Financial literacy education for the modern era.

Back to Glossary
Cryptocurrency

Crypto Basics

Cryptocurrency is a digital or virtual currency using cryptography for security. Understanding the basics helps you navigate this volatile but potentially innovative asset class.

High Risk Investment

Cryptocurrency is extremely volatile. Only invest what you can afford to lose entirely. Most financial advisors recommend limiting crypto to 5% or less of your portfolio.

Portfolio Allocation Simulator

0% (None)25% (Aggressive)
Risk Assessment

Conservative: Manageable risk exposure

Portfolio Breakdown

Traditional Assets95%
Cryptocurrency5%

Types of Cryptocurrency

Bitcoin (BTC)High Risk

First cryptocurrency, store of value, 'digital gold'

Ethereum (ETH)High Risk

Smart contract platform, powers DeFi and NFTs

StablecoinsMedium Risk

Pegged to USD (USDC, USDT), used for trading and yield

AltcoinsVery High Risk

All other cryptocurrencies, varying use cases

Blockchain

A decentralized, distributed ledger that records all transactions across a network of computers.

Wallet Security

Hot wallets (online) for convenience, cold wallets (hardware) for security. Never share your seed phrase.

Volatility

Crypto can swing 10-20% in a single day. Dollar-cost averaging helps manage entry points.