peer marketplaces .

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• Language: English
• Publisher: Max Editorial
• Release date: Feb 29, 2024
• ISBN: 9781779717115

Book preview

Chapter 1: Introduction

Cryptocurrencies are a type of decentralized digital currency, which is not issued by any government or financial institution. They are based on blockchain technology , which is a distributed ledger system that guarantees the security and transparency of transactions.

Cryptocurrencies emerged in the 2000s, with the launch of Bitcoin, the first cryptocurrency to be created. Since then, hundreds of other cryptocurrencies have emerged, each with its own characteristics and functionalities.

Cryptocurrencies have the potential to revolutionize the financial system by offering an alternative to traditional currency systems, which are controlled by governments and financial institutions. They can also be used for innovative applications such as crowdfunding and creating peer-to-peer marketplaces .

Chapter 2: History of Cryptocurrencies

Bitcoin was created in 2009 by an individual or group of individuals who identify themselves by the pseudonym SatoshiNakamoto . Bitcoin was designed to be a decentralized digital currency that was not controlled by any government or financial institution.

Bitcoin quickly gained popularity, and other cryptocurrencies began to be created. In 2011, Ethereum was launched , a blockchain platform that allows the creation of new types of cryptocurrencies and decentralized applications.

Since then, the cryptocurrency market has grown exponentially. By 2023, the total value of all cryptocurrencies in circulation is estimated to be around $1.2 trillion.

Chapter 3: How Cryptocurrencies Work

Cryptocurrencies are based on blockchain technology , which is a distributed ledger system that ensures the security and transparency of transactions.

Blockchain is a chain of blocks, each of which contains a list of transactions . Blocks are linked to each other using cryptography, which makes it very difficult to alter or falsify the information contained in the blockchain .

To carry out a transaction in a cryptocurrency, participants need to send and receive public and private keys. The public key is used to identify the recipient of the transaction, and the private key is used to sign the transaction.

Transactions are recorded on the blockchain and are verified by a network of nodes, which are computers that run cryptocurrency software. Nodes use a consensus algorithm to verify transactions and ensure they