7 things we think you should know before your first investment in crypto
1. It is crucial to research what crypto is and why does it exist. It is even more important to understand that crypto is about decentralising financial control, design, and settlement of money. Most of us have probably been annoyed by an overdraft charge, the fact that the bank was closed on weekends or upset when you had to pay a lot to transfer your money from one bank account to the other. If you find yourself being one of those people, then it is time to invest time in understanding how crypto works. You can be your bank, and with our trading app, you can easily purchase or sell crypto as you wish.
2. Being unbanked is still a massive problem in the world. Around 1.7 billion people do not have the luxury of having a bank account; however, most of them own a smartphone; they can download a mobile app and crypto wallet too.
3. There are many cryptocurrencies currently available. It is very important to understand the difference between them and their use. DYOR is a frequent expression used in the crypto world, and it stands for "do your research". The largest and most well known is called Bitcoin. It has a limited supply of 21 million and is currently leading the so-called crypto "revolution". While the price of bitcoin at the time of writing sits around 8.000 EUR per Bitcoin, you can own a fraction of it, just as if you had EUR cents.
4. People buy crypto as they want to diversify their investments and they consider crypto a new asset class. Others use it on day to day basis, to make payments - either for coffee or cross border. As low-most cryptocurrencies use peer to peer networks, which are very fast in confirming and settling transactions, crypto is especially useful to use when buying things on the internet or in long-distance payments. Just consider the cost and speed of the SWIFT network as opposed to near-instant, low-cost crypto transactions.
5. Cash is king, is a statement of the past. Just look in the case of Venezuela in 2020, when their national currency is worthless. Another aspect would be the Covid-19 pandemic, where digital - contactless transactions are preferred. If you're afraid of the volatility that cryptocurrencies posses, you can always opt-in to buy stable coins, which are correlated with national currencies, such as the US dollar. These also use the same peer to peer networks and can be used to settle transactions.
6. There is this simple concept - "not your keys, not your crypto". When you purchase crypto and hold it on the exchange, you leave it in their custody. If you have a large amount of crypto it is always recommended to store it in a non-custodial wallet, to which you and only you have access to, and you own the private keys. Storing the keys and the backup phrase is of the utmost importance as it could result in total loss of your funds if you lost both, keys and the recovery phrase. For a day to day traders and people owning smaller amounts, custodial wallets are much more useful and sufficiently secure. There are
7. It is very important to use a strong and unique password to secure your trading account.
Additionally, we highly recommend setting up and using 2-factor authentication, 2FA to prevent your account from being accessed by someone who might have stolen your credentials.
You will also hear people say that they went down the rabbit hole when they started to educate themselves about crypto. There are many exciting things and aspects, and by educating yourself, you will join millions who are now participating in a more efficient and transparent financial system.