Crypto: What Is Bitcoin?
A cryptographic asset is a digital asset that operates using cryptographic rules and a network of computers.
Bitcoin and Ethereum are different projects. Crypto is not a share in a company and is not a bank-guaranteed balance. Its price can change sharply; there are risks of fraud, custody, and liquidity. You can lose the entire amount.
An asset that rose by 20% can later fall by 40%. The previous rise does not protect against loss.
Describe in your own words the concept and one of its risks.
Investor.gov · Crypto Asset Risks ↗Check your understanding
Is Bitcoin necessarily a share in a company?
- Yes
- No
- Only if you buy a part of it
Answer and explanation
No. Crypto and stocks are different types of assets.
What is true about crypto price?
- It can change sharply
- It always goes up
- The bank guarantees it
Answer and explanation
It can change sharply. Volatility can be high and there is no guaranteed return.
Continue learning
Blockchain, Wallet and Private Key — A blockchain is the ledger shared by the network, and a wallet is a tool to manage access and actions on the network.
Crypto: Spotting Scams and Risk — Crypto safety includes keeping secrets, vetting services and understanding actions that are not easy to reverse.