Nattaproblem

The engine of cryptocurrency runs on word-of-mouth, and visibility in the media. Some online stores and e-commerce sites have adopted cryptocurrency as a form of payment, but it is far from mainstream. The volatile blockchain industry has been swinging wildly since a mysterious man named Satochi came up with the idea for his monopolizing company, Bitcoin in 2009.

It is now August of 2020 and Bitcoin is popular once again. After the Coronovirus swept the globe, there was a steep decline in value which has since recovered. Investing in Bitcoin is a debatable topic that divides much of the the top earners in the world. The CEO’s of Fidelity and Tesla say it’s worth the risk, while Warren Buffet and Birkshire Hathaway compare it to a crop of corn; it’s good only when people say it’s good. Although I would agree with Mr. Buffet’s logic, my gut reaction to Bitcoin is this: when the world switches to cryptocurrency, people are going to wish they had invested in Bitcoin. The looming question is when will this happen?

It is important to understand that cryptocurrencies are not like banks. They do not come with FDIC insurance, built-in security, 1-800 helpline, or corporate headquarters to reach out to if your funds go missing. Although people can lose their finances due to user hackers or errors without any recourse, this allows individuals to take full ownership of their own security and funds and in this way, the term survival of the fittest can be applied to finances. This new storing and payment system is akin to touring the Tommorowland; it’s novel and nerve-wracking, but if enough effort and planning is put into investing, the risks could potentially pay off. The future is near and eventually paper money will be a thing of the past. Because of this instinctual inevitability, it would be wise to store at least 25% of your disposable income into one of the cryptocurrencies that are out there. Bear in mind however that like stocks, any financial gains made from Bitcoin investments are categorized by the IRS as “property” and therefore taxed just like stock investments.

Cryptocurrency is in limbo right now, because it’s a way to pay entities and people for services while also being an investment. Unlike stocks or minerals, it is not an asset that can appreciate in value based on market demand. Instead, it’s a popularity contest that hinges on potential usability in the future. Cash WILL eventually be replaced. The question is when. Crazy right? Always remember the golden rule of investing: never put in more money than the amount you are willing to lose. With that in mind, here are the safe tips that will help you do so safely, and securely.

• Have a few notebooks set aside specifically for storing passwords you use for your cryptocurrency accounts. Never store passwords on mobile devices, online, on a laptop or desktop computer or any device connected to the internet. Store two paper notebooks in two separate locations. Preparedness will help you win in this game. Store one at home and the other in a P.O. box.

• Hackers who are trying to gain access to your exchange accounts aren’t peering over their computers at all hours of the night. They have programs working for them that randomly scramble numerical, character, and letter combinations for all types of potential passwords that people may use. Famous movie lines, biblical versus or your last name should automatically be ruled out. Instead use an idea that only you know, and keep it stored safely. It’s my experience that people encounter problems with hackers when they don’t put thought behind their codes.

• Make certain to start the cryptocurrency process with a secure computer that has malware, adware firewalls pre-installed to combat hackers attempting to gain access into your computer.

• Install a security on you mobile device as well. Keep your SIM card safe.

• Use a secure email address, preferably one used solely for your cryptocurrency investments. Proton mail is a wonderful option to help with this.
• Download two-factor authentication apps onto your phone for extra security. Codes are scrambled every 20 seconds and unless the hacker has your phone at that exact time. This prevents hackers from accessing account info.
• Record detailed notes and instructions for your loved ones should something happen to you. Think about including your crypto-investments in your will.
• Access coinbase website. Fill in your first name, last name and complete the necessary steps all the way until the website prompts you to verify your identity. Using your email, follow the instructions until complete.

What’s in your wallet?

Connect your bank account to link to your coinbase account. Complete all the two-step verification processes until complete. Store your investments on a cold copy hardware wallet as leaving your bitcoin on coinbase can be risky. Consider purchasing a ledger nano s. Now you can transfer your funds to and from your wallet.

Happy investing.

Nattaproblem