What is virtual currency? Understand how it works and how to invest
Discover virtual currency (cryptocurrency): secure digital money with encryption, controlled unit creation, and precise asset transfers. Learn about Bitcoin and other cryptocurrencies.
What is virtual currency?
Virtual currency, also known as cryptocurrency, is a form of digital money that uses encryption for secure transactions, controlled creation of new units, and accurate asset transfers. To grasp cryptocurrency clearly, think of Bitcoin, created in 2008. Following it, various digital currencies emerged with unique technologies, such as Ethereum, Litecoin, and many others.
How do virtual currencies, or cryptocurrencies, work?
To comprehend virtual currency, you must grasp the functioning and usability of each, at least of the most adopted ones in the market. Cryptocurrencies are used for investments, online transactions, and buying goods and services. They also serve as a means to accumulate capital, representing an important store of value. It's worth noting that virtual currencies are characterized by price volatility and the absence of coordinated global regulation. Each country has its own regulatory guidelines, or none at all.
Blockchain technology underpins cryptocurrencies, a vast digital ledger operating across computers worldwide. Every cryptocurrency transaction is validated and recorded on the blockchain, which will be further explained in the next section.
What is blockchain?
Blockchain is the network where transactions on assets, whether cryptocurrencies or other encrypted assets, are recorded. To comprehend cryptocurrency's functioning, it's essential to have a basic understanding of blockchain. This technology creates a robust transaction record, functioning as a public and open database responsible for the history of operations carried out with each digital currency.
The blockchain ensures that the same bitcoins are used only by one investor. This provides a high level of transaction security for cryptocurrencies. All information recorded on the blockchain is encrypted, allowing identification of the wallet tied to a transaction while protecting the owner's data.
What are the main cryptocurrencies?
Bitcoin is the largest and oldest cryptocurrency in the market, currently valued at $29,000 per unit according to CoinMarketCap data. While Bitcoin is the most well-known virtual or digital currency, it's worth noting that other sought-after cryptocurrencies include Ethereum, Tether, XRP, Binance Coin, USD Coin, Cardano, Dogecoin, Solana, and Polkadot. These virtual currencies are among the top 10 largest in the world.
So, it's important not only to understand how to invest in Bitcoin, but also to seek information about making money with other digital currencies. Another valuable detail is to know what a token is, which symbolizes an electronic representation of a real asset used in cryptocurrency trading.
How do I buy cryptocurrencies?
The most common way to buy cryptocurrencies is through an exchange, which is another name for a crypto broker. So far, you've received relevant information about what a cryptocurrency is and how it works. Now, how can you make money with digital currency and the crypto market?
Where can I buy cryptocurrencies?
It's worth emphasizing that choosing a reliable platform to invest in virtual currency is crucial to ensuring better returns on your investment. Therefore, seek the support of reputable cryptocurrency exchanges in the market. An excellent option is the Digtra.com platform, which combines the security and experience of the traditional financial market with the innovation of the digital asset segment.
To achieve this, the company relies on two key features: zero fees for trading any crypto on the platform and the Trade to Earn program, which pays clients for their trades on the platform. Learn more here!
Now that you know where to buy cryptocurrency and invest intelligently, all that's left is to access our platform to increase your chances of successful investments in digital currency.
Trade cryptocurrencies with safety and transparency. Download the digitra.com app! You will also get an instantly 50 DGTA tokens for new customers.