What are crypto-assets?
A crypto-assetDigital asset based on cryptography principles. Peer to peer traded, on a decentralized network, thanks to Distributed Ledger Technologies such as blockchain. The user is integrated into storage and transaction relies on cryptography and 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 to ensure its security and authenticate transactions. Unlike traditional digital assets, such as music files, videos, ebooks or software, which do not need the blockchain to exist, crypto-assets are intrinsically linked to this technology.
Crypto-currencies, such as 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 the best-known examples of crypto-assets. They serve as a “digital currency” and can be used for transactions or as an investment. However, crypto-assets also encompass other forms of tokens, including non-fungible tokens (NFTs), which represent unique assets and cannot be traded on a “one-for-one” basis like cryptocurrencies. Indeed, each 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 has unique characteristics that make it different from the others, and therefore they cannot be exchanged on an equivalent basis as is the case with cryptocurrencies.
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 blockchain 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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