FAQ – Sanctuary DEX

Sanctuary DEX™

Frequently Asked Questons

We Make Cryptocurrency Useful™

At SANCTUARY DEX, our software and services are intended to bring cryptocurrency to the general public. Cryptocurrencies are the future of currencies, and our app is here to make crypto accessible to all.

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Frequently Asked Questions

Sanctuary DEX is a suite of software and services that are intended to bring cryptocurrency to the general public. Cryptocurrencies are the future of currencies; there is no doubt. However, the existing tools for purchasing, paying, and trading are not designed with the general public in mind. At Sanctuary DEX, we have iterated our designs over and over to create a seamless and painless user experience for everyone. While our products provide all the features of other products, we design them to require no previous knowledge of concepts like blockchain. Safety, security, and simplicity are our goals.

About Cryptocurrency

Are Cryptocurrencies Secure?

Cryptocurrencies are more secure than printed currencies because they cannot be easily counterfeited. The distributed ledger and the cryptography used make cryptocurrencies highly secure if individuals do a good job of storing their private keys.

What are the Risks in Cryptocurrency?

The biggest risk in cryptocurrency is losing one’s private keys or not protecting them so that somebody could have access to them and steal them. At Sanctuary, we provide the private keys as a series of words that can be written down and stored in a safe place. We also provide services for printing these keys without any human interaction so that our customers can store these keys in a safety deposit box.

Will Cryptocurrencies Replace Other Currencies?

At Sanctuary, it is our firm belief that cryptocurrencies will replace other currencies. Just like Uber replaced taxi services and Netflix replaced Blockbuster, the internet has obsoleted fiat currency.

With that said, there are still plenty of technical hurdles that need to be overcome before cryptocurrencies completely replace fiat. At Sanctuary, we are developing unique features and solutions that will facilitate this transition over the next decade.

How Have Cryptocurrencies Preformed Compared to Other Equities?

Cryptocurrencies have outperformed all the major indexes by factors of hundreds. Some of this is due to speculation, but most of it is due to the realization that digital currencies are going to replace paper currencies. The idea that cryptocurrencies are just an investment instrument is a considerable misunderstanding of the transaction that is taking place, in our opinion.

As the federal reserve has increased the money supply, cryptocurrencies have increased exponentially. We believe that this would have happened anyway due to the benefits of programmable money and cryptocurrency, but the Fed has accelerated the process in the shift to digital currency. While we expect to see a cooling-off period in the near future, we also expect these trends to continue over the next few decades.

Since the Cryptocurrency Money Supply is Limited, Will This Result in Deflation Once Cryptocurrency Replaces Fiat Currency?

Deflation occurs when the money supply is constant, and the number of products and services increases, changing the ratio between the two. While this phenomenon between products and services and cryptocurrency is already taking place in the case of bitcoin (a few years ago, a car might cost 5 Bitcoin that today would cost .5 Bitcoin ), there are thousands of alternative coins that will gain acceptance and have exchange rates relative to Bitcoin. It is our opinion that, as the market needs a larger money supply due to increases in gross product, the free market will adjust these alternative coin prices relative to Bitcoin as needed to maintain a stable currency ratio.

Can Cryptocurrencies be used for Retail Purchases?

One of the first retail purchases using cryptocurrency was the purchase of a pizza using Bitcoin. Today, large items such as cars can be purchased with Bitcoin, and in China, cell phones can be purchased with Bitcoin. There are issues with using cryptocurrencies to make small purchases. Sanctuary offers some unique technologies to make purchasing small items economically feasible using cryptocurrencies.

What Makes Cryptocurrency More Practical Than Gold?

While gold has some inherent store value in the making of electronics, it is not practical for retail purchases, as it cannot be divided easily as needed. Cryptocurrencies offer the best of both worlds in that they have a fixed, finite supply, and yet they can be adapted for retail purchasing.

About The Industry

What is Cold Storage?

A cold wallet is not connected to the Internet, and its keys are secured in such a manner that reduces theft.

What is a Hot Wallet?

Any crypto wallet that is connected to the Internet is considered a hot wallet. While its keys might be stored the same as a cold wallet, its connection to the Internet introduces an attack surface that could result in the theft or loss of funds. It is best practice to log off of any hot wallet when not in use. For holders of significant funds, it is wise to invest in a hardware wallet like the ones available from Sanctuary Dex.

What is a Hardware Wallet?

A hardware wallet is a device that looks like a USB thumb drive. A hardware wallet stores private and public keys securely. Hardware wallets are recommended for anybody wanting to store cryptocurrency. There have been many news articles about people losing millions of dollars worth of cryptocurrency by losing their private and public keys.

Sanctuary has a hardware wallet that has unique features to simplify its use. Presently, configuring a hardware wallet can be a difficult process.

Are Gains in Cryptocurrency Taxable?

Gains in cryptocurrency are treated like gains of any other asset. Cryptocurrencies are not taxed on unrealized gains, but anytime a cryptocurrency is traded for another cryptocurrency, then that is treated as a taxable event.

In order to help our customers comply with tax regulations, Sanctuary’s products provide tax reporting functions to simplify filing taxes.

What are the Main Concerns that Regulators have Regarding Cryptocurrency?

Regulators’ main concerns regarding cryptocurrency are taxes, money laundering, and false promises of guaranteed returns. At Sanctuary DEX, we take compliance very seriously. This is why we offer reporting functionality for taxes, a way to report misuse of our products, and a way to report any employees making false statements about future potential returns.

Sanctuary DEX has also retained a securities attorney firm to review our product offerings to ensure that we are 100% compliant. Sanctuary DEX also files money handling licenses in the states where it does business.

About Sanctuary DEX™

Can Sanctuary DEX™ Handle Large Trades?

Sanctuary DEX can handle large trades, and we have several ways to work with investors to invest large amounts of money in cryptocurrency. Large investments need to be handled with privacy and market impact in mind. Sanctuary can help our customers in these two areas.

How Does Sanctuary Differ From Other Cryptocurrency Software Companies?

Sanctuary offers a wider variety of complementary products, all aimed at one goal, which is to remove confusion and simplify the experience of its customers. Most other cryptocurrency companies are geared to people with extensive trading knowledge and are not designed for the average person to purchase currencies. At Sanctuary, we believe that this is the reason that only 3% of the population owns cryptocurrencies at this time is because the software is designed for the wrong audience.

Another differentiating feature of Sanctuary’s products is that other exchanges are only centralized. SANCTUARY DEX offers both centralized and decentralized features. To overcome some of the challenges related to using cryptocurrencies for retail payment, Sanctuary has developed a unique deferment system for its decentralized exchange.

Why did Sanctuary DEX Start from the Beginning as Decentralized?

Many of the centralized exchanges are trying to figure out how to implement decentralized functionality into their centralized exchanges. Sanctuary DEX was started from the beginning as decentralized because we felt that it was easier to add centralized features later on an as-needed basis than to try to add decentralized features to a centralized exchange.

What is Deferred Commit?

Deferred commit is a concept that Sanctuary has developed to save its users mining fees when using cryptocurrency to make retail purchases. Deferred commit allows the users, especially merchants, to build up a large amount of cryptocurrency before committing it to the blockchain. This reduces the transaction cost for retail purchases to just a small fee, which Sanctuary charges, generally in the .5% to 1.5% range.

In order to help our customers comply with tax regulations, Sanctuary’s products provide tax reporting functions to simplify filing taxes.

As the Federal Reserve has increased the money supply, cryptocurrencies have increased exponentially. We believe that this would have happened anyway due to the benefits of programmable money and cryptocurrency, but the Fed has accelerated the process in the shift to digital currency. While we expect to see a cooling-off period in the near future, we also expect these trends to continue over the next few decades.

What is Geo Fenced Token Dropping?

Geo-fence token dropping is a way for retailers to attract customers. When the Sanctuary app reports that a customer is in a certain geographical area the customers automatically receive points that they can use to make purchases at the retail location that supplied the points (this feature is under development).

Does Sanctuary DEX™ Own Patents?

Sanctuary DEX is in the process of filing for provisional patents. These patents are regarding unique features that make cryptocurrency more accessible to the general public. Sanctuary will continue to file for intellectual property that focuses on the main street adoption of cryptocurrency.

What is Sanctuary's Preferred Client Program?

Sanctuary DEX has a preferred client program for investors and retailers that reach certain levels of holdings or velocity. This program allows its members to receive personal care in making transactions, as well as receive newsletters and white papers.

What is Sanctuary DEX's Sealed Key Delivery System?

Sanctuary’s sealed key delivery system is an automated method for users to receive their private keys permanently etched on a non-corrosive material. These etchings are never viewed by human eyes and are sealed and delivered to the customer for safekeeping.

Does Sanctuary DEX™ Mine Coins?

At this time, Sanctuary mines a small amount of Ethereum. As the size of the Sanctuary network grows, we intend to increase our mining capacity.

What Steps Does Sanctuary Take to Ensure Security?

Security is the fundamental building block of any cryptocurrency company.

The Sanctuary DEX Executive Team has extensive experience, degrees, and certifications in Internet security and cybersecurity.

Backups are another important part of the security process. The term “air gap” refers to storing backups in a way that they are not connected to the internet. There are many advantages to having a diversity of air-gapped backups of software and data. Sanctuary has extensive backup procedures integrated into our business processes.