Digital Assets and Blockchain
A digital asset is a form of value that can be traded or transferred electronically. Some use a shared ledger called a blockchain, but not all assets are operated in an equally decentralized way, and not all transactions are fully public. Instead of focusing on a coin’s name, consider its supply, operational control, actual use, and the possibility of network outages.
What a Wallet Stores
A wallet manages the private keys that allow you to move assets, rather than storing the coins themselves. Internet-connected wallets are convenient to use but may be exposed to phishing and device compromise, while offline devices can be difficult to manage if they are lost, along with their recovery phrases. Exchange custody also carries risks such as exchange incidents or suspended withdrawals. Never send your recovery phrase or private key to anyone.
Different Types Mean Different Risks
Bitcoin, tokens on smart-contract platforms, and stablecoins serve different purposes. Stablecoins are not guaranteed to always match their reference assets in value, and they carry risks related to reserves, issuers, and counterparties. Do not decide that an asset is safe based only on its white paper; also examine the actual operator, disclosures, code audits, and distribution structure.
Risks to Check Before the Price
Digital asset prices can move sharply even over short periods, and there is no principal protection. There is no fixed percentage that makes an investment safe for everyone. Do not use living expenses or borrowed money, and first decide whether the potential loss is within a range that would not disrupt your financial plans. Messages impersonating celebrities, guaranteeing your principal, or demanding an additional deposit before withdrawals should be treated as possible scams.
Domestic Regulations and Taxes
The Korea Financial Intelligence Unit provides information on registered virtual asset service providers. Checking whether an exchange is registered does not guarantee protection against losses or incidents. According to guidance from the National Tax Service, taxation on income from the transfer or lending of virtual assets has been postponed by legislative changes and is scheduled to apply to income arising on or after January 1, 2027. Laws and detailed requirements may change, so keep transaction records and check official notices available when you file.