FAQ

What is a cryptocurrency?

Cryptocurrencies are digital assets that you can use as an investment due to their huge price volatility and for online purchases. They are secured using cryptography, making them impossible to counterfeit or double spend.

Cryptocurrency doesn’t physically exist, which means you obviously can’t pick up a Bitcoin and hold it.

Each cryptocurrency consists of a unique program or code. It cannot be copied, but it can be tracked (anonymity-based cryptocurrencies such as Monero or ZCash are an exception).

How does it work?

Cryptocurrencies work on a chain of computers in a peer-to-peer network without an intermediary.

Cryptocurrencies are decentralized – that is, no government or bank controls how they are created, what their value is (demand generates the price) or how they will be exchanged. All cryptocurrency transactions are secured using cryptography. 

How can you store your cryptocurrency?

Cryptocurrency can be stored in a so-called wallet, which is accessed by a “private key” – the equivalent of a super secure password, without which the owner of the cryptocurrency cannot access his wallet. If this code is forgotten or lost, the wallet can no longer be accessed.

A cryptocurrency wallet stores such private keys that allow users to access their cryptocurrencies and allow them to send and receive cryptocurrencies such as Bitcoin or Ethereum. It is important to note that your cryptocurrencies are stored on the blockchain and a private key is required to authorize transfers of these coins to another person’s wallet.

Storing cryptocurrencies in a physical wallet is subject to the risk of theft, loss and irretrievable loss of such electronic wallet.
Storing cryptocurrencies on a cryptocurrency exchange, on the other hand, increases the risk of hacking and misappropriation of cryptocurrencies.

What types of other cryptocurrencies are there?

The most popular cryptocurrency that everyone knows and is talked about the most is Bitcoin.

There are also other cryptocurrencies such as Litecoin, Polkadot, Chainlink, Dogecoin or Stellar and many other altcoins with different market capitalization and usage.

Bitcoin is the most price stable cryptocurrency and the oldest cryptocurrency, but other projects such as Ethereum, Solana and Cardano may even overtake Bitcoin in the future.

Is it possible to get free Bitcoin?

Yes, you don’t have to buy Bitcoin to own it, you can also get it by solving cryptographic equations using computers in a process called Bitcoin mining.

This process involves validating blocks of data and adding transaction records to the blockchain. However, this process requires access to high computing power to run such “mining” and obtain Bitcoin.

Mining costs

Of course, cryptocurrencies do not appear out of thin air, but are mined in a process called mining. Cryptocurrency miners mine cryptocurrencies using sophisticated, computationally powerful devices called mining stations, or miners. When this process becomes more and more expensive for miners, it can affect the price of the cryptocurrency.