What You Must Know Before Investing In Cryptocurrencies

What are some indispensable things to know before one should even think about investing in crypto?

The Fintech and cryptocurrency revolution has taken the world by storm and completely changed the way we envision personal finance. It has bought about unprecedented change and presented new opportunities for people all over the globe.

Many people are anxious to capitalize on this and give in to FOMO a popular acronym in the crypto space which means fear, uncertainty, and doubt. Once again an old adage holds true “Haste makes waste”.

Just as with anything one must crawl before they can walk. It’s is not necessary to understand every technical detail of hash codes and cryptography to use blockchain technology; just as one doesn’t have to know how a computer works to be able to use it to do things that were impossible even ten years ago. It is, however, paramount to have a good concept of how everything works as a whole and know how to safely use blockchain technology.

Here are some of the things you absolutely need to know before you begin to make any transaction or investment

• Understand the concept of your public and private keys
• Understand the difference of having custody and not having custody of assets
• Some people especially so-called purists will tell you to never have your money on an exchange or trust anyone even a reputable institution with your private keys. But some people want to have their assets managed for them. If you chose to have a company have custody of your assets make sure they are reputable, have impeccable security and also insurance.
• Understand the whole concept of a digital distributed ledger
• Understand the basic mechanics of any blockchain that you will be using and it’s advantages and disadvantages compared to other blockchains
• Understand wallet addresses
• Know how to track transactions
• Know the different types of wallets such a paper wallet, hardware wallet, cold and hot storage
• Know all the best practices on how to store private keys
• Know how to use the different interfaces safely
• Know best practices for using devices such as laptops or phones safely
• Have a contingency plan in case an unfortunate event happens to you and you want to leave assets to someone

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