This Ocean is Full of Pirates
Beware of scams that lurk in the cryptocurrency market
Ever since I started investing in crypto, I’ve watched the party grow.
The last six months in particular have been nothing short of crazy. Take a weak US economy, a swath of post-pandemic anxiety, a sprinkle of mercurial billionaire, and a dab of in-the-moment tech. Mix it all with the natural desire Americans have to get rich. It all creates a frothy brew.
Boy is that froth thick.
Right now, I’m going to throw some cold water on the frenzy. Someone has to do it—and that someone is me.
Whatever you’re doing in crypto, and no matter how much money you have invested, you need to keep one thing top of mind: the pirates are everywhere. Scams, shady accounts, and criminality lurk. Any place where people are getting rich often attracts people looking to capitalize on the moment.
Did someone say Jack Sparrow? He’d love crypto.
Please prioritize your own security. Do it today. Two-factor authentication is important for a crypto wallet. It’s never a good idea to keep a large amount of money on any exchange. Don’t give your wallet address to people you don’t know. Don’t send crypto to someone promising to give you double or triple that amount back in some kind of shady swap. Don’t let people know how much crypto you have at any given time. Be wary of giveaways and air drops. Don’t click on links you don’t recognize.
Above all, remember this adage: Not your keys, not your coins.
To be clear, wherever you are storing your crypto, you want to do it in a wallet where you have a private key, and only you know know it. I’m not talking about a spot with a basic password. I’m talking about a private key that has 10-20 wallet specific phrases.
In fact, I’d even go a step further— split your crypto into several wallets, all of which have their own private keys. Once the balances grow into amounts that would make you feel sick to lose, you’ll want to take a hard look at cold storage for them—that means currency storage in wallets that are locked away from the internet.
Never can be too safe.
These are just a few thoughts on security, and there are many other aspects to consider. Still, I hope they’ve gotten this wheel turning for you. Security is paramount. You’re swimming in a big ocean now, and you need to protect yourself.
Jack Sparrow awaits…
The Crypto Connection is for entertainment purposes only and is not meant to be financial advice. Please do your own research before investing in any asset class. Sara Celi is not a financial advisor, and holds several cryptocurrencies. To purchase her books on Amazon, please click here.