What are digital currencies and the most famous types?

Although digital currencies do not see with your eyes and do not touch with your hands; However, it brought about a revolution in the digital economy around the world; Rather, it came to the tendency of many central banks around the world to link their national currency to stable digital currencies, in an attempt by these banks to keep pace with the development in the world of online payments in a new economic era that depends on symbols and numbers on a computer screen

Digital currencies are numbers and symbols that you find on a computer screen or a mobile phone. Each currency has its own symbol or sign, but despite that it is influential in the global economy, especially with its widespread popularity in most parts of the world, at a time when large investors and men are trading Business in the world, led by Elon Musk, who promoted it with an investment of up to 1.5 billion dollars in these currencies, considering it the fastest way to obtain profit; He even recently announced the possibility of using cryptocurrency as a way to pay for his Tesla cars.. But despite all that, many people ask the most important question: What are digital currencies?

It is also called digital money, electronic money or electronic currencies, and it is a type of currency available in digital form only and does not have a physical presence such as banknotes or coins, yet it has the same characteristics in other financial currencies, so instant transactions and transfer of ownership are carried out without border; It can even be used to purchase various goods and services; It is a financial balance registered electronically on a card with a value stored on another device and circulated over the Internet, and it can also have a central point of the money supply that makes it stable digital money, and there are some decentralized currencies and the money supply is controlled through different sources

The most popular types of digital currencies Although some believe that digital currencies are only one type and that is Bitcoin; However, they are very many types. According to the “CoinMarketCap.com” website, which specializes in digital currencies, there are more than 6,700 digital currencies that are traded via the Internet in various countries around the world, and there are many companies that have started issuing their own digital currency that can be used. To purchase the services and products of the company, but with that there are types that are the most popular and widely traded in the world:

-Bitcoin BTC

This currency exists in the case of a virtual currency, which is the world's trading currency. The mechanism of the house works on the identity of the owner of the identity of its owner (the sender), the phenomenon of suicide for securities (the sender), and the phenomenon of use in the operations of washing and illegal transactions, and this makes it difficult to identify its financial rules, or to be regulated by financial institutions, as they do not allow this It is learned that the state that defends trade and demand.

-Ethereum ETH

One of the most famous digital currencies trying to compete with Bitcoin, it was created in 2015 and did not have a strong circulation until 2016 when 500 wealthy companies gathered to discuss and unite efforts to develop the technology network and this currency was supported to be a destination for digital currencies between the company and the acceleration of decentralization in the global economy. Although it is volatile, it can be used as a financial asset for traders, as it is distinguished from Bitcoin in that it allows traders to run any program to access it via a decentralized application and is not controlled by any individual or central system; So it is a convenient technology investment between companies.

-Tether USDT

It is a digital currency that converts recognized currencies such as the dollar or the euro into a digital currency that follows a well-known protocol, which is the “Omni Layer” in the trading platform, and its first appearance dates back to 2014 and is headquartered in Hong Kong. Each currency is backed by one US dollar, which means that the US dollar reserves are in an equal amount with the currencies, and its purpose is to combine digital currencies and fixed currencies such as the dollar.

-BNB Binance Coin

It is a cryptocurrency used as an intermediary when exchanging money from one currency to another. It was founded in 2017, by a Chinese company called Beijie Technology in Hong Kong, which operates Binance, one of the world's most successful exchanges in the world's leading and well-known cryptocurrency.

-Dogecoin DOGE

Founded in 2013, Cryptocurrency is an instant, cheap and fun payment system that does not contain the costs involved in banking transactions, and is basically a modified version of the popular Bitcoin. Dogecoin started as a joke and was symbolized by the image of a Shiba Inu dog, and was worth fractions of a cent at the time of its launch, but in a short time it gained supporters and buying increased dramatically until it increased in value by 6000%.

There are many digital currencies that are very popular among investors, but this was an article for the most famous.