Over the past decade, cryptocurrencies have grown massively in popularity, leading to today’s market of over 20,000 types of cryptocurrency and hundreds of exchanges to trade them on.
Crypto is incredibly volatile, however, creating questions in wealth management about the appropriateness of including it in client portfolios, especially for those tied to a fiduciary responsibility. Bitcoin saw prices skyrocket only to come crashing down, while other currencies crater and disappear. Still, crypto evangelists point to the many benefits of a decentralized currency, and Bitcoin’s staying power means that financial advisors cannot ignore it.
While many similarities exist with other forms of currency and assets, much like a baseball fan watching a cricket match, it becomes clear that there are significant differences in terminology. We’e developed a guide to that terminology, which we will update as new ideas enter the space.