Basics of Yuan Chain Coins: How to Purchase Crypto Yuan

 Including a "digital yuan" could be appealing if you're looking into investing choices and want to locate distinctive cryptocurrency offers that could strengthen your portfolio. After all, the United States has the most excellent economy, with China following in second. In light of this, the Yuan Chain Coin (YCC) is a desirable choice. Here is all the information you need to know about YCC in case you're interested in it, want to determine whether it would make an intelligent addition to your portfolio, or need to know how to purchase it.

Yuan Chain Coin: What Is It?

The Ethereum network has a cryptocurrency called the Yuan Chain Coin. It first started trading in 2018 and has a total coin supply of 10 billion. Despite having "yuan" in the name, YCC isn't associated with the currency. You cannot buy it with yuan or any other form of fiat money. Instead, it would be best to buy Ethereum and then use that money to buy YCC.

It's crucial to remember that YCC differs from the digital yuan supported by a central bank. The Digital Currency Electronic Payment (DCEP) coin is being used by the People's Bank of China (PBOC) to investigate a central bank digital currency (CBDC). Most people generally view that coin as the recognised "digital yuan."

The Background of the Yuan Chain Coin

As was already noted, YCC started trading in 2018. Midway through July 2019, version 1.0 was made available, introducing the platform's foundation. Version 2.0 was introduced in January 2020 and offers a larger environment.

It features the use of intelligent contracts and runs on the Ethereum platform. This allows it to participate in various situations, such as DAOs, NFTs, DeFi, and others.

Sadly, there isn't much information available regarding YCC. Even on its website, the company that created the Yuan Chain Coin needs to be more transparent about its production or use. Furthermore, few crypto professionals are talking about its viability or potential because it has yet to gain much traction in the larger market.

The YCC white paper review doesn't provide much further information. While the authors present hypothetical business scenarios based on possible applications for smart contracts, such as being a component of an accounting platform, most of the information is ambiguous. The YCC team descriptions, which only include first names, exhibit the same lack of specificity.

YCC, in the opinion of some, is an effort to cash in on interest in the "digital yuan." In essence, some investors see YCC as a ruse, primarily expecting that customers looking to invest in DCEP will mistakenly buy YCC thinking they are getting the bank-backed version.

Others believe that YCC is just an intermediary, facilitating the indirect exchange of various cryptocurrencies for other ones. Even if that wasn't the designers' objective, some are concerned that it could eventually be used chiefly for crypto laundering.

Workings of Yuan Chain Coin

YCC functions similarly to other coins created on the Ethereum network. It prioritises transparency through the usage of blockchain and depends on a traditional proof-of-stake methodology for verifications.

The developers highlight advantages like flexibility, safety, and cross-chain support. Additionally touted as advantages are low latency and environmental friendliness. These features aren't intrinsically special, so they don't necessarily make Yuan Chain Coin stand out.

Owning YCC, like many other cryptocurrencies, signifies membership in a "community," making it easier for users to access platform services that are related to it. Due to the white paper's lack of candour regarding the landscape, it isn't easy to pinpoint exactly what that entails.

Purchase of Yuan Chain Coin

Because you cannot buy Yuan Chain Coin with fiat money, purchasing it is more complex than with specific other cryptocurrencies. Instead, buying another cryptocurrency, such as Ethereum, would be best.

Where you buy Ethereum doesn't matter. Just be aware that you must usually transfer it elsewhere to finish the transaction. For instance, if you purchase Ethereum through Coinbase, you can transfer the cryptocurrency there by downloading Coinbase Wallet. After completing that, you can buy YCC via the "Trade" menu.

You don't have to take that course of action, though. Huobi Global is the most dynamic platform for trading YCC, making it a well-liked location for this activity. Depending on your more significant needs and preferences, you may or may not find it the best choice. Just be aware that you must first deposit your Ethereum into a suitable wallet to start trading, regardless of the exchange you choose.

You can keep the YCC in a suitable wallet after buying it. You can decide whether to use a hot wallet or a cold wallet.

Why Yuan Chain Coin Might Interest Investors

Ultimately, YCC offersersification, which is usually an intelligent move type of investing. Additionally, the Yuan Chain Coin's price is typically low, which may indicate room for growth.

YCC has seen a few value peaks, with some of those peaks coming close to $0.04. It also spends a significant amount of time below $0.005, though. This can be a good deal for those willing to buy now at a discount. Sometimes, you can purchase 1,000 YCC for the price of a latte at a coffee shop, which is tempting. However, the lengthy dips that follow the brief price peaks may make it less attractive.

In the end, not everyone should use the Yuan Chain Coin. You shouldn't proceed if you were looking for the bank-backed "digital yuan" that many people have heard about since YCC is not such a coin. Additionally, YCC doesn't automatically provide advantages over what you can receive with some other cryptos.

Given this, it is imperative to consider any potential benefits and drawbacks before taking action. This is especially true given that buying YCC involves a few obstacles, especially if you need an account with an exchange that trades the coin.