You have probably heard about it or have already thought about buying “cryptos”. In any case, it is worthwhile learning a little more about it. For simplicity’s sake, it can be said that cryptocurrencies are electronic currencies. Used initially for speculative purposes, they are accepted as a mean of payment by a growing number of providers (primarily bitcoin). But bitcoin is far from the only cryptocurrency. For example, have you ever heard of Ether or Litecoin? New cryptocurrencies are coming to the market almost every day. That's why you must inform yourself before buying any of them, seek financial advice if necessary.
Bitcoin and others, what distinguishes cryptocurrencies?
Bitcoin is the best known and most widely used cryptocurrency. It is also the one with the largest market capitalization. Bitcoin has been developed with the aim of building an independent financial system and enabling particularly advantageous, fast and transparent payments. It is therefore conceived as a currency. Ethereum, a competitor of Bitcoin and ether emitter, is an online platform designed to create a new structure for the Internet and a new type of payment traffic. In addition to ether and bitcoin, there are now more than 1,200 other cryptocurrencies. Some of these cryptos, use smart contracts and other very new technologies (we will explain this in future articles). A cryptocurrency is a virtual currency, it does not exist in the form of cash. Cryptocurrencies are not attached to a central bank as is the case for "classic money", or “FIAT”. The value of a cryptocurrency is based only on the current demand and is very volatile. For example, the value of bitcoin can increase or decrease by more than 10% or several thousand Euros in one day."Where and in what to invest?"
Turning to the cryptocurrency sector in 2018 may be particularly attractive for a trader. Whether he wants to invest in the short term as well as the medium or long term. Cryptocurrencies are very popular and have shown incredible growth in 2017. Investing in Bitcoin and other cryptocurrencies this year is a possibility to consider. You would need to do extensive research or turn to a financial adviser. With the explosion of Cryptocurrencies, scams and fake coins are also emerging. As with any other type of investments, we urge you to be careful and always have your financial stability in mind.