Investing in cryptocurrencies is one of the most sensible uses of your money in the modern age. The world has woken up the possibilities it provides us. It is essentially inflation proof and isn’t regulated by any single governing body. Meaning, unlike the Canadian dollar, crypto isn’t affected by any changes in government or policy.
But that isn’t to say investing in crypto is risk free. Far from it. There are numerous ways you can lose money on crypto. Either through bad investments, rotten luck, or negligence on your part. There are a lot of safety factors you need to consider when managing your crypto investments.
I have been involved in the world of crypto since Bitcoin first hit the scene here in Calgary. So I have learnt a thing or two over the years. Today I will impart my knowledge to you on how best to keep your investments secure.
The first step to ensuring your cryptocurrency is secure is having a wallet. A crypto wallet is a separate program or physical piece of hardware where you can store your private keys. Some of them also allow you to send and receive crypto payments too.
I personally opt for a physical wallet. These are similar to a regular USB stick only with a lot more digital and physical protection. Every crypto token is completely unique. It is what prevents inflation and counterfeiting. Which also means you can physically store your coins on a harddrive. This is the best form of protection as it allows you to carry your coins with you at all times. Or to keep them safe in a safety deposit box.
If you have a large investment portfolio you should consider having multiple wallets. This will ensure that, even if you do lose one wallet through theft or a system error, you haven’t lost everything.
The crypto market is as volatile as any market. And one of the best ways to ensure your investments aren’t lost is to keep a constant eye on how well your coins are doing. You shouldn’t be afraid to move your money into different coins as the need arises.
It is important to note that this is different from panic selling. Many novice investors will see their coin dipping in price and instantly sell everything. This is a surefire way to make consistent losses throughout your crypto journey. Instead you should examine the trends for that coin. Is this dip atypical or just a momentary dip before a potential rise in price? Act accordingly and do your research.
If you are serious about investing in crypto then it is very likely that a lot of your extra income will be tied up in crypto. Which means you may not have a lot of excess funds available to you should an emergency arise. Which is why you need to ensure you have good personal insurance. We can’t ever truly plan for accidents in our life. But ensuring you have proper insurance will mean you won’t have to suddenly cash in your crypto investments to cover your emergency costs.
Canada is blessed to have some of the best insurance agencies in America. The first thing I would do is seek a personal injury lawyer in Calgary and make sure you are fully covered for all eventualities. You should also consider getting digital insurance. There are companies that specialize in crypto insurance. Keep in mind these policies only cover you in instances of data breaches or ransomware attacks. They won’t pay out if you’ve simply lost access to your crypto wallet.
You should also keep an eye out for new coins as well. Do a deep dive on them and see if they are worth investing in. The best way to ensure you are recouping on your investments is to have a large portfolio. This will also make it easier to move about your money without needing to invest more.
There are a few cryptocurrencies out there that are extremely safe to invest in such as Bitcoin or Tether. But, as we saw with Dogecoin, it isn’t impossible for a fringe coin to suddenly become worth a considerable amount. So, if you can afford it, invest in some of the smaller coins as well.
The world of crypto is constantly changing and evolving. With new innovations and new technologies. It is impossible to know everything about this evolving market. That is why it is so important to keep doing research and learning as much as you can.
Take the time to research the companies creating these coins. Listen to podcasts and go to crypto focused events. Speak to other investors and learn from them. The people who think they know it all are always the first to lose it all.