Frequently Asked Questions

CryptoVault is an educational platform dedicated to helping investors understand decentralized finance (DeFi), blockchain technology, and cryptocurrency. We provide comprehensive guides, tutorials, and market analysis specifically designed for Thai and Asian investors. CryptoVault is not a trading platform or financial advisor.

No. CryptoVault is strictly an educational platform providing informational content only. We do not provide investment advice, financial recommendations, or trading guidance. All content is for educational purposes. You should conduct your own research and consult with qualified financial advisors before making any investment decisions.

Cryptocurrency comes with significant risks:

• Market volatility can result in substantial losses
• Smart contract bugs or exploits can lead to fund loss
• Regulatory changes could impact valuations
• User error (lost keys, wrong addresses) is irreversible

However, proper security practices and thorough research can mitigate many risks. Never invest more than you can afford to lose.

DeFi refers to financial services built on blockchain technology that eliminate traditional intermediaries like banks. DeFi protocols enable lending, borrowing, trading, and yield generation directly between users through smart contracts. Key DeFi components include decentralized exchanges (DEXs), lending platforms, and staking protocols.

A blockchain is a distributed ledger that records transactions across many computers. Key features include:

• Blocks: Bundles of transactions linked chronologically
• Cryptography: Secures transactions through complex math
• Consensus: Network agrees on transaction validity
• Immutability: Past transactions cannot be altered
• Decentralization: No single entity controls the network

Smart contracts are self-executing programs stored on the blockchain. They automatically execute predetermined actions when conditions are met, without requiring intermediaries. For example, a lending smart contract automatically deposits collateral and calculates interest without a bank. Smart contracts form the foundation of DeFi applications.

Impermanent loss occurs when you provide liquidity to a liquidity pool and the price ratio of the two assets changes significantly. Your potential gains from the price increase could be less than if you had simply held the assets. The loss is called "impermanent" because it only becomes realized when you withdraw liquidity. Learning to manage this risk is important for yield farmers.

Security best practices include:

• Use hardware wallets for large amounts
• Never share your private keys or seed phrases
• Enable two-factor authentication (2FA)
• Verify contract addresses before transactions
• Use official websites, not links in emails or social media
• Keep backups of important information in secure locations
• Use strong, unique passwords

Rug pulls occur when project developers abruptly abandon the project and steal user funds. Common warning signs include:

• Anonymous developers with no verified identity
• Locked or vested liquidity for extended periods
• Unsustainable yield promises
• Lack of smart contract audit
• Pressure to invest quickly

Always research projects thoroughly and verify liquidity conditions before investing.

Smart contract audits involve security firms reviewing code for vulnerabilities. Reputable auditors look for:

• Reentrancy attacks
• Integer overflows/underflows
• Access control issues
• Flashloan vulnerabilities
• Logic errors

However, audits don't guarantee absolute security. Look for audits from established firms like OpenZeppelin or Certora.

Cryptocurrencies are legal in Thailand. However, crypto trading and DeFi are regulated by:

• Securities and Exchange Commission (SEC)
• Bank of Thailand (BOT)
• Royal Thai Police for fraud prevention

Thai residents must declare crypto holdings for tax purposes and comply with local regulations. Consult with tax advisors regarding your specific situation.

Cryptocurrency income in Thailand is subject to taxation. Key tax considerations:

• Trading gains are subject to income tax
• Staking and farming rewards are taxable income
• Capital gains tax may apply
• You must report all crypto transactions
• Thailand has specific reporting requirements for FBAR compliance

Consult with a Thai tax professional for personalized advice on your situation.

Here's a basic roadmap:

1. Educate yourself about blockchain and DeFi
2. Choose a reputable wallet (hardware or software)
3. Purchase small amounts of cryptocurrency from regulated exchanges
4. Practice with test transactions before larger investments
5. Learn about security practices
6. Never invest more than you can afford to lose
7. Diversify your investments across different assets

Hot Wallets: Connected to the internet, convenient for frequent trading, more security risk (MetaMask, Trust Wallet)

Cold Wallets: Offline storage, highest security, less convenient (Ledger, Trezor hardware wallets)

Recommendation: Use cold wallets for long-term storage of significant amounts, hot wallets for active trading with smaller amounts.