Do you know what assets you hold?
We’ve done a few posts in the past talking about the importance of security, storing tokens in cold versus hot wallets, setting up Metamask accounts and more.
It’s inevitable that if you’re serious about crypto, whether it’s to HODL, trade NFTs, or trade and test out new trends, keeping your digital assets safe means ensuring that you take the necessary precautions for your wallets (amongst other things).
Depending on where you sit in your crypto journey, you may only have the exchange wallet where you initially purchased your tokens and where you participate in staking campaigns or trade. But as any seasoned crypto participant knows, keeping all your funds in a hot wallet, particularly in an exchange wallet may not be the safest thing to do.
At minimum users should be looking at having two wallets, and if you’re actively trading, likely quite a few more accounts. Remembering that blockchains serve as public immutable ledgers, your wallet address can give away the amount of funds that exist in the particular wallet, and as a matter of safety, it’s best to diversify your funds to avoid catching unwanted attention and a clear example of not keeping all your eggs in one basket.
Yet, while this advice makes sense from a security perspective, we realize the difficulties that come with such advice. For starters, you’ll need to remember the various wallets, private keys and passwords. Even then, how do you keep track of what is stored in each wallet and how your overall portfolio is looking? Even in a traditional fiat world, having a macro perspective of your portfolio is difficult and often a very manual process of excel sheets and self tallying.
It’s during bear markets like these that we have an opportunity to step back and evaluate the changes we need to make as crypto holders to prepare for the coming bull run. Take stock on what changes need to be implemented. Are you the excel sheet type of user or are you the buy-and-forget? Do you know what assets you hold or have you lost an NFT in the mix and not sure where it went? Or do you use an aggregator to pull all your information– which aggregator works for you? Drop us a comment and let us know how you manage your wallets and track your tokens and other digital assets!