What is cryptocurrency?
A cryptocurrency is a digital value that lives in a shared ledger on thousands of computers — a blockchain — with no bank or state in the middle. The oldest and largest is bitcoin, from 2009. Unlike a stock, there is no company behind it earning money: no revenue, no profit, no dividend. The price is only what others will pay — and that is why it swings far more than stocks.
Same direction, different swings. The turbulent one needs stronger nerves along the way.
What you actually own
Own a stock and you own a slice of a business. It earns money — or tries to. Own a cryptocurrency and you own an entry in a digital ledger: "this address holds 0.05 bitcoin". The entry is only worth something because other people believe in it and will pay for it.
That does not make crypto a scam. Gold does not earn money either. But it means there is no "right" price you can work out. There is only what buyers and sellers agree on today.
How much it swings
A broad stock index typically moves less than 1% on an ordinary day. Bitcoin can easily move 5% in a day, and smaller coins much more. From peak to trough, bitcoin has fallen more than 70% several times in its history — and many smaller coins have fallen all the way to zero.
Example: You buy for 1,000 €. A 70% fall leaves 300 €. To get back to 1,000 €, the price now has to rise 233%. Big falls are hard to recover from.
Read more about volatility.
Three kinds of crypto
- Bitcoin — the first and the largest.
- Altcoins — all the others, from ethereum to thousands of small projects.
- Stablecoins — coins meant to hold a fixed value, usually 1 dollar.
Crypto tax differs from country to country and is often different from tax on stocks. Kiggo shows the tax rules for your country under each coin in the app.
The typical beginner's mistake
Comparing crypto with stocks on the price chart alone. A stock that falls 60% still has a company with customers and profits behind it. A coin that falls 60% has only the belief that it will rise again. Some do. Many do not.
How you see it in Kiggo
Under Market → Crypto, Kiggo shows the 25 largest coins (without stablecoins) as a colour map that refreshes itself every 15 seconds. Because crypto swings more, a tile only reaches full colour at ±5% — for stocks it happens at ±1.5%. Tap a tile and you get three rings (short, medium and long term), "10 years at a glance" and the tax card for your country. Crypto is part of Kiggo Plus. Kiggo never recommends buying or selling.
Related terms
Frequently asked questions
Is cryptocurrency the same as money?
Not in practice. You can pay with it in some places, but most people buy it to hold it, not to spend it. And money that can fall 5% in a day is hard to put in a budget.
Can a cryptocurrency go to zero?
Yes. There is no company, no assets and no guarantee behind it. Thousands of coins have gone to zero or close to it because people stopped using and buying them.
How is crypto taxed?
Differently from country to country — and often differently from stocks. Kiggo shows the tax rules for your country under each coin in the app. Always check with your tax authority before you trade.
Kiggo explains — Kiggo does not advise. We never tell you what to buy or sell, and key figures can only be compared between companies in the same industry. The decision is yours. Last updated 2026-09-23.
Written by Claus Frisch, founder of Kiggo. Not an adviser, not a bank — Kiggo explains, you decide.
