Word of the Week:
Cryptocurrency

Definition: Cryptocurrency is digital money that can be sent electronically anywhere in the world. Cryptocurrency is digital money that runs on a worldwide computer network. Unlike traditional currency, cryptocurrency exists only online and isn’t controlled by governments or banks. 

Key Takeaway: Cryptocurrency is digital money that exists online through a network of users.

Challenge: As mentioned last week, cryptocurrency is a high-risk, high-reward investment. This means that it is very volatile (it changes rapidly and unpredictably, especially for the worse). If you choose to invest your money, be confident in your choice by doing some research and know that if you sell within one year, you are subject to short-term capital gains tax.

Fun Fact: More than 2,000 types of cryptocurrency existed as of 2020, with a total combined value of more than $250 billion.