Crypto currency: All about "the currency of the future"

October 10, 2021 | by: David Kodjani

Since the "bull run" of Bitcoin in mid-October 2020, more and more users are interested in cryptocurrencies.

With this article, we zoom in on all aspects of electronic money. From their definition to their operation, including their advantages and disadvantages, we tell you everything about "the currency of the future."

According to Le Robert (dictionary), cryptocurrency is a digital currency in use on the Internet, independent of banking networks and linked to a encryption system

Operation of cryptocurrency

Unlike common currencies, the very principle of crypto currency is based on the absence of any control body. This is why we speak of DEFI (Decentralized Finance) By dispensing with all the intermediaries, there is more reactivity because a cryptocurrency transaction is instantaneous and thanks to the alleged inviolability of the technology behind cryptocurrencies (the blockchain), it is "almost" impossible to alter a transaction.

Cryptocurrencies: the advantages

Investing in cryptocurrencies has many advantages:

  • It is not for nothing that it is nicknamed the currency of the future. Indeed one of the advantages of this currency is that it could be the future of world finance because the revolution has already started. As proof, the volumes of exchange and the volumes of global transactions of crypto-currencies which have continued to grow since 2015. In view of their capitalizations, cryptocurrencies are destined to become players in the economy of the future, as of today. . Having cryptocurrency now can therefore prove to be very advantageous for you over time.
  • Investing in cryptocurrency is investing in a new class of assets, differentiating from those you have currently seen that are virtual currencies. Cryptocurrencies can be similar to international currencies; without limits. With the new functionalities of these digital currencies, no need for conversion into a local currency anymore, you can pay in cryptocurrency anywhere in the world with a physical merchant or on the internet which, of course, accepts this type of payment.
  • The incredible returns that cryptocurrencies are capable of generating are of course what interests and attracts investors first. Even if there have been almost vertical take-offs at certain times, we must not lose sight of the fact that these are particularly volatile investments, that is to say, which are likely to undergo very large variations over a very short period of time.

Cryptocurrencies: the risks

Where there is an advantage, we do not look far before finding the disadvantage because everything in the universe is only balance:

  • The first risk of investing in cryptocurrency is precisely the very high level of risk. Indeed, a cryptocurrency can see its price unscrew in a few days, sometimes even in a few hours. The price of Bitcoin for example can perfectly be + 8% on day 1, + 17% on day 2 and -25% on day 3 and so on…
  • The lack of centralized control is also a risk. Paradoxically, the concept of decentralization on which cryptocurrencies were created 10 years ago constitutes a risk. Thanks to the blockchain and all of its features, millions of stored transactions are believed to be tamper-proof. These transactions are carried out "pier to pier" in French by mutual agreement. The absence of an intermediary thus removes the guarantee given by the banks in return for the commissions they receive.
  • As soon as there is money somewhere, it attracts all kinds of people, including "scams".scams cryptocurrency Unfortunately,have grown on the web. So don't buy your digital currencies anywhere, anyhow, especially if the promise is too good. Before you jump in headlong, take the time to learn about the founders of the site and the company.
  • Who says digital, internet says risk of computer hacking. Your cryptocurrencies are digital, you cannot withdraw them from an ATM. It is therefore necessary to ensure very carefully to secure them in what is called a Ledger key or a Ledger Wallet. It is a digital safe that can be transported on a secure USB key.

Investing in cryptocurrencies

If you want to invest in this new currency or acquire some cryptocurrencies, you will need to open an account with a platform. There are plenty of them on the internet, most of them in English. Be vigilant and above all, do not entrust your money to the first platform that passes. You could have some very expensive and unfortunate surprises.

Popular

  • Bitcoin
  • Ethereum
  • Ripple
  • Tron
  • Dogecoin
  • Litecoin
  • Uniswap
  • Stellar
  • Cardano
  • Polkadot

Users

In six months, the number of users has doubled, to 221 million in June. Their numbers jumped through April in the wake of the price surge, according to the crypto.com report. 114 million users (individuals and companies) held bitcoin in the first half of the year and 23 million ethers.

In Africa the countries most interested in cryptocurrencies are Botswana, Ghana, Kenya, Nigeria, South Africa and Zimbabwe, according to GoBitcoin. According to the BBC, Bitcoin is also gaining ground in Uganda.

For Yves Gozan, a young Togolese who is one of the users of electronic currencies and promoter of the Malicon Valley training center, a structure specializing in the training of cryptocurrency,... "The ecosystem offers many advantages for both traders and investors."

Remember that investing in crypto currencies increases risk of capital

Source: UN, La Tribune, NetInvestissement

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