Types of investments

Cryptocurrency

A digital currency, such as Bitcoin, recorded on a shared online ledger called a blockchain instead of being issued by a central bank.

Why does it matter?

Many people buy cryptocurrencies as investments, so it helps to know how they differ from shares.

How do I read it?

A share is a piece of a company with sales and profits; a cryptocurrency has no sales or profits of its own, so its price depends only on what buyers are willing to pay. Prices can swing very sharply. StockLab doesn't cover cryptocurrencies.

Example

Bitcoin's price has fallen more than 70% from a peak more than once, for example in 2018 and in 2022, and has also multiplied several times over in other periods.