A cryptocurrency (or crypto) is a cryptographic (= encrypted) electronic
currency supported by a decentralized computer network and whose
transactions and transmission are based on cryptographic algorithms.
number of units in circulation and the maximum money supply are in
principle defined in advance and visible to all.
Until proven otherwise,
a cryptocurrency cannot be counterfeited or usurped.
It does not depend
on a central bank or a state.
The principle of value scale that defines
it is the same as that of the current currencies (or FIAT currencies:
i.e. €, $) that we use on a daily basis. But its difference is that it
is only virtual.
Therefore, there is no banknote or physical
The other difference is that this currency is
encrypted, i.e. it can only be used by a person who has the code to
decrypt the currency. Cryptocurrencies operate using a computer
technology called Blockchain (or secure public registry). And it is
precisely these networks, these blockchains, that make cryptocurrencies
the most secure currencies in the world.
A cryptocurrency is not
necessarily intended to provide a payment system between users. It can
allow for remuneration, exchange of services, loans, etc.
that is done with a traditional currency is therefore reproducible and
possible in the same way with a cryptocurrency.
The first to have been
created, and the most emblematic of all, is of course the Bitcoin.
Alongside the main cryptos (Bitcoin, Tether, Ethereum, Monero, EOS,
Ripple, Litecoin,...), thousands of other cryptos (or AlterCoins) are
trying to make their.
Each cryptocurrency is listed on one or often
multiple non-harmonised marketplaces or platforms. Hence, there are many
possibilities for arbitrage ...