Staying Safe In The World Of Crypto

In the world of crypto, you are responsible for protecting yourself.

Before diving into the world of blockchain technology, it's important that you know how to keep your assets safe.

Risk management is the practice of taking steps to protect valuable assets from foreseeable dangers. Any action undertaken in the service of protecting an asset is a form of risk management.

Despite its digital nature, risk management practices in the world of crypto are similar to those practiced in the world of cash.

With cash, having self-custody of your cash means you have physical possession of the bills or coins instead of having them in a bank. This allows you to transact seamlessly in person with anybody that accepts that currency.

Similarly, crypto that is held in a blockchain wallet is considered to be held in self-custody. Assets within that blockchain wallet can be sent and received seamlessly with anyone else on the same blockchain network.

The similarities don't end there, but they do drift a bit. There are three major areas of risk:

• Self-Custody Risks

• Social Manipulation Risks

• Custodial Service Risks

The next two sections break down examples of these risks for both cash and crypto to show their similarities. Afterwards, I go over some basic safety practices