All about cryptocurrency

Cryptocurrency represents a major innovation in the world of finance, paving the way for a decentralized system thanks to blockchain. YOU can invest in it to earn a lot of money. Their popularity continues to grow, attracting an ever-wider audience wishing to understand and explore this universe.

But between Bitcoin, altcoins, mining, wallets and exchange platforms, the language of cryptocurrencies can quickly seem complex for the uninitiated. In this article, we offer you a complete overview of cryptocurrencies. You will discover the origins of this disruptive innovation, its key mechanisms, the actors involved, its potential and its limits. Thanks to these solid foundations, you will have all the tools to understand and follow the abundant news of cryptos.

So come on board with us to finally unlock the secrets of cryptocurrencies! This accessible introduction will allow you to confidently explore this exciting universe. Let's go!!!

What is a cryptocurrency?

It is a virtual currency based on blockchain technology. Blockchain is a ledger in which transactions are recorded and are tracked by independent programmers as verifiers. In this way, transactions do not go through a single central location, but are approved from different sites.

Cryptocurrency consists of a digital file with a unique code which is read by various programs which are used to view it, store it and carry out transactions. Cryptocurrency is therefore a new form of money which brings a different way of interacting with it.

(I.e. The characteristics of cryptocurrency

The first characteristic of cryptocurrency is cryptography. It uses encryption techniques to make secure payments and collections. These are decentralized currencies, they do not have to be controlled by any institution. There is no possibility of falsification or duplication.

A cryptographic system protects users. Furthermore, cryptocurrencies have no intermediaries, there is direct person-to-person contact. transactions are irreversible. Once payment has been made, there is no possibility of cancellation. They can be exchanged for other currencies. When it comes to user privacy, there is no need to reveal your identity when doing business.

(I.e. The origin of cryptocurrencies

Throughout history there have been many ways exchange of goods and servicess. All of them have undergone evolutions and changes or, directly, they have disappeared. This is the case of barter or the use of precious materials, which has given way to the system that has worked until now, notes and coins. However, in an age where technology is gaining more ground every day, a more age-appropriate medium of exchange is needed. It's cryptocurrency.

In the wake of the cypherpunk movement in the 80s, cryptocurrency appeared. This art defended the widespread use of writing with secret keys that could only be understood by those who knew how to decipher them. A decade later, David Chaun created Digicash to provide a centralized electronic money system that allowed for more secure and anonymous transactions. Bitcoin was one of the first cryptocurrencies to appear on the market. It did so at the hands of the Japanese Satoshi Nakamoto after the 2008 financial crisis.

A mysterious character whose identity is not known, it is even suspected that it could be the name of a group. That year, he published an article on bitcoin and sparks debate which results in the creation of software to carry out transactions.

The different types of cryptocurrencies

Different cryptocurrencies are forms of digital money that use cryptography to secure transactions and control the creation of new units. Each type of cryptocurrency has its own unique characteristics, such as the underlying technology, specific use cases, and potential benefits. These cryptocurrencies offer various investment and payment options, as well as opportunities to participate in decentralized projects.

🌿 Payment cryptocurrencies

A payment cryptocurrency is a digital currency designed to carry out transactions and serve as a means of exchange, in Peer to Peer, without requiring a centralized intermediary.

⚡️ Bitcoin: Created in 2009 by Satoshi Nakamoto, Bitcoin (BTC) remains the most famous cryptocurrency and the first decentralized currency based on the blockchain. It allows peer-to-peer payments to be made without a central authority. Bitcoin is intended to be an anonymous means of payment and a store of value uncorrelated with banks and states. Despite its volatility, il attracts more and more institutional. Its rate of new BTCs created is limited, reinforcing the scarcity.

⚡️ Litecoin: Litecoin (LTC) is a cryptocurrency created in 2011 largely inspired by Bitcoin but with faster transactions and lower fees. It can process one block every 2 minutes 30 seconds compared to 10 minutes for Bitcoin. Its maximum supply is 84 million LTC. Like BTC, Litecoin allows decentralized payments between individuals.

⚡️ Ripple (XRP): Created in 2021, Ripple focuses on cross-border transfers for banks and financial institutions. Its XRP Ledger allows ultra-fast transactions of 3 to 5 seconds versus several minutes for Bitcoin. The total supply of 100 billion XRP is already premined. Ripple is clearly targeting the international interbank payments market.

⚡️ Stellar Lumens (XLM): Stellar is an open-source blockchain launched in 2014 that facilitates cross-border transactions. Its Lumens (XLM) aims to connect financial systems and reduce costs. Stellar focuses on financial inclusion in emerging countries. Transactions are confirmed in 3 to 5 seconds. Low fees make micropayments accessible.

(I.e. Monero (XMR): Monero is a privacy and anonymity-oriented cryptocurrency launched in 2014. Transaction addresses and amounts are obscured using ring signature technology. It is impossible to trace payments or associate addresses with individuals. This enhanced confidentiality makes it an anonymization tool. But also the currency of predilection for illicit activities.

Article to read: How to Create an AstroPay Account

🌿 Smart contract platforms

A platform of smart contracts or programmable blockchain is a blockchain which makes it possible to deploy computer programs called " smart contracts ". A Smart contract is a self-executing program when certain conditions are met. It works automatically on the blockchain without human intervention. Here are some examples :

⚡️ Ethereum (ETH)

Ethereum is a decentralized blockchain platform that enables the creation and execution of smart contracts and decentralized applications (dApps). Launched in 2015 by Vitalik Buterin and a team of developers, Ethereum revolutionized the blockchain landscape by introducing the ability to run autonomous programs on a distributed infrastructure.

One of Ethereum’s biggest assets is its ability to facilitate the creation of non-fungible tokens (NFTs) and DeFi (decentralized finance) applications. Using its Solidity programming language, developers can write smart contracts that automate complex processes, enabling a multitude of applications ranging from gaming to financial services.

⚡️ Cardano (ADA)

Cardano is a decentralized blockchain platform that aims to provide a secure and scalable infrastructure for developing applications and smart contracts. Launched in 2017 by Charles Hoskinson, one of the co-founders of Ethereum, Cardano stands out for its scientific and academic approach in the development of its technology.

One of Cardano’s main strengths is its Proof of Stake consensus mechanism, called Ouroboros. This system allows users to validate transactions and secure the network by holding and “staking” their ADA, the platform’s native cryptocurrency. This makes Cardano more energy efficient compared to Proof of Work-based blockchains, such as Bitcoin.

Cardano also focuses on scalability and interoperability. Thanks to its layered structure, the network can handle transactions and smart contracts efficiently while allowing for updates without disrupting ongoing operations. This flexibility is crucial to attract developers and businesses looking to build sustainable solutions.

⚡️ Polkadot (DOT)

Polkadot is an innovative blockchain platform designed to facilitate interoperability between different blockchains. Launched in 2020 by Ethereum co-founder Gavin Wood, Polkadot aims to create an ecosystem where multiple blockchains can communicate and exchange data securely and efficiently.

One of Polkadot's main strengths is its unique architecture, which is based on a core network called “relay chain” and parallel blockchains called “parachains“. This structure allows each parachain to operate autonomously while benefiting from the security and functionality of the Relay Chain. This improves scalability and flexibility, allowing developers to build specific applications without being limited by the constraints of a single blockchain.

Polkadot uses a Proof of Stake consensus mechanism, which reduces energy consumption and allows holders of DOT, the native cryptocurrency, to participate in the governance of the network. Users can “stake” their DOT to support the network and receive rewards in return.

⚡️ Solana (SOL)

Solana is a blockchain ultra-fast and low-cost using the proof-of-history mechanism. It aims to enable highly scalable DeFi applications. Its SOL token is used for governance and transaction fees. Solana focuses on speed with near-unlimited capacity and optimized smart contracts.

🌿 Stablecoins

A stablecoin is a type of cryptocurrency whose price is stabilized by a peg mechanism on a real asset, most often a currency like the US dollar. Learn more about stablecoins. Here are the main ones:

⚡️ Tether (USDT): Tether is the first and largest stablecoin. Launched in 2015, USDT aims to digitally replicate the US dollar by being backed by the dollar. Each USDT is worth 1 USD. Tether allows you to benefit from the speed and flexibility of cryptocurrencies without volatility thanks to its indexation to the dollar. But the real backing to reserves remains debated.

⚡️ USD Coin (USDC): USDC is a stablecoin developed by Circle and launched in 2018. It is transparently backed by the US dollar, with certified reserves. USDC aims to provide a fast, secure and reliable digital substitute for the traditional dollar. It has become the 2nd largest stablecoin.

⚡️ DAI: DAI is a decentralized stablecoin created in 2017 on Ethereum. Unlike other stablecoins, it is not backed by a currency but to cryptos given as collateral. Its price is maintained at $1 thanks to an incentive mechanism. DAI aims to be a decentralized alternative to classic stablecoins.

⚡️ Binance USD (BUSD): BUSD is a stablecoin issued by Binance backed by the US dollar held with partner banks. Each BUSD is worth 1 USD. Backing it with audited bank accounts ensures stability. BUSD aims to provide liquidity between the traditional dollar and cryptocurrencies on the Binance platform.

⚡️ TerraUSD (UST): TerraUSD is an algorithmic stablecoin that maintains its 1:1 peg to the dollar through an arbitrage mechanism involving its sister cryptocurrency Luna. Unlike currency-backed stablecoins, TerraUSD’s supply adapts algorithmically. It stabilizes around $1 autonomously.

🌿 NFTs (Non-Fungible Tokens)

NFTs (Non-Fungible Tokens) or non-fungible tokens are cryptocurrencies representing a unique digital asset, and therefore cannot be replaced by another identical one. Learn more about NFTs. Here are some examples :

⚡️ Cryptopunks: Cryptopunks were among the first NFTs ever created, in 2017. These randomly generated pixelated avatars were a huge hit, with some selling for millions. Cryptopunks inspired modern NFTs by their uniqueness and rarity. They remain an iconic project.

⚡️ Bored Ape Yacht Club : This collection of 10 NFTs representing algorithmically and uniquely drawn monkeys has become a huge cultural phenomenon. Its success is due to its community and the advantages granted to holders. Some Bored Apes have resold for several million dollars.

⚡️ Doodles: Doodles is another successful NFT project consisting of unique and colorful abstract drawings. The success of Doodles comes from its minimalist aesthetic and its community. The rarity of each Doodle's traits make them sought-after NFTs by collectors.

⚡️ Azuki: Azuki is a collection of NFTs launched in 2022 featuring 10 manga-style avatars drawn by an algorithm. Besides their signature aesthetic, Azuki is banking on an ambitious roadmap in the metaverses. The success was immediate.

⚡️ Moonbirds : Moonbirds is a project from Proof Collective, the creator of Cryptopunks. These 10 NFTs with colorful bird designs have seen immense interest since their launch, despite their high price. They are part of the most prestigious NFT collections.

🌿 Metaverse cryptocurrencies

A metaverse cryptocurrency is a cryptocurrency native to a virtual world or metaverse, which serves as a medium of exchange for purchasing goods and services within that digital universe. know more about the metaverse… Some examples of metaverse cryptos:

⚡️ Decentraland (MANA)

Decentraland is a virtual world based on the Ethereum blockchain. Imagine: you can buy virtual land, build on it, and even do business. It's like Monopoly, but in real life... well, in virtual terms.

The MANA token is the currency of this world. You use it to buy land (which they call LAND), virtual objects, domain names, and a whole bunch of stuff in this metaverse. It's a bit like having a special currency for Disneyland, except that here, you're the one who can build the attractions. What's crazy is that people really buy virtual land for sometimes crazy amounts of money. There are guys who have spent the equivalent of the price of a real house for a piece of land that only exists on a server somewhere.

The idea behind it is to create a decentralized virtual world, where users are in control. No big corporations pulling the strings behind the scenes. Users vote on changes, create content, all that. Investment-wise, MANA has had its ups and downs, like all cryptos. There were times when it exploded, like Facebook announced its metaverse thing. Suddenly, everyone wanted a piece of the virtual pie.

But be careful, it's not all rosy either. Like all slightly wacky crypto projects, it's super volatile. One day you're rich, the next day you're just pixels. The cool thing about Decentraland is that you can actually use your tokens for something tangible (well, virtual, but you get my drift). It's not just something you buy and hope it increases in value.

⚡️ The Sandbox (SAND)

The Sandbox (SAND) is a decentralized gaming platform that allows users to create, own, and monetize their gaming experiences on the Ethereum blockchain. By combining elements of gaming, creation, and digital ownership, The Sandbox allows players to build virtual worlds using digital assets in the form of non-fungible tokens (NFTs).

Users can create games and interactive experiences using simple creation tools, without requiring programming skills. Additionally, with blockchain technology, players can truly own the assets they create, allowing them to trade or sell them on the market.

The currency used in The Sandbox is SAND, an ERC-20 token that is used to purchase assets, pay transaction fees, and participate in the governance of the platform. In short, The Sandbox offers a new dimension to video games by integrating decentralization and digital ownership, thus attracting creators and players from all over the world.

⚡️ Enjin Coin (ENJ)

Enjin Coin (ENJ) is a cryptocurrency designed for the video game and digital asset industry. It is part of the Enjin ecosystem, which allows developers to create, manage, and integrate in-game items as non-fungible tokens (NFTs) on the Ethereum blockchain.

With Enjin Coin, users can buy, sell, and trade digital assets securely and transparently. Each ENJ is backed by a reserve of digital assets, which gives value to the game items created on the platform. It also allows players to truly own their game items, whether they are weapons, skins, or other items.

⚡️ Gala (GALA)

Gala (GALA) is a cryptocurrency token associated with Gala Games, a decentralized gaming platform that aims to give players back control over their digital assets. Gala Games enables developers to build blockchain-based games, delivering gaming experiences enriched by true ownership of in-game items.

Gala users can buy, sell, and trade digital assets in the form of non-fungible tokens (NFTs) in various games on the platform. The GALA token is used as currency to make transactions, purchase in-game items, and support the development of new games.

⚡️ Axie Infinity (AXS)

Axie Infinity (AXS) is a blockchain-based game that combines elements of collecting, battling, and breeding creatures called “axies“Developed by Sky Mavis, Axie Infinity uses Ethereum blockchain technology to allow players to truly own their Axies in the form of non-fungible tokens (NFTs).

In the game, players can breed, battle, and trade their Axies, with each creature having its own unique characteristics and skills. Axies can be used in battles against other players, and winners can receive cryptocurrency rewards.

The AXS (Axie Infinity Shard) token is the game’s native currency, allowing players to participate in platform governance, purchase Axies, and earn rewards through gameplay. Axie Infinity has grown in popularity, particularly due to its “play-to-earn“, which allows players to earn money by playing, attracting a global community of players and investors.

Emerging cryptocurrencies with high potential

High-potential emerging cryptocurrencies refer to recent crypto-assets with promising technological innovations and significant development potential. Some examples :

1. Apts (APT)

Aptos is a next-generation blockchain platform that focuses on scalability, security, and ease of use. Developed by former Facebook engineers, Aptos uses an innovative programming language called Move, designed to improve the security of smart contracts. The project aims to offer fast and low-cost transactions, making it an ideal candidate for decentralized applications (dApps) and financial services.

One of Aptos’ key strengths is its ability to process thousands of transactions per second, outperforming many existing blockchains. This allows developers to build more complex and interactive applications without the performance limitations often encountered on other platforms. Additionally, Aptos places a strong emphasis on user experience, making blockchain technology more accessible to non-technical users.

With the rise of dApps and DeFi services, Aptos is well positioned to capture a significant share of the market. Its growing ecosystem is already attracting partnerships with various projects, further increasing its credibility and adoption. Aptos could become a major player in the blockchain space, attracting both developers and investors.

2. Sui (SUI)

Sui is an innovative blockchain focused on creating decentralized applications and games. It stands out for its unique architecture that allows for parallel execution of transactions, ensuring high processing speeds. Sui also uses a consensus model that promotes security while maintaining high efficiency.

One of Sui’s key advantages is its ability to handle a variety of applications, from gaming to financial services, while providing a seamless user experience. With the increasing demand for fast and scalable blockchain solutions, Sui is positioning itself as a viable alternative to existing platforms.

3. Moonbeam (GLMR)

Moonbeam is an Ethereum-compatible smart contract platform that aims to facilitate the development of decentralized applications on the Polkadot blockchain. Thanks to its compatibility with Ethereum, developers can easily migrate their existing applications to Moonbeam without having to rewrite their code. This opens the door to rapid adoption and seamless integration of Ethereum projects on Polkadot.

One of Moonbeam’s key strengths is its ability to interoperate with other blockchains, allowing users to benefit from the flexibility and scalability of the Polkadot ecosystem. Moonbeam could become a preferred choice for developers looking to leverage the benefits of blockchain while maintaining compatibility with Ethereum.

Additionally, Moonbeam places a strong focus on user experience, offering tools and resources to help developers build innovative applications. With the rise of dApps and DeFi services, Moonbeam is well-positioned to attract new projects and users, solidifying its place in the blockchain ecosystem.

4. Render Token (RNDR)

Render token is a platform that enables decentralized rendering of graphics by using the unused computing power of users' computers. By connecting artists and creators with computing power providers, Render Token makes it easier to render complex images and videos at lower cost and faster.

With the increasing demand for high-quality graphics content, Render Token is positioned as an innovative solution for film studios, game developers, and digital artists. The decentralized model allows users to monetize their computing power, while providing creators with access to low-cost rendering resources.

How cryptocurrency gains or loses its value

Cryptocurrency can gain value on exchange platforms. The value of cryptocurrency increases depending on its supply and demand. The supply of a cryptocurrency depends on how many new coins are mined and how many current owners want to sell their coins.

The demand for a cryptocurrency depends on many factors. The demand will increase depending on the usefulness of owning the coins. This means that if the crypto currency system works well (i.e. fast transactions and low fees), if to smart contracts become more mainstream and if more businesses start accepting crypto, the demand for crypto will increase.

Additionally, there is an increased demand for cryptocurrencies as an investment store of value. How does cryptocurrency increase in value? Like any market, the value of cryptocurrencies fluctuates depending on the market's perception of its value at any given time. These fluctuations may be rooted in some of the supply and demand factors mentioned above or may result from hidden market factors.

👉 The law of supply and request

The value of cryptocurrency is determined by supply and demand, just like anything people want. If the demand increases faster than the supply, the price increases. For example, if there is a drought, the price of grains and products increases if demand does not change. The same principle of supply and demand applies to cryptocurrencies. Cryptocurrency increases in value when demand increases more than supply.

In fact, the supply of an asset plays an important role in determining its price. A rare asset is more likely to have high prices, whereas an abundantly available asset will have low prices. Bitcoin's supply has been decreasing since its inception. The cryptocurrency's protocol only allows new bitcoins to be created at a fixed rate, and that rate is designed to slow down over time. As a result, Bitcoin's supply has slowed by 6,9% in 2016 to 4,4% and in 2017 4% in 2018.

Although Bitcoin has yet to find favor as a medium of exchange, it has caught the attention of retail investors. The location of Bitcoin demand changes based on economic and geopolitical considerations.

For example, Chinese citizens may have used cryptocurrency to circumvent capital controls in 2020. Bitcoin has also become popular in countries with high inflation and devalued currencies, such as Venezuela.

👉 Cryptocurrency Production Cost

As with other commodities, the cost of production plays a significant role in determining the price of bitcoin. For bitcoin, the cost of production is roughly the sum of the fixed direct costs of infrastructure and electricity required to mine the cryptocurrency and an indirect cost related to the difficulty level of its algorithm. New cryptocurrency tokens are produced through a process called mining. Cryptocurrency mining involves using a computer to verify the next block on the blockchain.

The decentralized network of miners is what allows cryptocurrency to function the way it does. In exchange, the protocol produces a reward in the form of cryptocurrency tokens, in addition to the fees paid by the trading parties to the miners. Verifying the blockchain requires computing power. Participants invest in expensive equipment and electricity in order to mine cryptocurrency. In a proof-of-work system, like those used by Bitcoin and Ethereum, the more competition there is to mine a certain cryptocurrency, the harder it is to mine.

This is because miners are essentially competing to solve a complex mathematical problem to verify a block. As such, the cost of mining increases because more powerful equipment is required to mine successfully. As mining costs increase, this requires an increased value of the cryptocurrency. Miners will not mine if the value of the currency they are mining is not high enough to offset their costs.

And, since miners are essential to the functioning of the blockchain, as long as there is demand for the use of the blockchain, the price will have to increase.

👉 Regulatory development on cryptocurrencies

Bitcoin was launched in the aftermath of a financial crisis precipitated by the relaxation of regulations in the derivatives market. Cryptocurrency itself remains mostly unregulated and has earned a reputation for its ecosystem without borders or regulations.

Bitcoin’s lack of regulatory status has its pros and cons. On the one hand, the lack of regulation means that it can be used freely across borders and is not subject to the same government-imposed controls as other currencies. On the other hand, it also means that using and trading Bitcoin can lead to criminal consequences in most financial jurisdictions.

The vast majority of institutional investors are still hesitant to invest in the asset class, resulting in less liquidity and more volatility for its ecosystem.

👉 The Internal Cryptocurrency Governance System

Cryptocurrency networks rarely adhere to a static set of rules. The developers adapt the projects according to the community that uses them. Some tokens – called governance tokens – give their holders a say in the future of a project, including how a token is mined or used. In order to make changes to a token’s governance, there must be consensus among stakeholders.

For example, Ethereum is working to upgrade its network from a proof-of-work system to a proof-of-stake system, making much of the expensive mining equipment in people's data centers or basements unnecessary. . This will undoubtedly impact the value of Ether.

In general, investors appreciate stable governance. Even if there are flaws in the operation of a cryptocurrency, investors prefer the devil they know at the angle they don't know.

So stable governance where things are relatively hard to change can be helpful by providing more stable prices. Additionally, the slow process of software updates to improve protocols can limit the rise in cryptocurrency values. If an update unlocks value for cryptocurrency holders but takes months to execute, it hurts current stakeholders.

👉 Competition in the sector

There are thousands of different cryptocurrencies, with new projects and tokens launching every day. The barrier to entry is relatively low for new competitors, but creating a viable cryptocurrency also relies on building a network of users of that cryptocurrency. While Bitcoin is the most well-known cryptocurrency, there are thousands of other tokens competing for crypto investment dollars. Bitcoin’s dominance has faded over time.

In 2017, Bitcoin represented more than 80% of the overall market capitalization of crypto markets. In 2021, this share was fallen to less than 50%. The main reason for this was an increase in awareness and capabilities of alternative coins. For example, Ethereum's Ether has become a formidable competitor to Bitcoin due to a boom in tokens from decentralized finance (DeFi).

Investors who see its potential to reinvent the rails of modern financial infrastructure have invested in ether, the cryptocurrency used as “gas” for transactions on its network. On October 13, 2021, Ethereum accounted for nearly 18% of the overall market capitalization of cryptocurrency markets.

👉 The level of cryptocurrency exchanges

Popular cryptocurrencies like Bitcoin and Ether trade on multiple exchanges. Just about any cryptocurrency exchange will list the most popular tokens. But some smaller tokens may only be available on certain exchanges, limiting access for some investors. Some wallet providers will aggregate quotes to trade any set of cryptocurrencies across multiple exchanges, but they will charge a fee to do so, which will increase the investment cost.

Additionally, if a cryptocurrency is thinly traded on a small exchange, the spread that the exchange takes may be too large for some investors. If a cryptocurrency is listed on more exchanges, this can increase the number of investors willing and able to buy, thereby increasing demand. And, all other things being equal, as demand increases, the price increases.

Why do people lose track of their cryptocurrencies

Ah, losing track of your cryptos, It's more common than you might think. It's a bit like losing your keys, but digital and potentially much more expensive. First, there's the "it's new and complicated" factor. Cryptos are not like a traditional bank account. There are a lot of technical terms, weird procedures. People sometimes jump in without really understanding and bam, they get lost in the maze of addresses and private keys.

Then there is the syndrome of “I buy and forget“. Some people bought bitcoins years ago, when they were worth nothing. They put them aside and completely forgot about it. Except that now that they are worth a fortune, they don't remember where they put their codes.

The multiplicity of platforms doesn't help either. Between the different exchanges, hardware wallets, smartphone apps... It's easy to lose track. It's like having an account in every bank in town. There's also the problem of passwords and recovery phrases. People often write them down haphazardly, thinking they'll remember them. Spoiler: they don't. And since in crypto, there's no "forgotten password" button, it's a disaster.

Scams and phishing also play a role. People get scammed, give their information to fraudulent sites, and poof, their cryptos disappear. It's like someone stole your wallet without you realizing it. Let's not forget the technical bugs. A hard drive that fails, a phone that falls into the toilet, and bye-bye cryptos if you haven't made a backup.

And then there's the simple human factor. People change their email addresses, phone numbers, and forget to update their information on crypto platforms. As a result, they can no longer access their accounts. Finally, some die without leaving instructions to their loved ones. Cryptocurrencies therefore find themselves lost in the limbo of the web.

How to identify your crypto wallets?

Identifying your crypto wallets is a bit like taking inventory of your bank accounts, but in a geek version. First, you have to understand that there are several types of wallets. You have hot wallets (connected to the Internet) and cold wallets (offline). It's like having money in your checking account and in a safe. For online wallets on exchange platforms (like Coinbase or Binance), it's quite simple. You log into your account and see your balances. It's like checking your bank account online.

For software wallets on your computer or phone (like Exodus or Trust Wallet), you have to open them one by one. Each one has its own interface where you can see your cryptos. Hardware wallets (like Ledger or Trezor) are a bit more complicated. You have to connect them to your computer and use their dedicated software. It's like opening a safe with a special key.

Now, the important thing is wallet addresses. Each crypto you own has a unique address, a long string of characters. It's like a bank account number, but more complicated. To find all your addresses, you have to go through all your wallets. It's annoying, but necessary. Write them down somewhere safe (not on a post-it stuck to your screen, mind you).

If you've lost track of some wallets, dig through your emails. Platforms often send you confirmations when you create an account. For paper wallets (if you're old school), it's literally paper with your private keys on it. Look in your drawers, filing cabinets, or wherever you stash your important stuff.

Finally, there are online tools like Blockfolio or CoinTracking that can help you keep an overview. You enter your addresses and it tracks your balances automatically. It's convenient, but make sure it's secure.

Better secure your investment in cryptocurrency

Securing your crypto is a bit like protecting your treasure from digital hackers. First, choose a good wallet. For small amounts, a secure software wallet may be enough. But if you have a ton of money in crypto, invest in a hardware wallet. It’s like a digital safe. It may cost a bit, but it’s still cheaper than having everything stolen.

Then, your recovery phrase (seed phrase), it's sacred. Write it down on paper, never digitally. Hide it like it’s the secret formula for Coca-Cola. Some people even engrave it on a metal plate. It may sound paranoid, but it’s your lifeline if everything goes to hell. Two-factor authentication (2FA) is not an option, it’s mandatory. Everywhere. On your exchanges, your online wallets, everything. And if possible, use an authentication app instead of SMS. It’s like having two locks on your door instead of one.

Beware of scams. Phishing, This is the scourge of cryptos. Always check the URL of the sites you visit. If someone promises to double your bitcoins, it's a scam, period. Even if it's supposedly Elon Musk offering it on Twitter. Diversify your assets. Don't put all your eggs in one basket. Use different wallets, different platforms. It's a pain to manage, but if one gets compromised, you don't lose everything.

Update your software regularly. Security updates are annoying, but they’re like the flu shot: they protect you from new viruses. For larger amounts, consider cold storage. This means keeping your crypto on a device that’s never connected to the internet. It’s the crypto equivalent of hiding your money under the mattress, but safer.

be discreet. The first rule of the Crypto Club is that you don't talk about the Crypto Club. The less people know that you have a bunch of cryptos, the less of a target you are.

How to recover your stolen or lost parts?

Recover stolen or lost cryptos, it's a hell of a mess. It's a bit like looking for a needle in a digital haystack. But don't worry, I'll give you some tips to get you out of it.

If your crypto has been stolen, you need to act fast, as if your wallet had been stolen on the street. The first thing to do is to contact the exchange or wallet service you were using immediately. Sometimes they can block suspicious transactions if you are quick enough. Then, as weird as it may sound, file a police report. Yeah, I know, it sounds silly for virtual stuff, but it can help if the investigation is successful.

If you have crypto insurance (and yes, it exists!), contact them quickly. This is the kind of situation you signed up for, so take advantage of it. Finally, try to check the blockchain addresses where your cryptos were sent. You won't be able to recover them directly, but it can help investigators follow the trail.

Now, if you just lost your crypto, like you forgot your password or lost your private key, that's a different story. If it's a password issue on a platform, contact their support. They often have recovery procedures, although it can take some time.

For a lost hardware wallet, if you have your seed phrase, you're saved. You can restore your wallet on a new device. On the other hand, if you've lost your seed phrase... then it's a mess. There are services that try to crack passwords, but it's not guaranteed and it can cost an arm and a leg.

The important thing to remember is that in the crypto world, you are your own banker. That’s great for freedom, but it means you’re responsible for your security. Be super vigilant. Use two-factor authentication wherever possible, keep your big bucks on a hardware wallet, and back up your recovery phrases, but never online. Ultimately, the best strategy, It's prevention. Because recovering lost or stolen crypto is possible, but it's far from a given. So take care of your crypto as if it were your first-born, and with a bit of luck, you'll never have to live this nightmare.

How to secure your digital assets?

A digital asset is any type of digital file or data that has economic value to its owner. Digital assets can include cryptocurrencies, digital tokens, digital documents, e-commerce sites, and digital images. In addition, digital assets also have physical value, such as physical gold and silver, which can be stored in a digital wallet. Digital assets are becoming increasingly important as more and more assets are traded and stored online.

There are many types of digital assets that can be stored, traded, or used for other purposes. Some of the most common types of digital assets include cryptocurrencies, digital tokens, digital documents, e-commerce websites, and digital images. Cryptocurrenciess are digital assets that are used as a form of payment or a means of exchange. Digital tokens are digital assets that are used to represent ownership in a company or project.

The digital documents are digital files used for legal, financial or other purposes. E-commerce websites are used to sell products and services online. digital images are digital files that may be used for advertising, marketing or other purposes.

One more step to protect your funds

Investors should take precautions to protect their digital assets from theft and hacking attempts as the cryptocurrency industry grows and changes. Here are some popular security technologies that could help cryptocurrency investors keep their money safe:

👉 Hardware wallets  

Hardware wallets are tangible objects that physically hold your private keys offline, protecting them from hacker attacks. Ledger Nano X and Trezor are two examples of well-known hardware wallets. By requiring a verification number in addition to your password, two-factor authentication (2FA) provides an extra layer of security to your accounts. To enable 2FA for your cryptocurrency accounts, use an authentication tool like Google Authenticator.

👉 anti-virus software

Antivirus software can help prevent malware and other types of harmful software from infecting your computer and stealing your digital assets. Norton and McAfee are two well-known antivirus applications.

👉 Virtual Private Networks (VPNs)

VPNs hide your IP address and encrypt your internet connection, making it harder for hackers to intercept your data. Popular VPN providers include NordVPN et Express VPN.

👉 Password managers

Password managers can help you find and store secure, unique passwords for each of your accounts. LastPass and Dashlane are two popular password managers. Keeping your digital assets offline, whether on a USB drive or a paper wallet, is known as “ cold storage ».

If you keep your physical storage device in a secure area, this can be a very secure approach to storing your assets. You can better protect your digital assets and reduce your risk of loss due to security breaches or hacking efforts by using these security tools and other preventative measures, such as updating your software and being vigilant for phishing scams.

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