Frequently Asked Questions
Clear answers to common questions.
General Cryptocurrency Questions
Why Was Cryptocurrency Created?
The creation of cryptocurrencies aimed to provide an alternative to the limitations of traditional financial systems. Key issues with conventional banking include slow transaction times, high fees, and a lack of privacy. Cryptocurrencies were designed to solve these problems by offering a decentralized system that enables near-instant transfers, significantly lower fees, and enhanced security and privacy through cryptography. This has paved the way for a new financial paradigm, one that is increasingly being integrated by traditional banks and institutions.
What Is Bitcoin?
Bitcoin is the world’s first and most well-known cryptocurrency. Created in 2009, it is a decentralized digital currency that allows peer-to-peer transactions without the need for an intermediary. All Bitcoin transactions are recorded on a public ledger called the blockchain.
What Is Cryptocurrency?
A cryptocurrency is a digital or virtual currency secured by cryptography. Unlike traditional currencies issued by governments, cryptocurrencies are decentralized, meaning they operate on a technology called blockchain and are not subject to central control by banks or financial institutions.
What Are Altcoins?
Altcoins, a portmanteau of “alternative coins,” are all cryptocurrencies other than Bitcoin. They were created to offer new features, improve upon existing ones, or serve a different purpose than Bitcoin. Examples of altcoins include Ethereum, Ripple, and Litecoin.
Trading Questions
What Is Cryptocurrency Trading?
Cryptocurrency trading is the act of speculating on cryptocurrency price movements. Traders buy and sell digital assets to profit from price fluctuations. This can be done through various strategies, including buying and holding long-term or making frequent trades based on market analysis.
What Is Spot Trading?
Spot trading is the direct buying and selling of cryptocurrencies at their current market price for immediate settlement. When you spot trade, you own the underlying asset and can hold it for as long as you want.
What Is Futures Trading?
Futures trading is a contractual agreement to buy or sell an asset at a predetermined price on a specified future date, allowing traders to speculate on price movements without owning the underlying asset.
What Is Firm Spot Trading?
Firm spot trading refers to the immediate purchase or sale of cryptocurrencies at a set price with guaranteed execution and settlement.
What Is Leverage Trading?
Leverage trading allows traders to amplify their buying or selling power using borrowed funds. It lets you open a position that is much larger than your initial capital, which can magnify both potential profits and losses. Leverage is a high-risk strategy and is generally recommended for experienced traders.
Project-Related Questions
What Is an Initial DEX Offering (IDO)?
An Initial DEX Offering, or IDO, is a fundraising method where a new cryptocurrency project launches its coin through a decentralized exchange (DEX). The project’s tokens are sold to the public to raise capital and create initial liquidity for the asset.
What Is an Initial Game Offering (IGO)?
An Initial Game Offering, or IGO, is a fundraising method specifically for blockchain gaming projects. Similar to an IDO, an IGO allows participants to purchase a project’s tokens early. The unique benefit of an IGO is that participants can often gain early access to in-game assets, such as NFTs, while supporting the game’s development.
What Is a Launchpad?
Launchpads, also known as IDO platforms, are platforms that help new crypto projects launch their tokens and raise capital. They provide a secure and organized environment for projects to connect with investors and distribute their new coins.
What Is a Launchpool?
A launchpool allows you to deposit your existing tokens into a liquidity pool to earn new tokens for free. The amount of new tokens you earn is proportional to the number of tokens you staked and the total number of tokens in the pool. It’s a method for passive income that helps new projects gain initial traction.
Which Is the Best Cryptocurrency Exchange in India?
Some of the most reputable crypto exchanges available in India include:•
eToro – Low fees and user-friendly interface•
Binance – Large asset selection and advanced trading tools•
Coinbase – Trusted platform with free crypto wallet•
Webull – Low-cost option for casual investors•
Kraken – Excellent for staking and advanced trading
How Secure Are Cryptocurrencies?
Cryptocurrencies use advanced cryptographic techniques and decentralized blockchain networks, making them resistant to fraud and hacking. However, the security of your assets also depends on how you store them—hardware wallets and secure exchanges are recommended.
How Do I Store My Cryptocurrency Safely?
You can store cryptocurrencies in digital wallets. Hardware wallets (offline storage) offer the highest security, while software wallets (mobile or desktop apps) provide convenience for frequent transactions.
Are Cryptocurrency Transactions Anonymous?
While crypto transactions don’t require personal details, they are recorded on public blockchains. This makes them pseudonymous—your wallet address is visible, but your identity is not directly tied to it unless disclosed.