Let’s talk about Crypto (Crypto-Currency)

With the rapidly growing sector of Crypto, we wanted to take a moment to talk about this emerging technology, scams and things you can do to protect yourself and the assets that you choose to buy, should you buy them.

First off, what is Crypto or Crypto-Currency:

Cryptocurrency, sometimes called crypto-currency or crypto, is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies don't have a central issuing or regulating authority, instead using a decentralized system to record transactions and issue new units.

Many people choose to purchase their Crypto on an exchange such as Coinbase, Binance, Uphold, Crypto.com or other mainstream, readily available platform. These purchases can also be made now through Venmo and Paypal.

With the rapid and easy transfer of these assets from one exchange or wallet to another, it makes these assets highly susceptible to scammers requesting them as payment.

Here are some things that you can do to ensure that your assets are protected:

-Never send any Crypto to anyone you cannot verify is an actual person, exchange or retailer (some businesses accept crypto as payment).

-Be very cautious of any emails that you receive from an exchange claiming that they need you to log in to verify information. Many times, a scam email will ask for your credentials, and then take them to log into your account and take your assets.

-If you hold a wallet seed phrase (12-24 words), DO NOT send, share or store these on any computer or cloud hosted service. It is best to write them down and keep them in a safe stored location. No exchange will EVER ask you for your seed phrase, if you see this it is most likely a scam site, email or website.

-When storing Crypto for long periods of time, obtain what is called a “cold storage” solution (cold wallet) which is not connected to the internet. These can come in many forms such as a Nano Ledger, Ellipal or other wallet that can be found on your phone’s app store. Keeping your Crypto on an exchange is considered keeping them in a “hot wallet” which, if the exchange is hacked, can potentially lead to the loss of your assets. Always ensure you buy your cold storage solution directly from the maker. Some that are sold on other sites may contain malware pre-installed before you receive it.

-Always verify an address when sending any assets to a wallet or exchange and ensure that you include a memo tag if applicable (usually not required with self-custody wallets, ie. Cold wallets).

-It is recommended that you set a SIM PIN on your cell phone which only you know, this prevents a hacker or thief from cloning your phone and being able to obtain information to log into your account and take your assets. (Check with your provider on how to set a SIM PIN)

-If using a secondary application such as a two-factor authenticator (2FA), make sure that you have a backup or have the information for your 2FA should your device break or quit working, many exchanges will be able to help you get back into your account, but NO ONE can access your wallet but yourself or whomever has the 12-24 seed phrase.

Although some assets can be recovered if stolen, many times they cannot be due to the speed, nature and ability to “mix” exchanges and assets. Therefore, we wanted to take the proactive measure to talk about this and give some recommendations as to how to protect yourself.

Nothing in this article is meant to be financial or investment advice, and we recommend that you talk with your financial advisor to decide what is best for you.