What is a cryptocurrency ?
Definition of cryptocurrencies: A cryptocurrency is a 100% virtual asset, which, unlike banknotes and coins, has no physical form. The asset is exchanged peer-to-peer (P2P) without a trusted third party like banks. They have no physical medium like coins or banknotes, are not regulated, and are not indexed to the USD (us dollar) or gold for example.
Bitcoin (BTC) is the first official cryptocurrency to be created. Founded on January 3, 2009, by a certain “Satoshi Nakamoto”, Bitcoin has now become the leader of the cryptocurrency market, with a capitalization of close to 1000 billion USD (us dollars).
Why are cryptocurrencies being used in 2023 ?
More and more people are interested in cryptocurrency, although we are currently in “Bullrun”, cryptocurrencies hold many advantages.
A fully decentralized system
Most cryptocurrencies operate in a completely decentralized way, according to their algorithm. They are not under the control of government bodies, and all communication centers have the same rights and are equal to each other.
Reduction of transfer fees
Transactions in the cryptocurrency ecosystem are carried out on the P2P (peer-to-peer) principle, without the involvement of a central control body. Reduced network maintenance costs allow you to significantly reduce transfer fees.
Extremely fast transactions
Cryptocurrency transactions have a very high processing speed. Moreover, after adding a transaction to the blockchain, it becomes irreversible. The irreversibility of the transactions prevents the falsification of records and fraud in the system.
How do cryptocurrencies work?
Cryptocurrencies use decentralized technology allowing users to make 100% secure payments, also to store money without the need to go through a bank. Cryptocurrencies are based on a “Blockchain”, a self-managing network used to store and transmit a lot of information.
Blockchain, a revolutionary technology
The technology on which most cryptocurrencies are based is called the Blockchain. In order to understand blockchain, it is useful to first understand what a database really is. Definition: a database is a set of information stored electronically on a computer system. The purpose of the blockchain is to allow digital information to be recorded and distributed, but not edited. To secure this, several technical elements and processes exist. We often speak (especially for Bitcoin and all proof-of-work crypto-currencies) of mining.
Blockchain technology was first described in 1991 by Stuart Haber and W. Scott Stornetta. But it wasn’t until almost two decades later, with the launch of Bitcoin in January 2009, that the blockchain had its first real-world application.
What are the main cryptocurrencies ?
Currently, there are several thousand cryptocurrencies on the market, notably referenced on the CoinMarketCap website. But some of them stand out from the rest, such as Bitcoin, Ethereum (very popular for mining), or XRP.
Bitcoin : a very promising future
With a total capitalization of almost 1 trillion USD, Bitcoin is undoubtedly the number one cryptocurrency on the market. Bitcoin has a reputation for impacting all cryptocurrencies up and down when it fluctuates. Although some projects are very promising, it is currently and for some time to come, Bitcoin that will lead the market.
Since its creation, Ethereum’s goal is to become a global computer, it is considered the most promising blockchain outside Bitcoin. It aims to decentralize applications, and more recently all conventional financial services through its smart contracts. Today Ethereum is a very popular cryptocurrency notably for its technology but also for its mining profitability.
Ripple : a project in the community spotlight
Ripple’s XRP cryptocurrency has firmly established itself in the international financial transaction market. Ripple’s virtual currency, XRP, was originally conceived as an addition to Bitcoin. Its development began in the early 2000s when Canadian programmer Ryan Fugger developed the first sample, a payment system in the electronic version of RipplePay. Attention post crisis covid, the company behind the Ripple cryptocurrency has suffered attacks from several countries including the United States. Please inform yourself before making any potential investment. Translated with www.DeepL.com/Translator (free version)
Cryptocurrency ranking 2023: list of cryptocurrencies by capitalization and popularity
Many cryptocurrencies stand out from the pack, especially because of their very promising project and the very ambitious goals that the creators want to achieve in the long run such as:
Where to download the wallet : https://metamask.io/download.html
Creation date : 2016
Available cryptos : N/C
Number of users : +10 millions
Coin Academy’s opinion & comments : N/C
Wallet web adress : https://phantom.app/
Where to download the wallet : https://chrome.google.com/webstore/detail/phantom/bfnaelmomeimhlpmgjnjophhpkkoljpa
Creation date : 2021
Available cryptos : N/C
Number of users : +50,000
Coin Academy’s opinion & comments : N/C
Nowadays, being able to display, protect, exchange your funds (from trading) is essential for anyone interested in cryptocurrencies. Through many complex technical elements, hardwares wallets allow you to keep your funds safe and secure. You will find below a list of the best hardwares wallets available (in all countries) and a complete guide to get started.
Ledger wallet Nano X
The Ledger Nano X hardware wallet is the most popular in its market. Priced at $119, its interface allows you to view and exchange your cryptocurrencies securely. The Ledger Nano X will allow you to completely keep track of your coins and make a backup of them. Important elements: thanks to a recovery code, you will be able to recover your cryptocurrencies even if the password is lost.
The Safepal wallet allows on one hand to secure your assets, but also to manage them from a mobile application. Its product Safepal S1 is relatively inexpensive and offers all the features and elements that a novice needs (make a physical and digital backup of your cryptos and be able to exchange them).
Frequently asked questions about cryptocurrencies in 2023
What is the most profitable cryptocurrency?
It is always complicated to predict the price of a token, we can not know exactly what will happen. However, we advise you to take a look at our articles about some cryptocurrencies.
Which crypto will blow up in 2023?
It’s hard to predict which cryptocurrencies will blow up. However, by analyzing some charts and digging into some projects in depth, you can find a lot of very promising information. We have actually dug some projects such as Bitcoins (BTC), Ethereum (ETH), or Binance Coin (BNB) which post covid have been able to bounce back very well and perform for many months.
In any case, the current cryptocurrency market is very volatile, so we advise you to take profits on a regular basis to reduce your exposure to this market.
Which Altcoin to invest in 2023?
Altcoins are highly dependent on Bitcoin, the market leader. That’s why you need to take into account the slightly higher “risk” you are exposing yourself to when betting on Altcoins. Although the volatility of ALT’s can be a disadvantage, the possibility of multiplying your initial investment by 5, 10 or more is far from impossible, unlike Bitcoin (btc) which is much less volatile due to its large capitalization.
If you’re ready to invest, we advise you to position yourself in Altcoins with a horizontal market price, not a vertical one. Although crypto may continue to rise despite a strong increase, your risk/reward ratio is much less attractive, due to a potential correction when some whales decide to take profits. By taking a position in a cryptocurrency at a horizontal price, you expose yourself to a much more attractive risk/reward ratio. Very often the long term opportunities in cryptocurrencies arise when the market is not very volatile and there is little action.
How to invest on Ethereum ?