Cryptocurrency
Digital assets with high volatility and evolving regulation.
Crypto assets have no cash flows, so valuation rests on adoption and scarcity assumptions.
Crypto assets have no cash flows, so valuation rests on adoption and scarcity assumptions.
Custody matters: understand the difference between exchange-held and self-custodied assets.
Key concepts to master
- 01.Total cost of ownership, including fund fees and platform fees
- 02.Liquidity: when, and on what terms, you can get your money back
- 03.Tax treatment and which account type this belongs in
- 04.How this exposure overlaps with what you already own
Common mistakes
- ×Sizing a position based on recent performance rather than a written plan
- ×Confusing infrequent valuation with genuine stability
- ×Ignoring the tax drag of frequent trading in taxable accounts