Crypto FAQ

What is Cryptocurrency?

Cryptocurrency is a digital asset or currency intended to be used as an alternative to buy products and services.  The cryptocurrency that you own is recorded in an online database ledger that contains transaction records.

Cryptocurrency works using a decentralized technology called Blockchain.  Blockchain allows secured transactions to be spread across many computers.

What are the benefits of cryptocurrency?

Because cryptocurrency allows for direct purchasing, transactions are faster with no additional fees.  Transactions are confidential with easier international exchanges.  And, cryptocurrency investing offers the potential to make a lot of money.

What is Bitcoin?

Bitcoin was the first decentralized cryptocurrency.  Since its release, it has skyrocketed in value, currently around $35,000 per coin or share.

How to you buy and sell cryptocurrency?

There are many cryptocurrency exchange companies that allow you to buy and sell online from your computer or from your smartphone.  My two favorite places to buy and sell cryptocurrency are Binance (Binance US if you’re in the United States) and Coinbase. 

How and where do you keep cryptocurrency?

In the short term, you can keep cryptocurrency in your exchange account where you buy it, such as Binance or Coinbase.  For longer term storage and more security, you can store your cryptocurrency in a wallet—preferably offline.

Can you make money investing in cryptocurrency?

Yes.  As many others have done, you can make money (in some cases a lot) with cryptocurrency.  But you can also lose money too.  You have to accept the fact that there are no guarantees, and I always let people know that you should only buy cryptocurrency with money you can afford to lose.

Is it risky to buy cryptocurrency?

It can be.  The cryptocurrency market is highly volatile.  Again, never invest any money in cryptocurrency that you can’t afford to lose. 

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