When you’re exploring investing options and desire to find unique crypto offerings that could potentially heave your portfolio, the concept of adding a “digital yuan” could exist intriguing. Later on all, Cathay is the second-largest economy, coming in behind the Us. Since that’s the instance, the Yuan Chain Coin (YCC) may seem like an bonny option. If you’re curious nigh YCC, want to figure out if it’s a good match for your portfolio and need to know how to purchase information technology, here’s everything to know well-nigh this cryptocurrency.
The Yuan Chain Money is a crypto operating on the Ethereum platform. Information technology initially became tradable dorsum in 2018 and has a total supply of 10 billion coins. While YCC does accept “yuan” in the proper name, it isn’t technically tied to the currency. In fact, you can’t utilize yuan – or any fiat currency – to purchase information technology. Instead, you have to acquire Ethereum first and use that to invest in YCC.
Information technology’due south important to note that YCC is also not the digital yuan backed by a central bank. The People’south Depository financial institution of Communist china (PBOC) has been exploring a fundamental bank digital currency (CBDC) using a money known every bit the Digital Currency Electronic Payment (DCEP). More often than not, that’southward the coin that most people consider the official “digital yuan.”
The History of Yuan Chain Coin
As mentioned to a higher place, YCC became tradable dorsum in 2018. By mid-July 2019, version 1.0 was released, launching the initial framework of the platform. In Jan 2020, version 2.0 came into existence, providing a broader ecosystem.
Since it operates on the Ethereum platform, information technology offers smart contract capabilities. That can allow it to play a part in a range of scenarios, including DAOs, NFTs, DeFi and more.
Regretfully, not much else is clear about YCC. The system behind the Yuan Concatenation Coin isn’t overly forward about its use or cosmos, even on its own website. Additionally, its low traction in the broader market means many crypto experts aren’t discussing its viability or potential.
Reviewing the YCC white paper doesn’t reveal much additional item. While the creators pose business-based hypotheticals based on potential uses for smart contracts – such as serving as role of an accounting platform – much of the information is vague. The lack of detail likewise extends to the YCC team descriptions, all of which only feature first names.
Some people feel that YCC is an attempt to capitalize on interest in the “digital yuan.” Substantially, certain investors view YCC every bit trickery, mainly hoping that people interested in DCEP accidentally purchase YCC believing they are getting the bank-backed version.
Others think that YCC is null more an intermediary, creating indirect ways to convert various cryptocurrencies into other coins. Some fear its main purpose could ultimately become crypto laundering, fifty-fifty if that wasn’t the creators’ intention.
How Yuan Chain Coin Works
Functionally, YCC isn’t wholly dissimilar any other coins built on the Ethereum platform. It relies on a classic proof-of-stake approach for verifications and prioritizes transparency through its utilize of blockchain.
Overall, the creators also tout benefits like flexibility, safety and cross-chain support. Low latency and eco-friendliness are also advertised every bit strengths. Even so, these points don’t necessarily help Yuan Chain Coin stand out, equally they aren’t inherently unique.
Owning YCC – as with many cryptos – represents membership in a “community,” assuasive those with the coin to utilize associated platform services with greater ease. Precisely what that involves is hard to place, as the white paper isn’t overly forward most the landscape.
How to Purchase Yuan Chain Coin
Buying Yuan Chain Coin is harder than some other cryptocurrencies because yous can’t purchase information technology with fiat currency. Instead, you lot’ll demand to begin by acquiring another crypto, such as Ethereum.
Where you purchase the Ethereum isn’t overly relevant. Just sympathize that y’all’ll typically demand to transfer it elsewhere to consummate the purchase. For example, if you lot acquire Ethereum through Coinbase, you can download Coinbase Wallet and transfer the Ethereum there. Once that’southward done, you tin can utilise the “Trade” tab to purchase YCC.
However, that approach isn’t your simply choice. With Huobi Global beingness the most active when it comes to YCC trading, it is a popular destination for this sort of activeness. Whether information technology’southward the right choice for y’all may depend on your broader needs and preferences. Merely be aware that no affair the exchange you select, you’ll need to deposit your Ethereum into a compatible wallet to initiate the trades.
Later on purchasing the YCC, you lot can merely hold information technology in a compatible wallet. Whether you choose a hot or cold wallet is up to you.
Why Investors Might Consider Yuan Chain Coin
In the end, YCC does create an opportunity for diversification, which is typically wise for all kinds of investing. Additionally, the price of the Yuan Chain Coin is generally low, which could hateful there is growth potential.
YCC has experienced a few value peaks, getting relatively close to $0.04 at some points. Notwithstanding, it also spends a notable amount of time below $0.005. This could represent a potential deal for those who buy low. At times, yous could potentially get 1,000 YCC for the cost of a latte at a café, which could be appealing. But the short peaks in price are often followed by long valleys, which could make it less intriguing.
In the finish, the Yuan Chain Coin isn’t the right move for anybody. YCC is non the bank-backed “digital yuan” many people are hearing well-nigh, so y’all won’t want to become forwards if that’southward the coin you lot were afterward. Additionally, YCC doesn’t inherently offering benefits beyond what y’all can get with certain other cryptos.
Since that’due south the example, it’s critical to weigh any potential pros and cons and practise aplenty inquiry earlier moving frontwards. This is especially truthful since purchasing YCC does require jumping through some hoops, particularly if yous don’t have an business relationship at an exchange that offers the coin.