FAQ

Synthetic assets in cryptocurrencies are a type of assets that can reside both on and off the blockchain, deriving their value from other underlying assets or indices. By owning synthetic assets, traders can access a wide variety of different assets without having to hold onto the underlying asset.

MEV is a measure of the miner's profit (as well as the validator or sequencer), which can be obtained if the miner includes a transaction in the Ethereum block, excludes it from the block, or changes the order of transactions at his discretion.

Slippage in crypto trading is the phenomenon when an order is executed at a price that differs from the trader's expectations. For example, a trader wants to place a large market order to buy at $150. But at this moment the market is not liquid enough. As a result, the trader will have to accept subsequent orders (over $150) until his order is filled.

The cost of NFTs directly depends on their rarity level. This is the main quality that collectors pay attention to. The rarity of an NFT determines how unique a token is compared to other tokens. Rarity is a combination of the unique characteristics of a digital asset, as well as the difficulty of obtaining it. Rare collectible NFTs can give their owners additional benefits in the form of membership in closed clubs and other privileges.

A cryptocurrency web wallet is a wallet that can be accessed directly through a browser interface without the need to download additional software. Sometimes you can create a wallet and password to access it yourself but many companies manage private keys on behalf of their users, which is very convenient for beginners but less secure. If the user does not own the private keys, this means that he trusts his funds to a third party in full or in common ownership using multi-signature.

Multi-signature is a special type of digital signature that allows several users to sign documents together as a group. A multi-signature is created by combining multiple signatures. In cryptocurrencies, multi-signature was first used in 2012 with bitcoin addresses.

A mobile cryptocurrency wallet is a special application for mobile phones that allows you to manage crypto assets from your smartphone by reading a QR code, which is very convenient for daily transactions. One of the most popular mobile wallets is TrustWallet, which supports hundreds of well-known cryptocurrencies and 60 different blockchain networks.

A desktop cryptocurrency wallet is computer software that gives the owner full control over the keys and crypto assets. After creating a wallet, the user receives a wallet.dat file, which must be protected with a personal password and backed up. This file is used to access addresses, so the password for it must be specified each time the program is started. If you lose the file or the password to it, it will be impossible to access the desktop wallet.

Sorare is a French blockchain gaming platform where users assemble NFT teams of their favorite football players and other athletes. Participants can play against each other. Sorare has its own NFT marketplace. Such well-known football players as Gerard Pique, Antoine Griezmann, and Kylian Mbappe invested in the platform.

VitaDao is a decentralized autonomous organization that funds various longevity research projects. VitaDao actively supports developments related to the study of the aging process and searches for ways to increase life expectancy. The organization also attracts outside participants to provide legal, informational, and technical assistance to these projects.

DeSci is a decentralized science. Unlike centralized organizations that are engaged in scientific research and its financial support, in the field of DeSci, funding for scientific and research projects is carried out using decentralized management and crowdfunding.

Two-factor authentication in cryptocurrencies is a two-step verification of user data to provide additional account protection. For verification, user-generated information, which includes a password, as well as personal data, such as a phone number or email address, and biometric data, such as fingerprints, are used. To ensure maximum account security, you must configure at least two data verification steps. For example, Binance offers to use a security key, Google or Binance authentication, mobile phone (SMS), and email.

The Binance anti-phishing code is a security feature on Binance that allows customers to activate additional account protection. Once the anti-phishing code is connected to the account, it will be added to all Binance emails that the user receives. This will help to distinguish genuine platform emails from various phishing attempts.

A wallet that has a permanent internet connection is vulnerable to hacker attacks. Therefore, the most secure way to store cryptocurrency is a hardware wallet. It connects to the Internet only at the time of the transaction. Even if unauthorized persons take possession of this wallet, it has additional protection in the form of a PIN code. If it is entered incorrectly several times, the settings will be reset. Therefore, in case of loss, breakage, or theft, the user must have a backup copy of the wallet with him.

Swan Bitcoin is a crypto trading app that automates the process of buying bitcoins by using the app as a savings account. On the platform, traders can buy bitcoins saving their value using the dollar-average cost method. The Swan Bitcoin team is trying to make it easier for beginners to enter the crypto market by teaching beginner investors how to trade.

Due to the high demand for non-fungible tokens, fraud attempts have become more frequent, the victims of which are users who are poorly versed in the blockchain. Before buying NFT from the author, you should check his official website or social networks. There are special NFT communities that help to carry out verification. When buying NFTs on the secondary market, the platform must provide the ability to verify the seller's address, as well as the NFT ID on the blockchain, to verify its origin.

A soft fork in a cryptocurrency is a small software update without a major change in the algorithms of the blockchain. A soft fork includes minor bug fixes, minor tweaks to settings, and improvements to network functions. New coins are not created. The main feature is that part of the community can refuse the changes, continuing to work with the old settings.

Cost averaging in cryptocurrencies is an investment strategy aimed at reducing volatility when buying assets. This tactic involves buying the same amount of cryptocurrencies with a certain frequency. The point of this strategy is that in this way you can significantly reduce the risk of the volatility impact on the trader’s income compared to a lump sum payment.

A software cryptocurrency wallet is a digital wallet that runs on an electronic device and has an internet connection, that is, it is considered a hot wallet. Software wallets include browser and exchange wallets, as well as mobile and desktop wallets. Software wallets are easy to use but there is always a risk that malware can infiltrate the device and gain access to the keys.

In the crypto world, there are hundreds of platforms through which you can sell, buy, and exchange cryptocurrencies. But not all crypto exchanges are reliable platforms that ensure users’ safety. An exchange that can be trusted must meet criteria such as having a professional security team, the ability to verify custody details, mandatory user verification (KYC) procedures, and proven cases in which the platform has protected the rights of its users.

When choosing a wallet for storing cryptocurrencies, factors such as convenience, security, controllability, and compatibility should be considered. If you prefer a custodial wallet, you need to make sure that the company is reliable. In the case of a hardware wallet, the security of crypto assets depends only on its owner.

ASIC is an Application Specific Integrated Circuit. ASIC miners are special equipment that is used to mine cryptocurrencies. ASICs are created specifically for mining certain coins. The devices have no other use. The principle of mining cryptocurrency with the help of ASIC is the same as mining on video cards and consists in decrypting cryptographic codes and adding new blocks to the blockchain.

DEX is a decentralized exchange that operates without a central governing body. Traditional cryptocurrency exchanges operate centrally, providing users with a platform for transactions, as well as taking a passive part in operations like an intermediary. On decentralized exchanges, users trade directly with each other and are solely responsible for their security.

Mining on video cards is suitable for beginners who want to try a way to earn cryptocurrency without serious investments. But this method cannot be called profitable, especially during a bear market. Recently, due to high electricity prices and the depreciation of Bitcoin, even miners with powerful equipment are struggling to cover their costs.