Top 25 Questions And Answer About Cryptocurrency

Copyright © Blockchain Council www.blockchain-council.org
Top 25 Questions and Answer About
Cryptocurrency
Cryptocurrencies have now become a buzz word. Despite the resilience that it
faced initially, cryptocurrencies have come a long way. There are a total of
around 5000 cryptocurrencies circulating in the market. If you plan to make a
career in this domain, you need to run through the following questions.
2

1. What is a cryptocurrency?
Cryptocurrency is a digital currency that is transacted on a distributed ledger
platform or decentralized platform or Blockchain. Any third party does not govern
it, and the transaction takes place between peer-to-peer.
3

2. When was the first Cryptocurrency introduced?
The first Cryptocurrency or Bitcoin was introduced in the year 2009.
3. Who created Cryptocurrency?
Satoshi Nakamoto gave the first Cryptocurrency. The white paper for the same
was given in 2008 and a computer program in 2009.
4

4. What are the top three cryptocurrencies?
The following are the three cryptocurrencies:
• Bitcoin (BTC) $128bn.
• Ethereum (ETH) $19.4bn.
• XRP (XRP) $8.22bn.
5

5. Where can you store Cryptocurrency?
Cryptocurrencies are stored in a digital wallet, and this is accessible via public and
private keys. A public key is the address of your wallet, and the private key is the
one that helps you in executing the transaction.
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6. Which is the safest wallet for Cryptocurrency?
The most secured wallet for Cryptocurrency is a hardware wallet. It is not
connected to the internet, and thus it is free from a hacking attack. It is also known
as a cold wallet.
7. From where I can purchase cryptocurrencies?
The easiest way to buy Cryptocurrency is via crypto exchange. You can several
crypto exchanges like Coinbase, Bitbuy, CHANGENow, Kraken etc.
7

8. What are the ten popular crypto exchanges?
The following are the best ten popular crypto exchange:
1. Coinbase
2. Binance
3. FTX
8

4. Cex.io
5. Local Bitcoins
6. Bitfinex
7. LocalBitcoins
8. Bittrex
9. Coinmama
10. Kraken
9

9. What are the key features of Blockchain?
We all know that Bitcoin or any other cryptocurrency runs on the Blockchain
platform, which gives it some additional features like decentralization,
transparency, faster speed, immutability and anonymity.
10

10. What is AltCoin?
It means Alternative Coin. All the cryptocurrencies other than Bitcoin are
alternative coins. Similar to Bitcoin, AltCoins are not regulated by any bank. The
market governs them.
11

11. Are cryptocurrency sites regulated?
Most cryptocurrency websites are not regulated.
12. How are Cryptocurrency and Blockchain related?
Blockchain platform aids cryptocurrency transactions, which makes use of
authentication and encryption techniques. Cryptography enables technology for
Cryptocurrency, thus ensuring secure transactions.
12

13. What is a nonce?
The mining process works on the pattern of validating transactions by solving a
mathematical puzzle called proof-of-work. The latter determine a number or nonce
along with a cryptographic hash algorithm to produce a hash value lower than a
predefined target. The nonce is a random value used to vary the value of hash so
that the final hash value meets the hash conditions.
13

14. How is Cryptocurrency different from other forms of payment?
Cryptocurrency runs on Blockchain technology, which gives it an advantage of
immutability, cryptography, and decentralization. All the payments are recorded on
the DLT, which is accessible from any part of the world. Moreover, it keeps the
identity of the user anonymous.
14

15. Which is the best Cryptocurrency?
Several cryptocurrencies have surged into the market, and you can choose any of
these. The best way to choose the right cryptocurrencies is to look at its market
value and assess its performance. Some of the prominent choices are Bitcoin,
Ethereum, Litecoin, XRP etc.
15

16. What is the worst thing that can happen while using
Cryptocurrency?
One of the worst things could be you losing your private keys. These are the
passwords that secure your wallet, and once they are lost, you cannot recover
them
16

17. What is the private key and public key?
Keys secure your cryptocurrency wallet; these are public key and private key. The
public key is known to all, like your bank account number, on the hand, the private
key is the password which protects your wallet and is only known to you.
17

18. How much should one invest in Cryptocurrency?
Well, investing in Cryptocurrency is a matter of choice. You can study how the
market is performing, and based on the best performing cryptocurrency, you can
choose to invest. If you are new to this, then it's advisable that you must start
small.
18

19. From where can one buy Bitcoin using Fiat currency?
Two of the popular choices that you have are Coinbase and Binance, where you
can purchase Cryptocurrency using fiat currency.
19

20. Are the coins safe on exchanges?
All the exchanges have a high level of security. Besides, these are regularly
updated to meet the security requirements, but it's not advisable to leave your
coins on them since they are prone to attack. Instead, you can choose a hard
wallet to store your cryptocurrencies, which are considered the safest.
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21. What determines the price of cryptocurrencies?
The price of cryptocurrencies is determined by the demand and supply in the
market. Besides, how the market is performing also determines the price of
cryptocurrencies.
21

22. What are some of the prominent cryptocurrencies terminologies?
There are jargons which are continuously used by people using cryptocurrencies
are:
DYOR: Do Your Own Research
Dapps: Decentralized Applications
Spike: Shapr increase in the price of the Cryptocurrency
Pump: Manipulated increase in the price of a cryptocurrency
Dump: Shapr decline in the price of Cryptocurrency
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23. How can I check the value of cryptocurrencies?
Various platforms will give you an update on the price of cryptocurrencies. You
can keep a tab on them and check the pricing of cryptocurrencies.
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24. What are the advantages of using digital currencies?
There are various advantages like you are saved from double-spending, the
transactions are aster and secure. Moreover, digital currencies now have global
acceptance.
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25. What is the difference between cryptocurrencies and fiat
currencies?
Cryptocurrencies are digital currencies which run on the Blockchain platform and
are not governed by any government agencies, while the fiat currencies are the
ones which are governed by authorities and government.
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25. What is the difference between cryptocurrencies and fiat
currencies?
Cryptocurrencies are digital currencies which run on the Blockchain platform and
are not governed by any government agencies, while the fiat currencies are the
ones which are governed by authorities and government.
Conclusion- This was all the FAQs pertaining to cryptocurrency, for more such
information keep coming back to Blockchain Council.
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Top 25 Questions And Answer About Cryptocurrency

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