Frequently Asked Questions
This FAQ section provides answers to some of the most frequently answered questions people have asked Crypro Monkey.
If you have a question that is not covered by this FAQ section, feel free to contact me.
What is Blockchain?
Blockchain is an open ledger in which any and all transactions between Bitcoin (and other coins/tokens) addresses are stored. It’s the ultimate trustless revolution for all things that require transactions and accounting. In its simplest terms, Blockchain is simply a way to keep track of transactions; just as you can log into your bank account and see your credit card statement, Blockchain is the same for crypto currencies.
What is a Bitcoin?
Bitcoin is the poster child for the inspiring space of Blockchain. Bitcoin in and of itself is a digital store of value, with no ties to, or controls from, government, religions, politics or big banks. It is a self-policing, consensus-based algorithmic code in which a public ledger is used to keep account of all Bitcoin transactions. In addition, Bitcoin offers a reliable source of exchange between people wherever an internet connection is available.
How are Bitcoins made?
Bitcoins are made through a process that is known as mining. The mining of Bitcoin uses an algorithm called SHA-256. The mining process serves 2 purposes, which are to secure the Blockchain by validating transactions and showing proof of work. Just as it takes physical energy to mine real metals, it takes computer energy to mine Bitcoins. The Bitcoin algorithm limits the amount of Bitcoins that are mined to 12.5 Bitcoin every 10 minutes. As more and more people begin to mine Bitcoin, the algorithm will automatically adjust (i.e. making itself more difficult) and keep the release of Bitcoin to 12.5 every 10 minutes. In its simplest terms, Bitcoin mining is validating transactions and being rewarded for the work of keeping the ledger safe and up to date.
How are Bitcoin stored?
Bitcoin are stored in what is called a wallet, which is a unique ID on the Blockchain. When you know someone’s wallet address, you can send Bitcoin by simply telling the Blockchain to take Bitcoins from your wallet and send them to a specific address. Think of this process as the same way you can send money to your friends from your bank As long as you tell your bank which account to transfer funds, the transaction will be valid and protected.
Are there other crypto currencies besides Bitcoin?
Yes, there are over 1000 different cryptocurrencies in existence today. That numbers continue to grow as more people find uses for Blockchain and crypto tokens. Some of the main alternate crypto currencies include Ethereum, Dash, Litecoin, Bitcoin Cash and Monero (to name a few). These coins are known as Alternate crypto currencies or Altcoins.
How do you make money from crypto currencies?
There are two main ways to make money and create wealth from crypto currency. The first option is to mine. By doing work to secure the Blockchain, you are rewarded with coins for the Blockchain you are securing. However, getting the equipment to do this work is very expensive and uses a lot of electricity while generating a lot of heat. Because of these reasons, it’s not highly suggested to mine yourself unless you want to undertake these challenges. The second way to make money from the crypto currencies market is to trade. You can trade and invest in different coins just like you can stock on the New York Stock Exchange, the NASDAQ or the SMI. The Crypto Monkey has experience and knowledge in mining and trading and can help you in both regards.