Crypto FAQ

Frequently Asked Questions (FAQ) – Crypto

1. What is cryptocurrency?

Cryptocurrency is a digital currency that uses blockchain technology for secure, decentralized transactions.

2. How do I buy cryptocurrency?

You can buy crypto through exchanges like Binance, Coinbase, or Kraken using fiat money or other cryptocurrencies.

3. What is a crypto wallet?

A crypto wallet is a tool to store, send, and receive cryptocurrencies. It can be software (online/app-based) or hardware (offline/USB device).

4. What’s the safest way to store crypto?

For security, use a hardware wallet (like Ledger or Trezor) and enable two-factor authentication (2FA).

5. What is Bitcoin?

Bitcoin (BTC) is the first and most well-known cryptocurrency, created as a decentralized digital currency in 2009.

6. What is blockchain?

Blockchain is a public, digital ledger that records transactions securely and transparently.

7. What is crypto mining?

Mining is the process of verifying crypto transactions and adding them to the blockchain, often rewarded with new coins.

8. What is staking?

Staking involves locking up crypto to support a network and earn passive rewards.

9. Are crypto transactions reversible?

No, once a crypto transaction is confirmed, it cannot be undone.

10. Is cryptocurrency legal?

It depends on your country—some allow it, some restrict it, and others ban it. Always check local regulations.

11. What are transaction fees?

Transaction fees are small payments required to process crypto transactions on the blockchain. Fees vary based on network activity.

12. What are stablecoins?

Stablecoins are cryptocurrencies pegged to stable assets (like the US dollar) to reduce price volatility (e.g., USDT, USDC).

13. What are altcoins?

Altcoins are any cryptocurrencies other than Bitcoin, such as Ethereum, Cardano, and Solana.

14. What is an airdrop?

Airdrops are free crypto giveaways by projects to promote adoption, usually requiring minimal actions like signing up or holding certain tokens.

15. Can I lose my crypto?

Yes! You can lose crypto through hacks, scams, lost private keys, or sending to the wrong address. Always use secure storage and double-check transactions.