1. What Is Cryptocurrency?
Cryptocurrency is digital money that exists only electronically, secured by cryptography, and recorded on a decentralized ledger. Unlike traditional currency, it isn't issued or controlled by any government or central bank.
The first and best-known cryptocurrency, Bitcoin, launched in 2009. Thousands of others have followed, each with different designs, purposes, and risk profiles.
2. How Blockchain Works
Cryptocurrencies run on a blockchain — a shared, tamper-resistant digital ledger maintained by a network of computers around the world rather than a single company.
The core idea: Transactions are grouped into "blocks" and linked together in a chain. Because thousands of copies exist and each block is cryptographically tied to the last, altering past records is practically impossible. This creates trust without a central authority.
3. Bitcoin vs. Altcoins
Bitcoin
Designed as digital "hard money" with a fixed supply of 21 million coins. Often compared to gold as a potential store of value.
Altcoins
Every other coin. Some, like Ethereum, power programmable "smart contracts"; many others are highly speculative or experimental.
Bitcoin dominates the market by value, but the crypto universe spans everything from established platforms to thousands of tiny, high-risk tokens.
4. Where Does Its Value Come From?
Unlike a stock, cryptocurrency has no earnings, dividends, or underlying business. Its price is driven almost entirely by supply and demand — what buyers are willing to pay.
Proponents point to scarcity, decentralization, and utility; skeptics note the absence of intrinsic cash flows. This debate is why crypto valuations are far more speculative than traditional assets.
5. Key Risks to Understand
Extreme volatility
Crypto prices can swing 10% or more in a single day — far more than stocks. See our volatility guide.
Regulatory uncertainty
Rules vary by country and are still evolving. New regulation can move prices sharply.
Security and custody
Lost keys or hacked exchanges can mean permanent loss. Crypto lacks the safety nets of traditional bank accounts.
No safety net
There's no central authority to reverse fraud or errors, and holdings aren't insured like bank deposits.
6. Tracking Crypto on WIT
WIT lets you follow major cryptocurrencies alongside traditional markets:
- Watch Bitcoin, Ethereum, and more in real time on the markets dashboard.
- Compare crypto moves to stocks to see how the two markets interact.
- Size any crypto allocation carefully — its volatility makes diversification and risk management essential.