Frequently Ask & Question

Just as you don't need to understand mechanical engineering to drive a car, you don't need to study cryptography or economics to use crypto assets. All you need is an internet connection and a device. Devices can be a smartphone, a laptop, a tablet, or a desktop computer. Once you have those, you have several options to choose from when deciding to buy cryptocurrency. After you have bought your cryptocurrency, it is important to take some basic steps to keep your funds safe. Once you have bought your crypto and are keeping it safe using the method right for you, there are several ways to use cryptocurrency for different purposes. How to buy cryptocurrency Many feel the safest and easiest way to purchase popular cryptocurrencies is by using a crypto exchange like Kraken. Cryptocurrency exchanges make buying crypto nearly as easy as any other online transaction. They automatically set up a digital wallet when you create an account and secure your funds on your behalf. After you create and fund your account with your bank account, debit or credit card, you can buy any of the assets listed for trading. Many starting their crypto portfolio choose to eliminate the challenges of timing the market by dollar-cost-average. This strategy, also known as recurring buys, allows you to automatically purchase an asset on a regular basis, regardless of its market price. How to secure cryptocurrency Most cryptocurrencies are incredibly secure and resilient in the face of attacks. However, the ways people choose to take custody of their cryptocurrency are often full of risky practices. While the Bitcoin protocol is highly secure, attackers regularly steal billions of dollars worth of crypto each year because of ineffective custody practices. There are several different options to choose from when determining how to secure your cryptocurrency. Each comes with their own unique advantages and tradeoffs, but all are known as a cryptocurrency wallet. Unlike the wallet in your pocket that protects physical bills and coins, crypto wallets protect your cryptographic private keys, which serve as proof of ownership over the cryptocurrency you own. Crypto wallets come in both digital and physical forms, known as software wallets and hardware wallets, respectively. Some are "cold wallets" and not connected to the internet, while others are "hot wallets" and maintain a connection to the web. Some are custodial, meaning an intermediary secures your crypto on your behalf, while others are non-custodial, meaning this responsibility falls entirely on you. Finding the right type of wallet for you depends on whether you're looking for maximum security or something that's convenient to use. There are a series of tradeoffs for every option so it is important to do your research when determining how to keep your crypto safe.

The beginner's guide to cryptocurrency Cryptocurrency is a type of virtual currency built around transparency and inclusion. Unlike traditional currencies, cryptocurrencies exist as a digital form of payment that is not issued or backed by any government. Instead, they are secured by cryptography, computer science and mathematics. Some dismiss crypto as a scam. Others praise it as a revolution. Some think the energy they use will destroy the planet. Others think they will power a new age of financial freedom. The one thing everyone seems to agree on is that crypto is complicated. Regardless of what you may have heard, there are still some shared truths about what cryptocurrencies are — and just as importantly — what they are not. Cryptocurrencies are not: Only used for criminal activities. Completely anonymous (though there are some exceptions). Emitting more greenhouse gasses than traditional payment systems. Backed by nothing. Run by banks or governments. All an exact copy of Bitcoin. The same thing as blockchain. Few things in the world are more misunderstood, yet fiercely debated, than cryptocurrency. So, let's eliminate the cryptic parts of cryptocurrency together as we separate the facts from the opinions. Cryptocurrency explained Cryptocurrencies use concepts from cryptography, computer science, and economics. It is the combination of these three disciplines that allows cryptocurrencies to operate in a decentralized way. Cryptographic techniques keep crypto transaction information secure. Computer science keeps this information consistent across all participants. Economic incentives encourage everyone to follow the rules for the benefit of the network. Cryptocurrency transactions share similarities to email messages. We no longer need a postal service to hand-deliver messages around the world. We can just send emails directly over the internet. Cryptocurrency is the same. We no longer need a bank to hold and ferry our money around. We can hold cryptocurrency ourselves and send it directly to whoever we want.