Money is older than recorded history. As long as money has existed, so too have counterfeiters and crooks. Issuers of currency have spent millennia preventing counterfeiting: Just consider today’s paper bills, which are printed with special dyes on watermarked stock, sport serial numbers, “security threads,” and even hologram strips. Cryptocurrencies, by virtue of their algorithmic security and their consensus mechanisms, generally don’t have counterfeiting problems.
Unfortunately, all too often crypto holders assume that this security against fraud means immunity to all loss. Cryptocurrencies offer new ways to invest and to participate in the economy, but they also demand users to make efforts and take precautions unnecessary with traditional currencies.
Many cryptocurrency portfolios exist on exchanges like CoinCheck, Bitfinex, or Poloniex. These exchanges provide ease of use, but their internal protections are not always what users might wish. So what’s a crypto investor to do? Surely they’re not expected to liquidate their holdings in fear of the next attack? Most “hodlers” think you should invest in at least one crypto wallet.