How To Practice Safe Crypto
If you’re a beginner and are thinking of making a crypto investment you need to know what to watch out before you put your money in the market. There are easy ways to protect your crypto and your identity so you can stay safe in crypto land and avoid the traps & scams.
Cryptocurrency is no longer in its infancy, yet it’s still not at full-scale adoption either. Getting a stake now, as an early adopter, could result in impressive monetary gains from riding that wave of momentum as people rush-in now, not wanting to miss out.
Before you start wildly throwing money into the market hoping to make some gains you need to know how to protect yourself.
Safely Onboarding Fiat Currency Into Cryptocurrency
The first thing you need to do is sign up to a reputable cryptocurrency exchange that will allow you to exchange your fiat money into crypto. In many jurisdictions, there are country-specific crypto exchanges that will make connecting your bank a lot easier.
These are a few of the best exchanges currently available:
Most crypto exchanges require you to verify your identity due to various laws, this is common practice and for a reputable exchange, it is fine. Get this done as quickly as possible because verification can take time.
Once you have a simple way to get those fiat dollars into crypto land you can send that crypto anywhere and swap it for anything.
There is no need to invest your entire life savings into crypto as soon as your account is opened. Take it slow. Put in a small amount of money you can afford to (potentially) lose because you might make a mistake!
Triple Check EVERYTHING
Any time you are transferring cryptocurrency from an exchange/wallet to another exchange/wallet you need to triple check the sending/receiving address. Getting this wrong can result in losing the money permanently!
Write Down Passwords And Logins Manually – And SECURE Them
The most likely way you will lose money in cryptocurrency isn’t from the market crashing to zero, but from you forgetting your password or incorrectly entering addresses when moving crypto.
You need to take a pen and paper and physically write everything down for your cryptocurrency exchanges, wallets, and anything else you have that is crypto-related.
- all passwords and logins
- PIN codes
- API keys, the works!
I bet I know what you’re thinking…. “This would be a lot easier to do with a spreadsheet!” That’s true, but it is also vulnerable to hackers and spyware. To truly be safe, we can not store this info on any device that connects to the internet.
This is why all passwords and logins must be written on paper and stored in a fire and water-resistant pouch such as this document storage bag or this secure storage box.
It’s also a good idea to have multiple copies in multiple secure locations. Do not reveal these locations to anyone under any circumstance except for the purposes of your will. For non-crypto passwords I like to use Last Pass.
A Secure Email Is A Must!
When you sign up to these cryptocurrency exchanges and services you should not be using an email that you use to communicate with friends and family, or where you receive email list newsletters and work communications, etc.
You need to create an entirely new email address that you never tell anyone about. This is important for your financial future, so do it right.
It is recommended you use an encrypted email service. I use Protonmail.
Always Use 2-Factor Authentication (2FA)
As annoying as using two-factor authentication is, it really does help secure your cryptocurrency exchange accounts. Even if someone managed to figure out your password, they cannot get access to your account(s) without using the 2FA. This is well worth the tiny effort required. Just do it.
Two popular & trusted 2FA providers are:
Use A VPN
Consider using a VPN to increase your security when you’re online. There are many great VPN’s to choose from.
I use Hide My Ass
These are good as well:
Diversify Your Positions
Thinking of just holding Bitcoin, Ethereum, or ALT coins? Think again!
Cryptocurrency is so much more than just Bitcoin. Bitcoin can be great to get started with, and so is Ethereum. The important thing is to have a reason for investing in a particular cryptocurrency and spread your investing capital out.
When you start out, you are bound to pick some duds, so start small. These aren’t just play-money coins, some good coins have an actual purpose and plans for the future.
Do Take Profits!
As good as having “diamond hands” is, if you have a coin that has gone up quite a bit and you haven’t been taking profits, then it might be a good idea to take some money off the table. Exchanging profits into another cryptocurrency you think is currently undervalued, or turning it to fiat like USDT are smart ways to do this.
There is a time to hold and a time to fold, and sometimes it’s both. You don’t have to sell everything, but taking profits is a good idea since cryptos are known for their volatility for good reason.
You may find that you want to take some crypto off the table and store it, or save it and there are a couple of ways to do this.
- You can certainly withdraw it and put it back in your bank account.
- You can get a good hardware crypto wallet that literally stores your crypto offline (cold wallet) so it is never susceptible to hackers.
- Our you can store it online in a hot storage wallet (aka a crypto vault) such as the ones that are built in the crypto exchanges.
You can find a great selection of high-security offline wallets at Privacy Pros.
Two of the best cold storage wallets are:
Some trustworthy crypto saving vaults are:
Don’t Sell The Dip!
When any asset you hold goes down in value, you don’t lose money unless you sell, and crypto is no exception. It works the same going the other way as well-meaning you do not realize any capital gains on the way unless you sell.
So calm the panic and resist the urge to sell when something goes down in price!
Avoid Crypto Scams (duhhhh)
Unfortunately, there are MANY creative ways that crooks have come up with to relieve you of our hard earned money!
For a complete list of these, and several other important tips INCLUDING all the current scams to be on the look out for download your free copy of The Crypto Security CheckList now.
You can keep this resource handy and refer back to it as your crypto journey continues.
There is a lot to take in at first, and it can be a little daunting. Take it slow and steady before you make any big moves and be conservative at first until you gain more confidence and knowledge before you try any risky moves.
DISCLAIMER: The information provided on this channel does not constitute investment advice, financial advice, trading advice, or any other sort of advice and it should not be treated as such. This content is for educational & entertainment purposes only and there are no recommends that any specific cryptocurrency should be bought, sold, or held, or that any crypto investment should be made. The Crypto market is a high risk, with high-risk andpeople must “Do Your Own Research” (DYOR). Readers should consult a professional financial advisor before making any investment decisions. Links on this page may be affiliate links which means if you click them we may receive a commission for referring you to a product or service – at no extra cost to you.