Digital assets refer to any asset that exists in a digital form and is typically stored and transferred on a decentralized ledger, most commonly known as blockchain. Cryptocurrencies, like Bitcoin and Ethereum, are the most well-known examples of digital assets, but they also extend to other innovations like , digital collectibles, and even certain types of real estate recorded on the blockchain.
Blockchain technology is the backbone of digital assets, ensuring secure, transparent, and tamper-resistant transactions. For personal finance, the importance of digital assets lies in their ability to be traded, stored, and even used as a medium of exchange. Unlike traditional assets such as stocks, bonds, or real estate, digital assets provide opportunities for decentralization, meaning individuals can directly control their investments without needing intermediaries.
