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Once a fringe investment, cryptocurrency has exploded into the mainstream. Not only are everyday investors considering creating a crypto portfolio, but banks and public and private companies have added crypto to their balance sheet, bringing it even closer to the mainstream.
But crypto is different from other assets. Anchored on the blockchain — a decentralized database that cannot be destroyed or tampered with, owned by everyone and no one — crypto has different security best-practices than other investments. That’s why it can be a good idea to make sure you understand the special security considerations that come with owning crypto before you buy it. Having smart security practices in place from the start can provide fewer headaches and more opportunities as you grow your crypto. Have a strategy to protect your key
Investing in crypto may be like learning a new language. While there’s a lot you can learn as you go, it’s critical that investors know where their crypto is and how to access it. Unlike a traditional investment portfolio, where you may create a password, your crypto is accessed through a series of keys — a public key and a private key. The public key is like your address — it’s how crypto can be sent and received. Your private key gives you access to that crypto. Your key is your most precious asset when you own crypto. If someone else gets a hold of it, then they have access to your assets. That’s why it can be problematic to keep your key on an online exchange. While some online exchanges may “hold” your key for you, keeping it on an exchange could make you vulnerable to security issues or hacking.
Continue reading: https://www.yahoo.com/now/investing-in-crypto-heres-how-to-begin-172724140-145227544.html
Once a fringe investment, cryptocurrency has exploded into the mainstream. Not only are everyday investors considering creating a crypto portfolio, but banks and public and private companies have added crypto to their balance sheet, bringing it even closer to the mainstream.
But crypto is different from other assets. Anchored on the blockchain — a decentralized database that cannot be destroyed or tampered with, owned by everyone and no one — crypto has different security best-practices than other investments. That’s why it can be a good idea to make sure you understand the special security considerations that come with owning crypto before you buy it. Having smart security practices in place from the start can provide fewer headaches and more opportunities as you grow your crypto. Have a strategy to protect your key
Investing in crypto may be like learning a new language. While there’s a lot you can learn as you go, it’s critical that investors know where their crypto is and how to access it. Unlike a traditional investment portfolio, where you may create a password, your crypto is accessed through a series of keys — a public key and a private key. The public key is like your address — it’s how crypto can be sent and received. Your private key gives you access to that crypto. Your key is your most precious asset when you own crypto. If someone else gets a hold of it, then they have access to your assets. That’s why it can be problematic to keep your key on an online exchange. While some online exchanges may “hold” your key for you, keeping it on an exchange could make you vulnerable to security issues or hacking.
Continue reading: https://www.yahoo.com/now/investing-in-crypto-heres-how-to-begin-172724140-145227544.html
