The year was 2009. We were wearing leggings with boyfriend blazers, while jamming out to Black Eyed Peas. It also marked the birth of Bitcoin – a new cryptocurrency that would lead us on a 10 year journey.
A quick search on Google and you’d know that people are asking many questions about cryptocurrency. This is simply because everyone is interested. We take a look at the 4 most asked questions on the digital currency:
- What is a cryptocurrency and how does it work?
It’s virtual or digital money which takes the form of tokens or “coins.” It uses cryptography for security and is difficult to counterfeit because of this security feature. Many cryptocurrencies are decentralized systems based on block-chain technology.
- What are the most popular cryptocurrencies?
When it comes to cryptocurrency, Bitcoin is the king and the one that basically started it all off. However, there are other coins that require your attention:
These coins are growing in popularity and on various trading platforms.
- How do I buy Bitcoin in South Africa?
There are cryptocurrency exchanges in South Africa where you can safely purchase Bitcoin. Do your research before you purchase to make sure that you’re on a reputable exchange and that it’s secure. Read reviews and ask Bitcoin enthusiasts more about where they purchase their cryptocurrency.
- Is Cryptocurrency legal in South Africa?
The South African Reserve Bank issued a cryptocurrency position paper in 2014. It declared that virtual currency had ‘no legal status or regulatory framework’. They further advised that “it does not oversee, supervise or regulate the virtual currency landscape”. Because it’s unregulated, it’s advised that your transactions with any cryptocurrency should be legal and safe.
For more on cryptocurrency, join us at out free financial trader education seminars. In two hours, you’ll discover how to trade and identify the best crypto.