What is cryptocurrency?

A cryptocurrency is a digital asset recorded and transferred on a blockchain. Unlike kroner or euro, it is not issued by a central bank and is not legal tender. Ownership is tied to cryptographic keys, not to an account at a bank.

Bitcoin was the first cryptocurrency (2009). Today there are thousands — from large assets like Bitcoin and Ethereum to stablecoins that track a currency such as the dollar or euro.

A blockchain is a shared ledger maintained by many computers across a network. When a transaction is made, it is verified by the network and added to a "block" that is chained to the previous ones — hence "blockchain".

Because the ledger is distributed and hard to alter retroactively, parties can transfer value directly without a central intermediary. That is the core idea behind crypto.

Different crypto assets do different things: some are used as a long-term store of value (e.g. Bitcoin), others as a platform for programmable "smart contracts" (e.g. Ethereum), and stablecoins provide a price-stable unit pegged to, say, the dollar or euro.

You can explore the assets Penning supports and what each one does — or read about how to buy them.

Start with a regulated platform you can verify (a supervised CASP), understand that the price can swing sharply, and start small. Keep track of your trades from day one — gains are taxable in Denmark, and good documentation makes filing easy.

Crypto carries a risk of loss, and no return is guaranteed. Treat it as a risky asset and invest only what you can afford to lose.