For him, the practice is “accessible to all”. Yet, usually, when the words “cryptocurrency”, “bitcoin” and “blockchain” are mentioned, the less tech-savvy tend to feel slightly overwhelmed by the phenomenon.
Cryptocurrency, sometimes called “crypto”, is a form of money that exists only in digital form and uses “blockchain” technology to encrypt and decentralize exchanges.
“A crypto-asset is not a currency. Its value is determined solely according to supply and demand”, specifies the site of the Autorité des marchés financiers. Among the best known and recognized crypto-assets, we find the famous bitcoin, one of the pioneers of the system, but also ripple, etherium, litecoin or even dogecoin.
In recent years, many people have made a fortune by investing in these currencies of a new kind.
“I started to get interested in it about ten years ago, when we were just starting to talk about bitcoin,” says Ahmed, a 34-year-old job seeker. “But alas, at the time, I did not buy any. Today, I will be very rich”, he continues.
Throughout his research, Ahmed ventures on the darknet, curious to know how this new currency could be used. “I was interested in cryptography, that is to say the way of coding transactions that allow you to be anonymous. On the darknet, you could therefore buy anything and everything with cryptos, from the pass Vigik who opens all doors to assassination services”, is surprised the thirty-year-old.
But these transactions do not really interest him. On the other hand, he also discovers that certain sites, such as Bitrefill, offer to exchange bitcoins and other virtual currencies for vouchers or gift cards. “You can also exchange your cryptos for euros, but there is often a state tax,” adds Ahmed.
It was only at the time of the first confinement that he really decided to take the plunge and buy his first cryptocurrencies. “At the time, people didn’t know what to do with their homes, and many started investing in crypto”, explains the young man.
He didn’t go into it blindly. Advised by a friend, he went to exchange platforms, such as Kraken, Bidance, Coinbase, to buy his currencies.
“There is a recognition phase, we must provide an identity document, show that we are the holder of funds, so there is still a trace of the money at a minimum”, adds Ahmed.
As for knowing in which currency to invest, faced with the hundreds of references that flood the cryptocurrency market, there are also some tips.
“As an investor, it takes me less than five minutes to buy cryptocurrency. And knowing what to invest in is a sporadic watch that can take, at most, a few hours a week, no more. But if I really wanted to speculate, it would take a lot more time,” he said.
With, therefore, a few minutes a day, he manages to observe serious gains when the value of his currencies soars. With, however, the risk of missing out completely. “The value of a cryptocurrency can explode in a few days, and you can make hundreds of euros… Or lose some. The important thing is that it balances out,” says Ahmed.
He points to the example of Dogecoin, Elon Musk’s cryptocurrency, which is only going up. “I had invested 60 euros, and at one point, the value represented 1200 euros”.
However, the 30-something is in no hurry to “sell” his winnings or convert them into euros. He lets his cryptos sleep in a “cold wallet”, in the hope that they will gain even more value in the long term.