Crypto & Digital Assets

Bitcoin is a decentralised digital currency with fixed supply of 21 million coins. Ethereum enables smart contracts. Crypto is highly volatile, largely unregulated, and should typically be a small satellite position in a portfolio.

Quick quiz and answers

What makes Bitcoin's supply unique?

Answer: It is capped at 21 million coins. Bitcoin's fixed supply of 21 million coins is hardcoded — no central bank can increase it, creating digital scarcity.

Ethereum's main innovation over Bitcoin is:

Answer: Smart contracts enabling decentralised applications (dApps). Ethereum introduced smart contracts — self-executing code on the blockchain enabling DeFi, NFTs, and dApps.

What is blockchain technology?

Answer: A distributed, immutable ledger of transactions verified by a network. Blockchain is a decentralised, tamper-resistant ledger — transactions are recorded and verified across many nodes.

What percentage of a diversified portfolio do most advisors suggest for crypto?

Answer: 1–5% as a high-risk satellite position. Given crypto's extreme volatility, most advisors recommend 1–5% maximum — enough upside exposure without catastrophic risk.

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Educational content only, not investment advice. Tradecraft is a simulator; no real securities are bought or sold.