What is liquidity in DeFi?
Liquidity refers to the funds users provide to pools to ensure the platform's functionality.
What is staking?
Staking is the process of locking cryptocurrency to support the network's operation and earn rewards.
What are the main advantages of DeFi?
• No intermediaries• Global accessibility• Transparency and security
What is DeFi?
DeFi refers to financial services on the blockchain that operate without intermediaries, such as banks.
How can I ensure compliance with cryptocurrency regulations?
Stay informed about local laws, report your earnings, and use regulated exchanges and wallets.
What is the FATF’s role in cryptocurrency?
The Financial Action Task Force (FATF) sets global standards to prevent money laundering and terrorism financing in crypto.
Are Initial Coin Offerings (ICOs) legal?
ICOs are legal in some jurisdictions but may require regulatory approval. Many countries scrutinize them closely.
What is the role of the SEC in crypto regulation?
The SEC regulates securities in the US and may classify certain cryptocurrencies as securities, subjecting them to specific laws.
Can governments ban cryptocurrencies?
Governments can restrict or ban cryptocurrency use within their borders, but decentralization makes outright bans difficult to enforce.
Is it safe to invest in cryptocurrencies?
Cryptocurrencies are highly volatile and risky. Always conduct thorough research and understand the risks.