If you’re constantly hearing great things about cryptocurrency but don’t really know where or how to get started, then you’ve come to the right place. I’m going to share with you my personal experiences and provide you with tips that I have learned from other people, who had started their cryptocurrency journey several years ago. This guide is going to help beginners learn more about the basics and what it takes to become your own bank.
- Investing: The first thing you need to be aware of is that cryptocurrencies are volatile, especially when you start investing in coins other than Bitcoin and, now, Ethereum. You could easily lose a lot of money, or all of it if you trade (especially with leverage). The golden rule is “Never invest more than what you could afford to lose.” Decide on an amount and stick to it. The elderly, people going into retirement, or generally those who are dependent on their money should avoid investing in this asset class, as bear markets can last up to 4 years.
- Environment: Remember- you are the bank. In other words, if you decide to store your coins and end up losing your special key (which we will describe in more detail in the next section) and your password, your funds are gone. If you get hacked, your funds are gone forever due to your inability to keep your password safe. A similar issue could happen on exchanges where you keep your crypto. Although some claim they have insurance, their insurance will be nowhere near enough to cover funds if they are in the hundreds of thousands. Remember, there is absolutely no one that can help you, no hotline, no nothing. You are your own bank.
- Scams (to steal your username, password, recovery phrase, etc): There are lots of phishing websites out there, so you should be wary about what websites you visit. Make sure the URLs contain https and not just http. Once you are at the correct website, make sure you bookmark it. This way, you will have it saved for later. If something sounds too good to be true, then it is. Any live stream YouTube videos with the founder of that said coin offering to double your investment if you send it money, is a scam. Replies to your comments on YouTube videos asking you to contact someone via WhatsApp or anything else, is a scam. Anyone contacting you privately on telegram, offering you help, or asking for help, is a scam (you usually get them when you are in a group such as crypto.com, and you ask a question; scammers will contact you privately and will look and sound realistic, but they are not).
- Creating a password: When it comes to creating a password, it is time to ditch the common phrases or numbers. You need to create very long passwords for each and every account, with a mixture of numbers, letters, Capitalization, special characters. I repeat: they must be random and not have a special code to them or phrase, or spelt backwards. Hackers use special programs in order to run through a large database, taking all those aforementioned ideas into consideration. Thus, it is of utmost importance to create a long and strong password. Also, don’t let someone generate a password for you (whether a website or friend). Here is a website that tells you how long it takes to hack a password to give you an idea of how to create a strong password (please do not use the password you type into the field for precautionary reasons). https://random-ize.com/how-long-to-hack-pass/
- Storing sensitive data: Considering the fact that we live in the digital age, this one may sound strange, but store all your passwords, recovery phrases and usernames in a notebook; I mean a paper notebook. Avoid saving any of your sensitive data on your laptop or mobile, especially if they are connected to the internet. This also means that you should stay away from password manager programs as well. Make more than one copy of your paper notebook and try to store them in different locations in case your house burns down or your child starts scribbling on your notebook. Remember, you are your own bank, so you need to take this seriously and not be complacent.
- Personal Safety: If you do end up making millions in profit, do not go around boasting about your success to anyone. Trust me, no matter how strong of a bank you may be, there is no easier way of cracking it than breaking a few bones and pulling out some teeth. I do not care how safe your country is, please take personal safety into consideration. Secondly, if some of you are tax avoiders, then you definitely don’t want your countries tax authorities coming knocking on your door.
- Hardware and Software: If you can afford to buy a new laptop and use it only for crypto activities that would be great, but if you are like most of us, then you need to make sure that your laptop, computer and mobile are free of any malware. Before downloading any software, the first thing you need to do is create a strong password for your computer (don’t forget to write it down). Next, I would avoid letting anyone go near it, attaching their USB or download any of their files on it; the same applies to your mobile. Next, to make sure your computer is free of any malware, download Malwarebytes. You can download and use it for free, however, you will have to perform the scanning of your computer manually. I would also recommend downloading a couple of other programs, such as hitmanpro and adwcleaner.
Another important tool to download for your windows pc is a key scrambler. This practically prevents keystroke malwares from recording your password. In simpler terms, it records what you type on your keyboard and sends it to a third party, thus obtaining your passwords. An example of such software is keyscrambler by QFX.
Lastly, and to the most difficult step, I would advise you on getting a sim card (a new number) specifically for your crypto investments, and avoid using or sharing it on any other platform (website, social media, work, etc.). This is to prevent sim theft by hackers once they identify your phone number. Another way you could prevent this is by contacting your cell phone provider and defining a code that needs to be provided by you before activating a new sim. I would also avoid placing my software wallets on your mobile and when it comes to applications, try not to have too many downloaded.
Summary of part 1: Do not invest more than what you can afford to lose. Remember you are your own bank and this is why you need to make sure that everything you use is safe and that you have everything backed up. Avoid placing your sensitive information online or on your digital devices, instead go back to the oldschool method of paper and pen. Make a random, long and strong password and avoid anything that would make you remember the password easily, chances are, they are already taken into consideration by hacking software. Make sure your digital devices are secure and malware-free, and take every precaution necessary to avoid anyone tampering with them. Anyone that offers you free money, by requiring you to send them money is a SCAM. Everything you make for your new bank needs to be new, unique, not hackable and not sharable.
In the next and final section, we will briefly talk about topics such as hardware wallets, which exchanges are best for beginners etc.
Stay Safe
