FAQs

What is Blockchain?

Blockchain is a distributed ledger, which simply means that a ledger is spread across the network among all peers in the network, and each peer holds a copy of the complete ledger. A block in a blockchain is a collection of data. The data is added to the block in a blockchain, by connecting it with other blocks in chronological order creating a chain of blocks linked together.


What is an Crypto Exchange?

Crypto exchanges work as platforms to connect buyers and sellers of cryptocurrency-based assets. They include listings of the price of various cryptocurrencies.


What are Digital Assets?

Digital assets are electronic files of data that can be owned and transferred by individuals. Examples of digital assets include cryptocurrencies, such as bitcoin, asset-backed stablecoins, such as tether, and non-fungible tokens (NFTs).


What is Crypto?

Crypto is a digital or virtual asset built on top of a Blockchain protocol, and is secured by Cryptography making it safe and secure.


What is Blockchain and how is it related to Crypto?

Blockchain is a decentralised ledger that allows multiple users to record and make changes in it. Once the data is entered, it cannot be removed or changed.
Read More here: https://dcxlearn.com/blockchain/what-is-blockchain-what-is-cryptocurrency-2/


How to invest in crypto? How much to invest in crypto?

Investors are always recommended to research, read, and analyze their risk appetite before diving into any investment tool.

Buying crypto assets is very convenient today. You have to be very careful of what you buy and where you buy. Never give in to your emotions while investing and always make rational decisions because every investment tool has volatility to offer.


How can I invest using CoinDCX?

This blog is step-by-step guide to help you make your first investment
https://blog.coindcx.com/product-tutorials/how-can-i-invest-in-bitcoin-in-india-coindcx-go/.


How to vet crypto projects? Which cryptos should you buy?

When you’re investing in a new asset, always DYOR - Do Your Own Research. Additionally, you can assess the projects based on these parameters:

  1. Tokenomics | Market cap, supply and demand, and circulation
  2. The defi project or crypto project idea and roadmap
  3. Token use cases or applications
  4. Social media proofs and News/PR
  5. HNI and Institutional Interest
  6. Project community: Founder, developer team, and users

What is “ATH”?

ATH is an acronym for All Time High. It refers to the maximum value an asset has seen. For example, the all time high reached by Bitcoin was $68,700.


Is Crypto Safe?

Crypto assets are built on Blockchain protocols. These blockchain protocols are secured using industry grade encryption mechanisms. They utilize concepts like Public Key and Private key encryption, hashing, 256 bit encryption among many others.


What are some popular Cryptos other than Bitcoin?

Crypto assets other than BTC are usually referred to as “Altcoins”. Some popular altcoins are: ETH, SOL, DOGE, ADA, XRP, USDT etc.


What is the 7M Framework on CoinDCX?

Each token/coin listed on CoinDCX, follows a rigorous evaluation process known as the 7M module.
Read more about it here: https://blog.coindcx.com/announcements/coindcx-7m-framework-channelizing-crypto-investments-to-value/


What are crypto wallets? How many crypto wallets are there?

A wallet is used as a gateway to a blockchain network. These wallets interact with a blockchain and don’t store cryptocurrencies. A wallet securely stores the public keys, private keys, and the addresses of the user.

There are two main types of cryptocurrency wallets: Hot Wallets and Cold Wallets. You can read more about them here: https://dcxlearn.com/cryptocurrency/what-are-cryptocurrency-wallets-what-are-the-types-of-cryptocurrency-wallets/


What is a BTC and how does it work?

Bitcoin is a decentralised peer-to-peer (P2P) digital asset where transactions can take place directly between two equal and independent participants of the network without the intervention of any third party.


Why is Bitcoin valuable?

BTC is valuable because it is built on the principle of scarcity. It is a good store of value due to a finite supply of coins available. Bitcoin is also decentralized, censorship-resistant, secure, and borderless.



Is BTC a tangible coin?

BTC is a digital asset, i.e. it exists virtually and is intangible. Hence, the value of a Bitcoin is stored digitally, unlike a physical coin, whose value is due to its tangible presence.


What is the value of one BTC?

At the time of writing this, one BTC is equal to $33,290. BTC had touched it’s all time high in November 2021, when one BTC was worth $68,700.
Data from: CoinMarketCap
Date: Jan 24, 2022.


How are my funds insured at CoinDCX?

CoinDCX uses BitGo services to provide the best security to its cold wallet funds. User funds are insured by a $100 million BitGo insurance.

To read more: https://blog.coindcx.com/opinion/how-does-coindcx-keep-user-funds-safe-with-bitgo/


What is Ethereum? Ethereum vs. Bitcoin

Ethereum is the second largest crypto with a market cap of over $300 billion. The crypto or platform is called Ethereum, while the individual unit is called an ether.


What do you mean by Decentralisation?

In the world of blockchain, decentralization refers to the transfer of supervision and decision-making from a centralized association (individual, corporation, or group of people) to a distributed network.


Who runs Ethereum?

Governance on Ethereum

Ethereum governance is the process by which protocol changes are made. It's important to point out that this process isn't related to how people and applications use the protocol - Ethereum is permissionless. Anyone from anywhere in the world can participate in on-chain activities. There are no rules set for who can or cannot build an application or send a transaction. However, there is a process to propose changes to the core protocol, which these applications run on top of. Since so many people depend on Ethereum's stability, there is a very high coordination threshold for core changes, including social and technical processes, to ensure any changes to Ethereum are secure and widely supported by the community.

Source: ethereum.org


Can I trade Ether for BTC?

Yes, Crypto can be converted or traded between “exchange pairs”. A Crypto exchange can help you facilitate this transition.


What is an NFT?

NFTs can also be described as a cryptographic token that uniquely defines an asset. They can be used to represent digital assets which are in the form of images and also can track real-world assets like a house or a song for example. As these NFTs make the assets unique, i.e. there can only be one of any NFTs, which gives one to prove ownership over the said asset and prove the authenticity of the ownership.

Read more about NFTs from here: https://blog.coindcx.com/cryptocurrency/what-are-non-fungible-tokens-nft-tokens-beginners-guide/


What makes NFTs so desirable?
  • Uniqueness of the asset
  • Rarity - you could  be the only one in the entire world who owns this asset
  • Indivisibility: Unlike other cryptos, NFTs cannot be divided

Is lending and staking available at CoinDCX?

Yes, lending and Staking are available on CoinDCX Pro

Check out Staking: https://coindcx.com/staking
Check out lend: https://coindcx.com/lend


What are the different lending rates on CoinDCX?

You can check out the current lending rates on CoinDCX Pro by visiting the link: https://coindcx.com/lend.


What is DCX Learn?

DCX Learn, an initiative of CoinDCX, is a pioneer learning platform offering free, high-quality educational and hands-on content on Crypto. It is a one-stop platform for new users and experienced investors alike, seeking to develop a deeper level of understanding about Crypto & blockchain-specific projects and initiatives.

Visit DCX Learn: https://dcxlearn.com/


What are the top NFT marketplaces?

TOP 8 NFT MARKETPLACES:

  1. OpenSea
  2. Superfarm
  3. Rarible
  4. Ethernity
  5. Hoard.Exchange
  6. FansForever
  7. Enjin
  8. Hic et Nunc