ASSET-CLASSESM13

Cryptocurrency: High Risk, High Volatility

Understand blockchain, Bitcoin, and crypto as emerging asset classes with extreme volatility and speculative nature.

Learning Goals

  • Understand blockchain technology and crypto basics.
  • Recognize crypto as a high-risk, high-volatility asset.
  • Evaluate crypto allocation and risk tolerance.

Core Concepts

Blockchain
Beginner

A distributed ledger technology underlying crypto. Secure but slow compared to centralized databases.

Bitcoin vs. Altcoins
Beginner

Bitcoin is the most established crypto, but thousands of altcoins exist with varying utility and risk.

Volatility & Speculation
Beginner

Crypto can swing 50% in a month. Only invest what you can afford to lose completely.

Indian Market Context

India's crypto market is growing with exchanges like WazirX. RBI is cautious; taxes on crypto gains are 30% under income tax.

Behavioral Insight

🧠 FOMO: Fear of missing out drives crypto bubbles. Investors chase gains, then panic sell on losses.

From History

Cryptocurrency: High Risk, High Volatility

Bitcoin crashed 70%+ from peaks in 2017, 2021, and 2024, wiping out retail investors who bought at highs.

Take the Quiz

Module Quiz
Bitcoin is backed by:
Crypto volatility of 50% swings is normal and expected.
What percentage of portfolio should crypto be?