Question 1

What is cryptocurrency?

Accepted Answer

A cryptocurrency is a type of currency which uses digital files as money. ... The first cryptocurrencies were made to be independent of government-issued currencies. Cryptocurrencies use 'decentralized control', which means that they aren't controlled by one person or government.

Click here to see a simple video explanation

Question 2

What is Bitcoin?

Accepted Answer

Bitcoin is basically a computer file which is stored in a 'digital wallet' app on a smartphone or computer. People can send Bitcoins (or part of one) to your digital wallet, and you can send Bitcoins to other people. Every single transaction is recorded in a public ledger called the blockchain.

This video explains it very well. Click here to see it.

Question 3

Can I buy a piece of Bitcoin if I can not afford to buy a whole one?

Accepted Answer

Yes! You can buy as much as you can afford. In this case you will own a piece of Bitcoin and your money will grow as Bitcoin grows.

For example: If Bitcoin were to jump 20% in price and you invested $50.00 in Bitcoin your investment will be worth $50.00 X 20% which equals $60.00. You will make a $10.00 profit.

Question 4

How do I see my money and prevent losing it all?

Accepted Answer

This is a question we have been asked a few times. The best answer to this is to use stable coins. A stable coin is a digital asset that is pegged to the US dollar or other cryptocurrencies. We suggest selling to a stable coin pegged to the US dollar to avoid volatility in the market. Here is a brief example.
 
You have invested $100.00 in Bitcoin and have made 50% profit.
Your Bitcoin is now valued at $200.00
You want to protect your profit from a market crash and losing it.
You sell $100.00 BTC (Bitcoin) to USDT (Tether coin).

Now you have $100.00 in BTC and $100.00 in USDT
If the market were to crash and BTC were to drop by 50% for example.

You will have $50.00 in BTC and $100.00 in USDT.

You have protected your profit and can either use it to buy more BTC at a lower price or withdraw to your bank account when needed.
 
You can learn more about how stablecoins work here.

Question 5

What is an alt coin?

Accepted Answer

"Alt" or Altcoins are other cryptocurrencies launched after the success of Bitcoin. Generally, they sell themselves as better alternatives to Bitcoin. The term "altcoins" refers to all alternative cryptocurrencies other than Bitcoin. As of early 2020, there were more than 5,000 cryptocurrencies by some estimates.

Question 6

What is Ethereum?

Accepted Answer

Launched in 2015, Ethereum is an open-source, blockchain-based, decentralized software platform used for its own cryptocurrency, ether. It enables SmartContracts and Distributed Applications (ĐApps) to be built and run without any downtime, fraud, control, or interference from a third party. Read more at Investopia.Click here to view a video with a simple explanation.

Question 7

Is Bitcoin a good long term investment?

Accepted Answer

Yes, according to JP Morgan Chase the biggest bank in the US. They predict that the coin may record a price of over $140,000 in the long term.

You can read more about this in this The Street article here.

Some of your questions answered.