Digital assets: An umbrella term that refers to cryptoassets, stablecoins, and financial assets issued as tokens on a blockchain.
Cryptoassets, or cryptocurrencies, or crypto: Digital assets that exist only online and are built and stored on a record-keeping system called a blockchain. They use codes (cryptography) to keep them safe, let people trade directly with each other (peer-to-peer), and keep track of who owns what on a public record, without the need for banks.
Bitcoin: Bitcoin is the world’s leading and most widely adopted cryptocurrency and the first digital asset to gain widespread global adoption.2 Bitcoin is a digital currency not regulated by central banks or governments, that can be transferred from one person to another anywhere in the world. These transactions are recorded on a secure digital database called the blockchain, and once recorded cannot be changed.
Blockchain: A digital database that is shared amongst a network of computers. As a database, a blockchain stores information about transactions of digital assets, including who all the previous owners are, and who the asset belongs to now. What makes blockchain so innovative is that the previous records cannot be changed and any new entry must be verified by the network of computers, meaning you don’t need to place trust in a individual or institution to verity the records.
Cryptoasset risk: Cryptoasset platforms may be at risk of being hacked or exploited and may involve significant risks due to a compromise of private keys, which may result in losses. Market disruption and government intervention can make digital assets illegal.