- Cryptocurrency

Crypto and digital money: everything you need to know before you start

While Bitcoin, XRP and Ethereum are the best known, cryptocurrencies have been constantly evolving in recent times, and are becoming real investment references. But what do we need to understand about virtual currencies and what are their real uses?

Definition of a cryptocurrency

Considered as virtual currencies, cryptocurrencies function as new, more secure means of payment and investment. A whole encryption procedure has been put in place to create the blockchain, this specific concept that has made it possible to differentiate between the increasingly numerous categories of cryptocurrencies currently in use.

Moreover, creators of virtual currencies are free to define the exchange process that interests them and the limits of use of these digital currencies, which explains the presence of different categories of virtual currencies. But in any case, Bitcoin is now a reference, and so is Ethereum.

Payment using digital assets

Because your cryptocurrency balances can never be changed into a ticket, the only option you have left is to use it as a payment method on sites that accept this type of transaction. To do this, you will go to the specialized sites to open your portfolio in virtual currency, in exchange for a commission.

In any case, you will be asked for proof of your identity and it is better to have it in digital format when you register on a cryptocurrency exchange website. As soon as this step is completed, you will be able to increase your portfolio by purchasing cryptocurrency from reference sites such as Bitcoin, Ethereum, Litecoin and XRP.

For all your cryptocurrency transactions, you will need to find out the unique alphanumeric address of the person to whom you want to make a transfer, then indicate the value in euros or cryptocurrency to be transferred. The “principales places de marché ou bourses” can be found on this website!

Understanding how a cryptocurrency works

To be valid, a cryptocurrency is based on peer to peer, a decentralized storage mode that can be supplied with different kinds of currencies. For those who want to invest in virtual currencies, portfolios are managed by a CFD or Contract for Difference, a form of financial market speculation that does not require the purchase or sale of underlying assets.

To put it simply, the cryptocurrency market remains interesting, because price variations are always real and you can count on a virtual currency that does not yet have its maximum liquidity volume rate.

Trading platforms

For easy access to your digital currency portfolio, you can use the simple platforms that offer you liquidity risk management and where transactions are simplified.

In another level of cryptocurrency transactions, trading platforms (such as Coinbase or Binance) invite you to buy or sell virtual currencies, much like what you would do for stock market investments. However, you must have a certain level of experience to stay one step ahead of market fluctuations

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