Frequently Asked Questions

Are my coins safe? – Security is one of the most important benefits of cryptocurrency. The blockchain of data that supports coins prevents hacking and fraudulent activity.  There is always a risk of storing coins online.  Accounts can be hacked and sites can go down or just disappear.  That’s why its always wise to eventually store your coins on a computer you control.

How do I turn my coins back into cash? – There are not a lot of resources that exchange directly back to your country’s currency. Coinbase seems to be the best source of cashing out, once you have established an account.

What kind of equipment do I need for mining? – Bitcoin mining has become out of reach for the average person. There are specialized bitcoin mining machines called ASICs (application-specific integrated circuit) that can mine hundreds of times faster than most computers.  If you have a high end graphics card (for gaming), Etherium is the best coin to mine.  A standard computer can mine Monero easily, and there are many sites that will let you mine through their web browser.  All web browser mining is done in Monero, but the site might pay in other coins.  FaucetHub.io and MoonBit.io have Bitcoin miners on their site.

Are more people accepting Bitcoin? Other Currencies?

Can I make a lot of money investing in Bitcoin? – Bitcoin and other cybercurrencies are like any other types of investment. Nothing is guaranteed.  Cryptocurrencies are very volatile and prices can swing wildly.  Prices, however, do seem to be continually climbing, and as more people accept these coins as payment, the more valuable they will become. As with all speculative investing, don’t play with money you can’t afford to lose, and the best bets are to invest in the long term.

Terms

Satoshi – A Satoshi (or Sat, or anything ending in”-oshi”) is one hundred millionth of a coin, or .00000001 of a coin.  With the price of Bitcoins and other cryptocurrencies getting higher and higher, a Satoshi is an amount that’s more accessible to most people.  The idea is that when Bitcoin hits a million dollars per coin, a Satoshi will be the penny.

ICO – Initial Coin Offering. This is cryptocurrency’s version of a IPO for stocks. Many investors try to get in on the ground floor in hopes that the coin will take off. Most don’t.

CAPTCHA and reCAPTCHA – Programs that try to ensure that actual people are trying to collect coins from faucets and not some program.  This helps website prove to their advertisers that people are actually seeing their ads.  Google’s version is called reCAPTCHA, which tends to get more difficult to pass as times goes by.  If you clear your browser’s cache, it seems to get easier again.  I use incognito mode (or private mode) to make sure cookies aren’t stored. Unfortunately, this disables the pop-up blockers on the browser.