Cryptocurrency
A digital asset secured by cryptography and recorded on a blockchain, operating without a central authority.
Cryptocurrency is a form of digital money that runs on decentralized networks rather than being issued by a central bank. Bitcoin, the first and largest, was designed as a scarce, borderless store of value, while thousands of other coins serve different purposes. Crypto is known for extreme volatility, where large gains and losses can happen within days, so most advisors treat it as a small, speculative slice of a diversified portfolio. Ownership is secured by private keys, and losing them means losing access permanently. Assetli lets you track crypto holdings alongside your stocks, cash, and other assets.
Example
You allocate 5% of a $50,000 portfolio, $2,500, to crypto, accepting that its value could double or halve far faster than your stock holdings.
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Related terms
Volatility
The degree to which an asset's price fluctuates over time; higher volatility means larger, less predictable swings.
Diversification
The practice of spreading investments across different assets, sectors, and geographies to reduce the impact of any single investment's poor performance.
Asset Allocation
The strategy of dividing investments among different asset classes — stocks, bonds, real estate, cash — to balance risk and return according to your goals and risk tolerance.
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Blockchain
A distributed, tamper-resistant digital ledger that records transactions across many computers.
Stablecoin
A cryptocurrency designed to hold a steady value, usually pegged to a currency like the dollar or euro.
NFT (Non-Fungible Token)
A unique digital token on a blockchain that certifies ownership of a specific item, such as art or a collectible.
AI Transaction Categorization
The use of artificial intelligence to automatically classify financial transactions into spending categories based on merchant data, descriptions, and learned patterns.
Open Banking
A framework that lets you securely share your bank data with trusted third-party apps through standardized APIs.