Start With Crypto

7 steps to gain full control over your crypto

The 7 steps below describe how to take full custody of your cryptocurrencies. By following these steps, you'll gain complete control and ownership of your crypto assets, ensuring that no one can confiscate, block or restrict your access to them. This empowers you to reduce your reliance on banks or other financial institutions and to fully experience the freedom and independence that cryptocurrencies offer.

Step 1 – Appreciate the importance and benefits of cryptocurrencies

In an era where traditional financial institutions take more and more control over our money and transactions, cryptocurrencies offer a liberating alternative with a high level of financial autonomy. Here are some reasons to adopt cryptocurrencies:

Break free from the control by traditional financial systems
Cryptocurrencies operate outside the reach of banks and financial institutions, which often impose restrictions, freeze accounts or outright de-bank people, and invade on our privacy. By adopting cryptocurrencies and taking them in self-custody you gain control over your finances and reduce your exposure to the constraints and control imposed by centralized entities.
Opt-out of the debt-based monetary system
The current monetary system relies on continuous creation of money and debt which imposes a huge burden on societies worldwide. This system also leads to the devaluation of national currencies over time (inflation), forcing most people to work harder and longer to meet their basic needs. In contrast, various cryptocurrencies have a finite and transparent supply, offering a potential hedge against inflation and currency devaluation.
Cheap, fast and reliable transactions
Several cryptocurrencies enable transactions that are both inexpensive (near-zero fees) and very fast (completed within seconds), regardless of geographic location. This allows users to bypass traditional intermediaries and their associated costs.
Accessibility and convenience
Unlike the cumbersome process of opening a traditional bank account, getting started with cryptocurrencies is surprisingly straightforward. With just a few clicks you can download and install a crypto wallet and gain immediate access to a global financial network. No need to provide extensive documentation like proof of address or identity verification, no need to seek anyone’s approval or permission.
A “freedom alternative” to Central Bank Digital Currencies (CBDCs)
Various governments around the world are planning to introduce CBDCs where a central party has the power to freeze, restrict or confiscate funds. In contrast, many cryptocurrencies operate on decentralized networks that are not controlled by any single party, providing protection against such controls.

In conclusion, cryptocurrencies represent more than just a new form of digital currency; they provide a shift towards financial sovereignty. Cryptocurrencies offer people the possibility to liberate themselves from the constraints of traditional financial systems, gaining greater control over their finances and privacy.

Step 2 – Determine which crypto(s) you want to get

Selecting which cryptocurrency to adopt, hold or use depends on your goals. Here are some examples of factors to consider when deciding which cryptocurrencies align with your goals:

Decentralized store of value
The decentralized nature and finite supply of some cryptocurrencies, make them an attractive option for people looking to protect themselves from centralized control and inflation. Bitcoin is the primary choice of many people focused on long-term value preservation in a decentralized manner.
Anonymity and Privacy
Some cryptocurrencies are designed to offer a high level of anonymity and privacy in transactions. Monero is the preferred choice for many individuals seeking to keep their financial activities private.
Efficient Payments
Some cryptocurrencies facilitate very cheap and fast transactions, bypassing traditional financial intermediaries and their associated fees and restrictions. Especially in case of international transactions the reduction in costs and time can be substantial.
Investment Opportunity
Many people enter the crypto space with the expectation of high returns as the value of certain cryptocurrencies could increase over time. Of course cryptocurrency investments come with substantional risks, and it requires knowledge and experience to cope with them.
Use Case and Utility
Some cryptocurrencies offer practical utility beyond financial transactions. For example, Ethereum and Solana enable the creation of decentralized applications and smart contracts. To make use of those tools usually requires getting the associated crypto currency.

It takes research and understanding to make an informed decision about which crypto currencies align with your needs and goals.

Step 3 – Choose a crypto wallet

There are two important distinctions to be aware of regarding cryptocurrency wallets: self-custodial vs. custodial wallets and software/mobile wallets vs. hardware wallets.

Self-custodial wallets
Self-custodial wallets, also known as non-custodial wallets, give you full control over your cryptocurrency independent of centralized parties. Only you can access and manage your funds.
This offers the highest level of freedom but it also comes with greater responsibility. You must backup your wallet (see Step 4). If you lose access and haven’t backed it up properly, you won’t be able to recover your funds.
Custodial wallets or ETFs
If you view cryptocurrencies primarily as an investment and are comfortable with third parties holding your cryptocurrencies, custodial wallets are an option.
Examples include wallets provided by platforms like Coinbase or Binance. In this setup rely on external parties to safeguard and return your crypto, similar to how traditional bank manage your money. However, if the company holding your funds goes bankrupt – such as FTX, Celcius Network, BlockFi and Mt. Gox – you could lose some or all of your assets.

Another way to gain exposure to cryptocurrency prices without directly holding the crypto is by purchasing shares of an Exchange Traded Fund (ETF) that tracks a specific cryptocurrency like Bitcoin or Ethereum. This method also involves third-party control over the underlying assets.

The original ethos of cryptocurrencies emphasizes self-sovereignty through self-custodial wallets. AIthough it requires more effort to setup, it gives you independence from financial institutions, unlike custodial wallets.

For this reason at startwithcrypto.co we focus on self-custodial wallets. They come in different forms such as software wallets, mobile wallets and hardware wallets. Here’s a breakdown:

Software wallets
Software wallets are applications that you can install on a computer or laptop. They offer high convenience of use but slightly less security compared to hardware wallets. Software wallets are best suited for frequent transactions with smaller amounts of cryptocurrency. Examples include Exodus wallet and Trust wallet.
Mobile wallets
Mobile wallets are similar to software wallets but are installed on smartphone or other mobile devices. They offer portability and are ideal for everyday transactions.
Hardware wallets
Hardware wallets are physical devices that store your private keys offline, making them highly secure. These devices are not connected to the internet and must be physically connected to a computer or mobile device to initiate a transaction. You must manually approve each transaction by pressing a button on the device. This makes hardware wallets exceptionally resistant to hacking.
Popular examples include: Ledger and Trezor devices. It’s crucial to purchase them directly from the official manufacturer to avoid compromised devices.

It’s best practice to use software or mobile wallets for day-to-day transactions involving smaller amounts of cryptocurrency, while using hardware wallets for the secure storage of larger sums. For holding long-term storage of large amounts of crypto funds a hardware wallet is highly recommended due to its superior security features.

Step 4 – Backup your wallet

Non-custodial wallets give you full control and ownership over your cryptocurrency, but this comes with added responsibility. Unlike custodial services, there is no third party that can help you recover your funds if you lose access to your wallet, for example in the event of device failure, loss, or theft. This makes creating a secure backup essential. Without a proper backup losing access to your wallet could mean losing access to your assets permanently.

Think of your backup as a spare key to your home: if you lose the original, the spare ensures you can still get inside. Here’s how you can create and secure a backup for your non-custodial wallet:

Identify Your Backup Options
Most non-custodial wallets generate a unique set of words known as a recovery phrase (also called a seed phrase, backup phrase or mnemonic phrase) when you create the wallet. This phrase usually consists of 12, 18 or 24 words, and it is the “key” to restoring access to your funds on any compatible device.
During the setup process many wallets will prompt you to write down the recovery phrase. Follow these instructions.
If you skipped writing it down during setup or want to double-check, you can often find the recovery phrase in the wallet’s security settings.
Secure your recovery phrase
To protect your funds, it’s crucial to store your recovery phrase securely.
Write it down on a piece of paper and keep it in a secure location away from your primary device. Consider creating multiple copies and storing them in different locations. Do not store the recovery phrase digitally (e.g., on your phone, computer, or cloud storage) as this could expose it to hacking or malware.
Remember, anyone who has access to your recovery phrase can access your crypto. Ensure it’s stored in a place where only you or trusted individuals can reach it.
Verify your recovery phrase
Before relying on your backup in an emergency, make sure it’s accurate and functional. Some wallets will ask you to confirm the recovery phrase during the initial to ensure you’ve written it down correctly. You can also test your backup by creating a new wallet on a different device to confirm that your backup works as expected.
Periodically check your backup
Periodically verify that your written recovery phrase is still legible and hasn’t been damaged or degraded over time, and stored safely. While your recovery phrase typically remains the same, you can periodically check that it still works as expected. While it should work when you need it, it’s better to test it in a non-emergency situation to avoid surprises when it really matters.

Backing up your non-custodial wallet is a critical step in safeguarding your digital assets. This responsibility is part of “being your own bank”. By following these steps you can reduce the risk of losing access to your funds and enjoy peace of mind knowing that you can restore access to your cryptocurrency in case of an emergency.

Step 5 – Get crypto in your wallet

There are several ways to receive cryptocurrency in your wallet, especially if you’re using a self-custodial wallet (one that you control). Here are some examples:

Exchange fiat for crypto with someone you trust
One way to get cryptocurrency is by exchanging regular money (traditional money like USD, EUR, etc.) with someone you trust who already has crypto. This is called a peer-to-peer transaction. s. The person sends crypto from their wallet to yours, while you pay them with cash, bank transfer, or another method. Make sure you trust the person to avoid scams.
Earn crypto as payment
You can also earn cryptocurrency by working and getting paid in crypto. This could be through freelancing, selling goods or services, or even getting a regular salary in crypto (some companies offer this option). This is a way to build up your crypto holdings over time without buying it directly.
Buy crypto at a crypto ATM
Crypto ATMs are machines where you can buy cryptocurrencies using cash or a debit/credit card. They can be found in many places, especially in bigger cities. Generally ATMs have limits on how much crypto you can buy before needing to provide identification information.
Buy crypto at a regulated exchange
The most common way to buy crypto is through a regulated cryptocurrency exchange, like Coinbase or Binance. These platforms allow you to buy crypto with traditional money through bank transfers or credit cards. Most regulated exchanges require you to verify your identity (a process called KYC – Know Your Customer). This involves submitting documents like your ID and possibly proof of address. Keep in mind, the exchange may report your transactions to tax authorities..

Step 6 – Practice security measures

Cryptocurrency comes with its own risks, including hacks and scams. Here are common types of threats and how to protect yourself.

Phishing scams (fake websites)
Phishing scams trick you into visiting fake websites that look like legitimate ones to steal sensitive information, like your wallet’s recovery phrase.
◦ Always check that you’re on the correct website before interacting with it, especially when connecting your wallet.
◦ Using bookmarked links or manually type the website address instead of clicking on links from unsolicited emails or messages.
Fake update requests
Scammers sometimes send emails or messages claiming your wallet needs an “urgent update”.. These communications contain links to malicious websites designed to steal your information.
◦ Don’t click on links or download files from unsolicited emails or messages, especially ones asking you to update your wallet.
◦ Check for updates directly through the official website or app store directly.
Fake exchanges and wallets
Some scammers create fake websites pretending to be cryptocurrency exchanges or wallet services to trick you into depositing funds.
◦ Only use well-known, reputable exchanges or wallets. Do some research before trusting any platform with your funds.
◦ Double-check the website’s URL before entering any personal information.
Social engineering attacks
In social engineering attacks, scammers pretend to be customer support or other trusted individuals to trick you into revealing sensitive information.
◦ Always verify the identity of anyone asking for sensitive information, especially if they reach out to you first.
◦ Be extra careful if someone contacts you out of the blue, asking for information related to your wallet or funds.
Fake promotions and celebrity scams
Scammers may pretend to be famous personalities or influencers, offering fake promotions with promises of huge returns.
◦ Be suspicious of offers that seem too good to be true.
◦ Verify promotions by checking official sources or reputable news outlets before taking part.
Ponzi schemes
Some projects, often called “DeFi projects,” promise very high daily returns, but they can turn out to be Ponzi schemes where earlier investors are paid with the money from new investors.
◦ Be cautious of projects promising very high or guaranteed returns with little risk.
◦ Do your research before investing in any project and be skeptical of unrealistic claims..

By staying informed and practicing good security habits you can protect your digital assets from scams and hacks. Always be cautious when dealing with your crypto and prioritize your security.

Step 7 – Stay informed

Staying up to date with the latest developments in the world of cryptocurrencies is essential, especially in such a fast-paced and evolving space. Here are some ways to keep yourself informed:

Email newsletters
One way to stay updated is by subscribing to email newsletters from trusted cryptocurrency publications and experts. These newsletters often provide curated news, market analysis, and insights, all delivered straight to your inbox.
Podcasts and YouTube channels
If you prefer learning through audio or video, subscribing to cryptocurrency-focused podcasts and YouTube channels is a great way to stay informed. Many experts and enthusiasts regularly post interviews, market updates, educational videos and deep dives into blockchain technology.
Crypto news websites and blogs
For in-depth coverage of daily news, trends, and analysis, crypto news websites are valuable resources. They offer information on market trends, regulatory changes, new technologies, and more. They also feature opinion pieces and expert analysis to help you understand the bigger picture.
Social media channels
Social media is a fast way to catch the latest updates, but it requires some caution. On platforms like X, LinkedIn and Reddit you can follow key industry influencers, projects, and experts to get real-time news, discussions, and opinions. However, it’s important to verify the credibility of the information, as social media is also a hotspot for rumors and misinformation.
Forums and online communities
In addition to social media, forums like BitcoinTalk and communities on Discord and Telegram offer deeper discussions and insights from both crypto veterans and newcomers. These platforms are also good for asking questions and getting real-time feedback from the community.

By using a mix of newsletters, podcasts, news sites, and social media, you’ll be well-equipped to navigate the fast-moving world of cryptocurrencies. Just remember to stay cautious and verify any important news or claims before making decisions.

7 steps to gain full control over your crypto

STAY INFORMED