Bitcoin: what are the most used cryptocurrencies and what is their value?
Cryptocurrencies or virtual currencies have become, in a world increasingly dominated by technology, an option to make your money profitable.
In addition to getting more investors to join the wave of cryptocurrencies, there are also several companies that currently allow the use of this digital currency to carry out transactions related to their products or services.
Since its name, in 2009, saw the light, bitcoin has not ceased in its purpose of consolidating itself as a fully digital currency, and it is almost certain that on more than one occasion you have heard about its purchase and sale or the market of cryptocurrencies, especially if you were looking for information about where and how to invest your money.
It is that bitcoin and cryptocurrencies have become an option for those who have surplus money and want to make it profitable, but what is a cryptocurrency? In simple language –as stated in My BBVA digital guide– a cryptocurrency is “digital money”. And it fits that definition because "its purchase, sale or exchange is carried out virtually, without the need for intermediaries."
MOST USED CRYPTOCURRENCIES
The first cryptocurrency or cryptocurrency that operated in the international market was bitcoin, but later others have been created, promoting a market that these days is gaining more followers. Thus we have:
Bitcoin: It is recognized as the cryptocurrency that started the entire movement of digital currencies by presenting itself as an alternative to the traditional monetary system. It is the most popular and the fluctuations in its price have a strong impact on the rest of the market.
Ether (Ethereumn) Considered the second most popular cryptocurrency, it is better known as Ethereum, which is the name of the digital platform that allows buying and selling transactions.
Litecoin Of a lower value, it is said that it works with a mechanism similar to that of bitcoin. This digital currency is easier to get and, therefore, it moves faster between people.
Dash This cryptocurrency is based on the Bitcoin code, but has a series of innovations in terms of security and speed to carry out transactions on the network.
DogeCoin Created in 2013, its name and image were inspired by a meme. Its operation is similar to that of other cryptocurrencies, but its popularity is due to the support of celebrities such as Elon Musk, owner of Tesla.
WHAT ARE CRYPTOCURRENCIES FOR?
Although its operation is totally digital, cryptocurrencies fulfill the function of a regular currency, so - like any other means of payment - they can be used to purchase products and services. But despite the fact that their use has expanded and is usually used more frequently in the main e-commerce platforms, they 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. Since April, the flexible space provider accepts 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?
Before starting in the business of buying and selling cryptocurrencies, it is important to take into account two basic concepts: ‘Blockchain’ And ‘Exchange’.
Known as a “chain of blocks”, the ‘Blockchain’ is the network on which cryptocurrencies work and stores all changes that occur immediately. In short, it functions as a kind of "ledger", which is public and accessible. While an ‘exchange’ is the platform that allows transactions with cryptocurrencies. In that sense, it works as an "exchange market" because it allows you to buy, sell or exchange your cryptocurrencies for local money, in our case for soles.
This is how cryptocurrency exchanges or platforms operate
Precisely, in the Peruvian market, are the platforms or ‘exchanges’ that allow you to buy, sell or exchange cryptocurrencies, such as:
a. Buda.com
Considered one of the safest sites to buy and sell cryptocurrencies. Trade bitcoins, ether, litecoin and other cryptocurrencies on a single platform for beginners and professionals. As they point out, more than 90% of the funds they handle are stored in vaults disconnected from the Internet.
b. Tradebitcoin.com
Being one, it is a ‘fintech’ specialized in the immediate exchange of digital values such as bitcoin and other digital currencies, 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 and Interbank
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.
e. 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.