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If you have decided to dive into the world of crypto but still don’t know where to start on this exciting journey, we, the Crypto Neobank Trustee team, have prepared for you some tips to keep in mind when choosing a cryptocurrency wallet. Here they are!
First, decide which cryptocurrencies you would like to start investing in. If this is not a short-term hobby for you and you are serious about it, take time for a basic study of cryptocurrencies.
Find out about the core cryptocurrencies, the most popular and time-tested digital assets, such as Bitcoin and Ethereum, and don’t forget about stablecoins. This knowledge will give you a rough idea of which cryptocurrency you could start investing in.
Probably everyone involved in cryptocurrency has been seduced at least once in their life and experienced FOMO
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If you are considering investing in such digital assets as a fast way to earn money, it is important to focus on choosing a reliable coin that, at the very least, has its own wallet and ecosystem rather than finding a platform for operating assets.
A few words about the amount of money you need to start conquering the world of cryptocurrencies. Figure out how much money you are willing to invest in a venture, or even to lose. Don’t invest a lot right away in experiments with uncertain results. After all, crypto is a high-risk investment tool. Any professional market participant will tell you that.
However, investing a little bit at a time is not an option either. In this case, you risk reaching the “it’s hard to understand” point sooner than you expect, though the hope of income or fear of losing money will keep you from giving up too early.
Finally, back to the question of how to choose the right tool to start using cryptocurrencies. There are two main points.
With non-custodial wallets
The seed phrase is a set of random words (12 to 24 words) needed to access the wallet. This phrase is available only to the user because it is generated locally on his device when installing the wallet. It cannot be hacked; it is encrypted in such a secure way that it would take an incredible amount of time and processing power to hack it.
Thus, a non-custodial wallet is actually securely protected by your seed phrase, unless you lose it or open it to third parties. But if you lose it, you lose your funds forever. Read more about where to store and not store your seed phrase here.
If you do not want to carry this burden and decide to use a custodial wallet, you will have to accept the fact that your assets will be managed by third parties. Then you’ll be sure that, in case of a problem, you’ll get help from technical support, assuming you’ve chosen the right platform, of course.
If you are not a newbie to programming but have no experience with cryptocurrency yet, check the open-source code of the wallet you want to use. Or at least read expert reviews and/or security audits.
Reputable projects don’t hide what’s under the hood and open source their code so everyone can check it out and improve.
Let’s fix all the points we’ve learned:
A really important point. In order to avoid screwing up and becoming a victim of a scam, choose a service with a high reputation in the crypto community, a clear website with all necessary documents, a transparent team, an available office, and a functioning legal field. One of the best tools to meet these requirements is Crypto Neobank Trustee Plus, which is authorized as a Virtual Asset Service Provider in Europe.
Anyway, be daring, start trying new things, and the world will offer you surprising options for financial freedom. Good luck!
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