Crypto has been on the rise with new and varied altcoins getting into the market. If you are new to the crypto world then I bet you have a lot of unanswered questions. Well, not to worry, we have a list of top crypto questions answered.
Top crypto questions answered
Here is the list of top crypto questions answered.
1. What is crypto?
Crypto is a digital currency operated under a decentralized authority through cryptography. The currency not only lacks a regulating authority but is also designed to work through computers. Crypto came into existence in 2009 by a bunch of unknown programmers. It was released through open-source software that was open to other programmers.
2.What is cryptography?
Cryptography is a science and technology used to keep information secure and hidden. Different characters are used to transform the information into formats that are hidden. Transactions of cryptocurrencies are verified through cryptography and recorded in a blockchain.
See also: What is Pi Coin and How to Purchase Some
3.What is crypto mining?
Crypto mining is the process by which different crypto networks generate new crypto coins. They also verify new transactions. It is quite competitive and uses the proof of work method to verify new transactions.
4.What is a crypto wallet?
See how you use a wallet to safely store your extra coins. Well, crypto wallets also do the same thing. However, instead of storing money, crypto coins are kept safe from unauthorized access. A crypto wallet could either be a device or a program that stores crypto keys. It also allows its users to store cryptocurrencies and use them to make transactions.
5.Where can I get crypto currencies?
Cryptocurrencies can be gotten through mining. However different coins can be found through different methods. A coin such as bitcoins can be gotten through exchanges with other cryptocurrencies. This can be done on platforms like coinbase.On the other hand, altcoins such as pi coins can be mined through an invitation. An ambassador sends the invitation code to a pioneer(a new user). All you have to do is get a referral code and earn some coins each time you sign up. You could also purchase cryptocurrencies from the networks mentioned below.
Networks to get crypto currencies
6.How do you keep your cryptocurrency safe
For you to safely secure your crypto coins from phishing and malicious attack you need to do the following :
- Use online or offline wallets to store your crypto coins.
- Keep your passwords secure. If you share your passwords with anyone,your account could be hacked.
- You could decide to use two-factor authentication to prevent unauthorized people from accessing your wallets.
- When logging into your accounts, ensure you are connected to trusted sources of internet.Do not go to any dingy cafe or connect unknown wifi networks just because they are free.
Read also: Will Banks Embrace Crypto as an Asset
7.Is crypto a safe investment?
Investing in crypto is not as straightforward as investing in a house. Markets may drastically go up and down. This may be due to small issues such as a tweet from Elon Musk. In addition to this, cryptocurrencies are quite volatile. They are not regulated by any government or system. Not only are they prone to cyber attacks but also solely based on computer networks.
This should however not deter you from investing in cryptocurrencies. It is estimated that close to 90% of the population would have invested in them in the next ten years. This means that the people who would have started investing early will get a lot of returns.