Investing term

What is Cryptocurrency?

Digital assets recorded on a blockchain — Bitcoin, Ethereum, etc. Highly volatile and not backed by cash flows or governments.

Cryptocurrency is a digital asset recorded on a blockchain, such as Bitcoin or Ethereum. Unlike a stock or bond, it generates no earnings, interest, or cash flows — its price rests entirely on what the next buyer will pay. That makes it extremely volatile, and it's why crypto, if held at all, is usually treated as a tiny speculative slice rather than a core holding.

For example

Bitcoin can swing 10% in a day on sentiment alone — there are no earnings to anchor it, only supply, demand, and mood.

Cryptocurrency is taught hands-on in Stage 19 — Beyond Stocks.

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Related terms

ASMLDutch semiconductor-equipment company that makes the EUV lithography machines every advanced chip is manufactured on — a global monopoly with no US peer.Bond ladderA portfolio of bonds with staggered maturities — one matures every year (or every few years) so cash continuously becomes available.Currency hedgingAn overlay used by some international ETFs to remove the effect of currency moves, so you get the foreign stock return in your home currency.DefaultWhen a borrower fails to make a scheduled payment on a debt — a missed coupon, or failure to return principal at maturity.
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