A Guide To Your First Cryptocurrency Investment

Investing in cryptocurrency is not as complicated as it once was. Back in the earlier days, we used seedy exchanges and a wish and prayer to move crypto around the internet. Now, purchasing and storing digital currencies is as simple as a few easy, safe steps. In fact, if you’ve ever set up an online account for — well, just about anything — congratulations, you have all the skills required to make crypto investments.

Before we explore how it’s important to understand the basics — wallets and exchanges.

Wallets and Custody

Wallets don’t actually store your currencies — that’s done on the blockchain — but rather, your private keys. Private keys are how you control your crypto. If you want to buy, sell, trade, or otherwise move your assets, you need access to your wallet. Losing your private keys means losing access to your money. Sound bad? Just ask these people.

Storage and custody are other wallet-related terms. You’ll see them used in contexts of ‘cold storage’, ‘self-custody’, or ‘custodial’. At the crux of it, these inter-related concepts are all referring to where and how you store your private keys. Wallet storage solutions span across three categories:

1. Paper Wallets

Keys are written/printed on a piece of paper. The juxtaposition of keeping your digital money safe via such a rudimentary process is not without merit. Primarily, the advantage of using the ‘real world’ is that your…