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When you think of wealth-building and planning for retirement, you probably think of traditional methods like 401ks and Roth IRA accounts. If you really want to shake up your investment portfolio’s strength, then you need to start investing in cryptocurrency. That’s easier said than done if you’ve never worked with crypto before, though.

Thankfully, we’ve compiled this definitive guide to cryptocurrency for beginners. Read on to learn everything you need to know about this exciting new investment opportunity.

How Do You Start Investing in Cryptocurrency?

One of the most common barriers to entry into the world of cryptocurrency is not knowing how to start investing in it.

The first thing you’ll need is a crypto wallet. Like a physical wallet, a crypto wallet is where you’ll digitally store all your shares of cryptocurrency. Crypto wallets are most commonly tethered to mobile phone apps, and they are easy to recover if anything happens to your phone. 

Once you have the wallet, you can begin buying and selling cryptocurrency. All you need to do is transfer cash into your wallet in order to make your initial purchases. It’s important to note that you can have multiple wallets across multiple exchanges if you want to explore your options.

What’s the Best Cryptocurrency to Invest In?

If you’ve explored your cryptocurrency options, then you’ve probably noticed that there are literally thousands of types of cryptocurrency on the market. Most cryptocurrencies won’t ever amount to anything, so it’s important to do your research. Check out the whitepapers on forms of crypto that pique your interest to learn about their blockchain functions. 

Some of the most respected forms of cryptocurrency include Bitcoin, Ethereum, and EOS. If you’re looking to invest in these forms of crypto, but want to learn about pricing first, just do a quick search. For example, Canadians interested in EOS would search “EOS price CAD.”

How Do You Grow Your Wealth with Cryptocurrency?

The first thing to know about growing your wealth with crypto is that it is a long-term, high-risk investment. That means you need to prepare for the volatility that comes with this type of investment. For that reason, it should be part of a larger investment portfolio.

If you want to minimize your risk, aim to put about 5 percent of your assets into cryptocurrency. More aggressive investors might choose to put up to 15 percent of their assets into crypto. In general, the earlier you start saving, the more you can allocate toward riskier investments.

As with all investments, reduce your risk by investing in a number of different types of cryptocurrency. 

Congrats! You’ve Completed Cryptocurrency for Beginners!

Cryptocurrency might seem like an overwhelming and confusing investment option if you’re new to it. Thankfully, if you follow the information in this guide to cryptocurrency for beginners, you’ll be well on your way to mastering the art of crypto trading. Before you know it, you’ll have a killer crypto portfolio. 

Do you want to learn more awesome ways to master your personal finances? You’ve come to the right place. Check out the rest of our blog for tons of great articles that’ll help keep you on the cutting edge.

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