The downward spiral of FTX and its former CEO, the 'King of Crypto', has attracted massive media attention and thrust conversations about cryptocurrency back into the spotlight.
But for many, the language of crypto – bitcoin, blockchain, crypto exchange – still remains cryptic.
Worry not.
If you're hearing these words for the first time or are simply in need of a refresher, here are a few key terms and what they mean…
Bitcoin is a type of digital currency (cryptocurrency). Similar to traditional currencies, like the dollar, pound or euro, there are many types of digital currencies. Other popular ones include Ethereum and Dogecoin. Unlike traditional currencies, though, Bitcoin is not backed or controlled by centralised financial institutions. Instead, it is decentralised. This makes it popular for people who think decentralisation can bring financial freedom, but it also makes it extremely volatile – rising and falling in value at the whim of Bitcoin buyers and sellers.
Blockchain is the technology underpinning all cryptocurrencies, and many other products like NFTs (Non Fungible Tokens). All of the buying, selling and trading of cryptocurrencies is recorded onto this virtual spreadsheet, which is arranged in blocks linked together in a giant chain. Every cryptocurrency transaction is individually recorded onto the blockchain by a huge network of volunteers verifying its authenticity by using computer programmes. Since the blockchain is decentralised, it's not stored on one machine or network or owned by one company. The information is accessible to everyone.
Cryptocurrency is the term used for digital currencies like Bitcoin that exist on the blockchain.
A crypto exchange is the digital platform where investors can buy, sell and trade cryptocurrencies. Similar to traditional investing, a crypto exchange acts as a brokerage where people can transfer traditional money, like pounds or dollars, from their banks into cryptocurrencies like Bitcoin or Ethereum. Most transactions are accompanied by fees.
A crypto wallet is a place where investors hold their cryptocurrency. It stores the virtual assets much like a traditional wallet holds cash. There are two types, a hot wallet and a cold wallet. Hot wallets are connected to the internet, and thus more accessible for quick transfers and easy access. Cold wallets are physical devices like specially designed USBs that store crypto offline typically for safer and longer term storage.
The Bitcoin (CRYPTO: BTC) cryptocurrency is a lot cheaper than it used to be. Bitcoin prices have stayed below $18,000 for more than a month at this point. Is this a good time to pick up Bitcoins on the cheap? A brief overview of recent Bitcoin history Once upon a time, about 13 months ago, Bitcoin's price reached $68,790.
Sam Bankman-Fried is accused of a huge scheme to defraud investors in failed crypto exchange FTX.
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The FTX founder is in the spotlight following his arrest, but attention is also focused on the whereabouts of former Alameda Research CEO Caroline Ellison
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Is there more pain ahead?
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Investors have taken a tentative approach to Tesla in the wake of Musk’s $44 billion acquisition of social media platform Twitter.
Tesla stock is down about 30% since Elon Musk completed his purchase of Twitter. Technical analysts say the weakness goes beyond anything related to social media.
John Paulson, the billionaire who at the height of the 2007 credit bubble made his fortune from betting against subprime mortgages has hit the jackpot again. As a major investor in Horizon Therapeutics, Paulson is in line for a $500 million payday, given the biotech is to be acquired by Amgen in a $27.8 billion deal. To bring Horizon under the fold, Amgen will pay $116.50 per share in cash. This is 267% higher price than the average of $31 per share paid by Paulson, who has been a Horizon invest
Nio (NYSE: NIO) stock zoomed this morning, rallying as high as 6% within minutes of the market's opening before giving up those gains alongside the broader market. There were multiple catalysts propelling the electric vehicle (EV) stock higher today. Three in particular stood out: China, the U.S., and new Nio EVs coming up this month.
The collapse of crypto firm FTX and former CEO Sam Bankman-Fried's arrest has left many wondering where the money went.
The doom and gloom brigade has been out in full force recently, persistently warning the economy is in a precarious state and that a recession next year is all but inevitable. Maybe so, but that doesn't necessarily mean the stock market is destined to follow suit. In fact, the J.P. Morgan Asset Management team expects 2023 will be a “bad year for the economy, a better year for markets.” “Our core scenario sees developed economies falling into a mild recession in 2023,” added Asset Management tea
Big mutual fund companies don't make bold calls often. So when they do, like Vanguard just did, it's wise to take notice.
The official CPI report, released this morning, came in at 7.1% for the month of November, compared to the 7.3% expectations. The beat will give confidence to investors, and the major indexes are showing solid gains in reaction. Meanwhile, the Central Bank’s decision makers are convened for the final FOMC meeting of the year, and are widely expected to institute another interest rate hike – Chairman Jerome Powell has already indicated that we need to see more pain from high rates before inflatio
The super investor is sounding the alarm.
In a bid to slash costs, Elon Musk's Twitter is reportedly auctioning off items from its headquarters and has not paid rent at its San Francisco and global officers.
“This is what happens when an inflationary moment is allowed to get embedded into the economic system,” El-Erian said.
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