Digital money or virtual currencies have the same meaning and have served to publicize and familiarize terms such as cryptocurrencies or cryptocurrencies, which have broken into the technology and whose “Purchase, sale or exchange is done virtually.”
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That is why it is not surprising that cryptocurrencies have become an option for those who have surplus money and want to make it profitable, but because a cryptocurrency – as indicated in My BBVA digital guide– is synonymous with digital money, its use as a means of payment has also begun to become widespread.
And just as more and more investors are opting for cryptocurrencies as an investment alternative, there are also more companies that accept them for their transactions.
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MOST POPULAR CRYPTOCURRENCIES
Although your search in Google alone yields more than 7.6 million results and there are those who affirm that in the world they can be counted by thousands, the most important or popular in the market can be counted on the fingers of the hands. Thus we have:
1. Bitcoin (BTC)
Was the first cryptocurrency to appear and operate, in 2009, in the international market, and responsible for initiating the entire movement of digital currencies. Since then it has become an option for those who have surplus money and want to make it profitable by buying and selling fully digital currencies.
Bitcoin, BTC or new digital gold is the most popular cryptocurrency and after presenting itself as an alternative to the traditional monetary system, its price fluctuations strongly impact the rest of a market that these days is gaining more followers.
2. Ether / Ethereumn (ETH)
It is considered the second most popular cryptocurrency and it is better known as Ethereum, which is the digital platform that allows buying and selling transactions.
Precisely, Ethereum is considered a second generation blockchain because it has been built on the basis of the Bitcoin operating system, although with great differences, according to experts.
Of a lower value than the first two, works with a mechanism similar to that of Bitcoin. It is said to be easier to come by and therefore moves faster between people. It is also expected that it can be used, eventually, to pay for services and goods on a day-to-day basis.
Known in principle as XCoin, this cryptocurrency is based on the Bitcoin code, but with security and speed innovations to carry out transactions on the network. It was launched in January 2014 under the name XCoin but a month later it was renamed Darkcoin and in 2015 it was renamed Dash.
5. DogeCoin (DOGE)
Created in 2013, its name and image were inspired by a meme, as a joke. It works like other cryptocurrencies, but its popularity is due to the support of celebrities like Elon Musk, owner of Tesla. Like all digital currencies, DOGE can be bought and sold as an investment and can also be spent as money, that is, as a means of payment.
6. Tether (USDT)
Unlike other cryptocurrencies, Tether it is a stable currency because it is backed by fiat currencies like the US dollar. And that is why its denomination as USDT in the platforms results from joining the financial symbol of the dollar, USD with the T of Theter. That means, in theory, that its value is more consistent than other digital currencies.
7. Polkadot (DOT)
It was launched in 2020. Its founder, Gavin Wood, was part of the Ethereum development team. Since its launch it has had impressive growth.
8. Cardano (ADA)
Its method of operation speeds up transaction time and reduces energy use and environmental impact. Its operation is similar to that of Ethereum.
9. Solana (SOL)
In recent weeks, Solana It is one of the blockchain networks that is gaining the most fame and it has also had great scalability, due to the fact that in the last month its value has shot up by about 220%. It has an operations verification protocol known as Proof os History, which makes the platform work faster. Launched in 2019, 18 months ago, for a few days it has been the seventh most valuable cryptocurrency on the market.
10. Binance Coin (BNB)
Its name is an acronym made up of the words “binary” and “finance.” It was created in 2017. It has experienced continuous growth and that is why is considered among the ten best valued by users. It is the official cryptocurrency of the Binance exchange house.
HOW MUCH ARE CRYPTOCURRENCIES WORTH?
To begin with, the value of each cryptocurrency is variable and, therefore, many people buy cryptocurrencies to sell them and make a profit from it.
Although, in a search engine you can easily find the cost of a cryptocurrency, the same trading platforms also provide this information and in the local currency.
In the case of Buda.comFor example, the updated value of bitcoin is S / 212,187, ether or Ethereum is priced at S / 16,290 and litecoin is S / 908.01. In the last seven days these cryptocurrencies have reported growth of up to double digits.
While the dash is valued at S / 1,095, the tether at S / 4,205 and the Binance Coin at S / 2,058.
But, you should know that the cryptocurrency market works in a particular way and allows you to opt for purchases of fractions of a cryptocurrency, that is, depending on the money you want to allocate for your investment.
WHERE TO BUY AND SELL?
If you have decided to enter the business of buying and selling cryptocurrencies, you should start by knowing two basic concepts: ‘blockchain’ and ‘exchange’.
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.
‘Exchange’ is the platform that allows transactions with cryptocurrencies and works as an “exchange market” because it allows buying, selling or exchanging 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.