A cryptocurrency is a digital asset that uses cryptography, an encryption technique, for security. Cryptocurrencies are primarily used to buy and sell goods and services, though some have additional smart capabilities. Most cryptocurrencies are not backed by another commodity, such as gold, and are typically not considered legal tender. They are also generally issued by private organizations. Meanwhile, your cost basis is your cost for acquiring your cryptocurrency. This is typically the fair market value of your crypto at the time of receipt, plus the cost of any fees related more add-ons to the acquisition. You may have read the news that crypto has broken all-time highs recently. This is the main advantage, that we are early in the asset’s history and prices have generally gone rapidly upwards. However, you should be aware that volatility is significant and you can similarly lose money quickly if your timing is poor. Security is also a major issue and you must ensure you secure your crypto and transactions well or you could become a victim of theft or fraud.