To invest online on the price of the main cryptocurrencies on the market, it is possible to go through some online brokers offering this type of assets.
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The price of the main crypto-currencies
The main cryptocurrencies
While Bitcoin, the first cryptocurrency to be created a few years ago, has already experienced a very significant increase in its value, individuals who are looking for profitable assets in which to invest are increasingly interested in these virtual currencies that are gradually invading the market. It is true that this new way of settling goods and services online has something to seduce users as well as followers of speculation who see it as a first choice asset to invest in the short, medium or long term. But how to invest and trade these cryptocurrencies online and what should you know about this type of asset before you start speculating? This is what we invite you to discover today thanks to some explanations and practical advice. Reminder on the notion of cryptocurrency: What are virtual currencies really?
We call “cryptocurrency” the so-called cryptographic currencies, but also the very system that allows this method of payment from peer to peer.
In summary, we can explain cryptocurrencies by saying that they are virtual and dematerialized currencies, which therefore have no physical support. Cryptocurrencies therefore do not have coins or notes allowing their physical and material exchange. These currencies are also not usable with conventional bank payment methods such as bank checks or credit cards.
Cryptocurrencies are thus an alternative to conventional currencies. Because of their complete independence from the traditional monetary system, they are also not legal tender in any country in the world. This independence is also played out vis-à-vis gold or other currencies since their price is not indexed to any price of another value. Finally, it goes without saying that cryptocurrencies are also totally detached from any specific central management body.
However, cryptocurrencies are not considered risky currencies since they have, on the contrary, undeniable advantages in terms of their security and transparency. The cryptography system used for cryptocurrency transactions makes it possible to secure these transactions by systematically verifying and registering them in a public domain. Thus, users of crypto currencies have the guarantee of perfect confidentiality and real authenticity. The technology to encrypt these transactions is called “blockchain.” How can we get cryptocurrencies today?
To own and use cryptocurrencies at present, there are several different methods. For example, you can choose to sell a good or service online by requesting a payment in a virtual currency that will credit your crypto account.
Like any other currency, you can also get a cryptocurrency by converting another currency like the euro or the dollar. For this, there are several online services specializing in the conversion of currencies into crypto currencies, including Bitcoins. Of course and to convert some of your money into cryptocurrency, you will first have to register on a platform specifically designed for this purpose and provide some supporting documents such as a copy of your ID or a recent proof of address.
Now that you know how to get cryptocurrencies, you are probably wondering how they will be stored or kept since they are not materializable. In reality, the only way to hold cryptocurrencies is to own a specific wallet.
This wallet is ultimately a virtual account with an address in the form of a sequence of numbers and secured by a password. It is relatively easy to create this type of cryptocurrency wallet online through a platform dedicated to this purpose. It should be noted that each type of cryptocurrency has its own platform and therefore its own dedicated wallet, but some platforms allow you to hold several different cryptocurrencies.
The use of your cryptocurrencies, once held on your virtual wallet is quite simple and goes through an intermediary such as an exchange platform (broker) or software that you can download for free.
However, the service is not completely free and most of these intermediaries usually charge commissions on transactions made.
In view of this little information, it seems obvious that virtually owning crypto currencies is not necessarily the best way to invest in these assets of the future. We will see below how online trading is a more suitable solution. What are the main cryptocurrencies listed on the stock exchange?
You probably already know the most well-known cryptocurrency for individuals, which is Bitcoin, given that this virtual currency was the very first to see the light of day. But since that time, the cryptocurrency market has evolved significantly. While Bitcoin began to show limits in terms of the speed of execution of transactions in particular, other virtual currencies using blockchain technology have appeared and are possible to trade online.
To best guide your investment choice, we will present here the ten most important cryptocurrencies in terms of market capitalization in 2017:
- Bitcoin: Created in 2009, Bitcoin is still today the cryptocurrency with the highest market capitalization with more than $ 54 billion. It therefore still occupies the top of the ranking.
- Ethereum is positioned in second place in this ranking. This virtual currency created in 2015 has a market capitalization of nearly $ 27 billion.
- The third position in the ranking is occupied by the Ripple which was launched in 2012. This cryptocurrency has a market capitalization of nearly $7 billion.
- Bitcoin Cash, created in 2017 to compensate for the shortcomings of the original Bitcoin, is in fourth place in the ranking with a capitalization of $ 5 billion.
- In fifth place, we find Litecoin, created in 2011 and whose market capitalization is around $ 2.5 billion.
- The NEM, launched in 2015 and currently offering a market capitalization of $2.4 billion, ranks sixth in this ranking.
- The seventh place is currently occupied by the Dash, created in 2014. Its market capitalization currently stands at $1.4 billion.
- IOTA, recently launched in 2017, ranks eighth in this ranking with a market capitalization of nearly $1.4 billion as well.
- Then we find in ninth position the cryptocurrency Ethereum Classic, created in 2016 with a market capitalization of $ 1.4 billion also.
- Finally, the tenth and last place in this ranking is occupied by the NEO cryptocurrency, launched in 2016 and which capitalizes $ 937 million in 2017.
Of course, not all of these cryptocurrencies are necessarily offered by online brokers as an investment asset. However, you will have no difficulty speculating on the price of Bitcoin or Ethereum which are now very popular with investors around the world. Cryptocurrencies and their advantages as investment assets:
