Education is critical for ensuring your financial fitness and creating a future of financial freedom. Beyond seeking advice and listening to other people’s stories on the strategies they use to make investment decisions, one of the best strategies to understand new concepts and ideas is to experiment and try new things yourself.
On today’s episode, I share how my discussion with Alan Wunsche on Bitcoin and other cryptocurrencies inspired me to learn more about digital wallets and how to use them to complete various transactions. I share the research I have conducted on the different types of digital wallets, the level of security you can expect from each type, and the lessons I have learned about cryptocurrencies and digital transactions after setting up my first digital wallet. I also explain why many financial institutions prohibit using your debit or credit card to acquire cryptocurrency and how to choose the best digital wallet to meet your personal financial needs.
“Since early 2018 Canadian banks have made changes, that vary by institution, about how clients can use credit or debit cards as it pertains to cryptocurrencies.” – Tracey Bissett
This Week on Young Money:
- The types of digital wallets.
- The pros and cons of using electronic wallets and software wallets.
- The difference between a “hot wallet” and a “cold wallet” and why I chose to use a hot wallet to learn more about digital wallets and cryptocurrencies.
- Security measures you can expect when setting up various digital wallets.
- Why some financial institutions prohibit the use of debit or credit cards to acquire cryptocurrencies.
- The importance of researching cryptocurrencies and exchanges before investing.
- The importance of continuing your education about cryptocurrencies and digital wallets.
Top 5 Lessons on Digital Wallets & Cryptocurrencies:
- Before you set up a digital wallet, make sure it is compatible with your country and/or currency of accounts.
- Be prepared to provide confirmation of your identity – similar to setting up a bank account.
- Before entering into cryptocurrency transactions, know how you will pay for them – find out what is possible in your country and at your financial institution.
- Research cryptocurrencies and exchanges prior to making transactions, so you understand the risks of this type of investment.
- Be curious and continue to educate yourself. The cryptocurrency market is evolving daily.
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