The idea of adding a “digital yuan” might be appealing if you’re looking at investment possibilities and want to uncover distinctive crypto offers that could perhaps improve your portfolio. China’s economy is the second biggest in the world, after only that of the United States. Given this, the Yuan Chain Coin (YCC) would appear like a desirable choice. Here is all the information you need to purchase YCC, determine if it’s a suitable investment for your portfolio, or just want to learn more about this cryptocurrency.
Yuan Chain Coin: What Is It?
A cryptocurrency that runs on the Ethereum network is called the Yuan Chain Coin. It has a 10 billion coin supply and was first made tradeable in 2018. Although the name YCC contains the word “yuan,” it has nothing to do with the money. In actuality, you cannot buy it with yuan or any other fiat money. Rather, you must first purchase Ethereum in order to fund your YCC investment.
It’s crucial to remember that YCC is not a central bank-backed digital yuan. Using a coin known as the Digital Currency Electronic Payment (DCEP), the People’s Bank of China (PBOC) has been investigating the possibility of implementing a central bank digital currency (CBDC). Generally speaking, the majority of people view that coin as the official “digital yuan.”
The Yuan Chain Coin’s History
As was already noted, YCC started trading in 2018. Version 1.0 of the platform was launched in mid-July 2019, introducing its first structure. Version 2.0 launched in January 2020, offering a more comprehensive environment.
It incorporates smart contract functionality because it runs on the Ethereum platform. This enables it to be involved in many situations, such as DAOs, NFTs, DeFi, and more.
Unfortunately, not much else about YCC is evident. Even on its own website, the company that created the Yuan Chain Coin isn’t very forthcoming about how it works or how it was made. In addition, not many cryptocurrency specialists are talking about its validity or potential because to its poor traction in the larger market.
Examining the YCC white paper doesn’t provide a lot more information. Much of the material is ambiguous, even if the developers present hypothetical business scenarios based on possible applications for smart contracts, such as becoming a component of an accounting platform. The YCC team descriptions are also devoid of information; all they include are first names.
Some believe that YCC is an effort to take advantage of the interest in “digital yuan.” In essence, some investors see YCC as deceptive, primarily expecting that consumers interested in DCEP will mistakenly buy YCC under the mistaken impression that they are receiving the version supported by the bank.
The Operation of Yuan Chain Coin
In terms of functionality, YCC is comparable to other currencies created on the Ethereum network. It stresses transparency through the use of blockchain technology and depends on the traditional proof-of-stake method for verifications.
In general, the developers also highlight advantages like cross-chain compatibility, flexibility, and safety. Environmental friendliness and low latency are also highlighted as advantages. However, because they aren’t very special, these features don’t always make Yuan Chain Coin stand out.
Like many other cryptocurrencies, YCC signifies belonging to a “community,” making it easier for holders of the coin to access related platform services. Since the white paper doesn’t go into great detail on the landscape, it’s difficult to pinpoint exactly what it entails.
Ways to Purchase Yuan Chain Coins
Because you cannot buy Yuan Chain Coin using fiat money, it is more difficult to buy than certain other cryptocurrencies. Rather, you’ll need to start by purchasing another cryptocurrency, like Ethereum.
The location of your Ethereum purchase is not really important. Just be aware that in order to finish the transaction, you’ll usually need to transfer it somewhere else. For instance, you may download Coinbase Wallet and move Ethereum there if you purchase Ethereum through Coinbase. After it is finished, you may buy YCC via the “Trade” menu.
That strategy isn’t your only one, though. Huobi Global is a well-liked location for this kind of activity because it is the most active platform for YCC trading. It may or may not be the best choice for you, depending on your tastes and larger demands. Just be advised that in order to begin trading, you will need to deposit your Ethereum into a suitable wallet, regardless of the exchange you choose.
You may easily carry the YCC in a suitable wallet after buying it. It is entirely up to you whether to select a hot or cold wallet.
Why Yuan Chain Coin May Be of Interest to Investors
YCC does, in the end, provide the chance for diversity, which is generally a good idea for all types of investment. Furthermore, the Yuan Chain Coin’s price is often low, which may indicate room for development.
YCC has seen a few value peaks, at times approaching $0.04 in proximity. It does, nonetheless, also spend a significant period of time below $0.005. If you purchase cheap, this can be a good deal for you. There are instances when you may acquire 1,000 YCC for the price of a latte at a café, which is an attractive offer. However, the price frequently experiences protracted troughs after brief surges, which may lessen its allure.
Finally, not everyone should invest in Yuan Chain Coin. If you were looking for bank-backed “digital yuan,” you won’t want to proceed with YCC, so keep looking elsewhere. Furthermore, YCC doesn’t automatically provide advantages over and beyond what you can get with certain other cryptos.
Given this, it’s important to consider all relevant advantages and disadvantages and conduct thorough study prior to taking any action. This is especially true if you don’t have an account with an exchange that offers the coin, as buying YCC does require you to go through some hoops.
