New investors in cryptocurrency may have worries about losing their investments. 

Fear of mismanagement can stop people from entering the market or cause significant losses.

 Studies show that 17-23% of Bitcoin has been lost due to poor management. 

As experts in the industry, we understand the need for proper management to safeguard crypto investments.

Here are 5 things you NEED TO KNOW to operate SAFELY in cryptocurrencies. 

 

1. Do a test transaction!

It is crucial to complete a test transaction before transferring crypto between wallets to mitigate risk.

A major risk is entering the wrong address and losing all your crypto. 

To avoid mistakes, use the “copy to clipboard” function built into the wallet or the QR code option on your phone. Send a small portion of the overall amount as a test and confirm receipt of the transaction. 

This may take longer overall, but it is better than the alternative of a Massive Capital Loss. 

Once you know it’s a legitimate address and the transfer was successful, you can confidently send the whole amount.

 

2. A hardware wallet is worth its weight in Gold

Crypto wallets can be confusing, but they don’t have to be…

For maximum peace of mind, true-value investors should consider purchasing a hardware wallet, also known as a cold storage wallet. 

These robust devices keep private keys stored offline and have excellent security records. 

The difference between hot and cold wallets is online vs offline. Many hot wallets are available through the App Store and Google Play, but they are always connected to the Internet, increasing the likelihood of a devastating hack.

Using a hot wallet for storage is like risking dangling bait in the water hoping a big fish won’t eventually gobble it up. 

Nom, Nom, Nom. 

Hot wallets offer generally okay security, but they are a short-term solution for a long-term problem and come with an element of risk that can easily be avoided.

3. Backing up Your Recovery Phrase is Essential

Just because you have a new hardware wallet, it doesn’t mean you should be complacent with security.

Private keys that come with the hardware wallet must be safeguarded and the best way to do this is to have a plan for managing your recovery phrase.

What if your wallet gets stolen or your house burns down?

It’s a good question to ask.

Reputable hardware wallets come with a recovery phrase that is written down and kept in a safe place, ideally in multiple trusted locations.

This phrase is your insurance in case of worst-case scenarios.

All you need to do is purchase a new hardware wallet and input the phrase, which will restore your access to the blockchain and your crypto. Voila!

 

 

4. Don’t advertise your Private Keys

Your wallet has two keys that you need to be aware of – Public & Private.

The Public Key is like your “Bank Account and BSB,” while the PRIVATE key is like your “password.”

Anyone can see your Public Key and this is normal, it should cause you no anxiety.

No one can access your crypto with just the Public Key.

Your PRIVATE key, on the other hand, is your master access to the blockchain. Once you lose it or put it in the public domain, you can’t expect to see your crypto again.

It’s like giving someone your bank card and telling them your pin code.

For new investors, it can be easy to mix up these two keys, so it’s very important to know the difference between the two.

 

5. Exchanges are not insured!

Are you aware that FEW Cryptocurrency exchanges are insured?

New crypto investors need to know which platforms they can trust. In traditional markets, investors take for granted that their funds are safe from theft, but this is not the case for many crypto exchanges.

For example, the New Zealand-based exchange Cryptopia filed for bankruptcy after a hacker stole 16 million dollars of investors’ funds.

To avoid such losses, we recommend using exchanges with added security and insurance for peace of mind and risk management in the ever-evolving crypto space.

To learn how we have shown hundreds of sophisticated investors enter this space SAFELY and SECURELY…

and how to POWERFULLY and SUCCESSFULLY approach the BEST PERFORMING ASSET CLASS OF ALL TIME…

Message us and find out more – Click here!