They’re here to stay: Bitcoin, the first cryptocurrency, was launched in 2009 – there are now several thousand cybercurrencies. But how do these digital assets work? How can we invest in them? And why did Yuh create its own currency called Swissqoin?
Have you ever invested in a cryptocurrency?
There are no cryptocurrency coins or bills because digital currencies only exist virtually in the form of data. However, it serves the same purpose as money: cryptocurrencies are a means of payment. They can be stored or used to measure the value of exchange transactions.
“Crypto” comes from ancient Greek and means “hidden” or “concealed”. Cryptography is the science of using mathematical and computer science methodology to encrypt information. In the context of currencies, “crypto” therefore means “digital money” that is difficult to manipulate and well protected against counterfeiting by using cryptographic processes.
Unlike traditional money, cryptocurrencies are not created (and controlled) by central banks and the banking system, but instead via decentralized networks whose participants manage transactions and generate new units of the currency. On one hand, this means that cryptocurrencies function independently of the banking system, so that payments can be made without the involvement of financial institutions, for example. On the other, the value of cryptocurrencies is determined purely by supply and demand and cannot be influenced by central banks.
Cryptocurrencies are based on blockchain, which functions as a type of cash book. Every transaction is recorded here in a decentralized manner: the data concerning a currency purchase or sale is attached to the blockchain as a “block” and cryptographically locked. Unlike conventional databases, the blockchain is not located on a single server, but exists in identical form in huge numbers: all network participants have a full copy of the entire blockchain. In this system, data cannot be modified, which makes hacking difficult. The blockchain therefore provides security and transparency.
High upward and downward price fluctuations are commonplace for cryptocurrencies. This means cryptocurrency transactions entail a high level of risk. That’s why it’s important to carefully weigh up the opportunities and risks before investing in a cryptocurrency and to find out as much as you can about digital currencies.
If you decide to invest in cryptocurrencies after weighing up the risks and rewards, you have many options for investing – including using the Yuh app, which enables you to exchange most major currencies for various virtual currencies. In addition to bitcoin, around 20 other cryptocurrencies are currently available – these include Ethereum, Solana, ChainLink or Cardano. Yuh is the joint finance app from PostFinance and Swissquote, which allows customers to manage payments, savings and investments.
Swissqoin is a special crypto token .It has the symbol SWQ and can only increase in value. Swissqoin was created to allow Yuh’s customers to share in its success. How does it work? Yuh currently reinvests a total of 50 centimes per Yuh customer into these Swissqoins. So the more customers Yuh has, the more the value of a Swissqoin will increase. As “starting capital”, all customers who open a Yuh account and make a deposit of at least 500 francs will receive a free 500 Swissqoins. Additional Swissqoins can be earned with activities in the app. Swissqoins can be redeemed for cash or given as gifts to friends who also use Yuh. Or you can keep them as an investment – it’s well worth it.
