How to Buy Crypto Yuan: Yuan Chain Coin Basics

Photo Courtesy: svetikd/iStock

When you’re exploring investing options and want to find unique crypto offerings that could potentially boost your portfolio, the concept of adding a “digital yuan” could be intriguing. After all, China is the second-largest economy, coming in behind the United States. Since that’s the case, the Yuan Chain Coin (YCC) may seem like an attractive option. If you’re curious about YCC, want to figure out if it’s a good match for your portfolio and need to know how to buy it, here’s everything to know about this cryptocurrency.

What Is Yuan Chain Coin?

The Yuan Chain Coin is a crypto operating on the Ethereum platform. It initially became tradable back in 2018 and has a total supply of 10 billion coins. While YCC does have “yuan” in the name, it isn’t technically tied to the currency. In fact, you can’t use yuan – or any fiat currency – to purchase it. Instead, you have to acquire Ethereum first and use that to invest in YCC.

It’s important to note that YCC is also not the digital yuan backed by a central bank. The People’s Bank of China (PBOC) has been exploring a central bank digital currency (CBDC) using a coin known as the Digital Currency Electronic Payment (DCEP). By and large, that’s the coin that most people consider the official “digital yuan.”

The History of Yuan Chain Coin

As mentioned above, YCC became tradable back in 2018. By mid-July 2019, version 1.0 was released, launching the initial framework of the platform. In January 2020, version 2.0 came into being, providing a broader ecosystem.

Since it operates on the Ethereum platform, it offers smart contract capabilities. That can allow it to play a role in a range of scenarios, including DAOs, NFTs, DeFi and more.

Regretfully, not much else is clear about YCC. The organization behind the Yuan Chain Coin isn’t overly forward about its use or creation, 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 detail. While the creators pose business-based hypotheticals based on potential uses for smart contracts – such as serving as part of an accounting platform – much of the information is vague. The lack of detail also 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.” Essentially, certain investors view YCC as trickery, mainly hoping that people interested in DCEP accidentally purchase YCC believing they are getting the bank-backed version.

Others think that YCC is nothing more than an intermediary, creating indirect ways to convert various cryptocurrencies into other coins. Some fear its main purpose could ultimately become crypto laundering, even if that wasn’t the creators’ intention.

How Yuan Chain Coin Works

Functionally, YCC isn’t wholly unlike any other coins built on the Ethereum platform. It relies on a classic proof-of-stake approach for verifications and prioritizes transparency through its use of blockchain.

Overall, the creators also tout benefits like flexibility, safety and cross-chain support. Low latency and eco-friendliness are also advertised as strengths. However, these points don’t necessarily help Yuan Chain Coin stand out, as they aren’t inherently unique.

Owning YCC – as with many cryptos – represents membership in a “community,” allowing those with the coin to utilize associated platform services with greater ease. Precisely what that involves is hard to identify, as the white paper isn’t overly forward about the landscape.

How to Buy Yuan Chain Coin

Buying Yuan Chain Coin is harder than some other cryptocurrencies because you can’t purchase it with fiat currency. Instead, you’ll need to begin by acquiring another crypto, such as Ethereum.

Where you purchase the Ethereum isn’t overly relevant. Just understand that you’ll typically need to transfer it elsewhere to complete the purchase. For example, if you acquire Ethereum through Coinbase, you can download Coinbase Wallet and transfer the Ethereum there. Once that’s done, you can use the “Trade” tab to purchase YCC.

However, that approach isn’t your only option. With Huobi Global being the most active when it comes to YCC trading, it is a popular destination for this sort of activity. Whether it’s the right option for you may depend on your broader needs and preferences. Just be aware that no matter the exchange you select, you’ll need to deposit your Ethereum into a compatible wallet to initiate the trades.

After purchasing the YCC, you can simply hold it 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 mean there is growth potential.

ADVERTISEMENT

YCC has experienced a few value peaks, getting relatively close to $0.04 at some points. However, it also spends a notable amount of time below $0.005. This could represent a potential bargain for those who buy low. At times, you 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 end, the Yuan Chain Coin isn’t the right move for everyone. YCC is not the bank-backed “digital yuan” many people are hearing about, so you won’t want to go forward if that’s the coin you were after. Additionally, YCC doesn’t inherently offer benefits beyond what you can get with certain other cryptos.

Since that’s the case, it’s critical to weigh any potential pros and cons and do ample research before moving forward. This is especially true since purchasing YCC does require jumping through some hoops, particularly if you don’t have an account at an exchange that offers the coin.

ADVERTISEMENT

MORE FROM ASKMONEY.COM