Question 1

What is the difference between Bitcoin and altcoins?

Accepted Answer

Bitcoin is the first and most well-known cryptocurrency, while altcoins (short for "alternative coins") is the term for all other cryptocurrencies that came after it. Each altcoin has its own unique features and uses.

Question 2

What is a blockchain and why is it important in cryptocurrency?

Accepted Answer

A blockchain is a decentralised and transparent ledger that records all transactions of a cryptocurrency. It's important because it ensures the security and integrity of cryptocurrency transactions.

Question 3

What is cryptocurrency mining?

Accepted Answer

Cryptocurrency mining is the process by which new cryptocurrency coins are created and transactions are verified. It involves solving complex mathematical problems using computer hardware.

Question 4

Are Cryptocurrencies Legal?

Accepted Answer

The legality of cryptocurrencies varies from country to country. While some countries have embraced cryptocurrencies, others have restricted or banned them. In Australia, cryptocurrencies are 100% legal to trade.

Question 5

How is cryptocurrency taxed?

Accepted Answer

Tax laws regarding cryptocurrencies also vary by country. In many places, cryptocurrencies are treated as property for tax purposes, so you may be liable for capital gains tax when you sell them. In Australia, the ATO (Australian Taxation Office) classes crypto as property, and as an asset for Capital Gains Tax (CGT) purposes. This includes cryptocurrency coins, tokens, NFTs, and stablecoins.

What are Cryptocurrencies?

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What are Cryptocurrencies?

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