crypto currency complete file

The article “Crypto currency (complete file): advantages, disadvantages, risks… our advice” was written by an experienced professional in wealth management. NetInvestissement pays particular attention to the quality, accuracy and objectivity of the information provided.

Summary

1.Reminder on the risk factor
2.Preamble: how does cryptocurrency work?
3.Cryptocurrencies: the advantages
4.Cryptocurrencies: risks and disadvantages
5.How to invest in cryptocurrencies?
6.What cryptocurrency to buy?
7.When to buy or

Introduction

With Bitcoin’s new recent “bull run” in mid-October 2020, exceeding a price of 13,000 dollars, you are more and more users are interested in cryptocurrencies and you are right. However, according to various polls, only 5% of French people hold it to date. It is therefore a recent asset class, still little known, but hokk finance deserves to be known and which will undoubtedly meet with more and more success and followers. Are you ready ? Here we go !

Reminder on the risk factor

Although I can’t imagine that you don’t already know it, I must remember that investing in crypto currency prices (all cryptocurrencies even stablecoins) involves a risk of capital loss. This does not mean that you should flee and throw yourself on the first passbook A that passes, especially since you lose money each month when you incek escort
place your money on a booklet A (0.5% return for inflation at 1.2% CQFD) but it is therefore important to bear this in mind and therefore to deal with it intelligently and in proportion in a diversified asset allocation.

Don’t panic, we’ll see it all together.

Preamble: how cryptocurrency works

To fully understand how the system of these virtual currencies works in the world, the easiest way is certainly to draw a parallel with the crypto gazipaşa escort
liquidity provider exchange currency prices that you know and that you have always been used to handling: the euro.

The euro is therefore a European currency, controlled, supervised and centralized via the ECB (European Central Bank). It is the ECB which sets and supervises what is called “the issuance of money”, also called the “money printing”. In other words, in consultation with the State banks (Banque de France) of each European country, the ECB ensures that it also controls exchanges and therefore in particular the value of the currency.

At the same time, the euro, like the dollar, the yen, the yuan, etc., is a strong and stable currency because it is precisely supervised, centralized by the banks, the latter also providing you with a kind of guarantee, guarantee of solvency of the value of this currency.

Cryptocurrencies: the advantages

Come on, let’s start with the positives and there are some. Investing in crypto currency prices indeed has many advantages for its millions of users. Indeed, when you want to invest your money, it is important to diversify your investments and why not go for big potential gains.

During the third quarter of 2020, we started to hear about the possible creation by the ECB (European Central Bank) of a European digital currency: the crypto euro or crypto-euro. This means that the major banking institutions are becoming aware of the digital revolution that is taking place in currencies and of the market’s desire to increasingly dissociate itself from traditional centralized financial organisations.

It therefore seems almost obvious to us that the future of money and global finance will be in cryptocurrencies.

Advantage #1: the future of global finance

If we are still only at dawn, the revolution has already begun. Just look at the trading volumes and global transaction volumes of cryptocurrencies that have been growing steadily since 2015. Dozens of new crypto currency prices are created each year, some more or less wacky or wacky (see the cons chapter below)

Choose to invest in cryptocurrencies such as bitcoin , Ethereum, Litecoin or Ripple (there are still many others worth considering). In view of their respective capitalizations , these cryptocurrencies are destined to become players in the economy of the future, starting today. Furthermore, if you are one of those who believe that the global financial system as we know it will collapse within fifteen or twenty years, then all the more reason to “tilt” into the 21st century by opening a free account to start trying out these new digital currencies.

Advantage N°2: It’s a new asset class

The second advantage of investing in cryptocurrencies is the one that consists of continuing your diversification by investing in a new class of assets, differentiating from those you currently have since they are virtual currencies (some are even in the sector video game).

Advantage N°3: very high potential performance

1000, 2000, 10,000%!! the performance of some cryptocurrencies makes you dizzy. This is obviously what interests and attracts investors first: these crazy figures!! these incredible returns that cryptocurrencies are able to generate. If we have witnessed 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.

Cryptocurrencies: risks and disadvantages

Everything in the universe, from the smallest fern leaf to the global financial exchanges, is all about balance. Everything rests on a certain form of balance, even if it is precarious. The more secure a medium is, the less profitable it will be.

Risk No. 1: volatility

The No. 1 risk of investing in cryptocurrencies is precisely… the very high level of risk.  Finally, as with any stock market investment, you must also integrate the time parameter into your strategy. Do not overreact too quickly to fluctuations and respect the caps and objectives that you have set for yourself.

Risk No. 2: the absence of centralized control

This is the paradox of cryptocurrencies. On the one hand we have the very concept of decentralization, the primary reason for the creation of Bitcoin ten years ago. Thanks to the blockchain and all its features, millions of stored transactions are supposed to be tamper-proof. These transactions are done “pier to pier” (yes there are a lot of Anglicisms in the world of cryptocurrencies, at the same time it is the Americans who have democratized them…). Pier to pier is translated into French by mutual agreement. In other words, live, without any intermediary.

What does that mean ?

An instantaneous transaction, without limit or border and of course without intermediary therefore… without commission. So certainly these commissions make it possible in particular to remunerate the control bodies such as banks, credit card payment companies, etc. which in return provide us with security and supervision of our purchases and our transactions, but all these controls slow down the fluidity. and the instantaneity to which we all aspire in today’s world.

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