Frequently Asked Questions

Mining is a method of generating cryptocurrency. For example, miners can use their electricity and computing resources to mine crypto, or stake assets in a network to earn governance tokens.

The very first cryptocurrency, Bitcoin, was the first successful real-world implementation of blockchain technology. Blockchain is a publicly accessible, transparent, secure and trustless ledger that leverages public key encryption methods and proof of work consensus to secure the transfer of the ownership of units of value.

Stablecoins, such as USDC and Tether, have values designed to remain stable in relation to real-world assets like the US dollar.

NFTs (non-fungible tokens) refer to digital assets that denote ownership of an original copy of a digital file. NFTs are distinct from cryptocurrency, however, as the latter is considered fungible, meaning (for example) that any one Bitcoin has the same value as another.

A key benefit is the privacy aspect of crypto. No personal information needs to be divulged when making a transaction, and it is not subject to bank account-type restrictions, such as ATM withdrawal limits. Furthermore, it’s global, so there are no foreign exchange rates to pay – although it’s important to note that crypto is illegal in some countries.

Cryptocurrency wallets allow for the secure storage of digital assets. There are two types: cold wallets and hot wallets. The former is for the offline storage of private crypto keys while the latter allow users to access their wallets via internet connectivity on their mobile phones, tablets or desktop devices.

An initial coin offering (ICO) is a fundraising method generally used by developers and start-ups to launch new cryptocurrency tokens. ICOs differ from IPOs (initial public offerings) as an ICO does not guarantee any ownership stakes in the company.

A process called staking can be an opportunity to generate passive income from cryptocurrency. This involves an individual using their cryptocurrency to help verify blockchain protocol transactions. Although there are risks, it can be a way for investors to grow their crypto holdings without buying more currency.