When it comes to our retirement portfolios, we all want to make sure that we are making the right choices. But it is also the case that we all have different needs and interests, and we all have different comfort levels when making those investments. Some people prefer to put their money into real estate, trusting the old wisdom that it is the most stable option. Others enjoy playing the stock market, trusting their knowledge and their nerve to make the most of high-stakes gambles. And then there are those who play it safe by spreading their investment across a varied portfolio. <\/p>\n\n\n\n
The truth of the matter is that there is very rarely a sure thing when it comes to investments. We have seen the property market go through a remarkable inflation over the last couple of years<\/a>, and now we are all waiting for it to come back to earth. Things have been incredibly turbulent in the markets since 2020 and it does not look as though things are going to change any time soon. In short, there are a lot of questions and very few answers.<\/p>\n\n\n\n In recent years, we have seen more and more people look at cryptocurrency as an option for investment for their retirement plans. It seems like barely a week goes by without cryptocurrency being in the news for one reason or another. Sometimes it is because the value has suddenly skyrocketed. Sometimes it is because a tech leader like Elon Musk has Tweeted something about it and the markets have reacted accordingly.<\/p>\n\n\n\n If you do not really have much of an idea of what cryptocurrency is or how it works, it can be difficult to know where to begin. There is an awful lot of jargon and information specifically related to software that it is easy to get lost in the chaos. If you are thinking about whether to invest in crypto for your retirement, here are a few things that you should know and a few tips to help you get started.<\/p>\n\n\n\n\n\n\n\n Let\u2019s start with the very basics, shall we? Cryptocurrency is a decentralised, digital form of currency. That means that banks generally have nothing to do with cryptocurrency transactions and trading. Cryptocurrency is instead traded peer-to-peer. These transactions are conducted and logged online, and you have no physical assets when you buy cryptocurrency.<\/p>\n\n\n\n The decentralised element is one of the biggest reasons why cryptocurrency trading has taken off to the extent that it has. Think about the transaction fees you have to pay when you are transferring money abroad or the bank fees that need to be paid if you hire freelancers for your business. The only transaction is between you and the person sending or receiving your coin with cryptocurrency. This has also been heralded as one of the reasons why it can be so useful in countries where the security of banks is tied to the local governments.<\/p>\n\n\n\n When your investments are in cryptocurrency coins, you do not need to worry about the bank suddenly failing and losing all of your money. Cryptocurrency is also tied to tech growth, which is why the government is pushing for more industry support<\/a>. While there has long been a myth that crypto is a flash in the pan, it is not going anywhere.<\/p>\n\n\n\n This is a common question, and the reason why it gets asked so frequently is that Bitcoin gets talked about so much in the media and in pop culture. Bitcoin is a form of cryptocurrency, and it is arguably the best known. However, it is far from the only one. Ethereum is also extremely popular, but we\u2019ll get to that in just a moment.<\/p>\n\n\n\n If you have been reading around cryptocurrency, you have probably heard the word blockchain before. Blockchain is the technology that is used to record cryptocurrency transactions. Every time a specific coin is traded, the process is marked down on a block, and it is given a time stamp. This means that no coin can be bought or sold without some record of the transaction, and the ledger of these transactions is public.<\/p>\n\n\n\n Blockchain technology is one of the biggest reasons why so many tech entrepreneurs and leaders are so heavily invested in cryptocurrency. We are still only beginning to scratch the surface of what this technology could mean to a wide range of different industries, and it is one of the major forces driving the sector forward.<\/p>\n\n\n\n We mentioned earlier that there are many different cryptocurrencies out there, and that number is growing very rapidly. Right now, it is estimated that there are close to 10,000 different cryptocurrencies on the market. However, it is important to note that many of these currencies are not being traded by very many people. It\u2019s easy enough to create a new cryptocurrency, it is quite another to make it something that people actually want to invest in. It is true that Bitcoin is still the biggest cryptocurrency on the market. It has been the leader of the pack since its creation, and it will probably continue to be so for some time yet.<\/p>\n\n\n\n However, there is a key difference between Bitcoin, a cryptocurrency created purely as a currency, and Ethereum. Ethereum is the second-largest cryptocurrency out there and a big reason for that is the network that the currency runs on. Ethereum has attracted a huge amount of interest from some of the biggest software innovators in the game, who are drawn to the potential for its blockchain technology. After Ethereum and Bitcoin there is something of a drop-off, but other coins that have a lot of popularity include Cardano, Litecoin, Stellar and Polkadot.<\/p>\n\n\n\n If you want to add one of these cryptocurrencies to your portfolio, the first step will be signing up to a cryptocurrency exchange. There are a lot of different cryptocurrency exchanges out there, but the basic thing to know is that they connect coin traders. However, it is also important to remember that every exchange may have its own specific requirements.<\/p>\n\n\n\n You will need to be able to verify your identity before you register with any reputable crypto exchange (your passport or driver\u2019s license, for example), but you will also need to make sure that your platform of choice supports your country and your currency. If you want to learn more about how to buy Ethereum<\/a>, visit Wealthsimple. Their detailed guides and easy-to-use software help you get to grips with a wide range of financial options.<\/p>\n\n\n\n One of the biggest myths out there about cryptocurrency is that trading it is inherently unsafe, but nothing could be further from the truth. Security is at the forefront of every cryptocurrency transaction, and the fact that they are recorded on blockchain is just one of the things that makes it very hard for criminals to hide. Cryptocurrency transactions also require two-factor authentication, which means that the chances of someone being able to trade your coins without you knowing it are very slim indeed.<\/p>\n\n\n\n Now, it is very important to make a distinction between the lack of inherent risk when dealing crypto with the very real risks that we all face when conducting financial business online these days. We have seen a massive boom in cybercrime statistics<\/a> over the last couple of years. Everyone from the owners of the world\u2019s biggest businesses and government institutions to pensioners have come face to face with cybercrime in recent months. Governments around the world have announced that they are taking measures to crack down on this epidemic, but it does not appear that this trend is going anywhere yet. There are steps that you should take if you want to make sure that you are looking after your information and your finances.<\/p>\n\n\n\nFirst Things First: What Is Cryptocurrency?<\/h2>\n\n\n\n
Are Cryptocurrency And Bitcoin The Same Thing?<\/h2>\n\n\n\n
What Is Blockchain Technology?<\/h2>\n\n\n\n
What Are The Different Types Of Cryptocurrency?<\/h2>\n\n\n\n
How Do I Buy Cryptocurrency?<\/h2>\n\n\n\n
What About Safety And Security?<\/h2>\n\n\n\n
What Are Hot And Cold Wallets?<\/h2>\n\n\n\n