How to Safely Use Cryptocurrency

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Written by Michael Foote, founder of Quote Goat, has over 13 years experience working in the finance, insurance and currency sectors.

Cryptocurrencies are taking over the world! Well, perhaps not quite yet, but there are a significant number of companies and industries that are actively promoting the use of digital currencies among their customers and clients. And with the public interest in crypto at an all-time high, it won’t be too long before we’re using Bitcoin et al. for our everyday needs. But before that day comes, you might want to create some good habits to keep your money safe and secure.

Keep Your Private Key Private

The clue is in the name — your private key should always remain private. This key is the lock that protects your currency, and once you keep it safe, you don’t have to worry.

Always Use Your Wallet

Some people like to store their coins in an exchange or use a wallet provided by the exchange. For a higher level of security, you should use your hardware or paper wallet. A paper wallet is when you print out all your private keys and information on paper and keep it in a safe place. It’s smart because it’s offline and you know where it is at all times.

A hardware wallet is a wallet that stores your keys and that you can access through a USB port on your computer. Like a paper wallet, this keeps your currency safe as it is offline most of the time, and you only plug it in when you need to use it.

Store Small Amounts on Wallet Apps

A wallet app is a convenient way to access your funds quickly, and for small purchases, they are an excellent idea. However, to keep better track of your funds, it’s advisable to keep smaller amounts in the app.

The reason for this is that like PayPal or debit cards, sometimes it’s easy to lose track of the money that you are spending. By keeping smaller amounts on any apps that are for everyday use, you can keep your budget under control and know how much should be in your account at any one time.

Use Industry-Specific Coins

Cryptocurrencies are so popular now that there are hundreds of them available, and while this might seem a little confusing, it’s a good thing. A move toward using industry-specific coins allows us to have a better understanding of how much we should pay for a service or product, and it often makes the entire payment process a much quicker and more convenient experience.

For example, if you would like to use your cryptocurrency to play poker online, a good idea would be to find a provider that uses a coin specific to the platform. Take CoinPoker, for instance. This innovative poker platform is built on blockchain technology, and players can only play using a dedicated coin called Chips (CHP). Not only is this a more convenient method of accepting payment for the provider but it also offers users that extra layer of security.

Leave Your Main Funds at Home

Or at least in a safe place like a safety deposit box at the bank. While your hardware wallet may be as safe as houses, you don’t want to lose it while running for that taxi. The fact is that we never carry around thousands of dollars in cash, so why would you carry around all your cryptocurrency?

As we mentioned earlier, that wallet app on your phone is excellent for small purchases, so have that with you at all times. The chances are that should you want to make a significant purchase, you will plan ahead for the event. It’s unlikely that you’ll buy a house or a car on the way to the office. So, keep your main funds at home or in a safe as you would with your real cash.

If you are already using cryptocurrencies, then it’s a good idea to get into these habits now. Using a hardware wallet, storing small amounts in wallet apps and even using industry-specific coins are all excellent habits to have. So, make them part and parcel your everyday use of digital currency, and your money will be in safe hands.

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