Crytpo 101: Learn or fact-check your knowledge of crypto today.
What is Cryptocurrency?
Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they aren’t subject to government or financial institution control. Bitcoin, created in 2009, was the first decentralized cryptocurrency.
Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services. Cryptocurrencies are volatile and can experience large price swings.
What is Blockchain?
Blockchain is the technology that underlies cryptocurrencies like Bitcoin. Blockchain is a distributed database that allows for secure, transparent, and tamper-proof transactions. Blockchain technology can be used for a variety of applications beyond cryptocurrencies, including supply chain management, voting, and music distribution.
What is a Crypto Wallet?
A crypto wallet is a digital wallet that stores cryptocurrencies. Cryptocurrency wallets come in a variety of formats, including desktop, mobile, and web-based wallets. Cryptocurrency wallets allow you to send and receive cryptocurrencies and to store your coins offline or online.
How do I buy Cryptocurrencies?
You can buy cryptocurrencies with fiat currency (e.g., USD) on decentralized exchanges or through a broker. You can also mine cryptocurrencies.
Proof of Stake vs Proof of Work: Main Differences
Most Cryptocurrencies, are created through a process called mining. Cryptocurrencies are mined through a process called Proof of Work or POW, and through a process called Proof of Stake or POS.
In POW algorithms, miners solve complex mathematical problems in order to add a new block to the blockchain. In POS algorithms, miners vote on which blocks to add to the blockchain.
Bitcoin is an example of a POW cryptocurrency, while Ethereum is an example of a POS cryptocurrency. Cryptocurrencies that use the same algorithm tend to be more compatible with one another.
What Is Mining?
Mining is the process of verifying and committing transactions to the blockchain. Miners are rewarded with cryptocurrency for their efforts. Cryptocurrency mining is becoming increasingly difficult and expensive, requiring specialized hardware and large amounts of electricity.
What is an NFT?
NFT stands for Non-Fungible Token. NFTs are unique digital tokens that represent real-world assets. NFTs are stored on blockchain platforms and can be used to represent anything from digital art to collectible coins.
What is an ICO?
An ICO is a fundraising mechanism used by startups to raise money by issuing their own cryptocurrency. Cryptocurrencies raised through ICOs are often referred to as “utility tokens.”
What is a DAO?
A DAO is a Decentralized Autonomous Organization. A DAO is a self-governing organization that operates without any central authority. DAOs are powered by smart contracts and are often used to manage digital assets and cryptocurrencies.
Other Frequently Asked Crypto Questions
Here are some other commonly asked questions about cryptocurrency:
What are some common Cryptocurrencies?
Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple, Dash are some of the most popular cryptocurrencies.
What is a Decentralized Exchange?
A decentralized exchange is an exchange that doesn’t rely on third-party intermediaries to complete transactions. Transactions on decentralized exchanges are completed using smart contracts.
What is a Smart Contract?
A smart contract is a self-executing contract that is stored on the blockchain. Smart contracts are often used to automate transactions and to manage digital assets.
I have more questions. Where can I find answers?
You can find more information by reading our blogs or feel free to join our community and post your questions on our social channels.