What is a cryptocurrency & how does it work?

: 18 A cryptocurrency, crypto-currency, or crypto [a] is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it.

What are cryptocurrencies & crypto tokens?

Both cryptocurrencies and crypto tokens fall under this category. Cryptocurrency: These crypto assets are also called crypto coins and are those native to blockchains. So for instance, bitcoin (BTC) is the native cryptocurrency of the Bitcoin blockchain and ether (ETH) is the native cryptocurrency of the Ethereum blockchain.

What is crypto & why should you invest in it?

Here’s the short answer: Cryptocurrency is a form of digital currency that you can use to pay for things online. You can also invest in crypto in a portfolio. It goes by different names, including Bitcoin, Ethereum and yes, Dogecoin.

Is cryptocurrency a risky investment?

The difference is that cryptocurrency investments are largely speculative. There are no physical assets to own and you’re counting on being able to sell your cryptocurrency for more than what you paid for it. Given how volatile cryptocurrency valuations can be, it can be a riskier investment than stocks.