Here you will find our extensive collection of cryptocurrency FAQs. If you can’t find the answer here, then you can submit your own question(s) and answer(s) at the bottom of this page. Or you can simply write a comment regarding any of our existing cryptocurrency FAQs.
In many cases, such as questions about taxation and regulation, the detailed answer is country or state-specific so we are unable to give you the full answer in one little faq, but we will try to point this out.
Other questions, such as those regarding cryptocurrency safety and security, often depend on how the cryptocurrency is being used.
Other answers depend on the exact cryptocurrency coin in question. For example, what may be true for bitcoin may not also be true for Ethereum.
SEARCH FOR YOUR QUESTION
You can search for a specific question with this search box. Enter only the most important noun in your question to get the best results:
Security (6)
Yes, cryptocurrency can be stolen. Cryptocurrency is only as safe as the security precautions the user implements. It also depends on the security of the wallet used and the security of the exchange where the cryptocurrency is purchased. Attacks by hackers are one of the most prevalent ways in which cryptocurrency is stolen. Read our detailed security guide []
0
0
In cryptocurrency terminology, the closest thing to a stock “split” would be called a “fork”. Given this slight change in meaning, yes, cryptocurrency can split (i.e. forked). A split usually occurs when a new cryptocurrency is created based on an existing one and an investor can receive some coins in the new currency as well as retaining all of their previous currency. A good example is the bitcoin split which resulted in a new bitcoin currency called Bitcoin Cash (BCC). There have already been a dozen other splits off of the original bitcoin. Some of these splits have been total failures but others have been successful, such as the case with BCC. Other splits are not just unsuccessful, they can also be scams in order to enrich those to caused the split. If you hear that your coin has been split, then be careful about how you collect it since you could be robbed. Read our section on [understanding cryptocurrency Forks][] to learn more.
0
0
Leave a Reply
You must be logged in to post a comment.
Yes, cryptocurrency can be hacked. Cryptocurrency is only as safe as the security precautions that the user and exchanges implement. Users need to be careful in securing their private keys and wallets. It also depends on the security capabilities of the wallet itself. Hardware and paper wallets are the most hack-proof wallets. Read our detailed security guide to learn how to limit your exposure to cryptocurrency hacking. []
0
0
Leave a Reply
You must be logged in to post a comment.
The safety of cryptocurrency wallets is dependent on many factors, but the most important factors are the wallet type that is chosen, and how well the wallet user follows standard security precautions for that particular wallet. Hardware wallets are considered one of the safest kinds of wallets. Read all about cryptocurrency wallets here.
0
0
Leave a Reply
You must be logged in to post a comment.
The underlying technology used to secure cryptocurrency is a highly effective military-grade encryption. This makes the technology itself very safe and secure. However, the actual usage of cryptocurrency, such as buying, storing, and selling it, can be unsafe if not handled properly. There are many precautions that need to be taken by the user to keep their own currency safe. If necessary precautions are not taken then all funds could be lost – either by accident or by theft. Please read more about cryptocurrency wallets and our general safety recommendations.
0
0
Leave a Reply
You must be logged in to post a comment.
Despite the common misconception, currency is not stored in cryptocurrency wallets. Cryptocurrencies are stored in blockchain account ledgers.
Most ledgers are public (anyone can view them), but some are private. The ledgers are duplicated on 1000s of computer systems distributed around the world. This replication is done to ensure that the ledger stays truthful. Most of the computer systems that participate in hosting the ledgers are owned by cryptocurrency miners.
Unlike traditional fiat currency (like the US Dollar), cryptocurrencies have no physical manifestation (you can’t actually touch them). They only exist in electronic (or “virtual”) form.
Although they are not directly stored in wallets, you do need a wallet to use your currency. These wallets contain unique code numbers, called private keys. It is the private keys that only you and your wallet know that prove your ownership of your currency. The wallet with proper keys allows owners of the currency to transfer or spend their currency. They do this by sending “spend/send” messages to the globally distributed account ledger.
Via the mathematical miracle of private key cryptography no one can steal your funds without knowing your unique special private key.
0
0
Leave a Reply
You must be logged in to post a comment.
Trading & Investing (1)
In cryptocurrency terminology, the closest thing to a stock “split” would be called a “fork”. Given this slight change in meaning, yes, cryptocurrency can split (i.e. forked). A split usually occurs when a new cryptocurrency is created based on an existing one and an investor can receive some coins in the new currency as well as retaining all of their previous currency. A good example is the bitcoin split which resulted in a new bitcoin currency called Bitcoin Cash (BCC). There have already been a dozen other splits off of the original bitcoin. Some of these splits have been total failures but others have been successful, such as the case with BCC. Other splits are not just unsuccessful, they can also be scams in order to enrich those to caused the split. If you hear that your coin has been split, then be careful about how you collect it since you could be robbed. Read our section on [understanding cryptocurrency Forks][] to learn more.
0
0
Leave a Reply
You must be logged in to post a comment.
Usage (1)
Despite the common misconception, currency is not stored in cryptocurrency wallets. Cryptocurrencies are stored in blockchain account ledgers.
Most ledgers are public (anyone can view them), but some are private. The ledgers are duplicated on 1000s of computer systems distributed around the world. This replication is done to ensure that the ledger stays truthful. Most of the computer systems that participate in hosting the ledgers are owned by cryptocurrency miners.
Unlike traditional fiat currency (like the US Dollar), cryptocurrencies have no physical manifestation (you can’t actually touch them). They only exist in electronic (or “virtual”) form.
Although they are not directly stored in wallets, you do need a wallet to use your currency. These wallets contain unique code numbers, called private keys. It is the private keys that only you and your wallet know that prove your ownership of your currency. The wallet with proper keys allows owners of the currency to transfer or spend their currency. They do this by sending “spend/send” messages to the globally distributed account ledger.
Via the mathematical miracle of private key cryptography no one can steal your funds without knowing your unique special private key.
0
0
Leave a Reply
You must be logged in to post a comment.
Wallet (2)
The safety of cryptocurrency wallets is dependent on many factors, but the most important factors are the wallet type that is chosen, and how well the wallet user follows standard security precautions for that particular wallet. Hardware wallets are considered one of the safest kinds of wallets. Read all about cryptocurrency wallets here.
0
0
Leave a Reply
You must be logged in to post a comment.
Despite the common misconception, currency is not stored in cryptocurrency wallets. Cryptocurrencies are stored in blockchain account ledgers.
Most ledgers are public (anyone can view them), but some are private. The ledgers are duplicated on 1000s of computer systems distributed around the world. This replication is done to ensure that the ledger stays truthful. Most of the computer systems that participate in hosting the ledgers are owned by cryptocurrency miners.
Unlike traditional fiat currency (like the US Dollar), cryptocurrencies have no physical manifestation (you can’t actually touch them). They only exist in electronic (or “virtual”) form.
Although they are not directly stored in wallets, you do need a wallet to use your currency. These wallets contain unique code numbers, called private keys. It is the private keys that only you and your wallet know that prove your ownership of your currency. The wallet with proper keys allows owners of the currency to transfer or spend their currency. They do this by sending “spend/send” messages to the globally distributed account ledger.
Via the mathematical miracle of private key cryptography no one can steal your funds without knowing your unique special private key.
0
0
Leave a Reply
You must be logged in to post a comment.
SUBMIT YOUR OWN QUESTION
If you would like to submit your own question, then you can do so here and we will answer it and post it back to this page. If you would like to submit your answer also, then you can do that too. Otherwise, just ignore the “answer” box. If you would like your name displayed with your answer then you can enter that also – otherwise ignore that too.
Leave a Reply
You must be logged in to post a comment.