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What is a digital asset?

A digital asset is any asset that exists in electronic form and holds value based on ownership, utility, or demand. Digital assets include cryptocurrencies such as Bitcoin and Ethereum, blockchain-based tokens, and non-fungible tokens (NFTs). They can also include digital representations of traditional financial assets that are recorded and transferred electronically.

Most digital assets operate on blockchain technology, which allows for secure, transparent, and decentralized recordkeeping. This technology enables users to transfer, store, and manage digital assets without relying on traditional financial intermediaries.