From Bitcoin to Ethereum and beyond, cryptocurrencies have taken a new generation of investors by storm. This fast-moving, volatile industry keeps participants, observers, and regulators on their toes. Find the latest crypto news, daily trading updates, and insights into the digital currencies that run on a public ledger called blockchain.
Cryptocurrencies are digital or virtual currencies underpinned by cryptographic systems, enabling secure online payments without the need for third-party intermediaries. They operate on a distributed public ledger known as blockchain, which records transactions and verifies payments using advanced encryption techniques, such as elliptical curve cryptography and public-private key pairs.
While many experts believe blockchain and related technologies will disrupt many industries, including finance and law, cryptocurrencies also have drawbacks, such as price volatility and high energy consumption for mining activities. Furthermore, unlike traditional financial products such as stocks and mutual funds, cryptocurrency investments don’t offer consumer protections against theft or fraud.
Nevertheless, the popularity of cryptocurrencies is growing, with some retailers from mass-market to luxury stores and even car dealers accepting them as payment for goods or services. In addition, some investors are speculating on the future of cryptocurrencies, buying them for profit or incorporating them into their portfolios as alternatives to more traditional assets.
Schwab continues to monitor cryptocurrencies as they evolve and regulations develop, and while some traders have made money on the ups and downs of prices, we recommend treating them as speculative assets that can potentially generate returns outside a long-term investment portfolio.