100,000 Questions and Answers about Cryptocurrencies 1
100,000 Questions and Answers on Cryptocurrency
1. What is cryptocurrency?
Cryptocurrency is a digital currency that uses cryptography to ensure transaction security and control the generation of new units. The most famous cryptocurrency is Bitcoin.
2. How does cryptocurrency work?
Cryptocurrency relies on blockchain technology. Blockchain is a distributed ledger that records all transaction information and is maintained by multiple nodes in the network.
3. What is blockchain?
Blockchain is a decentralized database that records all transaction information in chronological order. Each block contains a number of transaction data, and these blocks are connected into a chain through cryptography.
4. How was Bitcoin born?
Bitcoin was invented in 2009 by a person or a group of people using the pseudonym Satoshi Nakamoto as a decentralized electronic cash system.
5. What is Bitcoin mining?
Bitcoin mining refers to the process of using computing power to solve complex mathematical problems to confirm and record Bitcoin transactions. Miners who successfully solve the problem will receive newly generated Bitcoins as a reward.
6. How to get cryptocurrency?
Ways to get cryptocurrency include buying, mining, and accepting payments from others. Purchases can be made through cryptocurrency exchanges.
7. What are cryptocurrency exchanges?
Cryptocurrency exchanges are platforms that allow users to buy and sell cryptocurrencies. Users can buy cryptocurrencies with fiat currencies, or exchange one cryptocurrency for another.
8. How to store cryptocurrencies?
Cryptocurrencies can be stored in digital wallets. Digital wallets come in two forms: hot wallets (online wallets) and cold wallets (offline wallets).
9. Are cryptocurrency transactions anonymous?
Cryptocurrency transactions are not completely anonymous, but they have a certain degree of privacy protection. Transaction records are public on the blockchain, but the identity information of the two parties to the transaction is generally not directly displayed.
10. What is a smart contract?
A smart contract is an automated program running on the blockchain that can automatically execute the terms of the contract when certain conditions are met. Ethereum is a well-known blockchain platform that supports smart contracts.
11. What is Ethereum?
Ethereum is an open source blockchain platform that supports smart contracts and decentralized applications. Its native cryptocurrency is called Ether (ETH).
12. What is a stablecoin?
A stablecoin is a cryptocurrency that is pegged to a fiat currency or other asset and its value is relatively stable. Common stablecoins include USDT, USDC, and DAI.
13. How to protect your cryptocurrency assets?
Ways to protect cryptocurrency assets include using strong passwords, enabling two-factor authentication, backing up wallets regularly, using cold wallets, and avoiding visiting suspicious websites and clicking on unknown links.
14. What is decentralized finance (DeFi)?
Decentralized finance (DeFi) is a blockchain-based financial system that provides financial services such as lending, trading, insurance, etc. through smart contracts without relying on traditional financial institutions.
15. What are the risks of cryptocurrencies?
The main risks of cryptocurrencies include high market volatility, regulatory uncertainty, hacker attacks, and technical risks.
16. What is the attitude of various countries towards cryptocurrencies?
Countries have different attitudes towards cryptocurrencies. Some countries actively support and formulate regulatory frameworks, such as the United States and Switzerland; some countries prohibit or strictly restrict them, such as China.
17. What is a token?
A token is a digital asset issued based on blockchain technology, representing a certain right or function. Tokens can circulate on the blockchain network and are used for payment, voting, etc.
18. What are ICO and IEO?
ICO (Initial Coin Offering) is a way for companies to raise funds by issuing tokens. IEO (Initial Exchange Offering) is the issuance of tokens by exchanges.
19. What is NFT?
NFT (Non-Fungible Token) is a unique digital asset that represents ownership or usage rights and is not interchangeable. It is often used in digital art, collectibles and games.
20. What are the private and public keys of cryptocurrency wallets?
A private key is an encrypted string used to sign transactions and access cryptocurrency. The public key is generated by the private key and is used to receive cryptocurrency. It is critical to protect the security of the private key.