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By Zach — 6 years ago
I have been spending a great deal of time helping people understand how the bitcoin protocol and blockchain protocol work and why it was brought into existence. There is a lot of FOMO (fear of missing out) going around and the first thing people do is panic when they see $2,000-$3,000 price swings in bitcoin as of late and their emotions get the best of them. It happens to everyone.
It helped me realize that most people unfortunately have no idea what they have bought and how normal market cycles work. It is no different from the traditional Wall Street markets. At any rate, we have been seeing an exceeding number of cases in the news indicating several growing pains for Coinbase, and other U.S. exchanges. People’s money is held in limbo for several days at a time and they are treating it like a bank account. Let me be perfectly clear. Cryptocurrency is NOT like the traditional banking system.
With a bank such as Wells Fargo or Chase, you are protected with the money you deposit under FDIC insurance. If there is fraud, or any error with your accounts, you can go to a local branch or call the 800 number on the back of your card to get it sorted out. You (in most cases) will be made whole again because it is regulated by the government.
Cryptocurrency is the exact opposite. If you lose your money, it gets stolen, or you lose your private keys, that’s it! It’s gone, and there is no getting it back. There is no central authority you can call or a branch you can go to and get your money back in your control. That’s why it is CRUCIAL to take responsibility of your bitcoin and other crypto assets and maintain control. So how do I do that?
In the event that bitcoin crashes or there is a record number of people that try and “Panic Sell”, say for instance, on Coinbase. The likelihood of a company of that size seeing all that money run out the door is unlikely. It’s their website, they can shut it down whenever they want and THEY are in control of your crypto, not you.
One of my friends has been having several issues with gaining access, getting help, and trying to understand how to manage his assets using Coinbase. That’s terrifying for me. There currently is no panic or negative market sentiment for Bitcoin as of this writing. If Coinbase is having issues now….I don’t want to be one of the people who get stuck in the herd trying to withdraw their money.
You need to take control of your own money, your own Bitcoin, Litecoin, Ethereum, etc… With a trusted hardware wallet (such as the ones we offer through this website), you take your funds and store it on a piece of secure hardware that is offline and physically in your possession. Because it is offline, it has ZERO chance of getting hacked, stolen, or shut down from a central authority.
People always ask me, “When should I get a hardware wallet?” The moment you spend any amount of money on crypto that you cannot afford to lose, you need a hardware wallet. That can mean different things to different people, depending on your risk threshold, but understanding that leaving your funds anywhere online is not in your control, is the point I am trying to get across. Most people do not understand that until it is explained to them.
I encourage any crypto investors, traders, or speculators to take control of your cryptocurrency and get a hardware wallet to make sure you are protected and secured. With so much in this life that is outside of our control, it’s good to know that you have the ability to make sure your financials are secured in your own tiny bank.
If you have any comments, questions, or concerns, you can fill out the contact form linked above, or send an email directly to our team at [email protected]. I would love to hear any feedback you may have.
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