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What are Digital Currencies?

Digital currencies are decentralized coins, which means that they are not controlled by banks and governments. While fiat currencies supply is easily manipulated by central bank authorities, digital currencies are mined and depended only on their algorithm capacity. For example, the maximum amount of Bitcoins that its algorithm is able to mine is 21 million coins.
After Bitcoin, there were many other digital coins, which are called altcoins. Digital currencies like Ethereum, Ripple are created for certain purposes and they are based on how Bitcoin was launched.
A very important term is blockchain. Simply put, a blockchain is a method of storing the digital currencies in a public ledger that is connected with each and every digital currency.


Digital currencies are created using cryptography to process transactions. Bitcoin is the most popular among them, as the first virtual coin which came into light in 2009.


Bitcoin is the first and the most popular digital coin, still the most valuable among the others. It uses peer-to-peer technology to allow transactions between parties without bank authorities interfering. Bitcoin is open-source, no one controls it but everyone can take part. Bitcoin’s price grew up significantly in a short period of time, and now it is considered to be one of most powerful assets in financial markets. Among many unique properties, Bitcoin allows people to send and receive capital converted in Bitcoin without any restriction or charges.


Ethereum is also a decentralized open-source system that produces its own digital currency, Ether. Ethereum serves as a platform for the creation of many other digital currencies. Ethereum was first mentioned in 2013 by Vitalik Buterin, and it was launched on July 30, 2015. Its main purpose is to serve as a platform where other digital currencies and applications can be created. It is considered as the safest and resistant platform against fraud and downtime.


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