In this post I explain how to invest in crypto currencies. How it works, uses and recommendations, find out everything you need to know before investing in these currencies that have nothing virtual.

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Definition of a cryptocurrency

Cryptocurrency means both cryptographic currency and a peer-to-peer payment system. They are therefore virtual currencies in the sense that they are characterized by a lack of physical support: neither coins nor tickets and payments by check or credit card are not possible either.

These are alternative currencies that do not have legal tender in any country of the globe. Their value is not indexed to the price of gold or that of conventional currencies nor are they regulated by a central body. And yet, security and transparency are their main assets! Indeed, cryptography secures transactions that are all verified and registered in a public domain, ensuring both confidentiality and authenticity, thanks to blockchain technology.

The blockchain: basic technology of crypto currency

Crypto-currencies are all based on the same principle: the blockchain. Crypto currencies are a sequence of numbers stored on a computer in the form of block strings. The principle is actually quite simple and particularly well explained in the article published in Les Echos Bitcoin and crypto currencies, new digital parts: "Take a database. Allow anyone to make changes to this database, only if you declare yourself a member. Put in place a very long and very complex control procedure that must be performed whenever a certain number ("block") of changes is requested. This procedure is carried out not by a single controller, but by all voluntary "members". Once validated, the "block" of changes is dated and added to the others in the registry. Finally, allow the registry to be read to everyone, and you have a blockchain database. "

Ranking of the virtual currency according to its market valuation

The main cryptocurrency is Bitcoin, which experienced a fork in August 2017. A disagreement in the Bitcoin community about the speed of transactions led to the birth of a new currency: Bitcoin Cash, which immediately rose to third place in the Top 10 cryptocurrency and has been maintained ever since. in this Top 10.

Indeed, in parallel with Bitcoin, there are many other crypto currencies such as Ethereum for example which has also experienced a "fork" in the summer of 2016. We can also mention Ripple, Litecoin, Cardano, NEM, Monero, Stellar, or Iota and, of course, our famous STEEM that everyone expects a great success in the future. It should be noted that crypto currencies are numerous, that new ones can emerge and challenge the heavyweights of the sector but also that disagreements within a community can lead to a "fork", a split in the community and the creation of a new currency from the old technology but with modifications.

Coinmarketcap.com has made a ranking of crypto-currencies according to their stock market valuation.

Here is an inventory of fixtures as of January 10, 2018, shortly after the phenomenal rise of Bitcoin and its no less spectacular fallout :

1. Bitcoin

Date of creation: 2009

Market Capitalization as at January 10, 2018: $ 248.126 billion

Growth in 2017: +1 318%

2. Ethereum

Date of creation: 2015

Market Capitalization as at January 10, 2018: $ 128.334 billion

Growth in 2017: +9 162%

3. Ripple

Date of creation: 2012

Market capitalization as at January 10, 2018: $ 77.609 billion

Growth in 2017: +36,018%

4. Bitcoin Cash

Date of creation: July 2017

Market capitalization as at January 10, 2018: $ 45.612 billion

Growth since inception in July 2017 until December 31, 2017: +350%

5. Cardano

Date of creation: 2017

Market capitalization as at January 10, 2018: $ 19.659 billion

Growth since inception in October 2017 until December 31, 2017: + 282%

6. Litecoin

Date of creation: 2011

Market Capitalization as at January 10, 2018: $ 13.693 billion

Growth in 2017: + 5,046%

7. NMS

Date of creation: 2015

Market capitalization as at January 10, 2018: $ 12.933 billion

Growth since inception in June 2017 until December 31, 2017: +29 842%

8. IOTA

Date of creation: June 2017

Market capitalization as at January 10, 2018: $ 10.277 billion

Growth since inception in June 2017 until December 31, 2017: + 448%

9. Stellar

Date of creation: 2014

Market capitalization as at January 10, 2018: $ 9.831 billion

Growth over the year 2017: +14 441%

10. Dash