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What are cryptocurrencies?

.. minutes read
What are cryptocurrencies?
In the space of just a few years, cryptocurrencies have become a subject that cannot be ignored. They have attracted tens of millions of people, who have invested more or less money in them. In this first part of our exploration of the world of crypto-currencies, we will define what a crypto-currency is, find out how to read a crypto-currency price, explain how to buy crypto-currencies and, finally, introduce you to some essential resources for learning about these digital assets.

Definition of a cryptocurrency

A cryptocurrency is a form of digital currency that relies on cryptography to guarantee the security of transactions and blockchain to guarantee its authenticity and value.

Unlike traditional fiat currencies issued by governments and central banks, such as the euro or the dollar, cryptocurrencies are generally decentralised, meaning they are not controlled by a central authority.

Cryptocurrencies operate on distributed computer networks called blockchains. Every transaction is recorded on the blockchain transparently and immutably, making it difficult to falsify or defraud. Cryptocurrencies can be used for a variety of purposes, depending on the region of the world, from simple transactions to long-term investments.

Reading the price of a cryptocurrency

The price of a cryptocurrency refers to its value on the market, most often expressed in US dollars or euros. Cryptocurrency prices are volatile, and can fluctuate quite wildly, although over the long term this volatility continues to fall. In 2022, for example, the Bitcoin price was less volatile than the Nasdaq index, which brings together all the technology stocks on Wall Street.

To read the price of a cryptocurrency, you can use specialist websites such as CoinMarketCap, CoinGecko, or cryptocurrency exchange platforms.

The price of a cryptocurrency is influenced by a variety of factors, including supply and demand, adoption by businesses and users, new government regulations, and developments in the underlying technology.

Which cryptocurrency to invest in

The choice of which cryptocurrency to invest in depends on your investment objectives, risk tolerance and understanding of the market. Some of the most popular cryptocurrencies are Bitcoin (BTC), Ether (ETH), XRP (Ripple), Litecoin (LTC), and many others. Each of these cryptocurrencies has its own characteristics, uses and future prospects.

Before investing, it's important to do thorough research, understand the underlying technology and assess the long-term growth potential. Diversifying your portfolio by investing in several cryptocurrencies can also reduce risk.

How to Buy Cryptocurrencies?

Buying cryptocurrencies involves going through a cryptocurrency exchange platform. Here are the general steps to buying cryptocurrencies:

  • Choose a trusted exchange platform: look for reputable and well-regulated platforms.
  • Create an account: register with the platform and complete the necessary verification.
  • Deposit funds: transfer funds from your bank account or use other accepted payment methods.
  • Put in orders: select the cryptocurrency you want to buy and place a buy order.
  • Store your cryptocurrencies: transfer your cryptocurrencies to a secure wallet, such as a Ledger Nano.

Get informed about Cryptocurrencies

To stay informed about the latest news, trends and developments in the world of cryptocurrencies, it's important to follow reliable sources of information. Here are a few sites and platforms to follow:

  • The Big Whale: We are a platform for information and services on topics related to cryptos and Web3 (languages 🇫🇷 & 🇬🇧)
  • CoinMarketCap: A website that provides detailed information on cryptocurrency prices, trading volumes and market capitalisations (language 🇬🇧).
  • CoinGecko : A website similar to CoinMarketCap that offers comprehensive data on cryptocurrencies (language 🇬🇧).
  • Cryptoast: A French-language site that publishes content on crypto and Web3 (language 🇫🇷).
  • Coindesk: The leading news site on crypto the Web3 (language 🇬🇧).
  • Blockworks: One of the leading news sites on cryptos and the Web3 (language 🇬🇧).
  • Messari: A cryptocurrency analysis and information platform (language 🇬🇧).
  • DLNews: A news and analysis website on blockchain and cryptocurrencies (language 🇬🇧).
  • The Block: A media outlet specialising in news and analysis of the blockchain and cryptocurrency markets (language 🇬🇧).

In the following parts of this article, we will further explore the different aspects of cryptocurrencies, from their underlying technology to their economic and social implications. Cryptocurrencies continue to shape our financial world, and understanding how they work is essential to making informed decisions.



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