What happens if a cryptocurrency exchange is hacked?
If an exchange is hacked, users might lose funds unless the exchange has insurance or compensates the victims.
Are decentralized exchanges (DEXs) regulated?
Most DEXs operate without central authority, making regulation challenging, though this may change in the future.
What is KYC in cryptocurrency?
KYC (Know Your Customer) is a process where exchanges verify user identities to comply with legal regulations.
How are cryptocurrencies regulated?
Regulations differ globally, covering areas like exchanges, trading, and anti-money laundering (AML) compliance.
Do I have to pay taxes on cryptocurrency?
In most countries, cryptocurrencies are taxable, and you must report gains or losses on your tax returns.
Are cryptocurrencies legal?
Cryptocurrency legality varies by country; some regulate it, while others restrict or ban it.
What is Polkadot’s role in the crypto ecosystem?
Polkadot connects different blockchains, enabling them to share information and work together efficiently.
Why is Litecoin considered the “silver to Bitcoin’s gold”?
Litecoin is faster and has lower transaction fees than Bitcoin, making it more suitable for everyday use.
What are altcoins?
Altcoins refer to any cryptocurrency other than Bitcoin, offering various features and use cases.
What is the purpose of Dogecoin?
Dogecoin started as a meme but is now used for tipping, small transactions, and as a community-driven cryptocurrency.