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  1. Home
  2. /Glossary
  3. /Commodity
Back to Glossary
traditional-finance

Commodity

A basic good used in commerce that's interchangeable with other goods of the same type.

Definition

A basic good used in commerce that's interchangeable with other goods of the same type. Gold, oil, wheat, and coffee are commodities. The SEC and CFTC are still arguing whether crypto is a commodity or security.

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Related Terms

Futures

Contracts to buy or sell an asset at a specific price on a future date.

Accredited Investor

Someone who meets specific income or net worth thresholds set by regulators, qualifying them for investments not available to the general public.

Anti-Money Laundering (AML)

Laws and procedures designed to prevent criminals from disguising illegal funds as legitimate income.

Asset Allocation

How you divide your investments across different asset classes like stocks, bonds, crypto, and cash.

Blue Chip

A well-established, financially sound company or crypto project with a proven track record.

Bonds

Debt securities where you lend money to a government or corporation in exchange for regular interest payments and your principal back at maturity.

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