All you need to know about Crypto.

Crypto-currencies, crypto-assets . How to navigate?

Like Bitcoin, the best known of these, cryptocurrencies were initially conceived as instruments of exchange in the digital world. Crypto-currencies, crypto-assets. What exactly do these terms cover? Are they really currencies? How to avoid scams?

Crypto-currencies, crypto-assets .What are they?

According to the National Institution of Consumption (INC), a cryptocurrency refers to ''a virtual currency that is based on a computer protocol of encrypted and decentralised transactions, called blockchain''.

More broadly, crypto-assets represent “virtual assets stored on an electronic medium allowing a community of users accepting them in payment to carry out transactions without having to resort to legal tender. "

Legally, a crypto-currency is not a currency : it is independent of any institution , enjoys no legal tender in any country which makes evaluation of its value difficult and can be spared so constitute a reserve value.

Who creates cryptocurrencies?

They are created by a community of Internet users, also called “miners” from an algorithm that generates “tokens” (or tokens) which are then allocated to each “miner” as a reward for their participation in the operation. of the system.

The technology used is that of the “blockchain  ” (chain of blocks or register of transactions, in French) which makes it possible to keep track of a set of transactions, in a decentralized, secure and transparent manner.

Once created, these tokens are stored in an electronic safe saved on the user's computer, tablet or laptop, or even remotely (for example in the cloud). It is then possible to transfer them via the internet and anonymously between members of the community.

Are they legal and secure?

Unlike electronic money, virtual currencies or crypto-currencies do not currently have an explicit legal status and their supervision by the public authorities remains embryonic.

Under French law, crypto-currencies do not have a clear legal status and are not recognized as financial instruments. As a result, crypto-currencies are not currently regulated .

In this regard, the Autorité des marchés financiers (AMF) indicates that " investing in crypto-assets is risky and many crooks operate on the internet ".

If you want to invest in crypto-assets, be aware that the AMF identifies scam sites related to crypto-assets within the blacklist of the Autorité des Marchés Financiers . Consider consulting it.

What are the risks?

By investing in crypto-assets, you can face the risks in particular:

• speculative bubble: the price of cryptocurrencies is very volatile and exposes buyers to potentially very significant financial losses.

• hacking : the custody of crypto-assets does not offer any protection in terms of security of assets.

• money laundering: by their anonymous nature, crypto-assets encourage the circumvention of rules relating to the fight against money laundering or may participate in the financing of terrorism or criminal activities.