“Hey Genesis, I have a problem…”
This is how a conversation started with a friend of Genesis. He went on to say, “I bought bitcoin a while ago but I don’t know where it is… Can you help me find it?”
Remembering where your cryptocurrency is kept can be difficult – the places we buy crypto are often outside the traditional banking system we’re used to. In fact, members of Genesis have been known to “discover” crypto they bought a long time ago and forgot about.
So, this led us to think about what you should do when placing your first crypto trade.
Document Your Trade
By now, you should have picked an exchange and connected a payment method to fund your account.
Most exchanges allow you to purchase the cryptocurrency directly with a wire or ACH transfer. This makes it easy to fund your account.
And every exchange will allow us to buy Bitcoin and Ethereum. But the problems start when trying to buy altcoins.
Not every exchange has every altcoin. That means you’ll have to create an account at multiple exchanges. And things get even more complicated once you start staking coins or setting up wallets to collect rewards.
Take it from seasoned pros, it is impossible to remember where you have all your coins.
The number one thing you must do when trading crypto is to document where you purchase and store all your cryptocurrencies.
One of our founding members uses the Delta app to track his cryptocurrencies. Right now that app will take in information from 24 different exchanges and 14 different wallets. This is a great, free app to track where all your crypto is held.
Another member needs more than just that. He stakes his cryptos and also does liquidity providing and yield farming on several different blockchains. These are more advanced techniques that can create an incredible yield on our investment (often over 25%, sometimes over 100%).
He uses a spreadsheet to track each exchange and blockchain he uses. Currently his spreadsheet tracks crypto in over 50 different places.
It Sounds Simple…
As simple as it sounds, writing down where you hold crypto is the best thing you can do to avoid losing your crypto.
With crypto, each person takes their financial health into their own hands. You are responsible for the security of your coins.
It’s empowering to control your own financial destiny. But with this power comes personal responsibility. If you lose your cryptocurrency, there’s no help desk to call. You are on your own.
But we’ve never lost any of our crypto… that we know of. With careful record keeping and security measures in place, you can be confident your crypto will be safe.