Investing · 4 min read
Cryptocurrency Basics
Cryptocurrencies are digital assets secured by cryptography and recorded on public blockchains. Bitcoin is the largest and oldest.
Why it matters
Crypto is a new asset class — high potential, high risk, and evolving regulation.
Advantages
- Global, 24/7 markets
- Programmable money
- Portfolio diversification (small)
Risks
- Extreme volatility
- Regulatory uncertainty
- Custody & scam risks
Real-world example
Bitcoin has had multiple 70%+ drawdowns and multiple 5–10x rallies — position size accordingly.
Key takeaways
- Only invest what you can afford to lose
- Use reputable exchanges and cold storage
- Understand tax rules in your country
Quick quiz
1. Which is a common risk unique to crypto?