Cryptocurrency is a digital store of value or medium of exchange that is recorded on a blockchain. Cryptocurrencies are not backed or supported by any government or central bank. Instead, their value is derived by market forces of supply and demand, which tends to make them more volatile than traditional fiat currencies.
Note that cryptocurrency markets and exchanges are not regulated in the same way as securities investing, and investors do not have the same protections as they do when they invest in equities, options or fixed income. To learn more, please review these Risk Disclosures.
How is investing in crypto different than investing in stocks and funds?
Cryptocurrency | Stocks |
Buying, selling, or holding crypto assets | Buying ownership of a small portion of a business |
Can be traded 24/7 | Traded only during market hours |
Not issued by a central authority, but backed by a (usually) decentralized blockchain | Issued by public companies |
Quickly evolving regulatory regime that is relatively new. Crypto trading and custodying businesses are primarily regulated by the Bank Secrecy Act and the US Patriot Act at the federal level, and by money transmitter laws at the state level. A patchwork of different federal and state government agencies share responsibility. | Long established regulatory regime. Overseen primarily by the Securities and Exchange Commission (SEC). Also regulated by the Financial Industry Regulatory Authority (FINRA), state governments, and stock exchanges like the New York Stock Exchange (NYSE) and Nasdaq. |
Tend to have high volatility relative to stocks. “Large-cap” cryptocurrencies like Bitcoin and Ethereum can see meaningful swings in price relative to “large-cap” stocks. | Wide range of volatility. Blue-chip or “large-cap” stocks can be relatively stable, while “penny stocks” can be highly erratic. |
What is Blockchain technology?
Blockchain technology is the foundational technology on which many cryptocurrencies are built. Blockchain is a type of digital record-keeping system that functions as a ledger for transactions. Information about a transaction comes in and is stored in a block which is then chained or linked to the previous block. Once the data is entered, it cannot be changed or erased, creating a permanent (and decentralized) digital record of transactions.
Another important factor here is that most cryptocurrency blockchains are decentralized. So instead of one company or government maintaining and operating the records, the data is spread across thousands of computers, called ‘nodes.’ If the data is tampered with in one location, the blockchain can reference thousands of other nodes to find the error and correct it. This makes the blockchain ‘ledger’ permanent and unchangeable and relatively difficult to hack since there is no single point of weakness.
Where are the crypto assets I invest in on the Public app stored?
Cryptocurrency services on Public are provided by Bakkt Crypto. Your cryptocurrency assets are held in your Bakkt Crypto account, and Bakkt Crypto handles your cryptocurrency orders. Bakkt Crypto is a licensed virtual currency business by the New York State Department of Financial Services and a licensed money transmitter. Bakkt Crypto is not a registered broker-dealer or a FINRA member. Your Bakkt Crypto account is separate from your brokerage account with Public Investing, which holds US-listed stocks and ETFs.
So, where are the crypto assets in your Bakkt Crypto account ultimately stored?
Bakkt Crypto partners with some of the biggest, most trusted wallet providers in the United States to ensure the safety and security of the crypto assets you invest in. These assets are stored in one or more omnibus-hosted wallets, which mean assets held by Public users are stored alongside the assets held by other investors on the platform.
As a reminder, cryptocurrencies, on the whole, are not securities and are not FDIC or SIPC insured.
What coins are available on Public?
For an updated list of available coins please click here.
Thank you for being a part of our community - reach out to our experienced Member Support team anytime at support@public.com.
To trade cryptocurrency via the Public mobile app or website, you must first open an account with Bakkt Crypto. All cryptocurrency account, trading, and custody services are provided to you by Bakkt Crypto.
Cryptocurrency services are provided by Bakkt Crypto Solutions, LLC (NMLS ID 1890144) through a software licensing agreement between Bakkt Crypto Solutions, LLC (“Bakkt”) and Public Crypto, LLC. Bakkt is not a registered broker-dealer or a member of SIPC or FINRA. Cryptocurrencies are not FDIC or SIPC insured. Bakkt Crypto Solutions, LLC is licensed to engage in virtual currency business activity and money transmission by the New York State Department of Financial Services. Please ensure that you fully understand the risks involved before trading. See here for Bakkt licenses and disclosures.