Itâs done! Youâve bought your first cryptocurrency. But what comes next?
Crypto assets are digital money that exists on the blockchain, and that concept takes some getting used to. Letâs take a deep dive into the finer points of owning crypto, so you can get comfortable with your new coins and tokens.
WHAT DOES IT MEAN TO OWN CRYPTO?
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When you buy crypto, what you really own is an address on the blockchain, and the private keys (cryptographic code) that control that address. The blockchain itself keeps track of how many coins or tokens are in that address at a given moment.
Your coins are not in any sort of account: they exist on the blockchain, and are managed solely by you. This means that it is your responsibility to ensure they remain truly and safely yours.
This first step is about learning some cryptocurrency foundations and aspects, so that you understand why they need âspecial attentionâ in terms of security. As well as how to leverage them to achieve financial freedom.
âCRYPTO MEANS BEING YOUR OWN BANKâ
The purpose of cryptocurrency is to provide you with freedom and control over your assets. And as the dear Peter Parker so aptly put it: âWith great power comes great responsibilityâ.
Once a transaction has been made on the blockchain, there is no turning back. This means you are the only one in charge to secure your crypto assets, as well as the only responsible for the decisions you will make.
Being aware of this, the first thing to understand is that buying crypto assets doesnât mean physically owning the coins. Because digital money is not tangible and does not exist physically. What you really own instead is called a âprivate keyâ. And this is precisely what you need to protect.
Understanding what the private key is all about and how cryptocurrencies work will help you grasp the rules of thumb that will help you secure your crypto assets.
