What is cryptocurrency?
Cryptocurrency is a digital asset recorded on a distributed ledger. Networks differ significantly in their purpose, governance, security model, supply rules, and degree of decentralization.
Wallets and private keys
A wallet manages the credentials used to authorize transactions. Custodial services hold keys for users; self-custody gives users direct control and direct responsibility. Losing a private key or recovery phrase may mean permanent loss of access.
Major risks
Crypto assets can experience extreme volatility. Additional risks include smart-contract failures, scams, exchange insolvency, uncertain regulation, low liquidity, and irreversible transactions.
Stablecoins and tokens
Stablecoins aim to track another asset, but their stability depends on reserves, redemption mechanics, counterparties, or algorithms. Other tokens may represent utility, governance, claims, or speculation; the label alone does not establish value.