Is crypto the same as stocks?

Key Takeaways. Cryptocurrency is digital money that is secured by blockchain technology . Cryptocurrency investing can take many forms, ranging from buying cryptocurrency directly to investing in crypto funds and companies. You can buy cryptocurrency using a crypto exchange or through certain broker-dealers.

But there are numerous differences between stocks and cryptocurrencies . The most important is that a stock is an ownership interest in a business (backed by the company’s assets and cash flow), whereas cryptocurrency in most cases is not backed by anything at all.

A cryptocurrency (or “crypto”) is a digital asset that can circulate without the need for a central monetary authority such as a government or bank . Instead, cryptocurrencies are created using cryptographic techniques that enable people to buy, sell or trade them securely.4 gün önce