Frequently Asked Questions
What is the difference between a cryptocurrency and a token?
A cryptocurrency (like Bitcoin) runs on its own blockchain, while a token is built on top of an existing blockchain (such as Ethereum) using smart contracts. Both are tradable digital assets, but they differ in how they are issued and secured.
How is the price of a cryptocurrency determined?
Crypto prices are set by supply and demand on global exchanges. They fluctuate 24/7 based on trading activity, market sentiment, liquidity, and macro news — there is no single official price.
What does 24-hour trading volume mean?
It is the total value of a coin traded across markets in the last 24 hours. Higher volume generally means deeper liquidity and tighter spreads, making it easier to buy or sell without moving the price.
Why do crypto prices change so quickly?
Crypto markets trade non-stop and are relatively small compared with traditional assets, so news, whale moves, and sentiment can shift prices within minutes. This volatility is normal but increases risk.
Is investing in cryptocurrency safe?
All crypto content on 711BTC is for reference only and is not investment advice. Crypto is highly volatile and you can lose your entire investment. Never invest more than you can afford to lose, and do your own research.
What are network (gas) fees?
Gas fees are payments to blockchain validators for processing transactions. They vary with network congestion and the specific chain — for example, Ethereum gas fees rise when the network is busy.