Crypto, where to invest?
Wondering where to invest your capital in cryptocurrencies? Like any other investment, it requires a considered strategy and a clear understanding of the various options available. Beginners, discover our tips for getting started in crypto. This information is for information purposes only and cannot be considered as investment advice. Here’s an overview of investment categories to consider, each offering unique opportunities as well as risks to be carefully assessed:
Established cryptocurrencies
Bitcoin and EthereumSecond most important crypto asset by market capitalization. Ethereum blockchain has been launched
in 2015 by Vitalik Buterin, it is also used for other applications such as DeFi and NFTs. are often preferred by investors new to the world of cryptocurrencies, due to their established presence and recognition on the market. Bitcoin is widely regarded as the first cryptocurrency and enjoys great popularity, while Ethereum is renowned for its flexibility and rich ecosystem, enabling the development of a variety of applications.
While each investor must assess his or her own risk appetite, these two cryptocurrencies are frequently included in diversified portfolios due to their history and central role in the digital asset space.
Altcoins with potential
When exploring the altcoin« Alternative coin ». Any crypto asset other than Bitcoin. market, it’s wise to focus on those that offer promising technological innovations and have the potential to transform traditional industries. It’s important to assess their degree of adoption, the robustness of their community and the presence of strategic partnerships or institutional backing, which can be indicators of their long-term viability.
Here are just a few examples of altcoins: Binance CoinCrypto asset having its own blockchain, used as accounting unit, trade intermediary and value storage. (BNB), Ripple (XRP), Litecoin (LTC), Solana (SOL), etc.
Altcoins can be interesting additions to a diversified portfolio. However, it’s essential to remember thatpopularity is no guarantee of long-term success, and thorough analysis is always recommended before making any investment decisions.
Decentralized finance tokens (DeFi)
DeFi« Decentralized Finance », peer to peer blockchain based financial services such as staking. tokens are linked to projects that seek to replicate financial services, such as loans or currency exchanges, without going through traditional intermediaries like banks. These tokens can offer financial benefits, such as interest on deposits. Examples include Uniswap (UNI), Aave (AAVE) and Compound (COMP).
Non-fungible tokens (NFTs)
NFTs represent ownership of unique digital assets and can be used to tokenize works of art, collectibles and even real estate assets. Although the NFTA Non-fungible Token is a unique token issued on a blockchain through a smart contract. It is different from acrypto asset because it can’t be reproduced, however, it is still market is volatile, it offers opportunities for those who understand the field of art and digital collectibles.
Popular NFTs include CryptoPunks, Bored Ape Yacht Club (BAYC) and Decentraland (MANA).
Projects with a social or environmental impact
Some cryptocurrency projects focus on sustainability, reducing carbon footprints or supporting social causes. Investing in these projects can allow you to contribute to positive initiatives while seeking a return on your investment.
Here are a few examples of projects that have distinguished themselves through their commitment:
- Stellar (XLM) facilitates low-cost money transfers worldwide, particularly in underbanked regions;
- Power Ledger (POWR) enables decentralized energy trading by giving solar panel owners the opportunity to resell their surplus electricity.
Cryptocurrency exchange platforms
Tokens issued by cryptocurrency exchangeExchange platform for crypto assets (Binance, Kraken…) platforms can offer benefits such as:
- discounts on transaction feesFees related to operations; they sometimes are distributed to miners.,
- voting rights on platform decisions,
- a share in the profits of the exchange.
These tokens can increase in value as the platform develops and attracts more users.
Cryptocurrencies or digital currencies are terms commonly used in the crypto ecosystem. However, the terminology favored by regulators (ACPR and AMF) is crypto-assets or digital assets. This distinction arises because, although often referred to as cryptocurrencies, these assets do not qualify as currencies in the legal sense. They are virtual resources based on blockchainA blockchain is a type of distributed ledger technology. It is a huge database formed by blocks,cryptographically linked to each other, containing information such as transactions. These blocks are addedfollowing technology, whose value is determined solely by supply and demand.
None of the information contained in this FAQ constitutes investment advice, tax advice, legal advice, or any other type of advice, nor does it serve as an invitation to engage in any form of financial transaction.
Investing in digital assets carries risks and may not be suitable for all investors. It is the responsibility of investors to educate themselves about the risks associated with different digital assets. In particular, it is noted that digital assets can exhibit significant volatilityPrice variation of an asset on a given period., and investments in digital assets involve a risk of capital loss. Accordingly, it is important to remember that the past performance of digital assets, as might be indicated on Banque Delubac & Cie’s website or in documents provided to investors, is not indicative of future performance. Investors should familiarize themselves with the technologies underlying each digital asset and their associated risks, including vulnerabilities, defects, hacks, errors, protocol failures, or attacks on the protocol. Banque Delubac & Cie cannot be held liable for any misunderstanding of the risks associated with digital assets or for any losses investors may incur due to errors in walletPrice variation of an asset on a given period. addresses attributable to the investor.
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