10 Frequently Asked Questions about Cryptocurrency

10 Frequently Asked Questions about Cryptocurrency

Are you curious about cryptocurrency? Wondering what it is, how it works, and why it's getting so much attention? In this article, we will address the 10 most frequently asked questions about cryptocurrency.

1. What is cryptocurrency, and how does it work?

Cryptocurrency is a digital currency that operates on a technology called blockchain and uses cryptography to ensure secure transactions. Cryptocurrencies are typically in the form of tokens or coins, which are units of value stored on the blockchain. These coins and tokens can be used for various purposes, including trading, staking, investments, or making online purchases.

What is Blockchain and How Does it Work?
A blockchain is a database that has specific rules about how users can add data, and it’s impossible to change the data after it has been added.

2. How can I buy Bitcoin and other cryptocurrencies?

You can buy cryptocurrencies through cryptocurrency exchanges that offer trading pairs with your local currency. On Obiex, we offer you easy access to over 20 cryptocurrencies, including BTC, ETH, USDT, BUSD, USDC XRP, SOL, and MATIC.

3. How do I choose a reliable and secure cryptocurrency exchange?

Look for exchanges with a good reputation, strong security measures (like two-factor authentication), transparent fees, and responsive customer support. As a cryptocurrency exchange, Obiex has established solid infrastructure and strategies to safeguard our customers against hacks and other security breaches. Read more about how Obiex maintains the safety of customer funds and information here.

How Obiex Secures Your Account and Assets
Here are five ways we ensure the safety of your funds and information on Obiex.

4. What are the most popular cryptocurrencies besides Bitcoin?

Ethereum (ETH), Binance Coin (BNB), Ripple (XRP), Cardano (ADA), and Solana (SOL) are some of the popular cryptocurrencies beyond Bitcoin. You can buy them on Obiex after creating an account in less than 2 minutes. Click here to set up your account today.

5. How many cryptocurrencies are there?

There are currently more than 23,000 cryptocurrencies, according to CoinMarketCap. Most of these coins have low value and market capitalization, unlike major cryptos such as BTC, ETH, XRP, BNB, and SOL.

6. What is the difference between a cryptocurrency exchange and a wallet?

A cryptocurrency exchange is a platform to buy, sell, and trade cryptocurrencies. A wallet, on the other hand, is like a digital bank account where you store and manage your cryptocurrencies securely.

7. What is a cryptocurrency wallet address?

A wallet address is a combination of letters and numbers unique to your wallet. It's used to receive cryptocurrencies from others, like a bank account number. On Obiex, you can save your frequently used wallet addresses for quick and easy access. Read more here.

8. What are some common trading strategies for cryptocurrencies?

Strategies include day trading, swing trading, and hodling (holding long-term). Each strategy requires different levels of expertise and risk tolerance. Read more about crypto trading strategies here.

9. How can I convert my cryptocurrencies to fiat currency?

To convert cryptocurrencies into fiat currency in Africa, you can swap your cryptocurrency to fiat on a cryptocurrency exchange that offers fiat currency withdrawal options.

Once you successfully exchange your crypto for fiat, you can request a withdrawal to your linked bank account or other supported payment methods.

On Obiex, you can swap your crypto to NGNX (Naira) and withdraw it to your bank account. Read how to withdraw here:

How to withdraw NGNX from Obiex to your local bank account. | Obiex Finance Help Center
NGNX is tied to the value of the Nigerian currency; Naira, and it can be sent directly from your Obiex Wallet to any Nigerian bank account.

10. How can I ensure the security of my crypto investments?

To enhance the security of your crypto investments, it's crucial to follow best practices such as enabling two-factor authentication on your exchange accounts, being vigilant against phishing attempts, and keeping your personal and account information confidential. Read more about securing your crypto here.


Disclaimer: This article was written by the writer to provide guidance and understanding of cryptocurrency trading. It is not an exhaustive article and should not be taken as financial advice. Obiex will not be held liable for your investment decisions.