As the world grapples with the coronavirus pandemic and its impact on global supply chains over the past two years, a new way of doing business has emerged. Investing in cryptocurrency came naturally to those who had hitherto invested in stocks that showed weak demand and did not hold much potential for growth. The crypto market, although extremely volatile and unpredictable, touched new highs, creating wealth for early movers. Although they have gained traction, many cryptocurrencies still face issues of trust. And they may need some time for people to believe in their worth.
Nevertheless, there are over 12,000 crypto coins in circulation, including Bitcoin, Ethereum and Tether, and the meme-based Dogecoin. However, many people see the potential for scams in an online medium of exchange or a technology vulnerable to hacking. Therefore, it is necessary to have complete knowledge and regular updates about a coin before investing in it. But how do you get all the information you need to know about a particular cryptocurrency? The answer to that question is a whitepaper that will give you that information.
What is a whitepaper?
Each coin has a “white paper” where all the information about it is stored. A whitepaper highlights two key aspects of a crypto project – its purpose and the technology behind it. This includes historical performance and other data regarding the cryptocurrency. A whitepaper also helps to differentiate one coin from the others.
In addition to information, the whitepaper provides legitimacy and professionalism to the cryptocurrency project. A detailed whitepaper is encouraging, a badly crafted one is counterproductive. A white paper is, basically, a proposal that includes who, what, when and why one investor should choose that project over others.
One of the most obvious whitepapers is that of bitcoin. The paper was published in 2008 by Satoshi Nakamoto, a pseudonymous person or person credited with developing bitcoin. He outlined the vision behind developing bitcoin, the oldest cryptocurrency, which was launched in January 2009.