Glossary
Cryptocurrency
A digital asset whose ownership is tracked on a blockchain, a shared electronic record kept by a network of computers rather than by a bank.
Updated September 15, 2026
A cryptocurrency is a digital asset whose ownership is tracked on a blockchain, a shared record copied across many computers instead of held by a bank. Transfers are authorized with a private key, a long secret code. If you hold crypto yourself and lose that key, no bank or company can restore access. If you hold it on a trading platform, that platform controls the key and you rely on its records and finances.
For most cryptocurrencies, the price comes from what other buyers will pay. The coin itself pays no interest, and prices can swing widely. If $1,000 of crypto falls 40 percent, it is worth $600. Federal deposit insurance does not cover crypto assets, and SIPC, which replaces missing securities when a member brokerage firm fails, does not apply to crypto held on a trading platform.
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How this definition was made
- Written by an AI model (Claude) following Teloria's editorial standard.
- Every factual claim was checked by a separate AI fact-check against official US government and regulator sources.
Official sources consulted
- investor.gov · /additional-resources/spotlight/crypto-assets
- consumerfinance.gov · /about-us/newsroom/cfpb-publishes-new-bulletin-analyzing-rise-in-crypto-asset-complaints/
- investor.gov · /introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/crypto-asset-custody-basics-retail-investors-investor-bulletin-0
- home.treasury.gov · /system/files/136/CryptoAsset_EO5.pdf
- investor.gov · /introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-alerts/crypto-asset-securities
- fdic.gov · /news/fact-sheets/crypto-fact-sheet-7-28-22.html
- investor.gov · /introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/investor-bulletin-sipc-protection-part-1-sipc-basics
- sec.gov · /rules-regulations/staff-guidance/trading-markets-frequently-asked-questions/frequently-asked-questions-relating-crypto-asset-activities-distributed-ledger-technology