🌱 Future-Proof Your Crypto Wealth: Building Wealth Outside TradFi
👋 Good afternoon finance enthusiasts and fellow investors!
I hope you're all doing well and enjoying your journey towards financial freedom. Today, let’s discuss an important topic that many of you requested: Building wealth outside the traditional finance system (TradFi). While owning cryptocurrencies can be a step in the right direction, let's explore some additional strategies to ensure the security of your crypto assets. After all, it's better to be safe than sorry, right?
The information provided in this newsletter is for educational and informational purposes only and should not be considered as financial advice.
Now, before we dive in, let me emphasize that the level of security you choose to implement in your crypto strategy is entirely up to you. Increased security often comes with a trade-off in convenience. I'm not trying to be a doomsday speaker, but it's sometimes wise to hedge against potential future developments. So, let's get started!
🔒 How to stay anonymous in crypto
Anonymity is a crucial aspect when it comes to safeguarding your crypto holdings. Here are a few tips to keep your identity under wraps:
Buy your wallet using your grandma's address and name. By using different names and email addresses for crypto-related services, you can minimize the chances of your wallet being linked to your personal information.
Did you know that Ledger customers' personal information was once hacked and exposed? LinkSeparate your crypto holdings into two categories: one linked to your name and the other remaining anonymous. This way, you minimize the risk of someone tracing all your crypto back to you. Strictly separate the wallets and make sure they do not interact with each other.
Buying crypto without KYC (Know Your Customer) verification can be challenging, but it's still possible.
Crypto-ATMs can be a viable option, especially if the transaction amount falls below a certain threshold where KYC might not be required. Keep in mind that the availability of this option depends on the legislation in your country. Perhaps you can plan your next holiday around buying some crypto! When using crypto ATMs, be mindful of the surveillance cameras in the vicinity. If you want to maximize your security, try not to show your face during the transaction.
Consider utilizing peer-to-peer (P2P) marketplaces for crypto transactions. These platforms facilitate direct exchanges between individuals, providing an additional layer of privacy. But make sure to stay safe, P2P exchanges can be a place for scammers.
Another interesting approach is to explore opportunities for earning crypto through mini jobs. Some individuals with online businesses prefer to pay in crypto without formal invoicing. It might be worth exploring such opportunities to acquire crypto without leaving a paper trail. As a side note, both me personally and CryptoExplorer are not able to do that for you!
Privacy coins can be a valuable tool for making anonymous transactions. Research and consider using privacy-oriented cryptocurrencies for enhanced security.
💡 Expert Tips to Boost Your Crypto Security
Now, let's talk about some expert tips that can take your crypto security game to the next level:
Don't rely on a single wallet; diversify your holdings across multiple wallets. Using different wallets and minimizing their reuse can help prevent the tracing of transactions back to your identity.
If you frequently interact between wallets, create a visual representation of your transaction flow on paper or digitally. This visualization will help you maintain a clear understanding of your crypto movements and ensure maximum isolation between wallets.
Always remember that while simple chain hopping can confuse basic tracking systems, it is not entirely untraceable. Act under the assumption that every transaction can be traced.
Develop a system for naming and interacting with each wallet that only you can understand. By adding a personal touch and being creative, you can make your system unique and difficult to decipher.
Exercise caution when considering the use of crypto mixers. While they can enhance privacy, associating yourself with such services may attract unwanted attention from institutions such as tax offices.
💪 Reasons to Implement These Practices
Now, you might be wondering why it's essential to go through all these measures. Here are a few reasons that highlight their importance:
Protecting against theft, kidnapping, etc: By utilizing different wallets and implementing secure practices, you make it harder for potential thieves to target your crypto assets.
Future tax implications: Paying your taxes is crucial, but if a future tax policy affects all your crypto holdings, having a level of anonymity can be advantageous.
Safeguarding against confiscation: As we discussed a couple of weeks ago, Ledger's controversial feature demonstrated how having someone else possess your private key can result in the loss of your crypto assets. Even if that's not the case, if the government associates a wallet with your name, they may not confiscate your crypto, but they could potentially seize other assets equivalent in value.
Preparing for legal consequences: Governments could impose legal consequences for individuals interacting with cryptocurrencies in the future. By implementing secure practices now, you're better prepared for any regulatory changes that might occur.
🎯 Action steps
It's always wise to plan ahead and proactively protect your crypto assets. While some of these measures might not seem relevant in the short term, considering potential dangers in the future can save you from potential risks. Take these action steps to enhance your crypto security:
Plan for the future: Anticipate potential threats and tailor your security measures accordingly. Being prepared is key.
Implement some of the tips mentioned above: Choose the strategies that resonate with you and align with your security appetite. Remember, even a little extra effort can go a long way in protecting your wealth.
That's it for this week, folks! I hope you found these insights helpful and can use them to fortify your crypto strategy. Stay tuned for more exciting updates and tips in our next newsletter.
That’s it for this week! Enjoy your weekend and keep building that wealth!
Cheers
Stefan
Co-Founder of CryptoExplorer & KeyLiving