Your MoneySmart x Luno Discover Starter Pack
Just like ensuring you’re well-suited up and that your spaceship is well-maintained, having healthy crypto habits could make all the difference for a safer and smoother journey through the Crypto Galaxy.
Stay informed and up to date with major headlines in the crypto space. As they say, knowledge is power and it’s truly so for the Crypto Verse! Take your time to research a cryptocurrency project thoroughly before going in — a rule of thumb is, the higher the risk involved, the more research you should do. This helps to reduce your exposure to risk due to any misinformation or a lack of information.
Just like how you need to plot the route before flying there on your spaceship, it’s important to:
• Read whitepapers and roadmaps of a crypto project
• Check out the stats
— is adoption increasing?
— Are they still working on new developments?
• Background check
— How do the credentials look?
— What's the press saying?
• Choose reputable coins.
No matter what you invest in, it’s good to have sound investing practices. This means ensuring your portfolio is well-diversified — don’t put all your eggs in one basket — and limit volatile investments such as crypto to a small percentage % of your total portfolio. You might even consider dollar cost averaging in small monthly amounts to avoid plonking in a big lump sum from the get-go to manage your volatility risks.
Just like how you do your own research before investing, it’s important to pick a platform that has been given the green light after being under the Monetary Authority of Singapore’s scrutiny and has strong credentials. The platform you choose should also offer strong consumer protection, security and compliance measures.
Security should be a key priority with any form of financial transaction, be it online or offline. One healthy crypto habit to have is to store your crypto securely. Think of your crypto wallet as a one-way postbox — people can put things into the slot (public key), but only you have the key to take things out (private key).
You wouldn’t want random people to break into your house, right? So it’s important to keep your private key, well, private. Keeping it on your computer isn’t private either: This is like leaving your house key under your doormat.
A hot wallet is more convenient to access (for you as well as unauthorised people) as it’s stored online, but encryption alone is not a failsafe. That’s why a cold wallet — which is physical and offline — is the more secure choice. One example is a USB device that stores your private keys and can be plugged into your computer when you need to do your crypto trades.Difference between hot & cold wallet
Some crypto investors go to
the extent of putting their cold
wallets and seed phrases in a
fire-safe capsule for maximum safety!
What happens if your cold wallet is lost, stolen or damaged? As long as you keep your private keys safe — you can always order a new wallet, input your recovery phrase to it and this will move your coins to the new device! Even if your device is stolen — it requires a password to access your tokens on it directly, resulting in a low chance of your cryptocurrency being taken away from you.
Last but not least, always check, double-check AND triple-check
before connecting your crypto wallet or making any crypto transactions. ALWAYS check website addresses, and keep your eyes peeled for scams. This also helps to avoid common human errors such as transferring crypto to the wrong person…OOPS.