Virtual currencies took the world by storm in 2017. Cryptocurrencies are confusing at best, and the scenario seems to be going from bad to worse, as the confusions and misfortunes have spread far and wide.
The idea of Cryptocurrencies is highly daunting to start with. People have lots of questions about this growing investing industry. By now we all have conceived, the huge impact of Bitcoins and other cryptocurrencies in this marketing world. Yet it’s very important for everyone to know & understand some basic concepts about Blockchain and related Cryptocurrencies.
So, here we have compiled some most commonly googled questions about Bitcoin and other cryptocurrencies.
Let’s Begin with The Cryptocurrency FAQ:
Here are some frequently asked questions about cryptocurrency with their most insightful and unambiguous answers!
Q1. What is Cryptocurrency?
Cryptocurrencies acts as a Digital Assets that function as a medium of exchange. Whatever transactions involved using cryptocurrencies are secured by Cryptography.
It is essentially a practice of encrypting data in a manner that is kept secret from third-parties. It is mostly used to prevent sensitive data from being compromised.
The most popular Cryptocurrencies are Bitcoin, Ethereum, Ripple, Litecoin, NEO, IOTA, Stellar, Monero, Bitcoin Cash and many more. Cryptocurrencies have several applications- You can buy goods & services, it brings hottest investment opportunities, you can mine them, send/receive as payment mode and much more.
Q2. How Bitcoins are Created?
The concept of Bitcoin was a genius thought, introduced by Satoshi Nakamoto. If we talk about the process, Bitcoins are the end product of decentralized & aggressive procedure known as ‘Mining’. The coins are discovered and not printed like money.
With the help of optimized hardware, A ‘Block’ is mined towards solving a complex mathematical algorithm (the process is called hashing), whosoever cracks the right hash, is rewarded with a Block reward (a set number of Bitcoins plus transaction fees). The bitcoins included in the block reward are all new bitcoins. The new user gets 50 Bitcoins, every time a block is mined.
The whole point of mining Bitcoins is to earn them!
Q3. How to get Free Bitcoins?
Earning free bitcoins has been a long-standing tradition since Bitcoin came in the Market. The easiest and interesting ways are listed below:
Don’t forget to sign up for a Good Bitcoin Wallet. In case you earn some, then how they will pay you?
2. There are like several platforms which offer Free Bitcoins hourly or just for signing up. We are sharing the best ones with you:
- Bitcoin Get
- 777 Bitcoin
- Bitcoin Puddle
- Crypto Junction
- My Free Bitcoin
- Land of Bitcoin
- BTC Clicks
- Bitcoin Zebra
Note: In case, if any of website asks you to deposit Bitcoins, in order to earn extra income. We recommend not to stay at that page for long.
3. Get into Mining, as it’s the best and most secure way to earn lots of free bitcoins. User who solves the complex mathematical algorithm, gets rewarded. Though it requires small investment and your time & effort, but ultimately, you’ll be earning a good number of new Bitcoins from Blockchain. So, go ahead!
Some of the biggest mining pools, where you can instantly get started with Mining are here!
4. You can try out Gambling, though we would like to mention that it’s not a secure way to earn free Bitcoins. You may be charged with some Bitcoins to get started. A possibility that you may end up winning nothing & losing nothing.
In general, it’s neither officially allowed nor prohibited. You can proceed, but with proper researching about its pros & cons.
Here are some sites, which offers Online Gambling: Just like Casino, Poker etc.
- Loki Casino
- Mars Casino
- Play Amo
- bit Starz
5. You can begin with Advertising as well; a lot of people earn well by displaying Advertisements. Get in touch with websites like Coinurl, Anonymous Ads etc. to earn free bitcoins for showing ads on your website.
Remember, earning free Bitcoins can never be easy! User have to devote his precious time, effort and maybe some money also. But if you’re literally looking forward with utmost seriousness, then you might end up with some good number of free bitcoins!
Also Read: GDPR vs Blockchain
Q4. How to Buy Bitcoins?
“How to buy Bitcoins?” Is the most common question googled today. The process of purchasing Bitcoin is still unclear to people, but trust us it is damn simple!
There are several online platforms or exchanges available where you can buy & sell Bitcoins. If you are aware about the basics, and looking forward to step into the Bitcoin Economy.
Read our previous Blog to know the step-by-step process of buying Bitcoin.
Follow the article & buy Bitcoins with Utmost Ease!
Q5. Where can I get the latest Cryptocurrency Prices?
There are like several platforms available, where you can explore the recent cryptocurrency prices. But some of the most famous platforms are: CryptoCompare, CoinGecko, CoinMarketCap, Coincodex, CoinCheckup etc.
Q6. What is Cryptocurrency Mining?
In order to process buying and selling of Cryptocurrencies, a user has to broadcast his/her transaction on the whole network (that must be recorded in a Blockchain). The process of successful recording a transaction is known as Cryptocurrency Mining.
Like generation of Bitcoins, Cryptocurrency Mining includes two steps: Adding transactions to Blockchains (for securing & verifying) and releasing a new currency. The basic elements a user needs, to step into mining is PC (specialized or consumer hardware), and combination of graphic cards and CPU.
Q7. What are Bitcoin Faucets?
Bitcoin Faucets can be simply referred as an online platform which functions as a cryptocurrency reward system for users. In return, users have to complete some tasks or captcha or by affiliate, described as on the website or app, to claim fraction of Bitcoins as rewards! Simply perform a task, enter your wallet credentials and earn some coins.
The purpose of Bitcoin Faucets is to provide a platform to individuals who are willing to learn about Bitcoin and give them an opportunity to earn coins without the risks associated with investing.
These faucet websites attract visitors by rewarding them Bitcoins in the form of Satoshi. One Satoshi is a hundredth of a million bitcoin (BTC), which is 1 Satoshi = 0.00000001 ?.
Q8. Can I buy anything with Cryptocurrency?
Bingo! This is where Cryptocurrency shines like anything. There are several businesses that accepts Bitcoin & other cryptocurrencies as payment. It’s not limited to investing or speculation, it has real value as alternative medium of exchange. You can buy Gift Cards, book Airline/Hotel/Space Flight Tickets, Computers and like pretty much anything!
Q9. What is the difference between Coins & Tokens?
Both terms are often used as synonyms, but have completely different concepts. In a nutshell, Coins that are sometime also (called as altcoins) are created with several encryption techniques, and hold value over time. It operates on its own Blockchain, for example: Bitcoin operates on Bitcoin Blockchain, NEO operates on NEO Blockchain, Ether operates on Ethereum Blockchain.
Coins are mobile, persistent, commutable, and have limited supply. Besides, they don’t have any functionality beyond acting as money.
Tokens are referred as an asset or utility, that require existing blockchain to operate & function. They require another platform like Omni, Lisk, Waves, Stratis and Ethereum to operate. Tokens are designed in a way that activate features & functionality of an application. For example: Musiccoin is a token designed to give users can access of different features of music platform.
The main difference lies in their structure as coins are considered as separate currency and have their own separate Blockchain. And Tokens reside on the top of Blockchain that functions with decentralized applications.
To get into depth: Read our previous Blog!
Q10. Are Cryptocurrencies Taxed?
This totally depends on your country’s law! According to the IRS (Internal Revenue Services) a US government agency, Bitcoin will be treated as property, and not as currency. In conformity to a policy notice issued by IRS 2014, every virtual currency investments will be treated as capital assets. Therefore, it’s mandatory to file taxes for the same.
It would create a significant burden on Bitcoin holders, every time they make a transaction they have to determine the amount of their taxable gain. Regardless in what form a person makes income, it will be taxed.
Bitcoins and other cryptocurrencies have a strong potential to revolutionize the world. We hope the information provided by us is enough to clear all your doubts and polish your existing knowledge.
These were the most common cryptocurrency questions and answers people ask about. If there are more questions on your mind. Please do ask in the comment section below, we might help you with its answers as well!