Part 2 / 2
Don’t Worry

Getting started in crypto presents newbs (yeah you) with an unfamiliar situation. It’s one that involves some risk. If the alarm bells are ringing, don’t ignore them. Understand is risk and you will have nothing to worry about. Most people (including me back in 2018) will make mistakes if they don’t understand risk and fail to account for it. 

Managing a risk (in this case crypto) is not hard once you understand it.

Get ready to move forward with confidence.

The only time you lose – is when you don’t learn from your experience.

– Chuck Norris

 

Our Loss is Your Gain. 

First, let’s get something important out of the way – we’ve been through the worst of it. Some of us lost a sizeable percentage of our crypto holdings in the QuadrigaCX fiasco that happened in Canada a few years ago. It’s always going to be painful to admit this.

Some of us have lost funds because an IT person had access to a password stored on a server. We’ve even had hardware wallets and books of handwritten passwords go missing.

All of these things are just as bad as you’d think they’d be or maybe worse. But here’s the takeaway, it is not going to happen again. 

I’m not worried. None of us are worried that this could  happen again. Now that we understand ownership and storage, there’s no good reason to be exposed to these kind of risks. Loss and theft are preventable.

 

Three evolutions that anyone getting started in crypto must go through.

Let’s address a few of the most common fears and concerns; let’s clarify the risks.

Here are the most frequently asked questions we get from people considering buying their very first cryptos. It’s usually a phone call or email from a family member or colleague. 

See if any of these sound familiar.

 

I’m not quite ready to “Be My Own Bank".

Ok. Fair enough.

Being your own bank is another way of saying you have self-custody of your assets. It means taking responsibility instead of having someone else taking care of everything for you.

You can still buy and store all your crypto on a centralized exchange if it makes you more comfortable. The crypto exchange will be your custodian in this case.

  • There are plenty of options:
    CoinBase
  • Gemini
  • Crypto.com
  • Shakepay
  • Newton

The bottom line:
Owning and managing your crypto is going to involve a bit more effort. We think this can be much more rewarding (and more secure).

 

 

Everything is really all up to me?

Yes. This is mostly true.

With great power comes great responsibility.

You’re not going to be editing source code or launching NFT collections to begin with. Buying and storing crypto simply comes down to managing passwords and using the right tools.

It’s going to be fine.

 

If anything goes wrong it’ll be all my fault because of something I didn’t quite understand at the time.

This is possible, but it’s highly unlikely.

First of all, you’re reading this (high five emoji). If you continue with our step by step approach you’ll understand the important concepts right from the beginning.

You’ll be way ahead of the people who don’t take the time grasp these key concepts. People like me back in 2016 for example.

Going through these first 4 Basics Guides will ensure that you’re doing all the right things in the right order.

When you make decisions they’ll be well informed.

Keep on reading.

 

Could I lose everything by losing my phone or forgetting my password?

Not likely. If you have a Recovery or Seed Phrase stored securely you can always recover everything.

If you have the recovery or seed phrase somewhere safe, like in a safe, it doesn’t matter if your phone ends up at the bottom of the lake. You’ll just get a new one and sign in again.

You are’t worried about losing your email account in this situation are you? Of course not. Now it’s not exactly same thing but it’s definitely a reasonable comparison.

Just take your time. Be patient. Set things up properly.

Ask questions and do research. With a little planning you will never have a single point of failure, and none of your crypto will ever be lost.

Password management and security is an important topic.  We’ll cover in detail soon enough.

 

If my passwords were discovered or lost, I'd lose everything.

True! Getting this right is up to you.

It depends completely on how well you store your passwords and how careful you are.

You can (and will) implement the best security practices from the very beginning. and you won’t need to worry about thieves, scammers, or getting pushed into the pool while checking the CoinMarketCap ticker.

Consider:

  • You can use a Password Manager app to store long and highly secure passwords. Also, your phone/laptop has a PIN or biometric unlock (face, fingerprint).
  • Your crypto wallet also has a PIN or biometric unlock.
  • To send funds from your crypto wallet can require a Two Factor Authentication (2FA) code which means a temporary password is generated and required to authorize any sending transactions.
  • Even a thief, or someone who finds your unlocked phone, would still need all of these things, before they can spend or send any of your crypto.
  • A thief essentially needs your active cooperation (in other words something more like a physical attack).
  • Don’t brag about crypto and no one will think to target you.

As mentioned previously, if you ever did lose your phone or hardware wallet you can always restore it with your Recovery Phrase. Another topic we’ll cover in detail.

 

I don’t have the time or energy to be a day trader and react to these sudden market changes.

Most people don’t and they don’t need to.

You can always just simply buy and store crypto and not think even about it. We like to call this HODL mode.

You do not need to focus all your attention on analyzing 24 hr charts and trying to perfectly time trades. It’s nt good for you and often people chase trends when they should have just waited it out a week or so.

Crypto is very volatile compared to the traditional stock market but if you zoom out a few months or years – the number tends to go up.

Don’t try to pick the obscure meme coin and invest more than you can afford in the hopes it’ll make you rich over night. It’s not going to work like that. Invest what you can afford. Do your research. Be patient.

As you learn more about investing, you might want to become more active. Thats’s great if that’s you, but it isn’t necessary.

 

I’ve missed my chance to get into crypto sooner. If I’d done it back when I first thought about doing it…

Sure. Nobody cares about something you didn’t do.

You shouldn’t either.

Absolutely everyone can make the case that they could have bought more of crypto XX waaaay back when they first heard of it.

For example, I could have easily bought this neon green Lambo if I’d just bought a few Bitcoins back in 2015.

It’s not like it didn’t think about it – I just didn’t do it!
Then again I could very easily have lost those BTC too.

The takeaway here is this:

Focus on the future. Nobody knows exactly where things are headed (including us) and we are not offering any financial advice. 

However, cryptocurrency appears very likely to grow and to continue to be adopted more and more widely.  

In our opinion, if you are investing in anything right now, how can you afford not to consider this asset class? Not investing in crypto is another genuine risk that is worth assessing.

If you’ve gotten this far congratulations.

Thanks for sticking with us. Hopefully you have a good sense of what crypto is and why it’s capturing so much attention. 

Next we’re going to walk through Buying Your First BTC. You’ll take dollars from your bank and exchange them for some Bitcoin.

By the way,  you don’t need to buy a whole entire Bitcoin. It’s not like a share in Apple or Tesla, you can buy a tiny little part of one Bitcoin to start off with.

Let’s go