One of the most interesting ways to diversify your investment portfolio is to invest in a few cryptocurrencies.

Cryptocurrencies such as Bitcoin, have been around since the early 2010s. Bitcoin was the first cryptocurrency, developed and implemented in 2009. There are now many other forms of cryptocurrencies available today, however, such as Ethereum, Bonfire Crypto, Dogecoin, and Firo.

If you want to invest in cryptocurrency, you should spread out your investments into more than one form of cryptocurrency. Before you do that, however, you will need to pick out a Crypto investment.

Crypto wallet: What is it and why do I need it?

A cryptocurrency wallet (or just a crypto wallet for short) is a program that will store both your private and your public cryptographic keys. You store your cryptocurrency in your crypto wallet and, when you want to make a transaction with your cryptocurrency, you need to access your wallet.

Your public key is the address of your wallet, while your private key is the code that you can use to unlock it. Both these keys are crucial if you want to conduct a cryptocurrency transaction.

When you conduct a cryptocurrency transaction, a block noting the transaction (kind of transaction made and the time it was made) is added to the blockchain. This blockchain can only be accessed by accessing your crypto wallet, so it both secures your cryptocurrency and records your transactions. Only you or someone who knows both the private and the public keys can access this.

Four types of cryptocurrency wallets

Paper wallets