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BITCOIN AND VIRTUAL CURRENCY: HOW TO INVEST IN THE CRYPTO CURRENCY?
THE CRYPTO CURRENCY
Article By Karl Poire
November 18, 2020, 10:44 am
CRYPTO CURRENCY AND VIRTUAL CURRENCY: WHAT IS IT?
Cryptocurrency is both a cryptographic currency and a peer-to-peer payment system. These digital currencies are therefore virtual currencies in the sense that they are characterized by a lack of physical support: neither coins nor banknotes nor payments by check or credit card are possible either.These are alternative currencies that have no legal status in any country of the globe. Their value is not indexed to gold or to the price of conventional currencies, nor are they regulated by a central body or financial institutions. There are no central banks at their heads. And yet security and transparency are their main assets! Cryptography secures transactions that are all verified and recorded in a public domain, ensuring both confidentiality and authenticity, thanks to the Blockchain technology.
Blockchain: the basic technology of cryptocurrency
Crypto currencies are all based on the same principle: the Blockchain. Cryptocurrencies are a series of digits stored on a computer in the form of blockchains. The principle is actually quite simple and particularly well explained in the article published in Les Échos Le Bitcoin et les crypto monnaies, new digital coins: "Take a database. Allow anyone to make changes to this database, only if you declare yourself a member. Put in place a very long and complex control procedure that must be carried out each time a certain number ("block") of changes is requested. This procedure is performed not by a single controller, but by all volunteer "members". Once validated, the "block" of changes is dated and added to the others in the register. Finally, allow everyone to read the registry, and you have a blockchain database." Thus, it is the responsibility of the network (all peers) to validate and confirm each transaction.
CLASSIFICATION OF VIRTUAL CURRENCIES BY STOCK VALUE 2020.
Coinmarketcap.com collects cryptocurrencies according to their market valuation. You may be wondering which cryptocurrency to buy or looking for information about which cryptocurrency to invest in or which cryptocurrency to trade in. Investors often favor highly capitalized cryptocurrencies and relatively high prices, reflecting confidence in the currency and relative strength of the token. Discover the ranking of the top 10 virtual currencies by taking into account their market capitalization, i.e. the total value of all tokens in circulation (price of a token X number in circulation).
3. Ripple (XRP)
5. Bitcoin Cash
6. Bitcoin SV
8. Binance Coin
HOW TO INVEST IN THE CURRENCY CRYPTO?
-Understanding Blockchain Technology
Before investing in this type of currency, make sure you understand this innovation and the technology behind it. This ultimately amounts to a complete study of the Blockchain technology from which cryptocurrencies originate. Also, pay attention to the details that differentiate the currencies: programming language, blockchain validation system, governance, the ability of the currency to adapt to a change in order of magnitude of demand, for example.
-Consider the limit of expansion of tokens
The unit of cryptocurrencies is called token. The number of tokens created can be limited, as is the case of Bitcoin which will be limited to 21 million Bitcoins in circulation, making the product relatively rare, which of course contributes to its value. But a cryptocurrency can also follow a deflationary pattern. In that case, the quantity of money in circulation is unlimited, which could eventually lead to stagnation (or even decline) in its price.
-Check virtual currency transparency
Favor a crypto currency with a website with clearly identified investors and developers, a presentation of the project, possibly a roadmap showing the technological advances planned. If none of this is accessible, mistrust, you could invest in a Ponzi scheme.
Article By Karl Poire