Written by Glen James

Host of the Retire Right & money money money (formerly my millennial money) podcasts & author of The Quick-Start Guide to Investing.

Recently a community member asked: ‘I’m trying to understand cryptocurrency. Everyone keeps mentioning ‘the blockchain’, but what is that, and why does it matter?’

Alright, let’s take the mystery out of this crypto thing. You’ve probably heard your kids, colleagues, or that one guy at the BBQ talk about Bitcoin like it’s the second coming, but everyone’s an expert until they have to explain it to you. You may have no interest whatsoever in crypto, but it’s still a good exercise to try and understand it. I am all about education!

To fully understand crypto you need to start by understanding this term, ‘blockchain’.

1. What is the blockchain?

Think of blockchain like a big digital notebook that everyone can see and agree on. Every time a transaction happens — buying crypto, selling crypto, sending it to someone — that “entry” gets written into this shared notebook. Everyone in the network has a copy, and once something is written down it’s locked in. It can’t be changed. Instead of a bank being the single source of truth, blockchain is a shared public ledger. Lots of computers check and verify each transaction before it gets added to this ledger. That’s what “mining crypto” is, not literal pickaxes, just computers doing maths to confirm everything is legitimate.

Each cryptocurrency runs on its own version of this ledger. Bitcoin has its own blockchain, designed mostly to store value (people call it ‘digital gold’). Ethereum, Solana and others have blockchains designed to build things on top of: apps, digital contracts, even games.

And despite all the dodgy stuff you hear, blockchain technology itself is actually pretty solid. Companies have explored using it for things like tickets or share settlement because it’s transparent and hard to tamper with. So when you hear ‘blockchain,’ just think: a digital system that keeps everyone honest.

2. Crypto is not like owning shares or ETFs

When you buy an ETF or a share, you’re buying a slice of a company or a bundle of businesses. They produce goods, employ people, make profits and pay dividends. There’s actual economic activity behind it. But with cryptocurrency you’re buying a digital asset whose value is based on what people think it’s worth. There’s no CEO, no profits, no dividends. It’s a bit like collecting rare digital items: valuable if others want them, not valuable if they don’t. This doesn’t automatically make it bad, it just makes it different.

3. It’s volatile — like, strap-your-seatbelt-on volatile

The crypto market can swing 20–50% in a matter of days. This isn’t like your super balance gently wobbling up and down. Crypto is the emotional rollercoaster your adviser would normally protect you from. If you do ever dabble, it's usually something you do with “fun money,” not your retirement strategy. Personally I don’t treat crypto like I do the rest of my investing for the future, the money I invest into it is limited to a capped amount so I don’t get taken for a ride. So understanding your risk tolerance and the funds you have established for crypto is key. It’s definitely not for everyone.

Community question

Community member says: I’m 54 and currently have one investment property. I’m thinking about buying a second to help build my retirement income, but honestly the idea of managing multiple properties feels overwhelming. How do people keep track of everything — rent, expenses, insurance, maintenance — without it becoming a second job? And are there things I need to consider before going from one property to two?

Glen says: Great question and totally normal to feel overwhelmed. Most people think a second property means double the chaos, but if you set things up properly, it doesn’t need to feel any busier than owning one.

1. Let your property manager do the heavy lifting

If managing your property feels like a part-time job, that usually means your property manager isn’t doing their job. A good manager handles tenants, repairs, bills, and communication and you should only need to check in a handful of times a year.

2. Keep your systems ridiculously simple

Pick a system you’ll stick to, one offset account per property, or a single “cash hub” for everything, or even just a tidy spreadsheet. You only need the basics: rent in, expenses out, and one neat report for your accountant each year.

3. Don’t overthink ownership structures

Lots of people get tangled up in trusts and fancy structures too early. For most investors, keeping it simple works just fine, but always chat with your accountant before buying your second property to avoid future headaches.

4. The logistics actually get easier, not harder

With more properties you often get better insurance deals, better tradie relationships, and a property manager who really understands your whole portfolio. Once your system is set, adding property number two usually feels smoother than the first.

I chatted about this with John Pidgeon and Rachelle Kroon recently if you're interested to hear their tips. Watch the chat here.

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