Blockchain and cryptocurrency: what are we talking about?

Emerging in 2008, the blockchain constitutes the dematerialised support of the circulation of the famous Bitcoin, a virtual currency invented by a developer using the pen name of Satoshi Nakamoto.

It is about a digital process, insuring the storage and the transmission of information, in a secure and transparent way, in the absence of a central structure of control.

Although susceptible to be applied to numerous business sectors, it is firstly in the banking and financial domain that this technology develops at present.

What is cryptocurrency?

The cryptocurrency, also called "digital cryptocurrency" or "cryptoactive", is defined under French law as: any instrument containing in the digital unities form of not monetary value which can be kept or transferred with the aim of acquiring goods or services, but does not represent a debt for the issuer (monetary and financial code: article L. 561-2, 7 ° bis).

In other words, this type of alternative currency consists of tokens created through the Internet network and exchangeable between private individuals on various platforms.

Among all the cryptocurrencies, the currencies, of which more than a thousand were already accounted for, the best known after Bitcoin are in particular the Ether, the Litecoin, and the Ripple.

Why invest in cryptoccurencies?

Several experts consider the encrypted currency as a real innovation of which the high potential was not reached yet to this day. Numerous reasons are justifying the investment in cryptocurrency.

The blockchain allows to complete operations of which traceability is listed and is available for checking by all the users. The intervention of the traditional intermediaries having the role of trusted third parties (banks, solicitors, lawyers, etc.) tends also to disappear and the deadline for the transaction is also faster.

Just like Bitcoin, of which the rate of exchange has not stopped growing since its creation, other more and more recognised and accepted cryptocurrencies are becoming safe investments.

An additional benefit is the one of the divisibility of the cryptocurrency: no minimal threshold is to be respected for the purchase of assets. Thus, it is possible to invest in half of the currency, even in any lower fraction.

How to begin? Where to start?

The recent craze for what some well advised people claim to be the money of the future should not forget some fundamentals concerning the cryptocurrency.

If you choose to invest in the digital currency without knowing the risks related to such an activity, you will have all the chances to be unproductive, even to lose some money instead of gaining it.

Beside a thorough analysis of the market of crypto-actives and a certain business acumen, the mastering of good practices and errors to be avoided is an essential prerequisite before beginning. The most recommended solution is then to follow an adapted training according to your level.

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