Frequently Asked Questions
The Crypto Asset world is full of innovative technologies, platforms and functionalities. This is a listing of the most frequently asked questions that our consultants and coaches receive. Because we work with a variety of clients and subject areas, our Frequently Asked Questions are sorted by subject or audience. Please feel free to read through all of this section.
If you have questions that you do not find an answer for below, please reach out to us through any of the contact us buttons on this website, or through email at: info@sicuritycrypto.com
OUR SERVICES - FAQ
SICURITY Digital Asset Consulting
About Us – FAQ 2/2022
What do you do?
We assist anyone interested in learning about and using cryptocurrencies and digital assets.
We produce educational content, provide coaching for technology adoption and assist organizations
with the implementation of these assets and resources, into their operations.
Can you help me?
Yes we can. We work with individuals, educators, businesses, charities, non-profit organizations, and more. If you want to learn about and use cryptocurrencies and digital assets, we can help.
What can you do for me as an individual?
We provide a range of content and service levels. Our website is built to be a knowledge hub. The majority of the content and support that we provide for individuals is self-directed, self-paced content. Our information is formatted to be clear and to the point. Very "how-to" like. Additionally, we offer various levels of crypto concierge programs, pricing based on membership level. White-Glove Concierge Services are also available and are quoted on a individual basis.
What can you do for my business?
We work with you to understand your business and what your objectives are for implementing crypto assets in your operations. Consulting areas include: crypto payment processors, crypto storage options, which cryptos to accept, NFT business applications and customized employee and customer education materials. We can work with your accounting team to make sure they have the tools they need to keep your business in compliance.
What can you do for my non-profit?
Your non-profit or charitable organization MUST start implementing crypto assets into your operations.
The crypto community is very generous. If your organization is not "open" to crypto donations, you are MISSING out. We can help with team training, wallet and storage selection and set-up, donation processing and NFT applications for raising funds. We can work with your accounting team to make sure they have the tools they need to keep your organization in compliance. Our SICURITY Philanthropic team is building a network of crypto donors and organizations in need, connecting the two through secure blockchain interactions. This team is working to make "Making-A-Difference-With-Crypto!", as easy as possible.
What is your Academy?
Our Academy is a knowledge hub. This is where we house our self-paced, self-directed learning modules.
We call them KNOWLEDGE BUILDING BLOCKS. Each module is designed as a micro-learning module. Our to the point, "what-where-when-why and how" coverage on the topic. These learning blocks can be assembled however you would like. By incorporating this delivery method we intend to allow you to construct the knowledge foundation that you want to build. Focusing on what you need to accomplish your learning goals at the best value possible. We do have some pre-designed learning tracks, that if completed, will earn you an accompanying POAP NFT Certificate of Completion. These NFT Certificates are yours to keep and display in your NFT collections.
What is a Crypto Scout?
The SICURITY Coach - Crypto Scouting Report is our TEAM WAGMI market intelligence source. We scout out the crypto industry trends and innovations and report them out to our community through this platform.
Our Crypto Scout Program is available to GOLD Concierge Members and above. This program allows our more knowledgeable members to author posts for our Crypto Scouting Report and receive crypto for their contribution. We call it, your "Write-to-Earn."
What do I get with Membership?
We have four levels of membership. From FREE to individual quoted pricing. Each level has its own benefits, access and associated discounts. Please visit our Concierge Members Page to read details about each level.
GENERAL CRYPTO - FAQ
SICURITY Digital Asset Consulting
General Crypto – FAQ 2/2022
What are cryptocurrencies?
Cryptocurrencies are cryptographically secured digital currencies. These are blockchain-based assets designed for exchange and spending. They are not government-issued money. The prices of most cryptocurrencies fluctuate based on supply and demand. Some types of cryptocurrencies have stable values. These assets are programmed to be used as an means of exchange or store of value.
What can I do with them?
You can use cryptocurrencies for purchases, investing, saving, and cost-efficient transfers. You own and control your assets. This gives you the ability to lend them out and earn interest, or use them as collateral for a loan. Growth rates and Interest rates are typically better with cryptocurrencies than with traditional currencies. This makes them attractive to investors.
How can I get cryptocurrencies?
It is actually very easy to get started. There are many cash-to-crypto on-ramps and exchanges. We can help you filter through the options by establishing a set of criteria that is important to you and your particular situation. If the on-ramp that you are considering does not require KYC/AML proof of identify, you should probably keep looking. Regulation is coming to crypto, you might as well start out in the best situation. Once you have an account set up, you will choose a way to fund it. From there you are free to buy, sell and trade from over 20,000 crypto assets.
Can I buy crypto for someone else?
Yes. Crypto Gifting has become very popular. Several centralized exchanges offer gifting services.
When considering gifting crypto, you should consult with a financial or tax advisor on your situation.
How do I keep my crypto safe?
There are several ways to keep your crypto safe. From self-custody wallets to third-party custody and vault services. The option that is right for you, might utilize more than one solution. Our consultants can help you plan out the best strategy for your situation, and help develop back up and contingency plans.
Are coins and tokens the same thing?
Unfortunately, because there are so many sources of information and the industry has lacked standardization on terminology, many people think they are the same thing. They are and they are not... The word "coins" generally refers to "spendable" cryptocurrencies that can be exchanged for real-world goods or services. Tokens are crypto assets that are programmed to represent value in a decentralized platform or ecosystem. Although tokens are tradable on exchanges, they are not a spendable currency outside of their platform. Tokens require a base-layer blockchain in order to function.
What are stable coins?
Stable coins are called "stable" because their value is programmed to to be that way. Stable coins can be asset-backed, where their value is derived from a real-world asset i.e. the US Dollar, or an ounce of gold, or they can be algorithmically controlled to maintain price stability. These types of crypto assets are commonly used in commercial transactions and with investors in high-interest lending and saving or as a stability mechanism or risk-management tool in a self-directed portfolio.
What are alt coins?
This is a phrase that developed early in the crypto days. The term Alt Coin is meant to refer to all crypto asset alternatives to Bitcoin.
Why are there so many cryptos?
Innovation has driven most of the proliferation of crypto assets. Building the better mouse trap is innate in humankind. Each new blockchain creating a new asset with some tweak to make it better, faster, more private, or whatever, than it's predecessor. Additionally, that ability to create tokens through smart contracts and decentralized protocols is the biggest contributing reason for there being so many cryptos.
What is a blockchain?
A blockchain is a ledger or database that is shared among all participants. The leger activity is secured with cryptography and cannot be changed, once recorded. A blockchain maintains a viewable transaction history of account balances or data, all the way back to transaction number 0.
Why do the prices change so much?
The majority of crypto is priced by supply and demand in the marketplace. There are multiple factors that can influence supply and demand. Our courses and programs are designed to help you learn about and use these factors to make you own decisions on the prices that you want to pay.
Do I have to buy a whole coin or token?
No you do not. Cryptocurrencies are digitally divisible.
In fact, if you wanted to, you could buy 0.00000001 bitcoins.
Are cryptos taxable?
In general, crypto transactions are taxable when you sell, spend or give crypto. You should speak with a licensed tax professional to determine the applications in your individual situation.
What are NFT’s?
Non Fungible Tokens are cryptographically secure tokens. The "non fungible" part means that these tokens are unique, and are not interchangeable. Many artists have rushed to the NFT space because NFTs give control of their work back to the artists. The artists can then monetize their work without layers of middlemen taking a cut. Recently, Snoop Dogg announce that his company Death Row Records was going to be releasing their music and artists on music NFTs. Many business are now incorporating NFTs into their marketing programs, customer loyalty programs, credentialing programs and even with proof of identity programs.
What is the Metaverse?
The Metaverse is a three dimensional virtual reality computer simulation that connects multiple virtual worlds enabling people to interact with one another and the objects in these virtual spaces.
What are the uses of the Metaverse?
The Metaverse in its true vision does not exist yet. Many companies are scrambling to develop the technology and the virtual worlds, yet the true interactive experiences are still to be realized on a large scale. However the direction is very clear. Virtual spaces and the metaverse are going to change our lives in many ways. Although gaming will probably be one of the first mass-adoption uses, everything from "virtual tourism" to "virtual workplaces" in the Metaverse, are going to connect people and places like nothing else in our history.
CRYPTO EXCHANGES - FAQ
SICURITY Digital Asset Consulting
Crypto Exchanges – FAQ 2/2022
Do I need an exchange account to buy crypto?
You need some type of fiat (government issued currency) to crypto on ramp. In the US, most of these on ramps are centralized entities that require KYC/AML proof of identification procedures and a connected funding source. Although you may be able to find ways to convert fiat to crypto without the KYC/AML process, you need to be aware that there are many scammers out there. You do not want to end up with crypto in your wallets that are traced back to some type of hacking event or criminal activity.
Do I need a bank account to buy crypto?
Some on ramps will allow you to fund your purchases through wire-transfer or credit card. These are not feasible for regular funding activity because of the higher costs associated with them. When you fund your account with a Bank ACH withdraw, most exchanges will make those deposits available to you in your account, immediately.
Can I buy crypto with a credit card?
Yes, some on ramps will allow purchases with a credit card. However, be aware of higher fees charged for processing.
What is KYC/AML?
Know Your Customer and Anti-Money Laundering requirements are established by several US Federal Agencies. These requirements involve a process in which you need to produce government-issued forms of identification to set up your account with that exchange or broker service. These regulations are meant to keep bad actors and criminals from utilizing these services to launder criminal funds.
What do the exchanges do with my information?
They store it, use it for marketing, and will share it with the government if required. When you are considering your options among the various on ramps, you should compare their information privacy and reporting policies.
Are crypto exchanges safe?
There are a range of public crypto exchanges. By sticking with an exchange that is domiciled in your country and complies with local and national laws and regulations, you can feel more comfortable with your choices. With regard to safety. If you leave crypto assets in your wallets on the exchanges, your crypto is at risk. Other than for convenience in trading, you should not leave much value in these exchange wallets. They can be hacked or frozen at any time. You do not have control of your assets while they are in an exchange provided wallet.
What is a custody or vault account?
Some exchanges and third-party companies offer custody or vault services to store your crypto.
Even though you are transferring your crypto to another party for safe keeping, this is a safer option than leaving your crypto in the exchange wallet. Custody and Vault service providers utilize "cold storage" or storage devices that are not connected to a network. These offline storage modules are actually kept in a vault or ultra-secure physical location.
Are my funds insured on an exchange?
Most reputable exchanges carry insurance for any fiat currency value sitting in your account. However not many have insurance to protect crypto assets. This is an area of development, so you should read the policy of each on ramp that you consider. It might end up making a big difference in which ones you use.
Which is the best exchange?
That really depends on your preferences and behaviors. As you can tell, we strongly recommend sticking with the regulated options as your first sortation. Then you need to compare the funding and account policies for each. Finally, you will want to make sure the exchange offers the types or crypto assets and trading options that you want for your portfolio or objectives.
What are transaction fees and gas?
There is no free lunch. Transaction fees and gas are additional costs to trading. Above and beyond the asset price. Transaction fees are paid to record the activities on the blockchain and gas is paid on smart contract platforms, to pay validators for the computational power that the transaction's instructions use in order to execute.
CRYPTO WALLETS - FAQ
SICURITY Digital Asset Consulting
Crypto Wallets – FAQ 2/2022
What is a crypto wallet?
A crypto wallet is a software program that can communicate with blockchains. Crypto wallets create unique account addresses on the blockchain, where blockchain assets associated with that address or account, are recorded and maintained. Only the crypto wallet that generated the address, can move or spend the value of crypto recorded at that address. Crypto wallets can be custodial (service provider controlled) or non-custodial (you control). They are available in various formats and blockchain compatibilities.
Why do I need a crypto wallet?
You need a crypto wallet to hold, move and control your crypto private keys, as well as to authorize transactions on the blockchain.
What are private and public keys?
Private keys are SECRET. They are used to generate all of the secure functionalities of your wallet. They give whomever has them, FULL ACCESS to the crypto they control. Obviously, you NEVER share these with anyone. Your Private Keys are used by your wallet software to generate your wallet's public keys. These public keys are then used by your wallet software to generate your Public Addresses. These public addresses are the addresses you want to share. These are the addresses others will use to send you crypto, and the addresses you will use to send your crypto from your exchange wallets, to your personal wallets.
What happens if I lose my private keys?
You are S.O.L. The crypto stored at the addresses which were generated from that private key are now no longer accessible to anyone.
What is the difference between hot and cold wallets?
Hot wallets are wallets containing private keys that are connected to the internet or some network. They are considered "hot". On the contrary, cold wallets are storage devices that are not connected to the internet or a network. These devices have chipsets that store your private keys securely, even when you connect them to authenticate transactions.
What is the best crypto wallet for me?
Each type of wallet has it's benefits and drawbacks. The selection of crypto wallet that is right for you will depend on the way that you want to own and use crypto. Our Wallet Flow Program is designed to help you make those choices.
Can I store all cryptos in the same wallet?
Most wallets will hold a variety of crypto assets. The wallet software will often need to have an application added to allow it to communicate with a particular chain. These apps are made available and should only be downloaded from your wallet manufacturer. More than likely, you are going to want to have multiple wallets in your plan.
What is the most secure wallet?
There is no perfect answer to this question. All wallets have their benefits and drawbacks. For the most part, a self-custody, air-gapped, hardware wallet or an insured 3rd-party custody service, will be the most secure options.
Which type of wallet is the easiest to use?
All wallets have some learning curve. If you learn the basic steps and follow regular online security practices, all wallets are generally easy to use.
What is a seed phrase?
The seed phrase is a list of 12-24 words that are randomly generated during wallet setup. Your wallet software uses parts of these words to generate your wallet's private key. This seed phrase can be used to recreate your wallet and private key. These words should never be entered or stored on any digital device, except directly onto your hardware wallet. These words should be hand written and stored safely in a fireproof and locked area.
Are crypto wallets anonymous?
Sort of. The wallet does not ask for or store personally identifiable information. The public addresses it generates do not contain your personal information either. However, when you use a wallet with a centralized exchange or crypto service, the addresses you use are connected to your personally identifiable account. This is how crypto auditors can associate your wallet addresses with you.
What is my wallet’s address?
Your wallet generates public addresses for each blockchain that you connect your wallet to. The software can generate an infinite number of addresses for each chain. Each address is unique to your wallet's private key, and can only be generated from that same private key. The public addresses are used to receive crypto assets for each chain that you interact with.
What does air-gapped mean?
Air-gapped, refers to a wallet's connectivity to the outside world. Most hardware wallets require the user to connect the devices to a computer or cell phone for software updates and transaction signing. These connections are made with physical wires, Bluetooth or NFC technologies. Regardless of the method, at one point these devices are connected. Air-gapped devices are newer. They utilize QR-Codes and a software app on your cell phone to sign transactions and microSD cards to get software updates.