Are you AFRAID to own, buy, or sell cryptocurrency because of the horror stories you’ve heard?
There are some shattering stories.
Ever LOST your cryptocurrency because you accidentally typed in the receiving address? Oops…
Ever felt the devastation of losing tens of thousands of hard-earned savings because you bought cryptocurrency without understanding how to properly keep your money SAFE?
Ever throw out your old computer, only to realise later that you’d kept your crypto stored on the hard drive and it’s now lost to landfill, forever?
It happens! A man in the UK accidentally threw away his hard drive containing over 7,500 bitcoin – today worth an estimated 80 million dollars!
In the words of Mr Sulu from Star Trek, “Oh…my!
That hopeless feeling in the pit of your stomach has been experienced by so many new investors in this space, all because they didn’t understand proper risk management.
Most people overcomplicate managing their cryptocurrency safety, but when you learn the steps to do it – IT IS liberating!
There are some simple steps you can put into practice RIGHT NOW that will help keep your crypto safe!
Here are 3 ways YOU MUST KNOW to help you avoid losing your crypto ….
1. Keep Your Crypto Off of Exchanges!
Ever heard of an exchange hack where investors lose mind-blowing amounts of money?
One of the most common concerns new clients have is knowing how to keep their cryptocurrency safe whilst interacting on exchanges.
It’s not just hacking you need to be mindful of. We have heard stories where the money being left on exchanges has been lost because the company has ended operations or hasn’t taken the security of its platform seriously, leaving investors out in the cold!
An example of this was the Quadringa exchange in Canada that lost 135m dollars of investors’ money because the owner had sole access to investors’ funds and when he died, they had no backup system in place.
Without a doubt, using an exchange is an essential part of the buying and selling process, SO HOW DO WE MITIGATE RISK?
Well, it’s straightforward. And it’s hardly as scary as it sounds.
Keep your exposure small!
Day traders often keep large sums of money on exchange platforms to take advantage of opportunities, however, for long-term investors, storing your cryptocurrency offline is safe and recommended.
Newsflash: Keeping your investments on an exchange is a bad idea, and in the end, you only have yourself to blame if it goes missing.
While hacks or theft are uncommon, it’s a great habit to get yourself into. The worst hack ever was on the Japanese Coincheck exchange, where a whopping $544 million was stolen. We want to make sure you don’t become a statistic.
It’s more important than ever to have a PROVEN risk management plan that is easy to follow.
2. Why You Shouldn’t Trust Wallets that are always connected to the internet!
Choosing the RIGHT wallet is an essential part of being a cryptocurrency investor, but did you know some wallets are safer than others?
Most new investors don’t know this, and they fall into the convivence trap!
Putting your faith in a software wallet, which is a wallet that is always connected to the internet, is a risky affair.
We know devastated people who have come to us after losing hundreds of thousands of dollars due to a lack of knowledge surrounding wallet security.
Don’t let that be you!
Downloadable wallets on your smartphone or desktop are immensely popular for their ease of use, and low barrier to entry. They’re a great way to get accustomed to holding and sending small denominations of cryptocurrencies also, but how safe are they?
Not very!
A lack of understanding surrounding Crypto wallets is common. It is essential to have a plan in place to back up your wallet if you lose access to it. Without a backup plan, if you lose your smartphone or someone gains access to it, they can quickly drain your crypto account of all its funds! Moreover, because software wallets are always connected to the internet, your private keys are vulnerable to hackers over the web. It pays to have a backup plan!
Remember – Not your keys, not your crypto! As the saying goes.
Imagine loading up your smartphone wallet after a massive price rise only to find your account has been emptied.
Acquiring the RIGHT crypto wallet is essential, so we must make the right choice!
We know first-hand the pain of losing money to poor safety management and there is a simple solution that our clients use to give them peace of mind and confidence to invest.
3. Create a foolproof plan that keeps your crypto assets safe!
You may have the best investment strategy in the world but if you neglect its storage or risk management, you’re vulnerable to heartbreaking scenarios that could leave you broke.
Ever hear of a bank that keeps its vaults unlocked and unguarded? Nope. Neither should you!
Think how easy it would be to lose your money if you were to store your crypto all in one place with no redundancies…
- Your house could burn down or flood
- You could misplace it (most common)
- You keep it in your bag or on your belt, and it goes missing here or overseas
- Your car/house gets broken into and the wallet is taken
Can you imagine losing your wallet that holds your crypto and then suddenly, as the colour drains from your face you realise you have no way of retrieving your money because you had no plan in place?
Your crypto would be lost forever, joining the thousands of Bitcoin currently missing and out of circulation leaving you in a tragic financial hole and cursing the day you didn’t take wallet security seriously.
Newsflash: you’re your own bank and having redundancies in place is solely your responsibility.
We can show you our PROVEN backup strategies that help keep your money SAFE!
Losing your entire portfolio is the worst feeling in the world and can leave investors scarred for the rest of their lives. We show our clients how to AVOID this step by step so that you’re confident and ready to store your cryptocurrency securely.
Message us and find out more – Click here!
Joe Shew
Founder & CEO of Crypto Consulting Institute
Sam McDonald
Head Analyst
