Investments · Module 3 of 5
A holding with no issuer
What crypto is, how stablecoins try to hold a steady price, and how much of something this risky you can afford to own.
Key terms in A holding with no issuer
- Crypto asset
A crypto asset is any asset that is issued or transferred using distributed ledger or blockchain technology. The group includes coins such as bitcoin and ether, other tokens, stablecoins and non-fungible tokens. These assets often sit outside the protections that apply to traditional securities, and prices can swing sharply.
Source: FINRA, Crypto Assets
- Blockchain
A blockchain is an electronic distributed ledger kept by many participants in a network of computers rather than by a single administrator. Cryptography is used to process and verify each transaction on the shared record. Because every participant holds a copy, entries are difficult to alter after the fact.
Source: FINRA, Crypto Assets: Key Terms
- Stablecoin
A stablecoin is a crypto asset designed to hold a steady value against a reference asset outside the crypto world, most often a national currency. Designs differ. Some hold reserves of cash and Treasury securities, some are backed by other crypto assets, and some rely on algorithms instead of collateral.
Source: Federal Reserve Board, Primary and Secondary Markets for Stablecoins
- Private key
A private key is a secret sequence of characters that controls access to crypto assets on a blockchain. Whoever holds it can move the assets, so it is meant to stay confidential. Keys are commonly stored in a wallet, which may be kept offline in cold storage or connected to the internet.
Source: FINRA, Crypto Assets: Key Terms
Every term on Lever is in the money glossary.
About this module
A holding with no issuer is part of Investments, one of 15 subjects in Lever. It’s a short run of 5 lessons, about 13 minutes in all, so you can finish it in one sitting.
Every lesson takes one idea at a time. You read it with the math worked out step by step, answer a question that puts it to use, then see why the right answer is right and why the others aren’t.
It’s for anyone who was never taught this, and you don’t need to know anything first. Every lesson is free. Lever works out what you already know, so you can start here or let your path bring you to it.
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Try this module
It’s part of Investments. Lever will bring it to you when you’re ready, or you can go straight there.