What is crypto & how does it work?

Cryptocurrency is digital currency that doesn’t require a financial institution like a bank to verify transactions. In recent years it has become a topic of discussion from high profile business people like Elon Musk. Yet, despite the presence of crypto it may seem mysterious. Use this guide to learn about what crypto is and how it works.

What is a crypto audit?

Crypto audits involve extensive testing, which ensures that there are vulnerabilities that would risk the project or the people who have invested in the project. Analyses and code validation help projects stay above board and identify any nefarious parties that may try to circumvent or exploit the system.

Are crypto assets over- or understated?

“There is a real risk that crypto assets could be easily over- or understated given this lack of universal guidance,” says Ross Thompson, accountancy and finance lecturer from Arden University. “This means audit risks are higher, which should be considered during client acceptance and retention and planning audit procedures.

Is there a place for crypto?

Jones argues that, as with regular financial markets, there is a place for a broad spectrum of cryptos ranging from the more volatile/risky to the more stable/secure. Crypto ownership is concentrated on a relatively small number of owners, which means they can significantly move prices by buying and selling coins.