Fact: 23.7% (fact-check and source) of all U.S. dollars in circulation have been printed in the past year.
The cryptocurrency space started as a reaction to the Governments constant printing of FIAT currencies, diluting the supply of existing money adding a hidden TAX for everyone holding that currency
Now 12 years after the birth of Bitcoin things has grown larger and big investment firms are also dipping their toes into this volatile space of freedom and with them, the average Joe follows.
So what does the average Joe need to know before investing in cryptocurrency?
When you decide to get your first crypto you might start by buying on Coinbase, Kraken, Gemini or another famous centralized exchange.
These are exchanges have been approved to sell crypto to users in exchange for FIAT currencies.
But holding the coins on those exchanges you will soon learn, is not something people in the space are recommending.
Not your keys, not your coins
Instead, you will learn that most people in the space are advocates of holding their crypto themselves.
Meaning, downloading a wallet and setting it up. Then send the coins from the exchange to your own wallet, which you control.
Upon creating the wallet you will be given either a PrivateKey or a seed phrase
A private key could look something like this:
And a seed phrase would instead be a 12–24 list of words like this:
witch collapse practice feed shame open despair creek road again ice least
Most wallets are today using seed phrases as these are more human friendly.
The importance of a seed phrase or private keys.
This is now your key to unlock the wallet containing your crypto
There is no insurance or anyone who can help you if you lost your seed phrase. That is your personal responsibility to keep safe.
So if you were to lose the words, no one can help you to recover them.
And if you would give them away to someone, you are giving that person the precisely same access to your wallet as you have. He can simply input those words into his own wallet, and take all your crypto.
How to store your seed phrase accurately.
The simple and short answer is, On paper!
Write down your words on a paper, make a copy in case something happens to the first one. And store them in 2 different safe locations
Paper is un-hackable, So do not take a picture of it,
or print the phrase out with your printer.
Write them down on paper and keep them away from anything digital.
Because of the seed phrases being of such importance, companies have created Hardware wallets.
Even if there are other places to get these from that might be closer to your location, I recommend ordering from the companies websites.
Now you have the foundation for navigating in the crypto space comfortably
Because of the nature of crypto, only needing the seed phrase to control the funds. You will meet people in chats and forums who are going to try to get those words from you.
And the only way they will. Is if you give them away.
No admin or support of any kind of project will ever need those words to be able to support you.
So if someone calling himself a support member, Admin or something else fancy asks you for your words, or sends you to a website requiring you to enter the words.
You can be certain that he is a scammer trying to fool you into giving your crypto away
Not your keys, not your coins