One of the most liberating features of cryptocurrencies is that wherever you are in the world, regardless of your social, political or economic status, as long as you are able to access the internet (on a computer, smart phone or in an internet cafe) you can discover, trade, buy, sell, send, and exchange cryptocurrencies. There is no need to have a bank account at a brick and mortar bank or even have identification. Cryptocurrencies are peer-to-peer networks that seek to remove as many barriers to entry as possible. This can be seen as one of cryptocurrencies biggest strengths but also one of its biggest weaknesses. Because there is “trusted central authority” overseeing transactions in Bitcoin and many other cryptocurrencies, there is no one to turn to for help or when errors occur. It is possible (and has happened many times) that entire accounts containing valuable cryptocurrency can be misdirected, stolen and/or lost forever with no chance of recovery. Sometimes these losses can be the work of criminal organizations, while other times the losses can be the result of human error or oversight. Because cryptocurrencies lack the consumer protections that we have come to take for granted in many of our other financial dealings, we recommend that investors not put large amounts of money into cryptocurrency until they have familiarized themselves with the unique features of the asset class and fully understand ways to avoid the most common cryptocurrency mistakes. We have published this guide to share some of the best practices that we implement at Escomax Trading Investment Company and recommend anyone investing in cryptocurrencies on their own to also implement.
Check out the Escomax Trading Investment Company Ltd Guide to Secure Cryptocurrency Investing.
We believe that learning how to buy, sell and trade cryptocurrencies is important for all investors. We encourage all of our clients and prospects to open an account with a US-based cryptocurrency exchange (Coinbase, Bittrex and Gemini are the largest three) as part of their individual crypto learning process. Just as understanding how to trade stocks and having experience doing so helps make us better investors and more informed about when it’s appropriate to work with a Financial Advisor or to utilize an equity manager (like a mutual fund manager), the same is true for digital asset investing.