You've likely come across the term "ERC-20" in your crypto endeavours, with plenty of these token standards currently ranked in the top 10 (even top 100) cryptocurrencies. But what does ERC-20 actually mean, and what is a token standard? In this piece, we're uncovering everything you need to know about these popular crypto terms.

To start things off, ERC stands for Ethereum request for comment.

What is a token standard?

Let's start at the beginning. When Ethereum was created to provide developers with a platform on which to build decentralized apps (Dapps), the team incorporated several token standards. 

These token standards allow new projects to create, issue and deploy various functioning tokens on the blockchain. Each token standard is a smart contract that holds a set of particular "rules" that must be followed in order to be created.

In recent years a number of blockchain platforms that provide Dapp creation functionality have created their own token standards, however, for the sake of this article we are only looking at Ethereum.

The most popular token standards on Ethereum are the ERC-20, ERC-721, ERC-777, and ERC-1155 tokens. Each holds its own functionality and would be utilized depending on what the Dapp intends to use it for, i.e. will it be a transferable asset or be used to hold ownership rights. 

What is an ERC-20 token?

By far the most popular token standard utilized on the Ethereum network, the ERC-20 token is a fungible token that can be bought, sold and traded in the blockchain ecosystem. To date over 350,000 ERC-20 tokens have been created. 

Similar to the functioning of other cryptocurrencies like Bitcoin and Litecoin, ERC-20 tokens also hold value and are able to be bought and sold, however, they operate solely on the Ethereum blockchain. This means that all ERC-20 transactions conducted are executed on the Ethereum blockchain network.

The rules associated with this particular token ensure that it can function optimally on the Ethereum blockchain, and must be submitted to the community leadership for approval prior to its launch. While some rules are mandatory and others optional, the required ERC-20 rules are as follows:

• total supply: defines the total supply of the token
• balance of: indicates how many tokens are in a wallet address
• transfer To, Transfer From: must be able to be transferred from one user to another
• allowance: ensures that wallets have a sufficient amount before making a transaction
• approve: checks total supply against transactions

The optional elements are centred around the token's name, its ticker symbol and how many decimal places it would have %u200BFor instance, Ethereum's token name is Ether, its ticker symbol is ETH and it is divisible by up to 18 decimal places.

Examples of ERC-20 tokens are Augur (REP), Basic Attention Token (BAT), Maker (MKR), USD Coin (USDC) and OmiseGO (OMG).

Can you mine ERC-20 tokens?

ERC-20 tokens, unlike Ethereum and its native coins (ether), cannot be mined. That is, new tokens are 'minted' when a planned initial token offering (ICO) or security token offering (STO) event takes place. Usually, these events involve users sending ether to a smart contract address and in return receiving the newly minted ERC-20 token.

An ERC-20 token is technically a smart contract so it's possible for the developer team behind an ERC-20 token to issue new tokens at will. However, this isn't recommended because users would be less likely to trust these tokens if they could be minted at will. There must be a measure of scarcity in order for tokens to be valuable.

The pros & cons of ERC-20 tokens:

Some of the main benefits of ERC-20 tokens include: 

Fungible

Fungible ERC20 tokens are interchangeable, just like cash. Although the coins are technically distinct, they function in exactly the same way. You can trade one for another and they will be functionally equivalent, just like cash or gold.

Fungible tokens are fantastic, and there's a lot of value in the technical aspect. On a technical level, it's worth noting that fungible tokens don't add extra value to goods. They're typically beneficial in a variety of commercial scenarios.

Broad adoption

The popularity of ERC-20 tokens is quite apparent in the cryptocurrency industry. The number of exchanges, wallets, and smart contracts that already support newly-launched tokens has made it easy for new projects to integrate with them. There is plenty of developer support and documentation to go around.

Flexibility

The first thing to note about ERC-20 tokens is that they are highly flexible and may be used in a variety of circumstances and applications. This is due to the fact that these tokens are very customizable. They can be used in a lot of different scenarios such as Loyalty points programs, in-game currencies, or digital collectibles such as NFT's.

Some of the main cons of ERC-20 tokens include:

Mainstream

The popularity of ERC-20 tokens is also their greatest weakness. There are so many projects using the same standard that it's difficult to stand out from the crowd without differentiating your token in some way. Moreover, since they're essentially all the same on a technical level.

Fraud and Scams

It takes minimal effort to create a simple ERC-20 token, meaning that anyone could do it for good or bad purposes. As such you want to be careful with what you're investing in when considering blockchains projects because there are some Pyramid schemes masquerading as legitimate projects out there and trying to get unsuspecting investors involved in their scams. As a result, when looking at blockchain projects, you need to be cautious with what you invest in.

Other ERC Token Standards

While there is a large range of ERC tokens available, below we've outlined the most popular ones (excluding the ERC-20 one as it is listed above). 

ERC-721 

This token standard is for a non-fungible token (NFT) which gained huge popularity in the last year across the gaming and digital art worlds. These tokens represent ownership of something, and cannot be used interchangeably. 

ERC-777 

An evolution of the ERC-20 token, the ERC-777 provides more usability, particularly pertaining to its ability to mint or burn tokens. It also holds improved transaction privacy and an emergency recovery function. 

ERC-1155

This token standard allows for the creation of both utility tokens and non-fungible tokens. Making trading more efficient, the token standard allows for bundling of transactions which in turn saves costs. 

Learn more about cryptocurrencies and blockchain

You can learn more about crypto basics from our specially created Learn centre, which covers everything a trader ought to know about cryptocurrencies and the blockchain industry. 

Un actif peut être défini comme une ressource ou un élément qui génère des avantages économiques futurs pour la personne, l’entreprise ou le pays qui le détient. Les actifs ont toujours occupé une place centrale dans les bilans comptables des entreprises, mais leur définition s’est largement étendue dans le secteur financier moderne. Des actifs financiers aux ressources générant une valeur économique, faisons le tour de tout ce qu’il faut savoir sur les actifs.

Que signifie le terme "actif" ?

Un actif désigne un élément ou une ressource ayant une valeur économique, dont la détention par un individu, une entreprise ou un État permet d’en attendre des bénéfices financiers futurs. Les actifs peuvent être conservés pour maintenir de la liquidité ou être vendus dans le but de réaliser un bénéfice.

Ces actifs se voient généralement attribuer une valeur monétaire, permettant d’évaluer leur liquidité ou leur potentiel de rentabilité. Les actifs détenus par un particulier sont appelés actifs personnels, tandis que ceux détenus par une entreprise sont appelés actifs professionnels.

Les actifs sont utilisés pour augmenter la valeur nette, améliorer la santé financière d’une entreprise, et plus encore. Ils peuvent être physiques ou immatériels, comme de l’or ou du Bitcoin. Que ce soit pour les particuliers ou les entreprises, les actifs servent à prouver la solvabilité, la santé financière et le niveau de fonds propres. Ils peuvent aussi garantir des prêts ou être vendus pour générer un profit.

La probabilité de succès d’une entreprise se mesure souvent en soustrayant les passifs de la valeur totale de ses actifs. En résumé, un actif est une ressource qui peut, dans l’avenir, générer des flux de trésorerie — que ce soit une machine de production ou un brevet.

Les actifs peuvent être classés en différentes catégories : actifs courants, actifs immobilisés, actifs tangibles, actifs intangibles, actifs opérationnels, et actifs non opérationnels.

Comment fonctionnent les actifs ?

Particuliers, entreprises et gouvernements accumulent des actifs dans l’espoir qu’ils génèrent des bénéfices économiques à court ou à long terme. Cependant, il n’y a aucune garantie de gains, car les actifs peuvent soit prendre de la valeur, soit en perdre. Les bénéfices ne sont réalisés qu’au moment de la vente. Cette volatilité peut influencer la valeur de revente et modifier la solvabilité globale d’une personne ou d’une entreprise.

La solvabilité signifie que la valeur des actifs est suffisante pour couvrir les passifs existants. Les entreprises utilisent généralement un bilan comptable, qui récapitule les actifs, les passifs et les capitaux propres, pour évaluer leur situation financière.

Mais avant d’aller plus loin dans la compréhension des actifs, découvrons les types d’actifs les plus courants.

Les différents types d’actifs

Il existe six grandes catégories d’actifs, chacune ayant ses spécificités. Un actif peut parfois appartenir à plusieurs catégories à la fois, en fonction de son utilisation et de son rôle. Voici les principaux types d’actifs :

Les actifs courants (actifs professionnels)

Les actifs courants, ou actifs liquides, peuvent rapidement être convertis en liquidités pour régler des dettes ou des dépenses immédiates. Exemples : la trésorerie et ses équivalents, les comptes clients, les stocks ou encore les charges payées d’avance.

Les actifs immobilisés

Aussi appelés actifs non courants, ils sont destinés à un usage à long terme (plus de 12 mois) et ne sont pas conçus pour être convertis rapidement en liquidités. Exemples : terrains, bâtiments, machines ou équipements.

Les actifs tangibles

Il s’agit des actifs physiques, que l’on peut voir et toucher. Exemples : espèces, inventaire, bâtiments, actions physiques, machines ou mobilier.

Les actifs intangibles

Ces actifs n’ont pas de substance physique et sont par définition immatériels. Exemples : propriété intellectuelle, brevets, cryptomonnaies, licences, subventions, ou formules secrètes.

Les actifs opérationnels

Les actifs opérationnels sont ceux utilisés par une entreprise pour ses activités quotidiennes ou pour générer des revenus. Exemples : inventaires, brevets, équipements, formules secrètes et licences.

Les actifs non opérationnels

Ce sont des actifs qui, bien qu’ils ne soient pas directement utilisés dans les activités courantes de l’entreprise, peuvent tout de même générer des profits futurs. Exemples : terrains non bâtis, titres négociables, investissements à court ou long terme.

La définition d’un actif

Comme nous l’avons vu, la définition d’un actif est très large et ne se limite pas aux catégories mentionnées. Prenons l’exemple d’un brevet : considéré comme un actif immatériel, il est aussi un actif opérationnel vital pour certaines entreprises.

Le Bitcoin, lui, est un autre exemple d’actif qui bouscule les frontières. Considéré comme un actif immatériel stocké numériquement, il peut aussi être qualifié d’actif courant, voire d’actif liquide.

Un stock de marchandises est à la fois un actif courant, tangible et opérationnel. Cela illustre bien qu’il n’existe pas une seule définition ou catégorie d’actif, mais plutôt une classification qui dépend de l’utilisation qu’en fait l’investisseur.

Cependant, il est essentiel de se rappeler que certains principes de base s’appliquent généralement : un actif tangible ne peut pas être un actif intangible, un actif courant ne sera pas un actif immobilisé, et un actif opérationnel ne sera pas un actif non opérationnel. Bien sûr, quelques exceptions existent, mais cette règle de base est bonne à garder en tête.

Actifs vs passifs

Que ce soit pour évaluer la valeur nette d’un entrepreneur ou la santé financière d’une entreprise, les passifs jouent un rôle clé. La différence entre les actifs et les passifs permet de calculer les fonds propres, aussi appelés capitaux propres.

Pour déterminer ce montant, il suffit d’examiner le bilan de l’entreprise. Notez que l’accès à ces bilans dépend du statut de l’entreprise : les sociétés cotées en bourse sont légalement tenues de publier leurs états financiers dans leurs rapports annuels.

En résumé, l’équation est simple :
Actifs - Passifs = Capitaux propres

Comprendre les actifs et leur valeur économique

La définition d’un actif est pratiquement illimitée. Par exemple, ce collier en saphir hérité de votre grand-mère est considéré comme un actif courant et tangible. Sa valeur pourrait être monétisée immédiatement ou conservée jusqu’à ce qu’une pénurie de saphirs fasse grimper son prix.

Que ce soit dans un contexte personnel ou professionnel, les actifs représentent des ressources capables de générer des flux de trésorerie futurs. Qu’ils soient fixes ou courants, l’objectif principal reste de tirer profit de leur valeur.

L’or, le Bitcoin, les biens immobiliers, les voitures, les formules secrètes et les brevets sont tous classés comme des actifs, car ils détiennent un potentiel économique réel.

Maintenant que vous avez une meilleure compréhension des actifs et de la valeur qu’ils peuvent représenter, à vous de faire vos recherches et d’identifier les actifs qui correspondent à vos objectifs financiers.

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In this article, we’re exploring the most recent addition to the list of supported cryptocurrencies on the Tap App, one of the highly esteemed top 20 cryptocurrencies based on market cap, Algorand (ALGO).

What is Algorand (ALGO)?

Algorand is a decentralized blockchain platform that supports the development of a wide range of dapps (decentralized applications). The platform has been used to create dapps across industries like real estate, copyright, microfinance and more. Launching the same month as its ICO, the Algorand mainnet officially went live in June 2019. 

The Pure-Proof-of-Stake (PPoS) network was created to improve efficiency and transaction times within the crypto space, as well as reduce transaction costs. With no mining (due to the PPoS consensus), Algorand represents a more sustainable and energy-reserving contribution to the space. 

A unique aspect of the platform is that as new ALGO enter circulation with the creation of each new block, the newly minted coins are distributed to everyone who holds a certain amount of ALGO in their wallets. 

While the project is relatively new, it has received the backing of big names and has seen impressive company interest. In June 2021, Arrington Capital bet $100 million on the platform after launching a fund supporting initiatives building on Algorand, while fintech infrastructure provider Six Clovers launched a cross-border payment system on the platform. 

The platform was also selected to host the Marshall Islands CBDC. 

Who created Algorand?

The blockchain platform was created by Silvio Micali, a highly regarded contributor to the crypto space and recipient of the 2012 Turing Award. The MIT computer science professor was recognised for his fundamental contributions to “the theory and practice of secure two-party computation, electronic cash, cryptocurrencies and blockchain protocols.” 

The Algorand whitepaper was co-authored by Stony Brook University professor Jing Chen.

When first conceptualised in 2017, Micali wanted to create a platform that not only provided digital transactions but also tracked assets like titles and property. The platform also allows for the creation of smart contracts (decentralized digital agreements) and tokens. 

How does Algorand work?

The Algorand platform is divided into two layers: layer 1, responsible for ​​ensuring the network’s security and compatibility, and layer 2, responsible for more complex developments. 

Layer 1 supports asset creation, smart contracts, and atomic swaps between assets while layer 2 is reserved for more compound smart contracts and dApp development. These two layers allow the network to process transactions more efficiently, with simple transactions taking place on layer 1, while more complex smart contracts are executed off-chain. 

Through the pure proof of work consensus, the two-phase block production is conducted through a propose and vote system where users who stake ALGO are randomly selected to validate and approve each block as it is created. Stakers only need to hold 1 ALGO in order to generate a participation key necessary to become a Participation Node. 

These nodes are coordinated by Relay Nodes which are not actively involved in the verification process but are responsible for facilitating communication among the Participation Nodes.

The more of the native cryptocurrency a user holds, the more likely they are to be selected. This consensus ensures that the platform is secure, decentralized and able to process transactions in seconds as opposed to minutes (as on other networks).

Algorand is able to process over 1,000 transactions per second (TPS) and validate transactions in less than five seconds.

What is ALGO?

ALGO is the native token to the Algorand platform. As the newly minted coins are distributed to all users holding ALGO (whether on an exchange or in a non-custodial wallet) and not just the nodes verifying transactions, holders of the token are able to earn a 7.5% annual percentage yield (APY). 

A total of 10 billion tokens were minted, with roughly 6.8 billion in circulation at the time of writing. These tokens are gradually entered into circulation through predetermined distribution channels. The token distribution for ALGO is as follows:

• 3.0 billion. To be injected into circulation over the first 5 years, at first via auction.
• 1.75 billion. Allocated to participation rewards.
• 2.5 billion. Allocated to relay node runners.
• 2.5 billion. Allocated to the Singapore-based Algorand Foundation & Algorand, Inc.
• 0.25 billion. Allocated to end-user grants. 

How Can I Buy ALGO?

If you’re interested in accumulating this leading blockchain token, you can do so effortlessly through the Tap app. As part of a new string of supported tokens, Tap users will now be able to buy, sell, trade and store the cryptocurrency that everyone is talking about. 

ICO is an abbreviation for Initial Coin Offering, a term coined supposedly in 2013 yet only gained popularity in 2017. ICOs were created as a method of raising funds for cryptocurrency projects in a crowdfunding manner. When people partake in an ICO, through funding it, they receive "shares" of that project in the form of cryptocurrency tokens.

This method is set up to help new projects find funding to build their project, platforms, or products. It's very similar to investing in a start-up in the hopes of a project becoming bigger and better through your investment contribution.

Mastercoin was the first ICO recorded back in 2013, raising a grand total of 5,120 BTC. Shortly after, Ethereum followed, and in 2014 raised roughly $18 million to build their project. There is clearly a great deal of success to be seen through ICOs, so let's see what all the fuss is about.

ICO vs IPO vs IEO

Let's look at IPOs, or initial public offerings, to learn more about where ICOs originated.

Similar to ICOs, IPOs were created as a way of gaining capital to better the businesses' infrastructures. While they are similar to a crowdfunding aspect,the primary distinction is in how investors are rewarded. IPOs will offer their investors shares, while ICOs offer digital currencies that can be used within their ecosystems or can be sold when the price increases.

Now that we understand how ICOs and IPOs work, let's discuss the differences when it comes to IEOs, or Initial Exchange Offerings. Again, this is another method used to raise funds for upcoming projects, but there are some key aspects that make IEOs different to IPOs and ICOs. While IEOs are also a crowdfunding method in the cryptocurrency industry, they use an exchange. Anyone can generally buy tokens from an ICO page, whereas IEOs use exchanges as the distribution mechanism.

In order to take part in an IEO, you must be a registered user of the exchange that the project is utilizing. While IEOs may be more transparent, they do push us towards a more centralized approach. There are also IDOs, Initial Dex Offering, Dex standing for decentralized exchange (increasing the data privacy aspect), but that's a topic for another day.

How they work

So now we know what ICOs are and how they differ from their counterparts, but now let's delve deeper into how ICOs actually work. As stated, ICOs are a way for cryptocurrency projects to raise money. When a project decides to launch an ICO it will generally underline the sale dates, the participation rules, and the buying process.

Usually, investors will need to choose currencies they are happy to accept in exchange for their tokens, such as Mastercoin accepting Bitcoin. There are some ICOs who will also accept fiat currencies as payment.

The projects' core purpose, its timeline, and how much money is needed to succeed should be released in their whitepaper. If the project does not raise enough money to meet the minimum funds needed, the money should be returned to those who contributed. This would classify the ICO as unsuccessful.

If the funding goal is met, the project will continue to pursue its original goals and contributors will be able to claim their tokens further along. Tokens will either be listed on notable exchanges later on or will be distributed using smart contract technology,This is something you should do more study on before contributing to an ICO.

Advantages and disadvantages

While ICOs have proven to be a massive benefit to project developers, there are some underlying issues and risks that may come into play. In order to give you the best chance of understanding ICOs we will need to cover all the pros and cons that come with ICOs. So let's see what you have to look out for:

Pros

        High potential profits

        Accessible to anyone (unlike IEOs)

        Money returned if unsuccessful (smart contacts)

        Transparency on fund usage (Blockchain)

        High liquidity

Cons

        No intrinsic value

        No legal guarantees

        Potential fraud

Frequently asked questions

Now that we have covered the basics, there are some additional questions the internet has and we thought we would take the time to answer them for you. These are the most frequently asked questions about ICOs, and while we have answered some here is a more TL;DR breakdown:

What does ICO mean?

ICO stands for Initial Coin Offering, a phrase coined by the cryptocurrency industry.

What is the purpose of an ICO?

ICO is a method used to raise funds for up and coming projects, think of it as an early investment phase.

How do I get an ICO?

That depends on the ICO you want to partake in, you will generally need to sign up to the ICO, deposit funds, and wait for the tokens to be distributed either through an exchange or smart contract. This differs depending on the projects' ICO parameters.

Is Bitcoin an ICO?

No, Bitcoin required no funding, tokens were mined and sold without the need for crowdfunding.

How many ICOs are there?

There is no definitive number out there but consensus shows that there have been roughly over 7,000 businesses that have attempted ICOs.

Are ICOs safe?

This is a tricky question and depends greatly on the individual project that is hosting an ICO, whether they are using smart contact technology, and how legitimate the team behind it is. ICOs can be safe, but they also carry risks, it is always best to do your own research before investing.

As there is no universal authority on ICOs there is certainly a lack of regulation in the space so be sure to do thorough research before parting ways with your money.

Closing Thoughts

That is all the essential information you need to grasp in order to better understand what an ICO is. From the textbook definition to its competitors, how it works, and everything in between. ICOs are popular for a reason, they offer a range of benefits to both projects and investors, but you should keep in mind that there is no benefit without risk.

While we can explain what an ICO is, we can not tell you whether to invest in an ICO. It's important to vet the project for yourself and see if it aligns with your interests, and more importantly if it has all the key components for a legitimate project and token.

While the world is increasingly accepting of ICOs from both businesses and retail investors standpoints, there are several alternatives available. We briefly discussed IEOs and IDOs, but more crowdfunding methods have flourished from the origins of ICOs, so be sure to explore those out too. At the end of the day, we hope we helped you better understand what an ICO is.

Investing has become an increasingly important part of many people's financial plans, as it offers the potential for greater returns than simply leaving money in a savings account. By investing your hard-earned money, you can potentially build wealth over time and secure a better future for yourself and your family.

But what exactly is investing? Put simply, investing involves putting your money into assets with the goal of making more money. There are various types of investments available to individuals, from stocks and bonds to mutual funds and real estate investments. Understanding how each type works is key to making smart investment decisions that will help you meet your financial goals.

Investing can also involve investing in time and labor, especially when it comes to business operations. These investments are similar in that one expects to see returns. While no investment carries a guarantee, understanding what they are and how they operate will assist you in making smart financial decisions. 

What is an investment?

When you invest, you're essentially trading current resources (like time or money) for an asset that has the potential to grow in value. Ideally, if you choose to invest in the right asset at the right time, your investment could gain value. As an example, when you trade on the stock market, you are buying stock with capital in the hope that in time the asset will grow in value and sell for more money than the initial capital investment. 

There are plenty of different types of investments one could use to grow their money, from stocks and bonds to commodities and cryptocurrencies, as well as mutual funds and real estate properties. The concept behind every investment is that it will make more money for the investor in the long term.

A smart investment allows an individual to not only make money but increase their total net worth. However, it's crucial to remember that every type of investment is speculative and there is always a possibility you will lose some or all the money you put in. For example, if you purchase stock shares or a piece of property, the value could decrease soon after you buy it. For this reason it is imperative that one assesses their risk tolerance before investing in something so as not to lose money.

The definition of an investment is not constant and can change depending on the situation. For instance, in macroeconomics, investing refers to purchasing items now that will be used later to generate income. While a company or individual from one nation might invest in business properties located in another country, such as building a factory which is known as foreign direct investments.

What are the different types of investments?

With a variety of options available, each investment type carries its own potential for returns, risks, and other factors such as tax implications and management fees. Below we highlight several options available to the everyday trader that can be used individually or together as part of an investment strategy to contribute to their financial goals.

Stock Market

By investing in stocks on the stock market, you are purchasing fractional ownership of a public listed company. People generally invest in stocks with the aspiration that their value will have gone up by the time they sell them. In order to make a profit from selling stock, the price will need to have grown enough to cover any trading costs and transaction fees associated with the trade. 

Investing in certain stocks might also make you liable to dividend payouts, where a company distributes profits to shareholders (holders of stock) based on the company's performance. 

Read more about investing in stocks in our What Are Stocks article. 

Mutual funds

Mutual funds are investment vehicles that pool the money of many investors and invest in a variety of different assets such as stocks, bonds, and other securities. A mutual fund is managed by an investment professional who makes all the decisions about where to put the money within the fund.

These professionals seek to maximize returns for investors while maintaining a certain level of risk. Mutual funds are a great way for investors to diversify their portfolios, as the fund’s holdings may include stocks from many different companies and sectors. Additionally, mutual funds reduce the amount of research required to make an informed investment decision since all decisions are made by the fund manager. Investing in a mutual fund may come with higher fees than other investments.

Bonds

By purchasing a bond, you are essentially loaning money to a government, company, or other borrowing entity. In return for your loan, the debtor (the bond issuer) is required to repay both the debt and any associated interest payments. 

However, it's worth noting that on occasion companies and countries default on their bonds, meaning that they can't make scheduled payments to the bondholders which will result in the investor losing money. This is almost always a last resort option as these establishments know that defaulting will scare off investors going forward.

A bond is a fixed-income instrument that pays periodic interest payments until the agreed-upon end date when the final payment is made and the loan's original amount is repaid.

Commodities

Commodities are raw materials that can be traded for one another, such as gold, beef, and gas, expanding to foreign currencies and indexes. Funds that invest money in commodities will typically invest in resources such as precious metals (silver, gold), energy resources (natural gas, oil), and primary agricultural products (wheat). 

Cryptocurrencies

Cryptocurrencies are digital assets that are operated on decentralized networks free from government or financial institutional control. While considered high-risk, several cryptocurrencies (such as Bitcoin) have shown incredible gains over the last decade. Various investment accounts in mainstream firms are starting to incorporate cryptocurrencies into their portfolio.

Other investment options (real estate investments, etc)

Other investment options include real estate, options, futures, and certificates of deposit. 

Before investing in any of the asset classes mentioned above it is imperative that one understands the financial instruments and their own risk tolerance entirely, as well as the terms involved in the investment, the fees or transaction costs and the risks involved. 

It is also important for savvy investors to understand the tax implications of their investments and the capital gains tax they might be required to pay on any investment returns.

How do investments work?

While each asset class might differ slightly, they all require an upfront investment of capital. The intention is that this will later create a return in a monetary form of higher value. 

When investing in financial products such as bonds, stocks, or a mutual fund, investors will typically have to set up an investment account with a professional such as a brokerage firm or money manager. This person can then advise on which products to invest in and manage your portfolio.

Investing in real estate will involve buying a house, usually done by making a down payment or investing in real estate investment trusts. These properties can either be used to live in or rent out and generate future income. The intention here is that the house appreciates in value over a certain period of time and can later be sold at a higher price. Depending on the property and area these types of investments can range from high risk to low risk.

How investments drive economic growth

Investments are not just for personal or corporate benefits, they play a big role in driving the broader economy. Through factors like building consumer demand and job creation, investing can play a direct role in economic growth. 

For instance, a company might decide to sell stocks and issue corporate bonds in order to raise capital. This capital can then be used to build a factory, create a new product line and hire new employees. This then drives the greater economy while also building the company's and investors' wealth. 

In another example, governments might use the funds raised from corporate bonds to fund public projects, fix the roads, or build social programs in communities. Or individuals might use gains made from investments to further their education or save for retirement. With more income comes more consumerism, in turn contributing to economic growth.

How to start investing

If you're ready to start investing, you will first need to determine your risk tolerance and which asset class you wish to pursue. If you're just starting out, start small and grow instead of taking on too many things at once. Gaining an understanding of your risk tolerance will help you to navigate where start investing.

Research

Before you begin, ensure that you have a thorough understanding of the market you wish to invest in, and understand all the associated risks. Always do your own research, and don't rely on one outlet or individual to be the sole source of information. If the option is available, consider hiring a professional to assist you. 

Understand market movements

Another important aspect to understand before investing is that markets will always have fluctuations. Even if they grow over long periods of time, they will still go through periods of increases and declines. Don't rely on past performances to dictate future outcomes. 

Open an account

To get started in investing you will need to open an investment account that allows you to both buy and sell the financial instrument. Looking at investing in stock, some investors will open a brokerage account that will execute trades on their behalf, while others might use a portfolio manager who oversees all their investments. Always do your research before parting ways with your money.

Have your financial affairs in order first

While investing is designed to create wealth, it is important to have a grasp on your personal finance beforehand, and ideally have an emergency fund set up for any unforeseen expences (so that you won't have to tap into your investment accounts).

Conclusion

An investment is the act of buying an asset with the intention that it appreciates in value over time. Before people invest it is imperative that one establishes their risk tolerance to establish how much risk one has to navigate.

Investments can be managed by professionals or individually, depending on the investors preference. It is also important to note that return on investments will typically be imposed by capital gains taxes, depending on the jurisdiction. 

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Il n’est jamais trop tard pour découvrir le nouveau système de paiement numérique. Bitcoin gagne en popularité chaque année, et à mesure que l’adoption s’accélère, c’est le moment idéal pour mieux comprendre la toute première (et toujours la plus importante) cryptomonnaie au monde.

Qu’est-ce que Bitcoin ?

Bitcoin est un système de paiement peer-to-peer qui fonctionne via Internet, sans passer par une autorité centrale comme une banque ou un gouvernement. Cette monnaie numérique permet d’envoyer de l’argent directement d’une personne à une autre, sans intermédiaires, sans frais bancaires excessifs, ni délais de traitement.

Contrairement aux monnaies traditionnelles, Bitcoin est géré par un réseau mondial d’ordinateurs, tous synchronisés par un protocole commun. Sa technologie de base, la blockchain, assure que chaque transaction est enregistrée de manière transparente, sécurisée et immuable.

Bitcoin fonctionne 24h/24, 7j/7, sans frontière ni restriction. Il est souvent comparé à l’or, car tous deux sont considérés comme des réserves de valeur fiables. Et même si la réglementation des cryptos continue d’évoluer, Bitcoin reste l’une des monnaies numériques les plus utilisées dans le monde.

Quels sont les avantages de Bitcoin ?

Bitcoin a introduit une nouvelle manière de gérer ses fonds — simple, transparente et indépendante. Voici quelques-uns de ses principaux avantages :

• Décentralisé : Aucune entité ne peut bloquer vos transactions, geler vos fonds ou exiger des démarches administratives complexes.
• Accessible : Il suffit d’une connexion Internet pour utiliser Bitcoin, où que vous soyez dans le monde.
• Transparent : Toutes les transactions sont enregistrées en temps réel sur une base de données publique, la blockchain.
• Liquide : Bitcoin est négocié sur des centaines de plateformes dans le monde entier, ce qui garantit une forte liquidité.

Comment fonctionne Bitcoin ?

Bitcoin repose sur la blockchain, une technologie qui permet à un réseau d’ordinateurs de traiter et valider les transactions sans intermédiaire. Voici comment ça marche :

Disons qu’Amal souhaite envoyer 1 BTC à Georges. Elle entre l’adresse du portefeuille de Georges et le montant dans son application Bitcoin. Chaque portefeuille contient une clé publique (visible par tous) et une clé privée (connue uniquement du propriétaire, comme un code PIN).

Une fois la transaction lancée, elle est ajoutée à un ensemble de transactions en attente. Des mineurs vont alors se concurrencer pour résoudre une équation cryptographique complexe. Le premier à réussir pourra valider la transaction.

Les fonds sont alors transférés d’Amal à Georges, et cette opération est enregistrée sur la blockchain. Ce registre numérique transparent mentionne la date, l’heure, les adresses concernées et le montant. L’historique est immuable et public.

Pour plus de sécurité, il faut souvent attendre trois confirmations (c’est-à-dire trois nouveaux blocs ajoutés à la blockchain) avant de pouvoir utiliser les fonds reçus.

Qu’est-ce qui donne de la valeur à Bitcoin ?

La valeur de Bitcoin repose sur l’offre et la demande. Son prix augmente quand la demande monte et que l’offre se raréfie.

Par design, Bitcoin est limité à 21 millions d’unités. Ce plafond intégré dans son code rend la cryptomonnaie naturellement déflationniste, à l’inverse des monnaies fiduciaires.

Avec sa progression remarquable au fil des ans, Bitcoin est devenu pour beaucoup un actif de long terme. Sa disponibilité permanente et sa forte liquidité renforcent encore son attrait auprès de ceux qui préfèrent "hodler".

À quoi sert Bitcoin ?

Bitcoin peut être utilisé comme moyen de paiement ou comme réserve de valeur. Son fonctionnement simple, sa disponibilité constante et la possibilité de le transférer partout dans le monde en quelques minutes en font une solution pratique.

De plus en plus de commerçants acceptent les paiements en Bitcoin, aussi bien en ligne qu’en boutique. Tant que vous avez Internet, vous pouvez envoyer et recevoir des BTC.

Quelle est l’origine de Bitcoin ?

Bitcoin a été annoncé publiquement le 31 octobre 2008, puis lancé officiellement en janvier 2009. Son créateur — toujours anonyme à ce jour — se fait appeler Satoshi Nakamoto. Il ou elle (ou eux) est à l’origine de toute la révolution crypto.

Dans le whitepaper du projet, Nakamoto explique avoir voulu créer une monnaie indépendante des banques et des gouvernements, en réponse à la crise financière de 2008. Une monnaie contrôlée uniquement par ses utilisateurs.

Vers 2010, Satoshi a disparu d’Internet, et son identité reste un mystère. Certains pensent même qu’il s’agissait d’un collectif.

Depuis, plus de 12 000 cryptomonnaies ont vu le jour. On parle alors d’altcoins (monnaies alternatives). Certaines, comme Ethereum, permettent de créer des applications décentralisées. D’autres, comme Litecoin, cherchent à améliorer le système de paiement de Bitcoin.

Comment acheter du Bitcoin ?

Acheter du Bitcoin est bien plus simple qu’on ne le pense.

Il vous suffit de créer un compte sur l’app Tap, de valider votre identité, et vous pourrez acheter des BTC en quelques clics. L’application vous donne accès à un portefeuille crypto sécurisé, à des échanges en temps réel, et même à une carte Tap pour dépenser vos cryptos comme des devises classiques.

👉 Découvrez comment acheter du Bitcoin avec Tap ici.