FAQ

A cryptocurrency is a digital or virtual form of currency that uses cryptography for security. It is decentralized, meaning it is not controlled by any central authority like a government or bank. Transactions are recorded on a public ledger known as a blockchain.

Cryptocurrencies operate on a technology called blockchain, a distributed ledger that records all transactions across a network of computers. Transactions are verified and added to the blockchain through a process called mining or consensus mechanisms, depending on the cryptocurrency.

Bitcoin was the first cryptocurrency and remains the most well-known. Other cryptocurrencies, often referred to as “altcoins,” have unique features, use cases, and technology. They are created for various purposes, including smart contracts, privacy, and governance.

You can purchase cryptocurrencies through cryptocurrency exchanges, which are online platforms that facilitate buying, selling, and trading. You’ll need to create an account, verify your identity, and then fund your account using various payment methods.

Cryptocurrencies, like any investment, come with risks. They are known for their price volatility, and there are also security risks associated with holding and trading them. It’s crucial to do thorough research, consider your risk tolerance, and use secure practices to safeguard your investments.

There are several options for storing cryptocurrencies securely, including hardware wallets, software wallets, and paper wallets. Hardware wallets are often considered one of the safest options because they store your private keys offline.