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FAQ

What is cryptocurrency?

Cryptocurrency is a form of digital money that uses cryptography for secure transactions and to control the creation of new units. It operates independently of a central bank and can be used like traditional money to buy goods and services, or as an investment. Bitcoin, created in 2009, was the first cryptocurrency and remains the most well-known example. Since then, thousands of other cryptocurrencies have emerged, each with its own unique features and purposes.

How do I buy cryptocurrency?
You can buy cryptocurrency through various methods. Cryptocurrency exchanges are online platforms where you can buy, sell, and trade cryptocurrencies. Popular exchanges include Binance, Coinbase, and Kraken. To use an exchange, you’ll need to create an account, verify your identity, and deposit funds to start trading. Another option is using peer-to-peer (P2P) platforms, which connect buyers and sellers directly, allowing you to negotiate prices and payment methods. Some popular P2P platforms include LocalBitcoins and Paxful. Lastly, you can buy Bitcoin with cash at Bitcoin ATMs, though they often charge higher fees than exchanges.
How can I store my cryptocurrency?
Cryptocurrency is stored in digital wallets. These wallets come in two main types: hot wallets and cold wallets. Hot wallets are connected to the internet and are more convenient for frequent transactions.

1 Examples include software wallets and online wallets. However, they are generally considered more vulnerable to hacking. Cold wallets, on the other hand, are not connected to the internet and are considered more secure 2 for long-term storage. Examples 3 include hardware wallets and paper wallets. Regardless of the type of wallet you choose, it’s important to select a reputable wallet provider and take security measures like using strong passwords and enabling two-factor authentication.

What is blockchain technology?
Blockchain is a distributed ledger technology that underlies cryptocurrencies. It provides a secure, transparent, and tamper-proof way to record transactions and track assets. Imagine a chain of blocks, each containing a set of transactions. These blocks are linked together cryptographically, making it extremely difficult to alter any information within them. This decentralized and immutable nature of blockchain makes it highly secure and resistant to fraud.
Is cryptocurrency safe?
While cryptocurrency offers many benefits, it also carries risks. Cryptocurrency prices can fluctuate significantly, which can lead to both potential gains and losses. Security risks are also present, with hacking, scams, and phishing attacks being common in the crypto space. It’s crucial to take security precautions and stay informed about potential threats. Additionally, the regulatory landscape for cryptocurrency is still evolving, and changes in regulations could impact the market. It’s important to research and understand these risks before investing in cryptocurrency. Only invest what you can afford to lose and make sure to use reputable platforms and services.