Cryptocurrency
You can explore the materials without registering, but with a free account you can track your progress and earn rewards along the way. By the end of your learning journey, you can have the knowledge you need to become a profitable Trader!
Join →What Is Cryptocurrency?
Cryptocurrency is a category of digital assets that generally uses cryptographic techniques and distributed ledger technology. Examples include Bitcoin and Ether.
Crypto markets operate differently from traditional exchange-based equity markets. Many crypto markets trade continuously, including outside the conventional weekday sessions associated with major stock exchanges.
Important Characteristics
- High volatility: many crypto assets can experience large price movements.
- Market structure: trading takes place across different venues with varying liquidity and rules.
- Technology risk: infrastructure, custody, smart-contract, or protocol risks may exist depending on the asset.
- Regulatory risk: rules and market access can change.
Crypto exposure can also be obtained through different instruments, so we must distinguish the asset itself from derivatives or funds that reference it.
Key Terms
Cryptocurrency, crypto asset, digital asset, blockchain, distributed ledger, liquidity, volatility.
Knowledge Check
- What is cryptocurrency broadly?
- Why can crypto markets behave differently from traditional stock markets?
- Name two categories of risk relevant to crypto markets.