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Frequently Asked Questions

Everything you need to know about cryptocurrencies, the crypto market, and everything in between before you start your trading journey.  

1. What is cryptocurrency?

Cryptocurrency is a digital currency that is secured with cryptography to facilitate trusted transactions. The underlying technology is blockchain which functions as a ledger or record of transactions.   

2. Why were cryptocurrencies developed?

Cryptocurrencies were developed to run on decentralized systems so that no single entity can control them, unlike the fiat currencies that are controlled by governments. Hundreds of cryptocurrencies exist and are being traded. The units are generated by miners who use powerful computers and invest a lot of time and electricity during the mining process. The miners then hold on to the units or sell them to others.   

3. How are cryptocurrencies stored?

Cryptocurrencies are treated in much the same way as any currency. When you have your regular fiat currency, you can deposit it at a bank or hide it in your mattress or pillow where no one can see it. Similarly, your cryptocurrency can be stored for you by a company, usually in your wallet on the crypto exchange or you can hold it in a private cryptocurrency wallet.   


4. How can I use cryptocurrency?

Like any other currency, cryptocurrency is a medium of payment for products and services that you purchase online. Have you noticed that store reward cards are an alternative physical payment method with their own units? Similarly, cryptocurrencies have their own units and they are designed to enable easy digital transactions online at lower cost than bank charges.  

5. Can cryptocurrency be used for illegal activities?

Not anymore. At one time crypto became a useful tool for escaping repressive regimes and political censors because it had no government control. However, criminals caught up and began to use cryptocurrencies for transacting illegal substances on the dark web. Governments then made use of crypto’s built-in ledger to pursue criminals. The level of tracking that is now possible makes it difficult to use cryptocurrency for crime because such users are easily tracked and caught.   

6. Does demand and supply affect the cryptocurrency market?

Definitely. Unlike regular currencies (like the US dollar) that do not have a limit on supply, some cryptocurrencies (like Bitcoin and Ether) are designed to have limited supply. When demand for any cryptocurrency increases, its price rises. That is why some cryptocurrencies, like Bitcoin have risen in value in the past few years. Naturally, when demand for a cryptocurrency declines, its price goes down.  

7. How do I start trading in cryptocurrencies?

You can do what other traders do, i.e., buy cryptocurrencies and hold them until their value increase in dollar terms.   

8. How can I safely trade in cryptocurrencies?

Experts usually advise beginners in the crypto market to invest only as much money as they are willing to lose. That is because, while the crypto market has regulatory uncertainty, it still has the irrational exuberance potential of a conventional stock market. Also, cryptocurrencies are valuable assets so they are juicy targets for hackers. Fortunately, Kullion Exchange holds user wallets and we try to stay safe by employing armies of security experts and paying external consultants to identify vulnerabilities. So you can safely trade on Kullion Exchange.  

9. Which cryptocurrency should I buy?

The biggest cryptocurrency, Bitcoin, is a good starting point to begin investing right now. You can later venture into other coins and tokens as you gain confidence. Remember to research the cryptocurrency of choice before investing into it.

10. How do I make money by trading cryptocurrencies?

Trading currencies is a business and you should keep in mind all expenses if you want to make profits. Be aware of:  


Exchange transaction fees that apply to all your actions from the moment you infuse cash to the moment you exit the investment at a profit.   


Unexpected price movements that may mean holding onto your cryptocurrency for much longer than you initially expected.  


Taxes that fall due at the end of the fiscal year. You can set a minimum profit target depending on your income tax bracket. That way you can enjoy your gains in moderation.   

11. Is there anything else that I need to know before I invest?

If you are a novice trader, knowing where to begin your research may be very difficult. What you need to know depends on your goals and current financial situation. However, you may start by learning important cryptocurrency terms and how crypto works as an investment. Once you have covered the basics, and you are ready to buy crypto, ask yourself the following very important questions:  

Why do I want to buy crypto?  

What's is my risk tolerance, i.e., how much money am I willing to risk without affecting my financial health?  

How do I plan to buy cryptocurrency?  

Which cryptocurrencies should I buy?  

This implies that you should have some kind of strategy before you put money down. Be clear on your intentions, evaluate your ability to take the risk, and then make a buying plan.  

12. Are profits on cryptocurrency trading taxable?

Definitely. Every profit that you make is taxable. If you just buy some crypto and hold on to it without selling, you will not owe any tax on that even if it has risen in value. If you sell it and make a loss, you will not owe taxes either. But, if you are an avid trader and you make some gains, you will have tax implications. Active trading can include selling your crypto back into U.S. dollars or whatever regular currency you choose. It can also include trading one crypto for another, e.g. trading Bitcoin to Ethereum.  


Make sure you have all your transaction history ready for your tax returns.  

13. Who controls cryptocurrencies?

No government controls any cryptocurrency. Cryptocurrency creators have a certain level of control in terms of the parameters that they set when they create a new crypto. Examples of such parameters can be how much of the crypto there will be or they can be rules around buying and selling. These parameters typically cannot be changed. However, cryptocurrencies are decentralized, therefore control of day-to-day operations is distributed among users, and any changes require majority approval from these users.   

14. What are nodes?

A node is computer that connects to other computers in a blockchain network where certain rules have to be followed and information is shared. A full node is a computer in a cryptocurrency peer-to-peer network which hosts and synchronises a copy of the whole cryptocurrency blockchain. Nodes are very important because they keep a cryptocurrency network running.  

15. How can I join your ambassador program?

Only registered users are allowed to apply to be ambassadors.   

  1. Register on Kullion Exchange.  
  2. Fill in the official the application form.  
  3. Your application will be processed within 7 working days. You will receive a confirmatory email. 

16. What is the referral commission percentage?

Spot trading:  Allow sharing of exchange trading fees with users that bring more people to our exchange through referrals and commission is 30% on each transaction.  

17. What is the limit to how much I can earn in a month?

We do not limit how much commission you can earn in a month. The more people you refer, and the more actively your referrals trade, the more commission you will earn. Your level of effort will determine how much you earn.  

18. What is the minimum payout?

We do not restrict transfers to the trading account. Even if your referral earns a few cents, we will pay you accordingly. However, if you wish to withdraw via bank wire, the minimum amount is US$200, and for withdrawal via crypto currency methods the minimum amount is US$10.  

19. How can I achieve an effective promotion?

  1. Be active online. Conduct promotions and share your exclusive referral link on online groups, social media platforms, forums, Meet-Ups, large summits, etc. 
  2. Share Kullion Exchange’s official activities and content online to attract attention. 
  3. Build and maintain relationships with potential users in all the media that you use. 

20. When will the referral commission be credited to my account?

If your referral has successfully traded on Kullion Exchange, we will settle the referral commission with the currency which your referral traded according to the exchange rate and allocate it to your account. There may be a delay of the actual arrival time.  

21. Do you provide any promotional training for inexperienced Ambassadors?

YES. It is very important to help ambassadors to better understand the plan-related privileges. We also give promotional tips.  

22. Can my application to become an ambassador fail?

Yes. If your past experience doesn’t meet our requirements, your application may fail. Once you update your personal portfolio, you are always welcome to apply to join our ambassador program again.   

23. Why do I have invalid commission or zero commission?

You will receive zero commission if your referred users are not newcomers to Kullion Exchange or if they are new but have no actual transactions. Your commission will be Invalid if we discover behavior that is recognized by the system as cheating and it triggers the risk control. Such cheating behavior may be linked to your mobile number, email address, ID card, registration IP and other information. 

24. How to subscribe to the Kullion Earn Program?

On your navigation board, click on KEP (Kullion Earn Program), select your preferred time duration, enter the amount you wish to stake, click on  the “Stake” button under the “action” tab for the plan you choose to be activated. Some plans may require complete KYC.   

25. What happens to my funds after I have staked 

On the same day of subscription, Kullion Exchange will deduct funds for subscription from your spot wallet and transfer it to your staking account.  

26. When do I start earning?

You will see earnings the following day after successful subscription. While product conditions may vary, your dashboard will display the latest estimated earnings.  


Define subscription date, value date, and redemption date.  


The Subscription Date is the day on which you subscribe to an earning product.  


The Value Date is the day on which your earning product will start to accrue interest.  


The Redemption Date is the day on which your capital + interest will automatically return to your spot wallet.  

27. What is APY?

APY is the annual percentage yield of the selected earning product. It is the rate of return that you will earn on the product if the interest is compounded for one year.  

28. How is my interest calculated?

The formula is as follows: 

Daily yield = The number of total tokens staked × (APY for the staked token ÷ 365) 

For example, if you’ve staked 10,000 USDT for guaranteed APY at 9%, you can collect a rounded-off to the nearest integer of 2.5 USDT the next day. The calculation is represented as 10,000 × (0.09 ÷ 365) = 2.4657 USDT. 

29. How do I redeem my funds?

Once the lock up period has elapsed, funds will automatically be sent to your spot wallet. 

30. Can you lose crypto from staking?

Falling cryptocurrency prices. One of the biggest risks with cryptocurrency staking is the volatility and that prices could plunge. For example, if you're earning 20% in rewards for staking an asset but it drops 50% in value throughout the year, you will still make a loss same way you can earn more profit if there’s an uptrend in price action. 

31. Is staking crypto worth it?

The primary benefit of staking is that you earn more crypto, and interest rates can be very generous. In some cases, you can earn more than 10% or 20% per year. It's potentially a very profitable way to invest your money. And, the only thing you need is crypto that uses the proof-of-stake model. 

32. How can I add my bank account for P2P trading?

Login to your account and select the P2P menu button on the left side. Select Payment Settings at the top menu, and fill in your payment information to start trading.