What are cryptocurrencies and how do they work? A complete guide on the role of digital currencies, increasingly widespread and appreciated all over the world. What are cryptocurrencies and how do they work? Two legitimate questions, especially in light of the recent performances of Bitcoin ( UBTC Wallet ), Ethereum and Litecoin, just to name a few. At the height of the virtual boom, understanding what cryptocurrencies are and how they work is something of fundamental importance above all because, apart from criticism, they could really represent the future. A cryptocurrency is in effect virtual money, which we can not touch, but which bases its functioning on the principles of cryptography . We are talking about digital open source tools that exceed the concept of traditional money owned by governments and allow operations to be performed in security and anonymity. The information underlying the transactions in cryptocurrencies is stored and transmitted, but only