How_Money_Works_-_The_Facts_Visually_Explained

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PERSONAL FINANCE

Money in the digital age

The total worth of all coins and

their daily trading volume

A high total worth can indicate a

high value per “coin”, or it can simply

mean that there are a lot of coins in

circulation. The daily trading volume

is an indicator of the number of coins

that change hands in a day. It is best

to review the two statistics together.

A cryptocurrency that has a very

substantial trading volume as well

as a high market capitalization is

likely to have a high value.

The means used to secure and

verify transfers

Different cryptocurrencies have

varying ways of verifying and

securing transactions. The systems

rely on complex mathematical

problems, and their effectiveness is

based on the time a transaction takes

and its vulnerability to attack. Most

currencies use one of two systems,

Proof of Work (bitcoin) or Proof of

Stake, or a combination of both, to

ensure the best network security.

HOW TO VALUE CRYPTOCURRENCY

700+

number of

cryptocurrencies

available for

trading

CONTROL

Secure encryption

is built in to the code

of each virtual coin.

Continually changing

complex mathematical

puzzles prevents

counterfeiting.

STORE

Cryptocurrencies

are held in the digital

wallets of individuals.

Records are kept

on a virtual

ledger.

TRANSFER

Anyone with

online access can

make transfers. Such

transfers are virtually

anonymous and their

fees low or negligible.

VALUE

Cryptocurrencies

become more valuable

when they are easier to

use, transaction time is

faster and more secure,

and the number

of retailers using

them rises.

MAKE

“Miners” create

virtual “coins” using

special hardware.

The coins are then

registered on an online

public ledger.

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