Cryptocurrency knowledge learning ，Understand how it differs from virtual currencies

Cryptocurrencies adopt crypto technology and decentralized blockchain to ensure transactions are secure and reliable ，For example, Bitcoin 、Ethereum, etc.

Many new cryptocurrencies who are new to the currency circle ，Often don't know the difference between cryptocurrencies and virtual currencies ，And in the process of investing in cryptocurrencies ，Cognitive impairment ，This will not only analyze cryptocurrency types for crypto novices 、principle 、Impact of operating mechanism and future price trends ，There will be missed investment opportunities as a result 。In fact ，Cryptocurrencies and virtual currencies are not only in common ，There is a clear difference ，Cryptocurrency is one of the categories of virtual currencies ，Its core feature is decentralization 。In this article ，We will provide newbies with a full range of cryptocurrency knowledge ，Detailed introduction to what cryptocurrency is 。

one 、What is cryptocurrency ？

Learn about cryptocurrencies

Cryptocurrency refers to a virtual currency based on cryptography technology ，Highly secure and decentralized 。Its issuance and management do not rely on traditional central banks or government agencies ，They only exist in virtual networks ，And use blockchain technology to verify and record transactions 。Blockchain is a public database composed of transaction records ，Each transaction is verified and added to the end of the chain ，Due to the technical characteristics of blockchain ，Cryptocurrencies are available worldwide 。

two 、How cryptocurrencies work

The operation of cryptocurrencies is achieved through blockchain technology ，Blockchain is a public database composed of transaction records ，It records all transaction information ，Each transaction is verified and cryptographically ，Add to the end of the chain and connect to the previous block to form a chain ，Repeated transactions ，This will enable the entire cryptocurrency network to function normally 。

three 、Cryptocurrency vs Virtual currency ：What's the difference ？

What are the characteristics of cryptocurrencies ？

✧ The core of cryptocurrency is blockchain technology ，All transaction information is recorded in the blockchain network ；

✧ Cryptocurrencies have decentralized features ，Not regulated and controlled by any central agency ；

✧ Cryptocurrencies are highly secure 、Highly anonymous feature ，No asset losses due to attacks ；

✧ Every transaction in cryptocurrency is publicly verifiable ，Transparent and trustworthy transactions ；

✧ The total amount of most cryptocurrencies is constant ，There will be no inflation too quickly ，This will drive price appreciation ；

Four 、What's going on with cryptocurrency mining ？

During cryptocurrency trading ，Computer operations are required to solve complex mathematical problems ，Thus, the power to keep accounts ，Accounting rights can verify and record cryptocurrency transactions on the blockchain ，And get a certain cryptocurrency as a bookkeeping reward ，This process is called “Proof of work ”（Proof of Work），The computer that grabs the right to record is called a miner 。In general, ，Obtain the right to record the problem by calculating the problem ，The process of verifying transaction records to the chain to obtain rewards is also known as the process of cryptocurrency mining. ，It is the key to the maintenance and safe operation of cryptocurrency networks 。

five 、The difference between cryptocurrencies and virtual currencies ？

Cryptocurrency is one of the types of virtual currencies ，The main difference between cryptocurrencies and virtual currencies is the technology and how they work 。Cryptocurrencies adopt crypto technology and decentralized blockchain to ensure transactions are secure and reliable ，For example, Bitcoin 、Ethereum, etc. 。Virtual currencies are usually digital currencies issued and managed by centralized institutions ，No blockchain support ，For example, game coins in the game 、Points, etc. 。Cryptocurrencies have higher security and anonymity ，The use of virtual currency is usually restricted and controlled by centralized institutions 。

six 、Cryptocurrency Types ：What are the popular cryptocurrencies ？

1、Bitcoin (BTC)

Bitcoin （BTC）It's the first 、It is also the most famous cryptocurrency ，By a person named Satoshi Nakamoto 2009Creation in the year 。As a decentralized digital currency ，Its operations are maintained and managed by node networks around the world 。The total supply of Bitcoin is limited ，There are a total of 2100Ten thousand ，This makes it an anti-inflation asset 。Due to its wide recognition and market demand ，Bitcoin is gradually becoming a digital payment tool and investment asset ，Influences the global financial and economic system 。

2、Ether Coin (ETH)

Ether Coin （ETH）It is a popular cryptocurrency ，It's Ethereum （Ethereum）Network platform tokens 。Ethereum is an open source smart contract platform ，Allow developers to build and deploy decentralized applications （DApps）。Ethereum is used to pay transaction fees and reward miners on the Ethereum network 。Ethereum's smart contract capabilities make it in decentralized finance （DeFi）、Non-fungible tokens （NFT）It has been widely used in fields such as 。Its unique features and wide application make Ethereum an important digital asset that has attracted much attention in the cryptocurrency market. 。

seven 、Summarize

In this article ，We've explained what cryptocurrency is ，The difference between cryptocurrencies and virtual currencies ，Common types of cryptocurrencies 、Things you must know about entering the currency circle and other content ，These contents are confusion and difficulties that newcomers often encounter when encrypting newbies ，I hope this knowledge can help crypto novices better understand the coin circle ，Understand how cryptocurrencies work 。