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Cryptocurrencies: how do they work and use? | cryptocurrencies | Bitcoin | Ethereum | Dogecoin | Litecoin | Money | personal finance | nnda-nnlt | ANSWERS




Bitcoin, ethereumn, litecoin, dash, or dogecoin. They are only five of the dozen cryptocurrencies, cryptocurrencies or virtual currencies that these days not only arouse interest in the networks, they also add more men and women interested in investing and making their money profitable. money betting on a fully digital currency.

MORE INFORMATION: After the fall of cryptocurrencies, the prices of second-hand components soar

A coin, whose “Purchase, sale or exchange is done virtually, without the need for intermediaries”, so that They have not taken long to become an option for those who have surplus money and want to make it profitable. Since when? Since 2009, the year in which bitcoin appeared, the first cryptocurrency on the market.

THIS IS HOW CRYPTOCURRENCIES WORK

But, how do cryptocurrencies work? How is it possible to buy or sell them – as indicated in My BBVA digital guide – without the need for intermediaries? Why is it that when talking about cryptocurrencies we talk about money or digital assets?

As explained by the experts in its operation, each cryptocurrency has its own algorithm, which is in charge of managing –precisely– the number of new units that are issued per year. At the same time, They use cryptographic ciphers that, in addition to guaranteeing their ownership, also make transactions secure, making it impossible to make copies of the virtual currencies that are stored in digital wallets.

But, if you have decided to enter the business of buying and selling cryptocurrencies, you should also know others two basic concepts in the world of digital assets: ‘blockchain’ and ‘exchange’.

The network on which cryptocurrencies work is called 'blockchain' or “chain of blocks” and it stores all the changes that occur in its negotiation (Photo: Pixabay)
The network on which cryptocurrencies work is called ‘blockchain’ or “chain of blocks” and it stores all the changes that occur in its negotiation (Photo: Pixabay)

The ‘blockchain’ or “chain of blocks” is the network on which cryptocurrencies work and stores all the changes that occur in their negotiation, so it works as a kind of “accounting book”, which is public and accessible.

While ‘exchange’ is the platform that allows transactions with cryptocurrencies and works as an “exchange market” because in it you can buy, sell or exchange cryptocurrencies for local money, in our case for soles.

Precisely, in the Peruvian market, some of the platforms or ‘exchanges’ that allow buying, selling or exchanging cryptocurrencies are Buda.com, eToro, BTC Agent, Tradebitcoin.com and Capital.com.

HOW ARE CRYPTOCURRENCIES USED?

Although its operation is totally digital, cryptocurrencies fulfill the function of a regular currencyTherefore, like any other means of payment, they can be used to purchase products and services.




But despite the fact that its use has expanded and is usually used more frequently in the main e-commerce platforms, are not regulated by any financial entity, neither in Peru nor in any country in the world.

Even so, more and more businesses accept and promote their use, in sectors such as real estate, tourism, automotive, among others. Not long ago, for example, WeWork began accepting cryptocurrency payments, in partnership with BitPay, a cryptocurrency payment service provider.

Cryptocurrencies are already used to pay for different products and services, and they work just like any other means of payment such as cash or credit card (Photo: Pixabay)
Cryptocurrencies are already used to pay for different products and services, and they work just like any other means of payment such as cash or credit card (Photo: Pixabay)

Since April, the flexible space provider has accepted Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), Paxos (PAX), among other cryptocurrencies as a form of payment for its services. But it has also announced that it will keep this coin on its balance sheet, for which it will pay its owners and external partners in cryptocurrencies.

The same decision has been made by Elon Musk’s electric car company Tesla; While companies such as KFC, Microsoft, Expedia, WordPress, Reddit or Paypal are other of the many recognized brands that promote payment with cryptocurrencies and allow their users to make payments with this virtual currency or electronic means of exchange.

WHERE ARE THEY BUY AND SOLD?

In the Peruvian market, platforms or ‘exchanges’ allow you to buy, sell or exchange cryptocurrencies. Some of them are:

to. Buda.com

Considered one of the safest sites to buy and sell cryptocurrencies, both for beginners and professionals. Transaction bitcoins, ether, litecoin and other cryptocurrencies.

b. Tradebitcoin.com

Being a ‘fintech’ specialized in the immediate exchange of digital securities, in its more than eight years in the market, it has traded more than 1,697 bitcoins. It allows you to buy cryptocurrencies by depositing soles from a bank account of BBVA Continental, BCP, Interbank, Scotiabank and Banco de la Nación.

c. eToro

Self-defined as an intuitive investment platform, its users can acquire cryptocurrencies directly or through Contracts for Difference (CFDs), in addition to other financial instruments.

d. BTC Agent

They claim to be the safest experience for buying and selling cryptocurrencies in Peru. It allows transactions in soles and dollars to buy and operates with various banks such as BBVA Continental, BCP, Interbank, among others. For now they only offer bitcoin operations, but they enlist the entry of ether.

and. Capital.com

As a fintech company it is approved by the FCA and CySEC. It handles 135 currency pairs and a wide portfolio of cryptocurrencies (around 70) and other assets that allow you to invest in the local stock market.




TAMMY SEWELL
Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

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