According to research published this year by Mastercard, 51% of Latin Americans have completed at least one crypto transaction in the past 12 months, and more than a third of them used a stablecoin to make a payment. According to the same survey, 82% of respondents would like their banks to provide cryptocurrency-related services, and 77% would like to use more cryptocurrencies if they better understand how they work.
And now, banks are focusing on reaching the “crypto generation” in Latin America: Nubank, the largest fintech bank in the region, recently reported how one million of its clients started trading cryptocurrency in just three weeks since the launch of its crypto platform, outpacing its growth over the year. . Target! This means that users, whether experienced or novice, are increasingly turning to cryptocurrencies as an everyday investment tool, medium of exchange, inflation hedge, and store of value.
If you are a member of the “crypto generation” in Latin America, you might be surprised at the amount of information you receive, right? After all, encryption can be complex and full of novelty acronyms and buzzwords, but fortunately, staying secure doesn’t have to be so complicated.
First of all, it pays to keep these simple tips in mind, even before you make your first investment.
Use a trusted broker
The easiest and safest way to get into cryptocurrency for most investors is through a trusted brokerage. This means choosing a company that is recognizable, verifiable, transparent about its operations, and has a proven track record of safe trading. Not only does the broker offer the best investments – for example the most relevant pairs with the lowest commission; Although range and fees are key. A good broker should be able to offer advanced security measures such as multi-factor authentication and TRUST, as well as dispute resolution; Especially in the case of peer-to-peer transactions, which are made directly with other traders.
A major consideration when choosing a broker is the level of transparency offered; Reputable traders are interested in educating the market and sharing ideas, best practices, and experiences of others. Unlike the traditional financial market, cryptocurrencies remain a very community activity, and exchanges that offer training and education tools are more likely to build long-term relationships with their community than those that don’t.
Understanding the difference between a “cold wallet” and a “hot wallet”
For security reasons, it is important to understand the difference between these terms and the crypto world in particular, before you start trading. A “cold wallet” is basically a storage tool for your cryptocurrencies, and it’s offline, making hacking virtually impossible. A “hot wallet” is a way to store your cryptocurrency on a device that is connected to the internet and is therefore more vulnerable to attacks and theft.
Our broker adopts advanced hierarchical cold wallet system. This means that we have chosen one of the most secure “cold wallet” methods for trading and storing cryptocurrencies. Whichever broker you choose, make sure you have a cold wallet available as well as familiarity with moving assets in and out; It may seem complicated at first; But you will learn to trust and rely on your cold wallet in time!
Stay up to date with the latest hacks and scams
With any fast-growing, dynamic industry where a lot of money is involved, there are bound to be people who will try to take advantage of others. And while the world of crypto is very new, some of the most popular schemes are as old as money itself.
My team makes sure to keep our users updated with the latest hacking and attack news. However, there are some simple rules to follow in order to avoid many of the most common scams. It is likely that any websites or social media campaigns that look like a Ponzi or pyramid scheme. Anyone requesting that their password be sent or received directly may not have the best of intentions in mind.
But don’t rely solely on your brokerage; Do your research, check out trusted communities, and read the media. And remember, if something seems too good to be true, it almost certainly isn’t!
Always think twice before clicking
Once you make the transfer with cryptocurrency, it’s done. While we do our best to protect merchants, transfers once executed cannot be changed. So always think twice before clicking. FOMO (Fear of Missing Out), fads and fraud can lead to hasty decisions and huge expenses, so always remember to do your research before making any exchange, double check all information and only make your decision when you are absolutely sure, you won’t regret it. In fact, it is better to start with smaller investments, and therefore less risky.
Backup and update
Backing up any sensitive information is essential to make it easier to restore. Hackers also target outdated software, so it pays to keep your devices up to date. Also, it’s important to make sure your networks and internet footprints are secure, using a reputable VPN service, and avoid doing anything financially sensitive if you’re on public wifi.
In this way, much of the above is a kind of “cryptocurrency common sense”. But it will go a long way towards keeping the crypto generation in Latin America safe and sound.
Andre Silvestrini, Business Development Manager (Brazil) at Phemex.