The Exchange (DCE) is a business that allows its clients to trade or exchange cryptocurrencies. A cryptocurrency exchange can be a financial institution that collects transaction fees for its services or a trading platform that simply charges fees for each transaction. A crypto exchange can be a business with a physical presence or a strictly
In order to analyze the opportunities, risks and challenges associated with cryptocurrencies, it is necessary to become familiar with the definitions, characteristics and key concepts that build their foundations. Next, we will discuss the basic terminology associated with cryptocurrencies. Bitcoin Bitcoin is the branded cryptocurrency that most users are familiar with. This cryptocurrency operates
According to Mankiw, N.G. and Ball, L.M. (2013), In economics money is defined as an asset (a store of value) which functions as a generally accepted medium of exchange, i.e., it can be used directly to buy any good offered for sale in the economy. Types of Money 1. Fiat money: It has no intrinsic
A cryptocurrency is a digital money-asset that functions as a trading instrument, such as any currency. The Cryptocurrency is based on the principles of cryptography, a method that does not allow third parties to access information. The Cryptocurrency leverages blockchain technology to gain decentralization, transparency and immutability. Their production, storage and handling, as
The most important characteristics of the cryptocurrencies are the following: They are a “peer-to-peer” decentralized electronic money form that is based on the principles of “cryptography” to secure the network and verify transactions. Most cryptocurrencies use a “Distributed Database” as the backbone of their system, the so-called “Blockchain”. They can be used with full anonymity,
The word cryptocurrency was first described in 1998 by Wei Dai (computer engineer) in the mailing list of cypherpunks. His desire was to create a currency based on cryptography to ensure its creation, ownership, and fraud, while government involvement would be permanently banned and permanently unnecessary. In 1998 he published an article in which he
Today, cryptocurrencies have become a global phenomenon that may not be familiar to most people. The vast majority of people have very limited knowledge of what cryptocurrencies are. So what are cryptocurrencies??? The cryptocurrencies belong to the group of virtual currencies. They are seen as a digital currency instrument such as ‘classic’ currencies, but rely