Q: What are "crypto-currencies"?
A: Basically crypto-currencies are money stored in a digital format on software platforms.
Q: Is crypto-currency "real" money?
A: Yes. However, first you have to ask, "what is money?" The answer to that is, "money is a mutually accepted medium used for the exchange of goods or services that's usually expressed in the form of banknotes or property."
Q: Why invest in crypto-currencies when they aren't backed by anything?
A: That would be an accurate question if countries were still using the gold/silver standard to back their currency. Since the world abandoned those standards in the late 70s / early 80s there is actually nothing backing the paper or digital money (credit) issued by financial institutions other than the belief there's value in it.
Q: Are crypto-currencies just another form of currency, like dollars, credits, or pound notes?
A: No. Governments often restrict what you can do with fiat money or credits. For example, you may not be allowed to send money to, or receive money from, certain countries that are deemed hostile or unfriendly. Crypto-currencies aim to make all financial transactions accessible to everyone everywhere for any purpose.
Note: we can even show you how to become a private banker and make short-term loans to anyone in the world at whatever interest rate you want. Just imagine how fast your money could grow with this strategy.
Only lend as much, or as little, as you want but don't get greedy and try to "loan shark". Or you will get undercut by another lender with a better rate. And there are a lot of people making money by doing this!
Q: What is a "blockchain"?
A: In basic terms a blockchain is a database. But unlike common databases a blockchain database can be backed up on thousands of servers all over the world. The information stored in these databases is heavily encrypted and sometimes files are separated into many pieces. This means if one piece gets exposed it will NOT expose the entire file.
Also if the data on one server is compromised by crackers, the other copies of the data have to reflect those changes. If the other copies are not in sync then the change is rejected and it reverts to match the others.
Q: Where does one store crypto-currency?
A: You store crypto-currencies on the blockchain in a "digital wallet", which is simply an address on the blockchain.
There are four (4) types of wallets:
1. Desktop wallet.
2. Mobile wallet.
3. Online wallet.
4. Paper wallet.
Q: Where can I find the current BitCoin rate of exchange?
A: To see the current rate of exchange click here. (opens new window)
Q: Can I purchase BitCoins with a credit card?
A: Yes, but it's usually smarter to own them outright to avoid accruing debt which can eat up your profits!