top of page
.png)
Q&A Page
Our questions and answers page will help guide you in the right direction.
Q: What are the different types of cryptocurrency?
A: Bitcoin is the most widely used cryptocurrency. Other cryptocurrencies, also known as "alt coins" (which refers to any currency that is not Bitcoin or Ethereum, ie an "alternative" coin to Bitcoin), include Stellar, XRP, Litecoin, Chainlink etc...
Q: Is Bitcoin safe?
A: Yes, Bitcoin is totally safe to buy and use, provided you take precautions and follow the necessary security measures. The main thing to consider with Bitcoin is that you are your own bank, and as such you don't have anyone to call if you make a mistake or you get hacked for some reason but provided you don't do anything silly you will be totally fine. Just remember to only buy from approved and verified sources like Coinbase if you aren't comfortable with using less known exchanges.
Q: Who is in control of Bitcoin?
A: A crypto blockchain is distributed across the digital currency's entire network. No company, country, or third party is in control of it; and anyone can participate in buying and selling. In this way, control is decentralised across the world.
Q: What can I do if I can't afford a whole Bitcoin?
A: You don't have to buy 1 Bitcoin, you can buy a fractional amount because it is divisible to 8 decimal places. There are 100 million satoshi in one Bitcoin. So instead of having 100 cents to the dollar, and two decimal places, Bitcoin has 8 decimal places meaning you can buy a much smaller amount and don't need to worry about not being able to buy a whole Bitcoin.
Q: What is a blockchain?
A: Cryptocurrencies like Bitcoin and Ethereum are powered by a technology called the blockchain. At it's most basic, a blockchain is a list of transactions that anyone can view and verify. The Bitcoin blockchain, for example, contains a record of every time someone receives or sends Bitcoin(i.e. every time a Bitcoin is bought or sold) Cryptocurrencies and the blockchain technology that powers them make it possible to transfer value online without the need for a middleman like a bank or credit card company.
Q: What is a cryptocurrency wallet?
A: A cryptocurrency wallet is a piece of software that allows you to store your public and private key and allows you to interact with the blockchain enabling you to receive and send (i.e. buy and sell) digital assets like Bitcoin. You can also use your wallet to keep track of your balance. If you want to buy and store any Bitcoin or cryptocurrencies then you will need a wallet. A common misconception is that the coins actually exist in the wallet, when in fact the ownership of the coin is a purely digital record, written on the public ledger, The wallet simply allows you to interface with the network.
Q: What exactly is a Bitcoin? Can I hold one?
A: Bitcoin does not exist as a physical object. For example, if an individual has 0.5 Bitcoin sitting in a digital wallet, that does not mean that there is a corresponding other half sitting somewhere else. Owning Bitcoin implies that there is an agreement between you and other computer which exist on the
Bitcoin network that have verified your
purchase. This agreement says that your Bitcoin was created legitimately by a Bitcoin "miner," and then passed on to you through a series of legitimate transactions.
Q: Is Bitcoin legal?
A: This depends on what country you live in, but for the vast majority of the worlds 195 countries Bitcoin is perfectly legal but often not considered an accepted form of legal tender (not yet at least). Japan made Bitcoin a legal currency in 2017 and is one of the countries leading the way in cryptocurr-ency legislation and regulation by embracing the new technology rather than stifling its progress with red tape. Places like Nepal, Ecuador, Bolivia, Morocco and Kyrgyzstan have all made Bitcoin illegal and while Bitcoin itself is still legal in China, they have banned and unbanned trading of cryptocurrencies multiple times though this is still being mulled over by the government.
Q: What is the difference between Bitcoin and blockchain?
A: Bitcoin is a decentralized digital asset - arguably, the most popular - and typically takes up half of all digital asset trading volume on most given days. Bitcoin utilizes blockchain technology. Blockchain is not a cryptocurrency. It is the ledger that records all the cryptocurrency transactions that are verified by cryptography and is open, secure and accessible by all.
Q: Can I store my cryptos on an exchanges?
A: Remember, when your cryptos are on an exchange, they aren't really yours. They are kept by the exchange. Because of this, an exchange is an even less secure place to store your cryptos than your own wallet on your computer or on paper. At least once a month there is a new story of an exchange being hacked or going bankrupt and taking millions of dollars of customers' cryptos with it.
Q: Can I buy a hard wallet from a second hand vendor?
A: Never buy a hardware wallet from eBay or any other second hand marketplace. There have been reports of people doing this only to find the wallet has been compromised, the original owner has the private key and can empty your savings instantly. The temptation to save money is not worth it if you risk losing everything. Buying from an approved seller is the safest option by far!
Q: Can people steal my Bitcoin?
A: Unlike cash or traditional investments, you are responsible for storing your own cryptos safely.
-
Cryptos are stored in a digital wallet.
-
This wallet has a private key as well as a public key.
-
The private key allows you to transfer funds out of it. The public key allows you to transfer funds into it.
-
If you lose your public key, you can still access it with your private key.
-
if you lose your private key, you lose access to your wallet's funds. It is crucial to keep your private keys secure and safe.
-
if someone discovers your private key, they gain access to your funds.
Q: How can I see accurate Bitcoin historical data?
A: If you are mostly looking at the price on an exchange where it's a USDT pair or doesn't go back far enough, you may want to check additional charts on CoinMarketCap, Trading View and BitcoinCharts.
Q: Is payment via blockchain secure?
A: Due to the cryptographic nature of these networks, payments via blockchain can be more secure than standard debit/credit card transactions. When making a Bitcoin payment, for instance, you don't need to provide any sensitive information. That means there is almost zero risk of your financial information being compromised, or your identity being stolen.
Q: How do you send and receive money over a blockchain?
A: The cryptocurrency network assigns each user a unique 'address,' which is made up of a private key and a public key. Anyone can send you money via your public key, which is akin to an email address. When you want to send your money, you use your private key, which is basically your password, to digitally 'sign' transactions. The easiest way to manage your cryptocurrency is via software called a wallet, which you can purchase via an exchange like Coinbase.
Q: What if you lose your
hardware wallet?
A: When you set up your wallet you also create a "passphrase" of 20 or so words. You write these down on paper and store them like you would a paper wallet. This passphrase can be used to restore your wallet if you lose or break your device.
bottom of page