Without a doubt, Bitcoin is the most famous cryptocurrency, i.e., a form of digital currency that uses cryptography to ensure the security of transactions. In a context of different cryptocurrencies (e.g., Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Cardano (ADA), ICO and Token…), Bitcoin was born with the aim of representing a peer-to-peer payment system without any intermediaries.
The high level of security of cryptocurrencies depends on their use of blockchain technology, that is, a decentralized digital log that records all transactions with a specific cryptocurrency; it is unalterable and is shared among all users of the network. Other systems could be mining and wallets.
Cryptocurrencies are characterised by high volatility as they are linked to various factors such as market news, regulations, investor choices and emotions. While this feature makes the cryptocurrency instrument able to offer great investment opportunities, on the other hand it also involves significant risks.
In addition, it is an instrument regulated differently from country to country, making it necessary for the investor to have an excellent knowledge of the legislation as well as of the typical characteristics.
You will find this and much more in the dedicated online course that ProFinance Institute has designed to provide a valuable guide for your investments.