Cryptocurrencies are a kind of digital currency, and have some relation to fiat money money (traditional currencies). However, cryptocurrencies and fiat money have huge differences. Among these differences we can mention the organization and control of them. In addition to how value is evaluated by users.

In the case of cryptocurrencies, these are not controlled by any government or institution, they are decentralized. In addition, its value directly depends on the trust of users. However, fiat money is completely opposite. It is up to the banks or the authorized central authority and governments for its operation. All this centralization allows these players to handle these currencies at their will.

Another main feature of cryptocurrencies is that they are based on cryptography. This seeks to ensure that operations are not easily modifiable. In addition, they are usually the source of open source projects (auditable to anyone). But most importantly, your accounting book (the blockchain or blockchain) is made up of a huge database network. Supported by thousands of computers around the world and operating decentralized and by consensus.

Another great advantage is that they are open source, anyone can access the code. With this they can develop a new cryptocurrency based on an existing one in the market. It also allows you to validate the code or detect different problems and failures. This obviously has a great impact on their safety and also ensures that their development is maintained over time.

Some important points

They are not controled/issued by any government or institution. Its value directly depends on the trust of your users. They're based on cryptography. They're open source. His accounting book consists of a network of computers forming its blockchain. Most of them have a high volatility. They allow you to conduct financial transactions in a decentralized manner.