Cryptocurrency growth and collapse: beginner guide to crypto, coins, capitalization and assets
In the last decade, the world of finance has undergone a significant transformation with the appearance of cryptocurrencies. From Bitcoin to Ethereum and from Litecoin to Dogecoin, these digital currencies have captured the imagination of millions around the world. But what exactly is cryptocurrency? How do coins work? And why are they so valuable? In this article, we delve into the world of cryptography, examine its key concepts and provide a review of capitalization and assets.
What is cryptocurrency?
Cryptocurrencies are digital or virtual currencies that use cryptography for safe financial transactions. They are created as part of a process called Blockchain Technology, which records all transactions in a public book called blockchain. Each coin has a unique address, private key and public key, enabling users to safely send and collect funds.
The most famous cryptocurrency is Bitcoin (BTC), introduced in 2009 by a person or group with the help of the nickname Satoshi Nakamoto. Other popular cryptocurrencies include Ethereum (ETH), Litecoin (LTC) and Monero (XMR). Cryptocurrencies operate in a decentralized network, which means that there is no central authority controlling them.
coins: Krypto key
The coin is simply a digital currency that uses cryptography for safety and decentralization. Each coin has its own unique features, such as:
- Private key : The private key allows users to receive funds from other accounts.
- Public key : The public key allows users to issue coins on transactions.
- Blockchain : Blockchain registers all transactions in the public book.
Coins are stored in digital portfolios that can be based on software (e.g. metamask) or equipment based (e.g. Ledger). Users can buy, sell and trade coins using online exchanges or Peer-to-Peer markets.
capitalization: Cryptocurrency value
Capitalization refers to the cryptocurrency price. It is calculated by multiplying the total supply of the coin by its current market value. In other words, capitalization is a measure of how many investors are willing to pay for a specific coin.
The price of cryptocurrencies changes quickly due to various factors, such as:
- Market moods : Investors’ emotions and opinions affect prices.
- Delivery and demand : The balance between buyers and sellers determines the price.
- Regulatory changes : Government policy or law may affect market stability.
- Technical development : New functions, updates or partnerships can increase prices.
To ensure a better idea of capitalization, here are some current values of popular cryptocurrencies:
- Bitcoin (BTC): around $ 43,000
- Ethereum (ETH): around $ 3500
- Litecoin (LTC): about USD 200
cryptographic assets: the future of finances
Cryptocurrencies are not only digital currencies; They are also a new type of resource. Assets are an item that you can buy, sell, trade and store.
The concept of cryptographic assets is based on the basic cryptocurrency technology, which ensures:
- Decentralized : cryptocurrencies operate independently of central banks.
- Safe : Transactions are encrypted and protected by cryptography.
- Transparent
: All transactions are recorded in a public book called blockchain.
As the value of cryptocurrency increases, we can expect new cryptographic assets, such as Stablecouins (which are aimed at ensuring stable cryptocurrency price) and non -financial tokens (NFTS).
Application
Cryptocurrencies have gone through a long way since it was created in 2009. From Bitcoin to Ethereum, Litecoin to Dogecoin, these digital currencies have captured the imagination of millions around the world.
