Cryptocurrencies: we explain it to you

(CNN Spanish) – The widespread adoption of cryptocurrencies has grown in recent years and in part, has sped up thanks to the covid-19 pandemic, since cryptocurrencies – such as Bitcoin or Ethereum – are seen as an investment to protect against inflation in times of economic uncertainty.

If you are a newcomer and you are thinking of entering this market, experts indicate that it is necessary that you do it with caution and education. “Many digital currencies have different use cases, and you must understand the value proposition of a potential investment before committing capital,” Grayscale Investments CEO Michael Sonnenshein told CNN.

Among the most important cryptocurrencies are Bitcoin (BTC), Ethereum (ETC), Binance Coin (BNB), Cardano (ADA) and Dogecoin (DOGE), and below we explain what are the differences between these cryptocurrencies, how they are created and the why of its volatility.