🕷️ Crawler Inspector

URL Lookup

Direct Parameter Lookup

Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 87 (from laksa177)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa087.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical, ml_categories_json AS ml_categories_json, ml_types_json AS ml_types_json, ml_intent_types_json AS ml_intent_types_json, meta_language AS meta_language, attrs_author AS attrs_author, ifNull(toUnixTimestamp(attrs_publish_time), 0) AS attrs_publish_time, ifNull(toUnixTimestamp(attrs_original_publish_time), 0) AS attrs_original_publish_time, ifNull(attrs_is_republished, 0) AS attrs_is_republished, ifNull(attrs_nr_words, 0) AS attrs_nr_words, ifNull(attrs_boilerpipe_nr_words, 0) AS attrs_boilerpipe_nr_words, ifNull(body_ext_links_number, 0) AS body_ext_links_number, ifNull(body_int_links_number, 0) AS body_int_links_number, ifNull(meta_nofollow, 0) AS meta_nofollow, ifNull(meta_noarchive, 0) AS meta_noarchive, ifNull(props_was_rendered, 0) AS props_was_rendered, ifNull(src_redirect, \'\') AS src_redirect, ifNull(download_time_msec, 0) AS download_time_msec, ifNull(download_ttfb_msec, 0) AS download_ttfb_msec, ifNull(download_size, 0) AS download_size FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://moneysmart.gov.au/investment-warnings/crypto-assets\')), getAhrefsUnparsedNoserviceFromURL(\'https://moneysmart.gov.au/investment-warnings/crypto-assets\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets","crawl_time":1777313431,"first_indexed_time":1733206754,"http_code":200,"src_unparsed":"au,gov,moneysmart!\/investment-warnings\/crypto-assets s443","src_root_hash":"8642081752145688487","history_drop_reason":null,"meta_title":"Crypto assets - Moneysmart.gov.au","meta_descriptions":["Find out how crypto-assets (like bitcoin, ethereum and ripple) work and the risks you face if you invest."],"attrs_boilerpipe_text":"Crypto\nincludes assets described as coins, tokens or sometimes cryptocurrencies. They may or may not be backed by physical assets.\nOn this page\nHow crypto works\nTypes of crypto-assets\nCrypto and risk - what you need to know\nCrypto scams are common\nHow crypto works\nCrypto-assets (crypto) describe an asset class that includes cryptocurrency, crypto or digital tokens and 'coins'. It does not exist physically as coins or notes. Crypto is kept in a unique digital or software wallet (hot) or hardware (cold) wallet. Each wallet has a private key, a secret code that lets you access your tokens. If you lose your private key, you usually lose the crypto.\nThese digital tokens rely on cryptography and technology such as blockchain for security and other features. The Reserve Bank of Australia's website explains\nhow crypto and blockchain technology (including mining) works\n.\nCrypto can be used for payments, to execute automated contracts, and run programs. \nA crypto-asset can be created by anyone\n, and it's believed that millions are currently circulating. Crypto-assets (even Australian dollar stablecoins) are not legal tender in Australia and are not widely accepted as payment. Few people use it for everyday transactions. It's not the sort of investment to use to build your savings.\nMost crypto are high-risk investments. The value of crypto is very volatile, often fluctuating by huge amounts within a short period.\nBuying and storing crypto\nYou can buy or sell crypto on a trading platform using money. Or buy or sell it directly.\nEach digital or software wallet (hot) or hardware (cold) wallet has private keys that authorise transactions on the blockchain network.\nA hardware wallet stores these private keys on a secure device not connected to the internet. This can make it harder for hackers to access your wallet.\nA software wallet can be held by you or by a crypto trading platform on your behalf. This can simplify buying, selling and storing crypto.  \nYou must be prepared to lose what you invest with crypto-assets and be\nwary of scammers\n. Scammers target crypto-assets as they’re easy to create, gaining popularity, and not easily recovered. Currently there’s also no public register to check the legitimacy of crypto exchanges.\nTypes of crypto-assets\nEach crypto-asset has different features and there are no universally defined categories of crypto-assets.\nSome common types are listed below, but this does not cover them all. New cryptos are created all the time, but many aren’t well structured and don’t last.\nWhat are they\nThese are the assets that make the specific blockchain work. They're designed to act as a medium of exchange within the crypto ecosystem, with transfers enabled on blockchains. These can have no intrinsic value and are only worth what people are willing to pay for them, but they derive their value from the demand for the use of the blockchain.\nExamples include:\nBTC, ETH, Litecoin\nWhat are they\nA ‘Stablecoin’ is a marketing term for crypto that aims to maintain a stable value relative to a specified asset, or basket of assets.\nSometimes the term is only used for those that aim to track the value of a national currency (for example, the AUD or USD). Some stablecoins track other assets such as gold, equities, bonds or other crypto.\nStablecoins try to stabilise their market value by:\nbeing physically backed 1-for-1 by an external asset, such as government-issued currency, gold or securities\nbeing physically backed by a variety of assets where the value of these assets is intended to be greater than the value of the Stablecoin on issue\nusing algorithms to control the available demand and supply of the asset, such as minting additional assets or adjusting an interest rate for holding the asset\nExamples include:\nAUDM, AUDF,\n \nAUDD\nWhat are they\nNFTs are tokens which record ownership of an object using blockchains. Each NFT is unique (hence they are not ‘fungible’). However, owning an NFT may not give you exclusive rights to the underlying asset.\nExamples include:\nBored Apes, game tokens\nWhat are they\n \nThese are tokens created through participating in decentralised finance (DeFi) protocols. Each token will have unique features based on the DeFi protocol that it relates to.\nWhat are they\nThere are a broad range of terms for other types of tokens. Some types include:\nutility tokens — allow you to undertake certain activities, or perform an action, in a crypto project, such as being exchanged for a service\ngovernance tokens — these allow you to participate in the running of a crypto project\ncommunity (or membership) tokens — ownership gives you access to the community\nCrypto and risk - what you need to know\nPrices can swing wildly\nInvesting in crypto-assets is highly speculative. The market value can fluctuate a lot over short periods of time. It is affected by things like media and social hype, and investor opinion.\nThe price of unbacked crypto may depend on:\nits popularity at a given time (influenced by factors like the number of people using it)\nhow easy it is to trade or use\nthe perceived value of the asset\nits underlying blockchain technology.\nSo, if you buy crypto-assets, be prepared to lose everything that you put in. \nMany crypto providers are unlicensed\nMany crypto-asset providers are not licensed at this point in time. This means you may not be protected if the platform fails or is hacked. \nIf a crypto-asset fails, you will most likely lose all the money you put in. In most countries, crypto is not legal tender. You're only protected to the extent that crypto fits within existing laws.\nYour money could be stolen\nBe aware that a hacker can potentially steal the contents of your digital wallet.\nCrypto systems allow users to stay anonymous and there is no central data bank. So, if a hacker steals your crypto, you have little hope of getting it back.\nUsing a wallet held offline, a ‘hardware wallet’ or ‘cold storage’, may offer more protection.\nTechnical complexity\nCrypto-assets can be hard to understand.\nThere’s usually no product disclosure statement or prospectus that explains clearly how the crypto works. Developers may issue a ‘whitepaper’ to describe it, but these can vary in format and information.\nA crypto-asset’s code may not be available to review. Or it may hard to understand. The underlying code of the crypto may also change over time.\nTo access a crypto network, you may need special software and need to know how transaction fees operate. Unfamiliar users run the risk of:\nsending a transaction to an incorrect address\nover-paying on transaction fees called ‘gas’ (sometimes by thousands of dollars)\nnot paying enough for a transaction fee (and so losing the fee and transaction)\nCrypto scams are common\nScammers use crypto because transactions are not easy to recover and have limited oversight. Money can quickly be sent overseas and is very hard to trace.\nRead more about \ncrypto scams\n and what to watch out for.\nRhett saw an article on a news website about ‘The biggest deal in Shark Tank history, that can make YOU rich in just 7 days!’.\nThe news article was really an advertisement. It took Rhett to a website that included endorsements from Shark Tank judges for Bitcoin trading software. The endorsements were fake.\nRhett was interested in trading bitcoin, so he provided his contact details. Soon, an Account Manager named Max began calling Rhett. Max called often, pressuring Rhett to open a trading account and make a deposit. By depositing between $40,000 and $50,000 upfront, Max promised Rhett he could earn at least $15,000 per month.\nMax promised Rhett that the money he deposited would be safe because he would have total control of the account. “It’s more or less moving your money in your left pocket from your right pocket,” Max said. Max promised Rhett that he could withdraw his money whenever he wanted to.\nMax eventually convinced Rhett to open an account and deposit $40,000. Rhett started trading bitcoin, but things didn’t go to plan, and Rhett started losing money. Max encouraged Rhett to deposit more money and promised Rhett that he would be able to withdraw the money he needed in a week.\nRhett deposited more money in the hope he could recoup his losses. Rhett ended up depositing and losing a total of $97,000.\nFinding the right investments can be challenging. If you need some help to build a diversified portfolio, talk to a \nfinancial adviser\n.","attrs_markdown":"[Skip to main content](https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets#mainContent)\n\nmenu\n\nchevron\\_left\n\n[Home](https:\/\/moneysmart.gov.au\/)\n\nsearch\n\nclose\n\n- [Banking and budgeting](https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets#banking-and-budgeting)\n  - [Banking](https:\/\/moneysmart.gov.au\/banking)\n    - [Savings accounts](https:\/\/moneysmart.gov.au\/banking\/savings-accounts)\n    - [Transaction accounts and debit cards](https:\/\/moneysmart.gov.au\/banking\/transaction-accounts-and-debit-cards)\n    - [Joint accounts](https:\/\/moneysmart.gov.au\/banking\/joint-accounts)\n    - [Direct debits](https:\/\/moneysmart.gov.au\/banking\/direct-debits)\n    - [Unauthorised and mistaken transactions](https:\/\/moneysmart.gov.au\/banking\/unauthorised-and-mistaken-transactions)\n    - [Sending money overseas](https:\/\/moneysmart.gov.au\/banking\/sending-money-overseas)\n  - 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[Choosing a managed fund](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/choosing-a-managed-fund)\n    - [Exchange traded funds (ETFs)](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/exchange-traded-funds-etfs)\n    - [Hedge funds](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/hedge-funds)\n    - [Listed investment companies (LICs)](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/listed-investment-companies-lics)\n    - [Peer to peer lending](https:\/\/moneysmart.gov.au\/managed-funds-and-etfs\/peer-to-peer-lending)\n  - [Property investment](https:\/\/moneysmart.gov.au\/property-investment)\n    - [Property funds](https:\/\/moneysmart.gov.au\/property-investment\/property-funds)\n    - [Timeshares](https:\/\/moneysmart.gov.au\/property-investment\/timeshares)\n    - [SMSFs and property](https:\/\/moneysmart.gov.au\/property-investment\/smsfs-and-property)\n    - [Buying an investment property](https:\/\/moneysmart.gov.au\/property-investment\/buying-an-investment-property)\n  - [Investments paying interest](https:\/\/moneysmart.gov.au\/investments-paying-interest)\n    - [Bonds](https:\/\/moneysmart.gov.au\/investments-paying-interest\/bonds)\n    - [Debentures, secured and unsecured notes](https:\/\/moneysmart.gov.au\/investments-paying-interest\/debentures-secured-and-unsecured-notes)\n    - [Hybrid securities and notes](https:\/\/moneysmart.gov.au\/investments-paying-interest\/hybrid-securities-and-notes)\n    - [Term deposits](https:\/\/moneysmart.gov.au\/investments-paying-interest\/term-deposits)\n  - [Investment warnings](https:\/\/moneysmart.gov.au\/investment-warnings)\n    - [Binary options](https:\/\/moneysmart.gov.au\/investment-warnings\/binary-options)\n    - [Company director fraud](https:\/\/moneysmart.gov.au\/investment-warnings\/company-director-fraud)\n    - [Contracts for difference (CFDs)](https:\/\/moneysmart.gov.au\/investment-warnings\/contracts-for-difference-cfds)\n    - [Crypto assets](https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets)\n    - [Forex trading](https:\/\/moneysmart.gov.au\/investment-warnings\/forex-trading)\n    - [Investment seminars](https:\/\/moneysmart.gov.au\/investment-warnings\/investment-seminars)\n    - [Insider trading](https:\/\/moneysmart.gov.au\/investment-warnings\/insider-trading)\n    - [Land banking](https:\/\/moneysmart.gov.au\/investment-warnings\/land-banking)\n    - [Bills of exchange](https:\/\/moneysmart.gov.au\/investment-warnings\/bills-of-exchange)\n    - [Pump and dump schemes](https:\/\/moneysmart.gov.au\/investment-warnings\/pump-and-dump-schemes)\n    - [Don't get burned by investment hype](https:\/\/moneysmart.gov.au\/investment-warnings\/don-t-get-burned-by-investment-hype)\n    - [Lead generation and how it works](https:\/\/moneysmart.gov.au\/investment-warnings\/lead-generation-and-how-it-works)\n- [Super and retirement](https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets#super-and-retirement)\n  - [Retirement](https:\/\/moneysmart.gov.au\/retirement)\n    - [Case study: Lillian's health scare](https:\/\/moneysmart.gov.au\/retirement\/case-study-lillian-s-health-scare)\n    - [Case study: Bill's mortgage decision](https:\/\/moneysmart.gov.au\/retirement\/case-study-bill-s-mortgage-decision)\n    - [Case study: Helen and Joe retire](https:\/\/moneysmart.gov.au\/retirement\/case-study-helen-and-joe-retire)\n    - [Retirement for First Nations people](https:\/\/moneysmart.gov.au\/retirement\/first-nations-resources)\n    - [Campaign resources](https:\/\/moneysmart.gov.au\/retirement\/campaign-resources)\n    - [Translated resources](https:\/\/moneysmart.gov.au\/retirement\/translated)\n  - [How super works](https:\/\/moneysmart.gov.au\/how-super-works)\n    - [Superannuation](https:\/\/moneysmart.gov.au\/how-super-works\/superannuation)\n    - [Choosing a super fund](https:\/\/moneysmart.gov.au\/how-super-works\/choosing-a-super-fund)\n    - [Types of super funds](https:\/\/moneysmart.gov.au\/how-super-works\/types-of-super-funds)\n    - [Self-managed super fund (SMSF)](https:\/\/moneysmart.gov.au\/how-super-works\/self-managed-super-fund-smsf)\n    - [Getting your super](https:\/\/moneysmart.gov.au\/how-super-works\/getting-your-super)\n    - [When you can access your super early](https:\/\/moneysmart.gov.au\/how-super-works\/when-you-can-access-your-super-early)\n    - [Find lost super](https:\/\/moneysmart.gov.au\/how-super-works\/find-lost-super)\n    - [Consolidating super funds](https:\/\/moneysmart.gov.au\/how-super-works\/consolidating-super-funds)\n    - [Tax and super](https:\/\/moneysmart.gov.au\/how-super-works\/tax-and-super)\n    - [Superannuation calculator](https:\/\/moneysmart.gov.au\/how-super-works\/superannuation-calculator)\n    - [Who gets your super if you die](https:\/\/moneysmart.gov.au\/how-super-works\/who-gets-your-super-if-you-die)\n    - [Claiming a super death benefit](https:\/\/moneysmart.gov.au\/how-super-works\/claiming-a-super-death-benefit)\n  - [Grow your super](https:\/\/moneysmart.gov.au\/grow-your-super)\n    - [Employer contributions calculator](https:\/\/moneysmart.gov.au\/grow-your-super\/employer-contributions-calculator)\n    - [How much super should I have](https:\/\/moneysmart.gov.au\/grow-your-super\/how-much-super-should-i-have)\n    - [Super contributions](https:\/\/moneysmart.gov.au\/grow-your-super\/super-contributions)\n    - [Downsizer super contributions](https:\/\/moneysmart.gov.au\/grow-your-super\/downsizer-super-contributions)\n    - [Super for self-employed people](https:\/\/moneysmart.gov.au\/grow-your-super\/super-for-self-employed-people)\n    - [Super investment options](https:\/\/moneysmart.gov.au\/grow-your-super\/super-investment-options)\n    - [Super contributions optimiser](https:\/\/moneysmart.gov.au\/grow-your-super\/super-contributions-optimiser)\n    - [How to check your super](https:\/\/moneysmart.gov.au\/grow-your-super\/how-to-check-your-super)\n    - [Tips to keep your retirement savings on track](https:\/\/moneysmart.gov.au\/grow-your-super\/tips-to-keep-your-retirement-savings-on-track)\n    - [Get your super working over time](https:\/\/moneysmart.gov.au\/grow-your-super\/get-your-super-working-over-time)\n  - [Plan for your retirement](https:\/\/moneysmart.gov.au\/plan-for-your-retirement)\n    - [Work out how much you need to retire](https:\/\/moneysmart.gov.au\/plan-for-your-retirement\/work-out-how-much-you-need-to-retire)\n    - [Super and pension age calculator](https:\/\/moneysmart.gov.au\/plan-for-your-retirement\/super-and-pension-age-calculator)\n    - [Make a retirement plan](https:\/\/moneysmart.gov.au\/plan-for-your-retirement\/make-a-retirement-plan)\n    - [Retirement planner](https:\/\/moneysmart.gov.au\/plan-for-your-retirement\/retirement-planner)\n    - [What happens to your super when you retire](https:\/\/moneysmart.gov.au\/plan-for-your-retirement\/what-happens-to-your-super-when-you-retire)\n    - [Managing unexpected retirement](https:\/\/moneysmart.gov.au\/plan-for-your-retirement\/managing-unexpected-retirement)\n    - [Your home in retirement](https:\/\/moneysmart.gov.au\/plan-for-your-retirement\/your-home-in-retirement)\n    - [Wills and powers of attorney](https:\/\/moneysmart.gov.au\/plan-for-your-retirement\/wills-and-powers-of-attorney)\n    - [Super and the Age Pension](https:\/\/moneysmart.gov.au\/plan-for-your-retirement\/super-and-the-age-pension)\n  - [Retirement income sources](https:\/\/moneysmart.gov.au\/retirement-income-sources)\n    - [Age Pension and government benefits](https:\/\/moneysmart.gov.au\/retirement-income-sources\/age-pension-and-government-benefits)\n    - [Account-based pensions](https:\/\/moneysmart.gov.au\/retirement-income-sources\/account-based-pensions)\n    - [Account-based pension calculator](https:\/\/moneysmart.gov.au\/retirement-income-sources\/account-based-pension-calculator)\n    - [Super lump sum](https:\/\/moneysmart.gov.au\/retirement-income-sources\/super-lump-sum)\n    - [Annuities](https:\/\/moneysmart.gov.au\/retirement-income-sources\/annuities)\n    - [Transition to retirement](https:\/\/moneysmart.gov.au\/retirement-income-sources\/transition-to-retirement)\n    - [Reverse mortgage and home equity release](https:\/\/moneysmart.gov.au\/retirement-income-sources\/reverse-mortgage-and-home-equity-release)\n    - [Reverse mortgage calculator](https:\/\/moneysmart.gov.au\/retirement-income-sources\/reverse-mortgage-calculator)\n    - [Lifetime income streams](https:\/\/moneysmart.gov.au\/retirement-income-sources\/lifetime-income-streams)\n    - [Types of retirement income](https:\/\/moneysmart.gov.au\/retirement-income-sources\/types-of-retirement-income)\n  - [Manage your money in retirement](https:\/\/moneysmart.gov.au\/manage-your-money-in-retirement)\n    - [Make your money last in retirement](https:\/\/moneysmart.gov.au\/manage-your-money-in-retirement\/make-your-money-last-in-retirement)\n    - [Retirement income and tax](https:\/\/moneysmart.gov.au\/manage-your-money-in-retirement\/retirement-income-and-tax)\n    - [Manage health costs in retirement](https:\/\/moneysmart.gov.au\/manage-your-money-in-retirement\/manage-health-costs-in-retirement)\n    - [Get help in retirement](https:\/\/moneysmart.gov.au\/manage-your-money-in-retirement\/get-help-in-retirement)\n    - [Protect your money in retirement](https:\/\/moneysmart.gov.au\/manage-your-money-in-retirement\/protect-your-money-in-retirement)\n    - [Downsizing in retirement](https:\/\/moneysmart.gov.au\/manage-your-money-in-retirement\/downsizing-in-retirement)\n    - [Aged care](https:\/\/moneysmart.gov.au\/manage-your-money-in-retirement\/aged-care)\n    - [Paying for your funeral](https:\/\/moneysmart.gov.au\/manage-your-money-in-retirement\/paying-for-your-funeral)\n    - [Memory loss, dementia and your money](https:\/\/moneysmart.gov.au\/manage-your-money-in-retirement\/memory-loss-dementia-and-your-money)\n- [Insurance](https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets#insurance)\n  - [Insurance](https:\/\/moneysmart.gov.au\/insurance)\n  - [How life insurance works](https:\/\/moneysmart.gov.au\/how-life-insurance-works)\n    - [Life insurance calculator](https:\/\/moneysmart.gov.au\/how-life-insurance-works\/life-insurance-calculator)\n    - [Income protection insurance](https:\/\/moneysmart.gov.au\/how-life-insurance-works\/income-protection-insurance)\n    - [Life cover](https:\/\/moneysmart.gov.au\/how-life-insurance-works\/life-cover)\n    - [Total and permanent disability (TPD) insurance](https:\/\/moneysmart.gov.au\/how-life-insurance-works\/total-and-permanent-disability-tpd-insurance)\n    - [Insurance through super](https:\/\/moneysmart.gov.au\/how-life-insurance-works\/insurance-through-super)\n    - [Life insurance claims comparison tool](https:\/\/moneysmart.gov.au\/how-life-insurance-works\/life-insurance-claims-comparison-tool)\n    - [Trauma insurance](https:\/\/moneysmart.gov.au\/how-life-insurance-works\/trauma-insurance)\n    - [Making a life insurance claim](https:\/\/moneysmart.gov.au\/how-life-insurance-works\/making-a-life-insurance-claim)\n  - [Car insurance](https:\/\/moneysmart.gov.au\/car-insurance)\n    - [Choosing car insurance](https:\/\/moneysmart.gov.au\/car-insurance\/choosing-car-insurance)\n    - [Claiming on your car insurance](https:\/\/moneysmart.gov.au\/car-insurance\/claiming-on-your-car-insurance)\n    - [No claim bonus on car insurance](https:\/\/moneysmart.gov.au\/car-insurance\/no-claim-bonus-on-car-insurance)\n    - [Add-on car insurance](https:\/\/moneysmart.gov.au\/car-insurance\/add-on-car-insurance)\n  - [Home insurance](https:\/\/moneysmart.gov.au\/home-insurance)\n    - [Choosing home insurance](https:\/\/moneysmart.gov.au\/home-insurance\/choosing-home-insurance)\n    - [Contents insurance](https:\/\/moneysmart.gov.au\/home-insurance\/contents-insurance)\n    - [Storm, flood and fire insurance](https:\/\/moneysmart.gov.au\/home-insurance\/storm-flood-and-fire-insurance)\n    - [How to make a home insurance claim](https:\/\/moneysmart.gov.au\/home-insurance\/how-to-make-a-home-insurance-claim)\n    - [Underinsurance: What it is and how to avoid it](https:\/\/moneysmart.gov.au\/home-insurance\/underinsurance-what-it-is-and-how-to-avoid-it)\n  - [Add-on insurance](https:\/\/moneysmart.gov.au\/add-on-insurance)\n    - [Mobile phone, tablet and laptop insurance](https:\/\/moneysmart.gov.au\/add-on-insurance\/mobile-phone-tablet-and-laptop-insurance)\n    - [Consumer credit insurance](https:\/\/moneysmart.gov.au\/add-on-insurance\/consumer-credit-insurance)\n    - [Pet insurance](https:\/\/moneysmart.gov.au\/add-on-insurance\/pet-insurance)\n  - [Other types of insurance](https:\/\/moneysmart.gov.au\/other-types-of-insurance)\n    - [Health insurance](https:\/\/moneysmart.gov.au\/other-types-of-insurance\/health-insurance)\n    - [Funeral insurance](https:\/\/moneysmart.gov.au\/other-types-of-insurance\/funeral-insurance)\n    - [Travel insurance](https:\/\/moneysmart.gov.au\/other-types-of-insurance\/travel-insurance)\n  - [Dealing with natural disasters](https:\/\/moneysmart.gov.au\/dealing-with-natural-disasters)\n    - [Preparing for a natural disaster](https:\/\/moneysmart.gov.au\/dealing-with-natural-disasters\/preparing-for-a-natural-disaster)\n    - [What to do after a natural disaster](https:\/\/moneysmart.gov.au\/dealing-with-natural-disasters\/what-to-do-after-a-natural-disaster)\n    - [Recovering from a natural disaster](https:\/\/moneysmart.gov.au\/dealing-with-natural-disasters\/recovering-from-a-natural-disaster)\n    - [Be aware of disaster chasers](https:\/\/moneysmart.gov.au\/dealing-with-natural-disasters\/be-aware-of-disaster-chasers)\n- [Scams and online safety](https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets#scams)\n  - [Online safety](https:\/\/moneysmart.gov.au\/online-safety)\n    - [Protect yourself from scams](https:\/\/moneysmart.gov.au\/online-safety\/protect-yourself-from-scams)\n    - [Online shopping](https:\/\/moneysmart.gov.au\/online-safety\/online-shopping)\n    - [Identity theft](https:\/\/moneysmart.gov.au\/online-safety\/identity-theft)\n    - [Using comparison websites](https:\/\/moneysmart.gov.au\/online-safety\/using-comparison-websites)\n    - [How to spot a scam website](https:\/\/moneysmart.gov.au\/online-safety\/how-to-spot-a-scam-website)\n    - [AI and money decisions](https:\/\/moneysmart.gov.au\/online-safety\/ai-and-money-decisions)\n    - [What is a finfluencer](https:\/\/moneysmart.gov.au\/online-safety\/what-is-a-finfluencer)\n  - [Financial scams](https:\/\/moneysmart.gov.au\/financial-scams)\n    - [Banking and credit scams](https:\/\/moneysmart.gov.au\/financial-scams\/banking-and-credit-scams)\n    - [Crypto scams](https:\/\/moneysmart.gov.au\/financial-scams\/crypto-scams)\n    - [Imposter bond investment scams](https:\/\/moneysmart.gov.au\/financial-scams\/imposter-bond-investment-scams)\n    - [Investment scams](https:\/\/moneysmart.gov.au\/financial-scams\/investment-scams)\n    - [Ponzi schemes](https:\/\/moneysmart.gov.au\/financial-scams\/ponzi-schemes)\n    - [Superannuation scams](https:\/\/moneysmart.gov.au\/financial-scams\/superannuation-scams)\n  - [Check and report scams](https:\/\/moneysmart.gov.au\/check-and-report-scams)\n    - [Report an investment scam](https:\/\/moneysmart.gov.au\/check-and-report-scams\/report-an-investment-scam)\n    - [Check before you invest](https:\/\/moneysmart.gov.au\/check-and-report-scams\/check-before-you-invest)\n    - [Investor alert list](https:\/\/moneysmart.gov.au\/check-and-report-scams\/investor-alert-list)\n    - [What to do if you've been scammed](https:\/\/moneysmart.gov.au\/check-and-report-scams\/what-to-do-if-you-ve-been-scammed)\n- [Community resources](https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets#community)\n  - [Find unclaimed money](https:\/\/moneysmart.gov.au\/find-unclaimed-money)\n    - [Claim money from bank accounts and bank dividends](https:\/\/moneysmart.gov.au\/find-unclaimed-money\/claim-money-from-bank-accounts-and-bank-dividends)\n    - [Claim money from life insurance policies](https:\/\/moneysmart.gov.au\/find-unclaimed-money\/claim-money-from-life-insurance-policies)\n    - [Claim money from shares and investments](https:\/\/moneysmart.gov.au\/find-unclaimed-money\/claim-money-from-shares-and-investments)\n    - [Claim money owed to a deregistered company](https:\/\/moneysmart.gov.au\/find-unclaimed-money\/claim-money-owed-to-a-deregistered-company)\n    - [Proof of ownership for unclaimed money](https:\/\/moneysmart.gov.au\/find-unclaimed-money\/proof-of-ownership-for-unclaimed-money)\n    - [Money held by state governments](https:\/\/moneysmart.gov.au\/find-unclaimed-money\/money-held-by-state-governments)\n    - [Interest paid on unclaimed money](https:\/\/moneysmart.gov.au\/find-unclaimed-money\/interest-paid-on-unclaimed-money)\n  - [Moneysmart for teachers](https:\/\/moneysmart.gov.au\/teaching)\n    - [Lesson plans](https:\/\/moneysmart.gov.au\/teaching\/lesson-plans)\n    - [Teaching consumer and financial literacy](https:\/\/moneysmart.gov.au\/teaching\/teaching-consumer-and-financial-literacy)\n  - [Student life and money](https:\/\/moneysmart.gov.au\/student-life-and-money)\n    - [Studying](https:\/\/moneysmart.gov.au\/student-life-and-money\/studying)\n    - [Moving out of home](https:\/\/moneysmart.gov.au\/student-life-and-money\/moving-out-of-home)\n    - [Rental bonds and leases](https:\/\/moneysmart.gov.au\/student-life-and-money\/rental-bonds-and-leases)\n    - [Getting a job](https:\/\/moneysmart.gov.au\/student-life-and-money\/getting-a-job)\n    - [Credit and debt](https:\/\/moneysmart.gov.au\/student-life-and-money\/credit-and-debt)\n    - [Choosing a mobile phone plan](https:\/\/moneysmart.gov.au\/student-life-and-money\/choosing-a-mobile-phone-plan)\n    - [Buying and running a car](https:\/\/moneysmart.gov.au\/student-life-and-money\/buying-and-running-a-car)\n  - [Publications and resources](https:\/\/moneysmart.gov.au\/publications-and-resources)\n    - [Publications](https:\/\/moneysmart.gov.au\/publications-and-resources\/publications)\n    - [Money tips in other languages](https:\/\/moneysmart.gov.au\/publications-and-resources\/money-tips-in-other-languages)\n    - [How to complain](https:\/\/moneysmart.gov.au\/publications-and-resources\/how-to-complain)\n  - [Supporting First Nations people with money matters](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters)\n    - [Book up](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/book-up)\n    - [Dealing with family pressure about money](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/dealing-with-family-pressure-about-money)\n    - [Door-to-door sales](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/door-to-door-sales)\n    - [Managing large sums of money](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/managing-large-sums-of-money)\n    - [Paying for funerals](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/paying-for-funerals)\n    - [Buying a hamper](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/buying-a-hamper)\n    - [Superannuation](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/superannuation)\n    - [How to prove your identity](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/how-to-prove-your-identity)\n    - [Bank accounts](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/bank-accounts)\n    - [Cash loans](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/cash-loans)\n    - [How insurance works](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/how-insurance-works)\n    - [How to choose insurance](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/how-to-choose-insurance)\n    - [Making an insurance claim](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/making-an-insurance-claim)\n    - [First Nations services that can help](https:\/\/moneysmart.gov.au\/supporting-first-nations-people-with-money-matters\/first-nations-services-that-can-help)\n\n- [About us](https:\/\/moneysmart.gov.au\/about-us)\n- [Contact us](https:\/\/moneysmart.gov.au\/contact-us)\n- [Glossary](https:\/\/moneysmart.gov.au\/glossary)\n- [Media centre](https:\/\/moneysmart.gov.au\/media-centre)\n\n- [Like MoneySmart on Facebook](https:\/\/www.facebook.com\/MoneySmartAu \"Like MoneySmart on Facebook\")\n- [Subscribe to MoneySmart on Youtube](https:\/\/www.youtube.com\/user\/MoneySmartAu \"Subscribe to MoneySmart on Youtube\")\n- [Follow MoneySmart on Instagram](https:\/\/www.instagram.com\/moneysmartau\/ \"Follow MoneySmart on Instagram\")\n\n![Australian Government crest](https:\/\/static.moneysmart.gov.au\/nextgen\/img\/image-placeholder.gif)\n\n# Crypto assets\nCrypto includes assets described as coins, tokens or sometimes cryptocurrencies. They may or may not be backed by physical assets.\n\n- On this page\n- [How crypto works](https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets#how-crypto-works \"How crypto works\")\n- [Types of crypto-assets](https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets#types-of-crypto-assets \"Types of crypto-assets\")\n- [Crypto and risk - what you need to know](https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets#crypto-and-risk---what-you-need-to-know \"Crypto and risk - what you need to know\")\n- [Crypto scams are common](https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets#crypto-scams-are-common \"Crypto scams are common\")\n## How crypto works\nCrypto-assets (crypto) describe an asset class that includes cryptocurrency, crypto or digital tokens and 'coins'. It does not exist physically as coins or notes. Crypto is kept in a unique digital or software wallet (hot) or hardware (cold) wallet. Each wallet has a private key, a secret code that lets you access your tokens. If you lose your private key, you usually lose the crypto.\n\nThese digital tokens rely on cryptography and technology such as blockchain for security and other features. The Reserve Bank of Australia's website explains [how crypto and blockchain technology (including mining) works](https:\/\/www.rba.gov.au\/education\/resources\/explainers\/cryptocurrencies.html \"RBA How cryptocurrency and blockchain technology works\").\n\nCrypto can be used for payments, to execute automated contracts, and run programs. **A crypto-asset can be created by anyone**, and it's believed that millions are currently circulating. Crypto-assets (even Australian dollar stablecoins) are not legal tender in Australia and are not widely accepted as payment. Few people use it for everyday transactions. It's not the sort of investment to use to build your savings.\n\nMost crypto are high-risk investments. The value of crypto is very volatile, often fluctuating by huge amounts within a short period.\n\n### Buying and storing crypto\nYou can buy or sell crypto on a trading platform using money. Or buy or sell it directly.\n\nEach digital or software wallet (hot) or hardware (cold) wallet has private keys that authorise transactions on the blockchain network.\n\nA hardware wallet stores these private keys on a secure device not connected to the internet. This can make it harder for hackers to access your wallet.\n\nA software wallet can be held by you or by a crypto trading platform on your behalf. This can simplify buying, selling and storing crypto.\n\nYou must be prepared to lose what you invest with crypto-assets and be [wary of scammers](https:\/\/moneysmart.gov.au\/financial-scams\/crypto-scams \"Crypto scams\"). Scammers target crypto-assets as they’re easy to create, gaining popularity, and not easily recovered. Currently there’s also no public register to check the legitimacy of crypto exchanges.\n\n## Types of crypto-assets\nEach crypto-asset has different features and there are no universally defined categories of crypto-assets.\n\nSome common types are listed below, but this does not cover them all. New cryptos are created all the time, but many aren’t well structured and don’t last.\n\n#### Native tokens\ntoggle accordian row\n\n**What are they**\n\nThese are the assets that make the specific blockchain work. They're designed to act as a medium of exchange within the crypto ecosystem, with transfers enabled on blockchains. These can have no intrinsic value and are only worth what people are willing to pay for them, but they derive their value from the demand for the use of the blockchain.\n\n**Examples include:** BTC, ETH, Litecoin\n\n#### Stablecoins\ntoggle accordian row\n\n**What are they**\n\nA ‘Stablecoin’ is a marketing term for crypto that aims to maintain a stable value relative to a specified asset, or basket of assets.\n\nSometimes the term is only used for those that aim to track the value of a national currency (for example, the AUD or USD). Some stablecoins track other assets such as gold, equities, bonds or other crypto.\n\nStablecoins try to stabilise their market value by:\n\n- being physically backed 1-for-1 by an external asset, such as government-issued currency, gold or securities\n- being physically backed by a variety of assets where the value of these assets is intended to be greater than the value of the Stablecoin on issue\n- using algorithms to control the available demand and supply of the asset, such as minting additional assets or adjusting an interest rate for holding the asset\n\n**Examples include:** AUDM, AUDF, AUDD\n\n#### Non-Fungible Tokens (NFTs)\ntoggle accordian row\n\n**What are they**\n\nNFTs are tokens which record ownership of an object using blockchains. Each NFT is unique (hence they are not ‘fungible’). However, owning an NFT may not give you exclusive rights to the underlying asset.\n\n**Examples include:** Bored Apes, game tokens\n\n#### DeFi tokens\ntoggle accordian row\n\n**What are they**\n\nThese are tokens created through participating in decentralised finance (DeFi) protocols. Each token will have unique features based on the DeFi protocol that it relates to.\n\n#### Other token types\ntoggle accordian row\n\n**What are they**\n\nThere are a broad range of terms for other types of tokens. Some types include:\n\n- utility tokens — allow you to undertake certain activities, or perform an action, in a crypto project, such as being exchanged for a service\n- governance tokens — these allow you to participate in the running of a crypto project\n- community (or membership) tokens — ownership gives you access to the community\n## Crypto and risk - what you need to know\n### Prices can swing wildly\nInvesting in crypto-assets is highly speculative. The market value can fluctuate a lot over short periods of time. It is affected by things like media and social hype, and investor opinion.\n\nThe price of unbacked crypto may depend on:\n\n- its popularity at a given time (influenced by factors like the number of people using it)\n- how easy it is to trade or use\n- the perceived value of the asset\n- its underlying blockchain technology.\n\nSo, if you buy crypto-assets, be prepared to lose everything that you put in.\n\n### Many crypto providers are unlicensed\nMany crypto-asset providers are not licensed at this point in time. This means you may not be protected if the platform fails or is hacked.\n\nIf a crypto-asset fails, you will most likely lose all the money you put in. In most countries, crypto is not legal tender. You're only protected to the extent that crypto fits within existing laws.\n\n### Your money could be stolen\nBe aware that a hacker can potentially steal the contents of your digital wallet.\n\nCrypto systems allow users to stay anonymous and there is no central data bank. So, if a hacker steals your crypto, you have little hope of getting it back.\n\nUsing a wallet held offline, a ‘hardware wallet’ or ‘cold storage’, may offer more protection.\n\n### Technical complexity\nCrypto-assets can be hard to understand.\n\nThere’s usually no product disclosure statement or prospectus that explains clearly how the crypto works. Developers may issue a ‘whitepaper’ to describe it, but these can vary in format and information.\n\nA crypto-asset’s code may not be available to review. Or it may hard to understand. The underlying code of the crypto may also change over time.\n\nTo access a crypto network, you may need special software and need to know how transaction fees operate. Unfamiliar users run the risk of:\n\n- sending a transaction to an incorrect address\n- over-paying on transaction fees called ‘gas’ (sometimes by thousands of dollars)\n- not paying enough for a transaction fee (and so losing the fee and transaction)\n## Crypto scams are common\nScammers use crypto because transactions are not easy to recover and have limited oversight. Money can quickly be sent overseas and is very hard to trace.\n\nRead more about [crypto scams](https:\/\/moneysmart.gov.au\/financial-scams\/crypto-scams \"Crypto scams\") and what to watch out for.\n\nRhett saw an article on a news website about ‘The biggest deal in Shark Tank history, that can make YOU rich in just 7 days!’.\n\nThe news article was really an advertisement. It took Rhett to a website that included endorsements from Shark Tank judges for Bitcoin trading software. The endorsements were fake.\n\nRhett was interested in trading bitcoin, so he provided his contact details. Soon, an Account Manager named Max began calling Rhett. Max called often, pressuring Rhett to open a trading account and make a deposit. By depositing between \\$40,000 and \\$50,000 upfront, Max promised Rhett he could earn at least \\$15,000 per month.\n\nMax promised Rhett that the money he deposited would be safe because he would have total control of the account. “It’s more or less moving your money in your left pocket from your right pocket,” Max said. Max promised Rhett that he could withdraw his money whenever he wanted to.\n\nMax eventually convinced Rhett to open an account and deposit \\$40,000. Rhett started trading bitcoin, but things didn’t go to plan, and Rhett started losing money. Max encouraged Rhett to deposit more money and promised Rhett that he would be able to withdraw the money he needed in a week.\n\nRhett deposited more money in the hope he could recoup his losses. Rhett ended up depositing and losing a total of \\$97,000.\n\nFinding the right investments can be challenging. If you need some help to build a diversified portfolio, talk to a [financial adviser](https:\/\/moneysmart.gov.au\/financial-advice \"Financial advice\").\n\n[1How crypto works](https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets#how-crypto-works)\n\n[2Types of crypto-assets](https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets#types-of-crypto-assets)\n\n[3Crypto and risk - what you need to know](https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets#crypto-and-risk---what-you-need-to-know)\n\n[4Crypto scams are common](https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets#crypto-scams-are-common)\n\nDo you find this page useful?\n\nYes\n\nNo\n\nWhy?\n\nIt had the information I was looking for\n\nThe page makes sense\n\nThe information is balanced and unbiased\n\nThe information gave me a sense of what to do next\n\nSubmit\n\nAny other feedback\n\nWhy not?\n\nIt didn't have the information I was looking for\n\nThe page was confusing\n\nThe information overwhelmed me\n\nThere wasn't enough information for me to take action\n\nSubmit\n\nAny other feedback\n\nYour feedback\n\nYour feedback relates to:\n\nYou would like to:\n\nYour issue is:\n\n- **Calculator disclaimers and assumptions** can be found under each calculator. Refer to these for more detailed information about how a specific calculator works.\n- **Calculator frequently asked questions** can be found under most calculators. Refer to these for more information.\n\nThe links below provide more information on complaints and reporting scams:\n\n- [Complain about a financial product or service](https:\/\/moneysmart.gov.au\/how-to-complain \"How to complain\")\n- [Report a scam](https:\/\/moneysmart.gov.au\/check-and-report-scams\/what-to-do-if-you-ve-been-scammed \"Report a scam\")\n- [Report misconduct to ASIC](https:\/\/asic.gov.au\/about-asic\/contact-us\/how-to-complain\/ \"ASIC - how to complain\")\n\nWe don't lend money, arrange loans or provide personal financial advice.\n\nIf you are experiencing difficulties with money, the following pages can help:\n\n- [Urgent help with money](https:\/\/moneysmart.gov.au\/managing-debt\/urgent-help-with-money \"Urgent help with money\")\n- [No or low interest loans](https:\/\/moneysmart.gov.au\/loans\/no-interest-loans \"No or low interest loans\")\n- [Problems paying your bills or fines](https:\/\/moneysmart.gov.au\/managing-debt\/problems-paying-your-bills-and-fines \"Problems paying your bills and fines\")\n- [Problems paying your mortgage](https:\/\/moneysmart.gov.au\/home-loans\/problems-paying-your-mortgage \"Problems paying your mortgage\")\n- [Find a financial counsellor](https:\/\/moneysmart.gov.au\/managing-debt\/financial-counselling \"Financial counselling\")\n\nSummary of your feedback:\n\nYour comments:\n\nThe page\/calculator\/app you are referring to (eg. cut\/paste URL):\n\nCancel\n\nSend feedback\n\n## Up next in Investment warnings\narrow\\_backMove left\n\narrow\\_forwardMove right\n\n- [Binary options A high-risk, unpredictable investment that is really just a gamble 2 min read](https:\/\/moneysmart.gov.au\/investment-warnings\/binary-options)\n- [Company director fraud Spot if a company director is illegally risking your money 3 min read](https:\/\/moneysmart.gov.au\/investment-warnings\/company-director-fraud)\n- [Contracts for difference (CFDs) A high-risk contract to speculate on market movements 6 min read](https:\/\/moneysmart.gov.au\/investment-warnings\/contracts-for-difference-cfds)\n- [Forex trading Foreign exchange trading is highly complex and risky 3 min read](https:\/\/moneysmart.gov.au\/investment-warnings\/forex-trading)\n- [Investment seminars Steer clear of wealth creation and property seminars 2 min read](https:\/\/moneysmart.gov.au\/investment-warnings\/investment-seminars)\n- [Insider trading The illegal act of trading with inside information 3 min read](https:\/\/moneysmart.gov.au\/investment-warnings\/insider-trading)\n- [Land banking A property investment scheme with many risks 3 min read](https:\/\/moneysmart.gov.au\/investment-warnings\/land-banking)\n- [Bills of exchange Why term deposit alternatives can be risky 4 min read](https:\/\/moneysmart.gov.au\/investment-warnings\/bills-of-exchange)\n- [Pump and dump schemes How to spot market manipulation 2 min read](https:\/\/moneysmart.gov.au\/investment-warnings\/pump-and-dump-schemes)\n- [Don't get burned by investment hype If something sounds too good to be true, it probably is 3 min read](https:\/\/moneysmart.gov.au\/investment-warnings\/don-t-get-burned-by-investment-hype)\n- [Lead generation and how it works Be aware of what lead generation is, to make informed investment decisions. 4 min read](https:\/\/moneysmart.gov.au\/investment-warnings\/lead-generation-and-how-it-works)\n\n- ![](https:\/\/download.asic.gov.au\/asic-nextgen\/img\/djooroot_moort_perterfarmer_artwork.png)\n  \n  Djooroot Moort by  \n  Peter Farmer\n  \n  Acknowledgement of Country\n  \n  ASIC acknowledges the Traditional Owners of the lands and waters on which we live and work. We pay respect to Elders past and present as the custodians of the world's oldest continuing cultures.\n\n- Moneysmart\n- [About us](https:\/\/moneysmart.gov.au\/about-us \"About us\")\n- [Contact us](https:\/\/moneysmart.gov.au\/contact-us \"Contact us\")\n- [Glossary](https:\/\/moneysmart.gov.au\/glossary \"Glossary\")\n- [Media centre](https:\/\/moneysmart.gov.au\/media-centre \"Media centre\")\n- [Subscribe](https:\/\/moneysmart.gov.au\/subscribe-to-our-newsletter \"Subscribe\")\n\n- Social\n- [Instagram](https:\/\/www.instagram.com\/moneysmartau\/ \"Follow MoneySmart on Instagram\")\n- [Facebook](https:\/\/www.facebook.com\/MoneySmartAu \"Like MoneySmart on Facebook\")\n- [Youtube](https:\/\/www.youtube.com\/user\/MoneySmartAu \"Subscribe to MoneySmart on Youtube\")\n\nsearch\n\nPopular content\n\n[Find unclaimed money](https:\/\/moneysmart.gov.au\/find-unclaimed-money)\n\n[Mortgage calculator](https:\/\/moneysmart.gov.au\/home-loans\/mortgage-calculator)\n\n[Budget planner](https:\/\/moneysmart.gov.au\/budgeting\/budget-planner)\n\n[How super works](https:\/\/moneysmart.gov.au\/how-super-works)\n\n[Banking and credit scams](https:\/\/moneysmart.gov.au\/banking\/banking-and-credit-scams)\n\n[How to invest](https:\/\/moneysmart.gov.au\/how-to-invest)\n\n[Financial advisers register](https:\/\/moneysmart.gov.au\/financial-advice\/financial-advisers-register)\n\nRecently visited","attrs_readable_markdown":"Crypto includes assets described as coins, tokens or sometimes cryptocurrencies. They may or may not be backed by physical assets.\n\n- On this page\n- [How crypto works](https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets#how-crypto-works \"How crypto works\")\n- [Types of crypto-assets](https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets#types-of-crypto-assets \"Types of crypto-assets\")\n- [Crypto and risk - what you need to know](https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets#crypto-and-risk---what-you-need-to-know \"Crypto and risk - what you need to know\")\n- [Crypto scams are common](https:\/\/moneysmart.gov.au\/investment-warnings\/crypto-assets#crypto-scams-are-common \"Crypto scams are common\")\n## How crypto works\nCrypto-assets (crypto) describe an asset class that includes cryptocurrency, crypto or digital tokens and 'coins'. It does not exist physically as coins or notes. Crypto is kept in a unique digital or software wallet (hot) or hardware (cold) wallet. Each wallet has a private key, a secret code that lets you access your tokens. If you lose your private key, you usually lose the crypto.\n\nThese digital tokens rely on cryptography and technology such as blockchain for security and other features. The Reserve Bank of Australia's website explains [how crypto and blockchain technology (including mining) works](https:\/\/www.rba.gov.au\/education\/resources\/explainers\/cryptocurrencies.html \"RBA How cryptocurrency and blockchain technology works\").\n\nCrypto can be used for payments, to execute automated contracts, and run programs. **A crypto-asset can be created by anyone**, and it's believed that millions are currently circulating. Crypto-assets (even Australian dollar stablecoins) are not legal tender in Australia and are not widely accepted as payment. Few people use it for everyday transactions. It's not the sort of investment to use to build your savings.\n\nMost crypto are high-risk investments. The value of crypto is very volatile, often fluctuating by huge amounts within a short period.\n\n### Buying and storing crypto\nYou can buy or sell crypto on a trading platform using money. Or buy or sell it directly.\n\nEach digital or software wallet (hot) or hardware (cold) wallet has private keys that authorise transactions on the blockchain network.\n\nA hardware wallet stores these private keys on a secure device not connected to the internet. This can make it harder for hackers to access your wallet.\n\nA software wallet can be held by you or by a crypto trading platform on your behalf. This can simplify buying, selling and storing crypto.\n\nYou must be prepared to lose what you invest with crypto-assets and be [wary of scammers](https:\/\/moneysmart.gov.au\/financial-scams\/crypto-scams \"Crypto scams\"). Scammers target crypto-assets as they’re easy to create, gaining popularity, and not easily recovered. Currently there’s also no public register to check the legitimacy of crypto exchanges.\n\n## Types of crypto-assets\nEach crypto-asset has different features and there are no universally defined categories of crypto-assets.\n\nSome common types are listed below, but this does not cover them all. New cryptos are created all the time, but many aren’t well structured and don’t last.\n\n**What are they**\n\nThese are the assets that make the specific blockchain work. They're designed to act as a medium of exchange within the crypto ecosystem, with transfers enabled on blockchains. These can have no intrinsic value and are only worth what people are willing to pay for them, but they derive their value from the demand for the use of the blockchain.\n\n**Examples include:** BTC, ETH, Litecoin\n\n**What are they**\n\nA ‘Stablecoin’ is a marketing term for crypto that aims to maintain a stable value relative to a specified asset, or basket of assets.\n\nSometimes the term is only used for those that aim to track the value of a national currency (for example, the AUD or USD). Some stablecoins track other assets such as gold, equities, bonds or other crypto.\n\nStablecoins try to stabilise their market value by:\n\n- being physically backed 1-for-1 by an external asset, such as government-issued currency, gold or securities\n- being physically backed by a variety of assets where the value of these assets is intended to be greater than the value of the Stablecoin on issue\n- using algorithms to control the available demand and supply of the asset, such as minting additional assets or adjusting an interest rate for holding the asset\n\n**Examples include:** AUDM, AUDF, AUDD\n\n**What are they**\n\nNFTs are tokens which record ownership of an object using blockchains. Each NFT is unique (hence they are not ‘fungible’). However, owning an NFT may not give you exclusive rights to the underlying asset.\n\n**Examples include:** Bored Apes, game tokens\n\n**What are they**\n\nThese are tokens created through participating in decentralised finance (DeFi) protocols. Each token will have unique features based on the DeFi protocol that it relates to.\n\n**What are they**\n\nThere are a broad range of terms for other types of tokens. Some types include:\n\n- utility tokens — allow you to undertake certain activities, or perform an action, in a crypto project, such as being exchanged for a service\n- governance tokens — these allow you to participate in the running of a crypto project\n- community (or membership) tokens — ownership gives you access to the community\n## Crypto and risk - what you need to know\n### Prices can swing wildly\nInvesting in crypto-assets is highly speculative. The market value can fluctuate a lot over short periods of time. It is affected by things like media and social hype, and investor opinion.\n\nThe price of unbacked crypto may depend on:\n\n- its popularity at a given time (influenced by factors like the number of people using it)\n- how easy it is to trade or use\n- the perceived value of the asset\n- its underlying blockchain technology.\n\nSo, if you buy crypto-assets, be prepared to lose everything that you put in.\n\n### Many crypto providers are unlicensed\nMany crypto-asset providers are not licensed at this point in time. This means you may not be protected if the platform fails or is hacked.\n\nIf a crypto-asset fails, you will most likely lose all the money you put in. In most countries, crypto is not legal tender. You're only protected to the extent that crypto fits within existing laws.\n\n### Your money could be stolen\nBe aware that a hacker can potentially steal the contents of your digital wallet.\n\nCrypto systems allow users to stay anonymous and there is no central data bank. So, if a hacker steals your crypto, you have little hope of getting it back.\n\nUsing a wallet held offline, a ‘hardware wallet’ or ‘cold storage’, may offer more protection.\n\n### Technical complexity\nCrypto-assets can be hard to understand.\n\nThere’s usually no product disclosure statement or prospectus that explains clearly how the crypto works. Developers may issue a ‘whitepaper’ to describe it, but these can vary in format and information.\n\nA crypto-asset’s code may not be available to review. Or it may hard to understand. The underlying code of the crypto may also change over time.\n\nTo access a crypto network, you may need special software and need to know how transaction fees operate. Unfamiliar users run the risk of:\n\n- sending a transaction to an incorrect address\n- over-paying on transaction fees called ‘gas’ (sometimes by thousands of dollars)\n- not paying enough for a transaction fee (and so losing the fee and transaction)\n## Crypto scams are common\nScammers use crypto because transactions are not easy to recover and have limited oversight. Money can quickly be sent overseas and is very hard to trace.\n\nRead more about [crypto scams](https:\/\/moneysmart.gov.au\/financial-scams\/crypto-scams \"Crypto scams\") and what to watch out for.\n\nRhett saw an article on a news website about ‘The biggest deal in Shark Tank history, that can make YOU rich in just 7 days!’.\n\nThe news article was really an advertisement. It took Rhett to a website that included endorsements from Shark Tank judges for Bitcoin trading software. The endorsements were fake.\n\nRhett was interested in trading bitcoin, so he provided his contact details. Soon, an Account Manager named Max began calling Rhett. Max called often, pressuring Rhett to open a trading account and make a deposit. By depositing between \\$40,000 and \\$50,000 upfront, Max promised Rhett he could earn at least \\$15,000 per month.\n\nMax promised Rhett that the money he deposited would be safe because he would have total control of the account. “It’s more or less moving your money in your left pocket from your right pocket,” Max said. Max promised Rhett that he could withdraw his money whenever he wanted to.\n\nMax eventually convinced Rhett to open an account and deposit \\$40,000. Rhett started trading bitcoin, but things didn’t go to plan, and Rhett started losing money. Max encouraged Rhett to deposit more money and promised Rhett that he would be able to withdraw the money he needed in a week.\n\nRhett deposited more money in the hope he could recoup his losses. Rhett ended up depositing and losing a total of \\$97,000.\n\nFinding the right investments can be challenging. If you need some help to build a diversified portfolio, talk to a [financial adviser](https:\/\/moneysmart.gov.au\/financial-advice \"Financial advice\").","meta_canonical":null,"ml_categories_json":"{\"\/Finance\":993,\"\/Finance\/Investing\":989,\"\/Finance\/Investing\/Commodities_and_Futures_Trading\":741}","ml_types_json":"{\"\/Article\":975,\"\/Article\/Definitions\":555}","ml_intent_types_json":"{\"Informational\":999}","meta_language":"en","attrs_author":null,"attrs_publish_time":0,"attrs_original_publish_time":1733206754,"attrs_is_republished":0,"attrs_nr_words":"3135","attrs_boilerpipe_nr_words":"1407","body_ext_links_number":8,"body_int_links_number":313,"meta_nofollow":0,"meta_noarchive":0,"props_was_rendered":1,"src_redirect":"","download_time_msec":2266,"download_ttfb_msec":2265,"download_size":16760}

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Crypto includes assets described as coins, tokens or sometimes cryptocurrencies. They may or may not be backed by physical assets. On this page How crypto works Types of crypto-assets Crypto and risk - what you need to know Crypto scams are common How crypto works Crypto-assets (crypto) describe an asset class that includes cryptocurrency, crypto or digital tokens and 'coins'. It does not exist physically as coins or notes. Crypto is kept in a unique digital or software wallet (hot) or hardware (cold) wallet. Each wallet has a private key, a secret code that lets you access your tokens. If you lose your private key, you usually lose the crypto. These digital tokens rely on cryptography and technology such as blockchain for security and other features. The Reserve Bank of Australia's website explains how crypto and blockchain technology (including mining) works . Crypto can be used for payments, to execute automated contracts, and run programs.  A crypto-asset can be created by anyone , and it's believed that millions are currently circulating. Crypto-assets (even Australian dollar stablecoins) are not legal tender in Australia and are not widely accepted as payment. Few people use it for everyday transactions. It's not the sort of investment to use to build your savings. Most crypto are high-risk investments. The value of crypto is very volatile, often fluctuating by huge amounts within a short period. Buying and storing crypto You can buy or sell crypto on a trading platform using money. Or buy or sell it directly. Each digital or software wallet (hot) or hardware (cold) wallet has private keys that authorise transactions on the blockchain network. A hardware wallet stores these private keys on a secure device not connected to the internet. This can make it harder for hackers to access your wallet. A software wallet can be held by you or by a crypto trading platform on your behalf. This can simplify buying, selling and storing crypto.  You must be prepared to lose what you invest with crypto-assets and be wary of scammers . Scammers target crypto-assets as they’re easy to create, gaining popularity, and not easily recovered. Currently there’s also no public register to check the legitimacy of crypto exchanges. Types of crypto-assets Each crypto-asset has different features and there are no universally defined categories of crypto-assets. Some common types are listed below, but this does not cover them all. New cryptos are created all the time, but many aren’t well structured and don’t last. What are they These are the assets that make the specific blockchain work. They're designed to act as a medium of exchange within the crypto ecosystem, with transfers enabled on blockchains. These can have no intrinsic value and are only worth what people are willing to pay for them, but they derive their value from the demand for the use of the blockchain. Examples include: BTC, ETH, Litecoin What are they A ‘Stablecoin’ is a marketing term for crypto that aims to maintain a stable value relative to a specified asset, or basket of assets. Sometimes the term is only used for those that aim to track the value of a national currency (for example, the AUD or USD). Some stablecoins track other assets such as gold, equities, bonds or other crypto. Stablecoins try to stabilise their market value by: being physically backed 1-for-1 by an external asset, such as government-issued currency, gold or securities being physically backed by a variety of assets where the value of these assets is intended to be greater than the value of the Stablecoin on issue using algorithms to control the available demand and supply of the asset, such as minting additional assets or adjusting an interest rate for holding the asset Examples include: AUDM, AUDF, AUDD What are they NFTs are tokens which record ownership of an object using blockchains. Each NFT is unique (hence they are not ‘fungible’). However, owning an NFT may not give you exclusive rights to the underlying asset. Examples include: Bored Apes, game tokens What are they These are tokens created through participating in decentralised finance (DeFi) protocols. Each token will have unique features based on the DeFi protocol that it relates to. What are they There are a broad range of terms for other types of tokens. Some types include: utility tokens — allow you to undertake certain activities, or perform an action, in a crypto project, such as being exchanged for a service governance tokens — these allow you to participate in the running of a crypto project community (or membership) tokens — ownership gives you access to the community Crypto and risk - what you need to know Prices can swing wildly Investing in crypto-assets is highly speculative. The market value can fluctuate a lot over short periods of time. It is affected by things like media and social hype, and investor opinion. The price of unbacked crypto may depend on: its popularity at a given time (influenced by factors like the number of people using it) how easy it is to trade or use the perceived value of the asset its underlying blockchain technology. So, if you buy crypto-assets, be prepared to lose everything that you put in.  Many crypto providers are unlicensed Many crypto-asset providers are not licensed at this point in time. This means you may not be protected if the platform fails or is hacked. If a crypto-asset fails, you will most likely lose all the money you put in. In most countries, crypto is not legal tender. You're only protected to the extent that crypto fits within existing laws. Your money could be stolen Be aware that a hacker can potentially steal the contents of your digital wallet. Crypto systems allow users to stay anonymous and there is no central data bank. So, if a hacker steals your crypto, you have little hope of getting it back. Using a wallet held offline, a ‘hardware wallet’ or ‘cold storage’, may offer more protection. Technical complexity Crypto-assets can be hard to understand. There’s usually no product disclosure statement or prospectus that explains clearly how the crypto works. Developers may issue a ‘whitepaper’ to describe it, but these can vary in format and information. A crypto-asset’s code may not be available to review. Or it may hard to understand. The underlying code of the crypto may also change over time. To access a crypto network, you may need special software and need to know how transaction fees operate. Unfamiliar users run the risk of: sending a transaction to an incorrect address over-paying on transaction fees called ‘gas’ (sometimes by thousands of dollars) not paying enough for a transaction fee (and so losing the fee and transaction) Crypto scams are common Scammers use crypto because transactions are not easy to recover and have limited oversight. Money can quickly be sent overseas and is very hard to trace. Read more about  crypto scams  and what to watch out for. Rhett saw an article on a news website about ‘The biggest deal in Shark Tank history, that can make YOU rich in just 7 days!’. The news article was really an advertisement. It took Rhett to a website that included endorsements from Shark Tank judges for Bitcoin trading software. The endorsements were fake. Rhett was interested in trading bitcoin, so he provided his contact details. Soon, an Account Manager named Max began calling Rhett. Max called often, pressuring Rhett to open a trading account and make a deposit. By depositing between $40,000 and $50,000 upfront, Max promised Rhett he could earn at least $15,000 per month. Max promised Rhett that the money he deposited would be safe because he would have total control of the account. “It’s more or less moving your money in your left pocket from your right pocket,” Max said. Max promised Rhett that he could withdraw his money whenever he wanted to. Max eventually convinced Rhett to open an account and deposit $40,000. Rhett started trading bitcoin, but things didn’t go to plan, and Rhett started losing money. Max encouraged Rhett to deposit more money and promised Rhett that he would be able to withdraw the money he needed in a week. Rhett deposited more money in the hope he could recoup his losses. Rhett ended up depositing and losing a total of $97,000. Finding the right investments can be challenging. If you need some help to build a diversified portfolio, talk to a financial adviser .

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[About us](https://moneysmart.gov.au/about-us) - [Contact us](https://moneysmart.gov.au/contact-us) - [Glossary](https://moneysmart.gov.au/glossary) - [Media centre](https://moneysmart.gov.au/media-centre) - [Like MoneySmart on Facebook](https://www.facebook.com/MoneySmartAu "Like MoneySmart on Facebook") - [Subscribe to MoneySmart on Youtube](https://www.youtube.com/user/MoneySmartAu "Subscribe to MoneySmart on Youtube") - [Follow MoneySmart on Instagram](https://www.instagram.com/moneysmartau/ "Follow MoneySmart on Instagram") ![Australian Government crest](https://static.moneysmart.gov.au/nextgen/img/image-placeholder.gif) # Crypto assets Crypto includes assets described as coins, tokens or sometimes cryptocurrencies. They may or may not be backed by physical assets. - On this page - [How crypto works](https://moneysmart.gov.au/investment-warnings/crypto-assets#how-crypto-works "How crypto works") - [Types of crypto-assets](https://moneysmart.gov.au/investment-warnings/crypto-assets#types-of-crypto-assets "Types of crypto-assets") - [Crypto and risk - what you need to know](https://moneysmart.gov.au/investment-warnings/crypto-assets#crypto-and-risk---what-you-need-to-know "Crypto and risk - what you need to know") - [Crypto scams are common](https://moneysmart.gov.au/investment-warnings/crypto-assets#crypto-scams-are-common "Crypto scams are common") ## How crypto works Crypto-assets (crypto) describe an asset class that includes cryptocurrency, crypto or digital tokens and 'coins'. It does not exist physically as coins or notes. Crypto is kept in a unique digital or software wallet (hot) or hardware (cold) wallet. Each wallet has a private key, a secret code that lets you access your tokens. If you lose your private key, you usually lose the crypto. These digital tokens rely on cryptography and technology such as blockchain for security and other features. The Reserve Bank of Australia's website explains [how crypto and blockchain technology (including mining) works](https://www.rba.gov.au/education/resources/explainers/cryptocurrencies.html "RBA How cryptocurrency and blockchain technology works"). Crypto can be used for payments, to execute automated contracts, and run programs. **A crypto-asset can be created by anyone**, and it's believed that millions are currently circulating. Crypto-assets (even Australian dollar stablecoins) are not legal tender in Australia and are not widely accepted as payment. Few people use it for everyday transactions. It's not the sort of investment to use to build your savings. Most crypto are high-risk investments. The value of crypto is very volatile, often fluctuating by huge amounts within a short period. ### Buying and storing crypto You can buy or sell crypto on a trading platform using money. Or buy or sell it directly. Each digital or software wallet (hot) or hardware (cold) wallet has private keys that authorise transactions on the blockchain network. A hardware wallet stores these private keys on a secure device not connected to the internet. This can make it harder for hackers to access your wallet. A software wallet can be held by you or by a crypto trading platform on your behalf. This can simplify buying, selling and storing crypto. You must be prepared to lose what you invest with crypto-assets and be [wary of scammers](https://moneysmart.gov.au/financial-scams/crypto-scams "Crypto scams"). Scammers target crypto-assets as they’re easy to create, gaining popularity, and not easily recovered. Currently there’s also no public register to check the legitimacy of crypto exchanges. ## Types of crypto-assets Each crypto-asset has different features and there are no universally defined categories of crypto-assets. Some common types are listed below, but this does not cover them all. New cryptos are created all the time, but many aren’t well structured and don’t last. #### Native tokens toggle accordian row **What are they** These are the assets that make the specific blockchain work. They're designed to act as a medium of exchange within the crypto ecosystem, with transfers enabled on blockchains. These can have no intrinsic value and are only worth what people are willing to pay for them, but they derive their value from the demand for the use of the blockchain. **Examples include:** BTC, ETH, Litecoin #### Stablecoins toggle accordian row **What are they** A ‘Stablecoin’ is a marketing term for crypto that aims to maintain a stable value relative to a specified asset, or basket of assets. Sometimes the term is only used for those that aim to track the value of a national currency (for example, the AUD or USD). Some stablecoins track other assets such as gold, equities, bonds or other crypto. Stablecoins try to stabilise their market value by: - being physically backed 1-for-1 by an external asset, such as government-issued currency, gold or securities - being physically backed by a variety of assets where the value of these assets is intended to be greater than the value of the Stablecoin on issue - using algorithms to control the available demand and supply of the asset, such as minting additional assets or adjusting an interest rate for holding the asset **Examples include:** AUDM, AUDF, AUDD #### Non-Fungible Tokens (NFTs) toggle accordian row **What are they** NFTs are tokens which record ownership of an object using blockchains. Each NFT is unique (hence they are not ‘fungible’). However, owning an NFT may not give you exclusive rights to the underlying asset. **Examples include:** Bored Apes, game tokens #### DeFi tokens toggle accordian row **What are they** These are tokens created through participating in decentralised finance (DeFi) protocols. Each token will have unique features based on the DeFi protocol that it relates to. #### Other token types toggle accordian row **What are they** There are a broad range of terms for other types of tokens. Some types include: - utility tokens — allow you to undertake certain activities, or perform an action, in a crypto project, such as being exchanged for a service - governance tokens — these allow you to participate in the running of a crypto project - community (or membership) tokens — ownership gives you access to the community ## Crypto and risk - what you need to know ### Prices can swing wildly Investing in crypto-assets is highly speculative. The market value can fluctuate a lot over short periods of time. It is affected by things like media and social hype, and investor opinion. The price of unbacked crypto may depend on: - its popularity at a given time (influenced by factors like the number of people using it) - how easy it is to trade or use - the perceived value of the asset - its underlying blockchain technology. So, if you buy crypto-assets, be prepared to lose everything that you put in. ### Many crypto providers are unlicensed Many crypto-asset providers are not licensed at this point in time. This means you may not be protected if the platform fails or is hacked. If a crypto-asset fails, you will most likely lose all the money you put in. In most countries, crypto is not legal tender. You're only protected to the extent that crypto fits within existing laws. ### Your money could be stolen Be aware that a hacker can potentially steal the contents of your digital wallet. Crypto systems allow users to stay anonymous and there is no central data bank. So, if a hacker steals your crypto, you have little hope of getting it back. Using a wallet held offline, a ‘hardware wallet’ or ‘cold storage’, may offer more protection. ### Technical complexity Crypto-assets can be hard to understand. There’s usually no product disclosure statement or prospectus that explains clearly how the crypto works. Developers may issue a ‘whitepaper’ to describe it, but these can vary in format and information. A crypto-asset’s code may not be available to review. Or it may hard to understand. The underlying code of the crypto may also change over time. To access a crypto network, you may need special software and need to know how transaction fees operate. Unfamiliar users run the risk of: - sending a transaction to an incorrect address - over-paying on transaction fees called ‘gas’ (sometimes by thousands of dollars) - not paying enough for a transaction fee (and so losing the fee and transaction) ## Crypto scams are common Scammers use crypto because transactions are not easy to recover and have limited oversight. Money can quickly be sent overseas and is very hard to trace. Read more about [crypto scams](https://moneysmart.gov.au/financial-scams/crypto-scams "Crypto scams") and what to watch out for. Rhett saw an article on a news website about ‘The biggest deal in Shark Tank history, that can make YOU rich in just 7 days!’. The news article was really an advertisement. It took Rhett to a website that included endorsements from Shark Tank judges for Bitcoin trading software. The endorsements were fake. Rhett was interested in trading bitcoin, so he provided his contact details. Soon, an Account Manager named Max began calling Rhett. Max called often, pressuring Rhett to open a trading account and make a deposit. By depositing between \$40,000 and \$50,000 upfront, Max promised Rhett he could earn at least \$15,000 per month. Max promised Rhett that the money he deposited would be safe because he would have total control of the account. “It’s more or less moving your money in your left pocket from your right pocket,” Max said. Max promised Rhett that he could withdraw his money whenever he wanted to. Max eventually convinced Rhett to open an account and deposit \$40,000. Rhett started trading bitcoin, but things didn’t go to plan, and Rhett started losing money. Max encouraged Rhett to deposit more money and promised Rhett that he would be able to withdraw the money he needed in a week. Rhett deposited more money in the hope he could recoup his losses. Rhett ended up depositing and losing a total of \$97,000. Finding the right investments can be challenging. If you need some help to build a diversified portfolio, talk to a [financial adviser](https://moneysmart.gov.au/financial-advice "Financial advice"). [1How crypto works](https://moneysmart.gov.au/investment-warnings/crypto-assets#how-crypto-works) [2Types of crypto-assets](https://moneysmart.gov.au/investment-warnings/crypto-assets#types-of-crypto-assets) [3Crypto and risk - what you need to know](https://moneysmart.gov.au/investment-warnings/crypto-assets#crypto-and-risk---what-you-need-to-know) [4Crypto scams are common](https://moneysmart.gov.au/investment-warnings/crypto-assets#crypto-scams-are-common) Do you find this page useful? Yes No Why? It had the information I was looking for The page makes sense The information is balanced and unbiased The information gave me a sense of what to do next Submit Any other feedback Why not? It didn't have the information I was looking for The page was confusing The information overwhelmed me There wasn't enough information for me to take action Submit Any other feedback Your feedback Your feedback relates to: You would like to: Your issue is: - **Calculator disclaimers and assumptions** can be found under each calculator. Refer to these for more detailed information about how a specific calculator works. - **Calculator frequently asked questions** can be found under most calculators. Refer to these for more information. 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Crypto includes assets described as coins, tokens or sometimes cryptocurrencies. They may or may not be backed by physical assets. - On this page - [How crypto works](https://moneysmart.gov.au/investment-warnings/crypto-assets#how-crypto-works "How crypto works") - [Types of crypto-assets](https://moneysmart.gov.au/investment-warnings/crypto-assets#types-of-crypto-assets "Types of crypto-assets") - [Crypto and risk - what you need to know](https://moneysmart.gov.au/investment-warnings/crypto-assets#crypto-and-risk---what-you-need-to-know "Crypto and risk - what you need to know") - [Crypto scams are common](https://moneysmart.gov.au/investment-warnings/crypto-assets#crypto-scams-are-common "Crypto scams are common") ## How crypto works Crypto-assets (crypto) describe an asset class that includes cryptocurrency, crypto or digital tokens and 'coins'. It does not exist physically as coins or notes. Crypto is kept in a unique digital or software wallet (hot) or hardware (cold) wallet. Each wallet has a private key, a secret code that lets you access your tokens. If you lose your private key, you usually lose the crypto. These digital tokens rely on cryptography and technology such as blockchain for security and other features. The Reserve Bank of Australia's website explains [how crypto and blockchain technology (including mining) works](https://www.rba.gov.au/education/resources/explainers/cryptocurrencies.html "RBA How cryptocurrency and blockchain technology works"). Crypto can be used for payments, to execute automated contracts, and run programs. **A crypto-asset can be created by anyone**, and it's believed that millions are currently circulating. Crypto-assets (even Australian dollar stablecoins) are not legal tender in Australia and are not widely accepted as payment. Few people use it for everyday transactions. It's not the sort of investment to use to build your savings. Most crypto are high-risk investments. The value of crypto is very volatile, often fluctuating by huge amounts within a short period. ### Buying and storing crypto You can buy or sell crypto on a trading platform using money. Or buy or sell it directly. Each digital or software wallet (hot) or hardware (cold) wallet has private keys that authorise transactions on the blockchain network. A hardware wallet stores these private keys on a secure device not connected to the internet. This can make it harder for hackers to access your wallet. A software wallet can be held by you or by a crypto trading platform on your behalf. This can simplify buying, selling and storing crypto. You must be prepared to lose what you invest with crypto-assets and be [wary of scammers](https://moneysmart.gov.au/financial-scams/crypto-scams "Crypto scams"). Scammers target crypto-assets as they’re easy to create, gaining popularity, and not easily recovered. Currently there’s also no public register to check the legitimacy of crypto exchanges. ## Types of crypto-assets Each crypto-asset has different features and there are no universally defined categories of crypto-assets. Some common types are listed below, but this does not cover them all. New cryptos are created all the time, but many aren’t well structured and don’t last. **What are they** These are the assets that make the specific blockchain work. They're designed to act as a medium of exchange within the crypto ecosystem, with transfers enabled on blockchains. These can have no intrinsic value and are only worth what people are willing to pay for them, but they derive their value from the demand for the use of the blockchain. **Examples include:** BTC, ETH, Litecoin **What are they** A ‘Stablecoin’ is a marketing term for crypto that aims to maintain a stable value relative to a specified asset, or basket of assets. Sometimes the term is only used for those that aim to track the value of a national currency (for example, the AUD or USD). Some stablecoins track other assets such as gold, equities, bonds or other crypto. Stablecoins try to stabilise their market value by: - being physically backed 1-for-1 by an external asset, such as government-issued currency, gold or securities - being physically backed by a variety of assets where the value of these assets is intended to be greater than the value of the Stablecoin on issue - using algorithms to control the available demand and supply of the asset, such as minting additional assets or adjusting an interest rate for holding the asset **Examples include:** AUDM, AUDF, AUDD **What are they** NFTs are tokens which record ownership of an object using blockchains. Each NFT is unique (hence they are not ‘fungible’). However, owning an NFT may not give you exclusive rights to the underlying asset. **Examples include:** Bored Apes, game tokens **What are they** These are tokens created through participating in decentralised finance (DeFi) protocols. Each token will have unique features based on the DeFi protocol that it relates to. **What are they** There are a broad range of terms for other types of tokens. Some types include: - utility tokens — allow you to undertake certain activities, or perform an action, in a crypto project, such as being exchanged for a service - governance tokens — these allow you to participate in the running of a crypto project - community (or membership) tokens — ownership gives you access to the community ## Crypto and risk - what you need to know ### Prices can swing wildly Investing in crypto-assets is highly speculative. The market value can fluctuate a lot over short periods of time. It is affected by things like media and social hype, and investor opinion. The price of unbacked crypto may depend on: - its popularity at a given time (influenced by factors like the number of people using it) - how easy it is to trade or use - the perceived value of the asset - its underlying blockchain technology. So, if you buy crypto-assets, be prepared to lose everything that you put in. ### Many crypto providers are unlicensed Many crypto-asset providers are not licensed at this point in time. This means you may not be protected if the platform fails or is hacked. If a crypto-asset fails, you will most likely lose all the money you put in. In most countries, crypto is not legal tender. You're only protected to the extent that crypto fits within existing laws. ### Your money could be stolen Be aware that a hacker can potentially steal the contents of your digital wallet. Crypto systems allow users to stay anonymous and there is no central data bank. So, if a hacker steals your crypto, you have little hope of getting it back. Using a wallet held offline, a ‘hardware wallet’ or ‘cold storage’, may offer more protection. ### Technical complexity Crypto-assets can be hard to understand. There’s usually no product disclosure statement or prospectus that explains clearly how the crypto works. Developers may issue a ‘whitepaper’ to describe it, but these can vary in format and information. A crypto-asset’s code may not be available to review. Or it may hard to understand. The underlying code of the crypto may also change over time. To access a crypto network, you may need special software and need to know how transaction fees operate. Unfamiliar users run the risk of: - sending a transaction to an incorrect address - over-paying on transaction fees called ‘gas’ (sometimes by thousands of dollars) - not paying enough for a transaction fee (and so losing the fee and transaction) ## Crypto scams are common Scammers use crypto because transactions are not easy to recover and have limited oversight. Money can quickly be sent overseas and is very hard to trace. Read more about [crypto scams](https://moneysmart.gov.au/financial-scams/crypto-scams "Crypto scams") and what to watch out for. Rhett saw an article on a news website about ‘The biggest deal in Shark Tank history, that can make YOU rich in just 7 days!’. The news article was really an advertisement. It took Rhett to a website that included endorsements from Shark Tank judges for Bitcoin trading software. The endorsements were fake. Rhett was interested in trading bitcoin, so he provided his contact details. Soon, an Account Manager named Max began calling Rhett. Max called often, pressuring Rhett to open a trading account and make a deposit. By depositing between \$40,000 and \$50,000 upfront, Max promised Rhett he could earn at least \$15,000 per month. Max promised Rhett that the money he deposited would be safe because he would have total control of the account. “It’s more or less moving your money in your left pocket from your right pocket,” Max said. Max promised Rhett that he could withdraw his money whenever he wanted to. Max eventually convinced Rhett to open an account and deposit \$40,000. Rhett started trading bitcoin, but things didn’t go to plan, and Rhett started losing money. Max encouraged Rhett to deposit more money and promised Rhett that he would be able to withdraw the money he needed in a week. Rhett deposited more money in the hope he could recoup his losses. Rhett ended up depositing and losing a total of \$97,000. Finding the right investments can be challenging. If you need some help to build a diversified portfolio, talk to a [financial adviser](https://moneysmart.gov.au/financial-advice "Financial advice").

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