FAQ

General Cryptocurrency Questions

What is cryptocurrency?

Cryptocurrency is a digital or virtual currency that uses cryptography for security. It operates independently of a central bank, meaning it's decentralized.

How does cryptocurrency work?

Cryptocurrencies use blockchain technology, a distributed ledger that records transactions across many computers. This makes it difficult to hack or cheat the system.

What are the benefits of cryptocurrency?

Benefits include decentralization, security, transparency, potential for higher returns, and global accessibility.

How can I buy cryptocurrency?

You can buy cryptocurrency on cryptocurrency exchanges, through brokers, or directly from other people by using P2P.

Cryptocurrency Wallet Questions

What is a cryptocurrency wallet?

A cryptocurrency wallet is a software program that stores your private keys, which allows you to access and manage your cryptocurrency.

How do I choose a cryptocurrency wallet?

Consider factors like supported cryptocurrencies, security features, user interface, and fees when choosing a wallet.

Is it safe to store cryptocurrency on an exchange?

While convenient, storing cryptocurrency on an exchange involves additional risks due to potential hacking or platform issues.

What is a hot wallet?

A hot wallet is a cryptocurrency wallet connected to the internet, offering quick access but posing higher security risks.

What is a cold wallet?

A cold wallet is a cryptocurrency wallet disconnected from the internet, offering enhanced security but limited accessibility.

What is a custodial wallet?

A wallet where a third party holds your private keys.

What is a non-custodial wallet?

A wallet where you have full control over your private keys.

Cryptocurrency Trading Questions

What is a cryptocurrency exchange?

A cryptocurrency exchange is a platform where you can buy, sell, and trade cryptocurrencies.

What is a cryptocurrency token?

A cryptocurrency token is a digital asset built on an existing cryptocurrency platform, often with specific functionalities.

What is cryptocurrency trading?

Cryptocurrency trading involves buying and selling cryptocurrencies to profit from price fluctuations.

What is cryptocurrency investing?

Cryptocurrency investing involves holding cryptocurrencies for the long term, expecting their value to increase over time.

What is market capitalization?

Market capitalization is the total value of all circulating coins of a cryptocurrency.

Cryptocurrency Security and Fraud Prevention Questions

How can I protect my cryptocurrency?

Use strong passwords, enable two-factor authentication, be cautious of phishing scams, and store your cryptocurrency securely.

What is phishing?

Phishing is a fraudulent attempt to obtain sensitive information by disguising as a trustworthy entity.

How can I avoid cryptocurrency scams?

Be wary of unsolicited offers, do your research, and verify information before making any decisions.

What should I do if I lose my private key?

Recovering a lost private key is generally impossible, leading to the loss of your cryptocurrency.

What is a seed phrase backup?

A seed phrase backup, also known as a recovery phrase, is a list of randomly generated words used to restore access to a cryptocurrency wallet’s private keys and addresses.

Should I keep my seed phrase online?

Never. Keep it offline and secure.

Sending and Receiving Cryptocurrency

How do I send cryptocurrency from my wallet?

Enter the recipient's wallet address, specify the amount, and confirm the transaction.

How long does it take to send cryptocurrency?

Transaction times vary depending on the cryptocurrency, transaction fee and network load.

Can I send different cryptocurrencies from the same wallet?

It depends on the wallet. Some wallets support multiple cryptocurrencies, while others are specific.

What is a transaction fee?

A transaction fee is a small amount paid to miners or validators to process your transaction.

Can I recover a sent cryptocurrency?

Once a transaction is confirmed on the blockchain, it's generally irreversible.

Troubleshooting

My wallet is not showing my cryptocurrency balance.

Check your internet connection, ensure the wallet is synced, and verify the correct blockchain network.

I'm having trouble sending cryptocurrency.

Double-check the recipient's address and network, ensure sufficient funds, and verify network fees.

I received a fake cryptocurrency or scam message.

You must ignore the message and do not share your private information.

My wallet is not working properly.

Try to refresh the wallet or contact the wallet support team.