#PowellRemarks

"Crypto stocks" refer to shares in publicly traded companies that have significant exposure to the cryptocurrency industry or blockchain technology. This is distinct from directly owning cryptocurrencies like Bitcoin or Ethereum.

Think of it this way:

* Investing directly in cryptocurrency: You are buying a digital asset (e.g., Bitcoin) that lives on a blockchain. Its value is driven by supply and demand for that specific crypto asset.

* Investing in "crypto stocks": You are buying shares of a company that is involved in the crypto ecosystem. Their stock price will be influenced by their business performance, which is often tied to the broader crypto market, but also by traditional stock market factors and their specific operations.

How do Crypto Stocks Work?

These companies participate in the crypto space in various ways:

* Cryptocurrency Exchanges: These platforms facilitate the buying and selling of cryptocurrencies. Their revenue often comes from trading fees.

* Examples: Coinbase (COIN), Robinhood (HOOD - also a traditional brokerage but offers crypto trading).

* Cryptocurrency Mining Companies: These companies use specialized hardware and a lot of electricity to validate transactions on a blockchain and earn new cryptocurrency as a reward. Their profitability is highly dependent on crypto prices, energy costs, and mining difficulty.