Whether you use it, own it, or are against the movement entirely, cryptocurrency has become omnipresent in the global mainstream consciousness thanks to its rapid and widespread adoption. But new data has indicated a lot of people are still unfamiliar with crypto — yet willing to learn.
The study, conducted by CryptoWallet.com, analyzed which questions about cryptos are the most asked on the web, based on search levels for keywords such as “crypto” and “cryptocurrency.”
A spokesperson for CryptoWallet told GOBankingRates that it is fascinating to see how much people still do not know about crypto, but also how much they’re willing to learn about it.
“Nowadays, crypto is a topic which everybody has heard about at least once, even if most people might not really know what it means,” the spokesperson said. “There’s skepticism, with many unsure about how crypto operates. While in reality, major famous brands such as Gucci have started taking crypto payments to experiment in the market. And because of these changes, the public opinion has begun to shift, making them wonder what else there is to this phenomenon which seems to be taking the world by storm.”
“What is cryptocurrency” and “what is crypto” were by far the most asked questions, the data showed. So let’s dive deeper into those inquires:
What Is Cryptocurrency?
CryptoWallet explained that crypto is decentralized digital money that’s based on blockchain technology, “which simply means that there is no authority regulating and managing its value, making it different to fiat currency such as pounds or dollars. Its transactions are registered on an open ledger that records transaction codes and is distributed across computers around the world (definition of a blockchain).”
How Do You Buy Cryptocurrency?
Another top search regarding crypto was “how to buy cryptocurrency,” the study revealed. “This is the second question a person might want to ask after understanding what crypto is,” the spokesperson said. “This might be because of genuine interest in the matter and a plan to actually invest, or because they are delving deeper after the first question in search of more information to understand how the process works.”
CryptoWallet said that the answer to this question is easier than many might imagine, as the crypto market works a bit like the stock market: buying individual cryptocurrencies is risky, as the market is in constant motion and not one day is the same as the other. However, it can be a great investment if done with the guidance of experts who can calculate those risks and help you make informed decisions which can lead to exciting results, according to a press release.
As GOBankingRates previously reported, there are just a few steps you need to take to buy Bitcoin or any other cryptocurrency:
- Find a way to buy Bitcoin. You need to buy Bitcoin from a cryptocurrency exchange, such as Coinbase. You can also purchase cryptocurrency from traditional brokers, such as Robinhood.
- Figure out how to store Bitcoin. You have to decide if you want to store your Bitcoin in a cold or hot wallet.
- Purchase your Bitcoin. Buy the number of bitcoins you want using what you’ve found during the first step.
- Manage your Bitcoin. Manage this financial asset by making a long-term plan for it.
Why Is Crypto Crashing?
Further down in the study, “why is crypto crashing” was the next most Googled question.
“This is probably the most interesting of the questions, and the most topical, as the news of the market crashing is at the same time new and old,” the spokesperson said. “Also, this is a question likely to be asked by both newcomers and from veterans who are searching for answers regarding what is currently happening to their investments.”
Once again, as GOBankingRates previously reported, to dabble or not to dabble in crypto is the question on a lot of crypto-curious people’s minds. While experts are split on the matter, there’s a recurring theme: Proceed with caution and know your risk tolerance and the health of your finances. One of the biggest warnings when it comes to investing in crypto is to be aware of their extreme volatility and whether you are able financially and emotionally stomach the wild swings.
What Is Crypto Mining?
Rounding the top most Googled crypto questions is “What is crypto mining?“
Crypto mining is how cryptocurrencies are generated. This happens as decentralized networks of computers verify and safeguard blockchains, therefore making new units available for purchase and investments, CryptoWallet explained. Coinbase added on its website that in return for contributing their processing power, computers on the network are rewarded with new coins.
“It’s a virtuous circle: the miners maintain and secure the blockchain, the blockchain awards the coins, the coins provide an incentive for the miners to maintain the blockchain,” according to Coinbase.
After the first couple of questions, the queries became more and more specific. The CryptoWallet spokesperson suggested this may be because “crypto isn’t as hard and scary a topic as many make it to be, and once you understand the basics, it is pretty easy to get into it if there’s interest and the patience to do so.”
More From GOBankingRates