The security and management of our crypto funds

When we require security for something, it is for two things: 1. It is truly valuable and important to us and to others; and 2. It is coveted and desired by others.

And the proof of this is what happens in the crypto world, because despite the fact that when we own and manage cryptocurrencies we have a technology of an encrypted nature, it is true that many factors influence the security of our crypto funds, and it is our responsibility to be aware of everything related to the subject.

We all know that the technology that sustains cryptocurrencies and all that they imply, is the blockchain, a complex and systematic decentralized network that is responsible for verifying many things related to the cryptographic transactions that are carried out day after day.

On an essential level, when making a cryptographic transaction, the blockchain must verify that our funds exist, that they come from somewhere and that when we transfer them, they leave our power. Because as with fiat money, if I only have a $ 10 bill in my pocket and buy an ice cream for $ 10, the same $ 10 cannot exist in my pocket, because I already spent its, that is, that money did out of my pocket and now are in the person' pocket who did sell me the ice cream.

Responsibility for safety

While it is true that the ability to avoid double spending, 51% attacks, etc., belongs to the blockchains projects through their mechanisms of consensus and operation, it is also true that we, crypto users, are concerned with being well informed about the security issue of all blockchain projects of our interest.

Because once, as users of a certain cryptocurrency, we know its strengths and weaknesses at an operational and security level, our next concern is how to protect our crypto funds?

I mean, should we buy a Nano Wallet or a Trezor? Is it better to keep our funds in a cold wallet or a hot wallet? These are important decisions that cryptocurrency users must face every day.

Because with cryptocurrencies comes the freedom to see and understand that we are our own bank and that it is our responsibility to adequately protect said funds, because cryptocurrencies are a means of value, a form of payment, and therefore, they are worth money.

So in the midst of these considerations, the fact of who actually has the keys to our wallets becomes even more important... Because in the event that we hold all of our crypto funds on one exchange, it will be that exchange who actually own the keys of our money, with the risks that such a procedure may entail.

So, in such a case, some of the advantages of trading cryptocurrencies are nullified, because we do not have our keys. However, do not misunderstand what I am saying, because I clarify, I am not saying that the exchanges are insecure, because it really is not like that, in fact, I think that today most of the cryptocurrency exchanges are very safe; what I am saying is that we must be very aware that when we put our funds in the hands of an exchange, the keys of said funds will be in the hands of said exchange.

But if we want to maintain full control of our crypto funds, we will look for alternatives such as coldwallets, or hardware wallets, that allow us to have a stricter control over most of our cryptocurrencies.

But exchanges are where cryptocurrencies are traded

True, centralized and decentralized exchanges are where cryptocurrency trading takes place, therefore we must always keep crypto funds there.

But remember that I am not talking about not using exchanges, but about knowing how to use them, about not having all our crypto funds in any one in particular, but distributed proportionally between exchanges and external Wallets under our total control. Let me explain, in my case, I have approximately a third of my crypto capital in exchanges, the rest I have in cold wallets.

With that 33.33% of my capital that I have in the exchanges, I trade daily, and when I have a percentage of crypto that exceeds 40% of my capital, I withdraw the remainder and leave the same 33.33% again. Of course, this is not investment or management advice for anyone, everyone should know what they do with their own money; But if you think about it, what I am talking about here is the risk management that you must do in terms of mobilizing and holding your funds.

The important thing is to be fully aware of what we are doing, that is, not to play with our money or with our luck, we must not take risks in an unconscious or careless way, we must not do anything by chance, we must to plan everything carefully, due to that every action we take with our cryptocurrencies is important, so let's always be clear on all of these things.
See you again!!!!!!!!!

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