What is a crypto currency? How to consider investing in crypto currencies? Our top 10 virtual currencies in circulation in the same way as the value of the leading live cryptomoney. Functioning, uses and recommendations, find out everything you need to know before investing in digital currencies such as bitcoin, ethereum, litecoin, ripple… which have no more virtual zest.
Crypto currency and virtual currency: what is it?
Definition of a cryptocurrency is the simultaneous designation of a cryptocurrency and a peer-to-peer payment device. These digital currencies are thus virtual currencies in the sense that they are characterized by an absence of physical support: neither coins nor banknotes and payments by check or cb are effectively not possible, in the same way. When a transaction is issued, it is transmitted and validated by the computers that make up the network.
This validation results from a calculation in which any person (or computer) can participate.
As soon as a transaction is validated, each computer having participated in its validation, is allocated an amount of cryptomonnaie, in proportion to its participation in the calculation. Participating in the calculation of cryptographic transactions requires a significant investment, since it is essential to invest in specialized systems such as fpga or asic (fpga or asic are two technologies; specialized systems combine the desire for the necessary computing power).
Other cryptomoney systems based on different algorithms enable less powerful systems to participate in the calculation. In fact, gpu (graphics card processors), or even cpu for some cryptosystems, are powerful enough to carry out calculations quickly. The participation in the monetary design, called « mining », follows a logarithmic scheme that aims to reproduce the experience of gold (or other precious metals). The main objective of most of these new crypto-currencies is to solve the problems of the previous ones.
One can for example quote litecoin which aims to make money transfers faster than with bitcoin.
Ethereum, which specializes in the development of intelligent contracts, or decentralized applications… or a whole package of crypto-currencies that aim to increase the number of transactions per second on the blockchain.
Other crypto like ripple, monero or, the sculptor, tezos can be mentioned.