FAQ
Last updated
General Cryptocurrency Questions
Last updated
Cryptocurrency is a digital or virtual currency that uses cryptography for security. It operates independently of a central bank, meaning it's decentralized.
Cryptocurrencies use blockchain technology, a distributed ledger that records transactions across many computers. This makes it difficult to hack or cheat the system.
Benefits include decentralization, security, transparency, potential for higher returns, and global accessibility.
You can buy cryptocurrency on cryptocurrency exchanges, through brokers, or directly from other people by using P2P.
A cryptocurrency wallet is a software program that stores your private keys, which allows you to access and manage your cryptocurrency.
Consider factors like supported cryptocurrencies, security features, user interface, and fees when choosing a wallet.
While convenient, storing cryptocurrency on an exchange involves additional risks due to potential hacking or platform issues.
A hot wallet is a cryptocurrency wallet connected to the internet, offering quick access but posing higher security risks.
A cold wallet is a cryptocurrency wallet disconnected from the internet, offering enhanced security but limited accessibility.
A cryptocurrency exchange is a platform where you can buy, sell, and trade cryptocurrencies.
A cryptocurrency token is a digital asset built on an existing cryptocurrency platform, often with specific functionalities.
Cryptocurrency trading involves buying and selling cryptocurrencies to profit from price fluctuations.
Cryptocurrency investing involves holding cryptocurrencies for the long term, expecting their value to increase over time.
Market capitalization is the total value of all circulating coins of a cryptocurrency.
Use strong passwords, enable two-factor authentication, be cautious of phishing scams, and store your cryptocurrency securely.
Phishing is a fraudulent attempt to obtain sensitive information by disguising as a trustworthy entity.
Be wary of unsolicited offers, do your research, and verify information before making any decisions.
Recovering a lost private key is generally impossible, leading to the loss of your cryptocurrency.
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.
Enter the recipient's wallet address, specify the amount, and confirm the transaction.
Transaction times vary depending on the cryptocurrency, transaction fee and network load.
It depends on the wallet. Some wallets support multiple cryptocurrencies, while others are specific.
A transaction fee is a small amount paid to miners or validators to process your transaction.
Once a transaction is confirmed on the blockchain, it's generally irreversible.
Check your internet connection, ensure the wallet is synced, and verify the correct blockchain network.
Double-check the recipient's address and network, ensure sufficient funds, and verify network fees.