AUGUST 29, 2022 – As more and more service members and their families try to get in on the crypto frenzy, a number of concerns have since come to fore, leading some branches within the US military to take drastic measures in order to curb cryptocurrency trading, transactions and mining among its service members.
While so far only the US Marine Corps has placed a blanket ban on crypto mining on military-issued gear and devices, given the nature, and overall lack of regulations surrounding these assets, military personnel have a lot to lose if they fail to understand what they’re getting into.
In this article, we cover all relevant bases regarding crypto investing, especially aimed at military personnel and their families interested in getting a piece of the crypto action, while staying safe, secure, and well informed.
1. Understand The Rules
As most personnel are well aware, ignorance of the rules is not an excuse in the military, and not following the rules have big implications, especially for servicemen, and women.
This is further complicated by the lack of explicit and clear guidelines when it comes to cryptocurrencies, but that is still no excuse. For example, it still remains unclear if crypto holdings need to be reported to the IRS, and breaking of any federal laws can jeopardize critical aspects such as security clearances.
Additionally, the Status of Forces Agreement will likely come into play when making investments during postings in other countries. All of which will likely further complicate the situation, with very little tolerance for rule-breaking.
2. Only Invest What You Can Afford To Lose
All forms of trading and investing involve risks, which results in stress, and this is all the more exacerbated when it comes to the volatile world of cryptocurrencies.
It goes without saying that military units across the world aren’t that fond of seeing key personnel reeling from stress and low morale as a result of investment losses, along with the added distraction of constantly checking the markets.
To stay clear of such trappings, the golden rule of investing “only invest what you can afford to lose” comes in handy. This rule holds strong for soldiers, civilians, cryptocurrencies, stocks, and all other forms of investing, but is especially significant for active duty personnel.
3. Beware of Apps, Trackers & Other Cybersecurity Risks
With crypto being the modern day equivalent of a haven for organized crime groups, cybercriminals, and scammers, all newbie traders and investors have to make their way through a minefield of potential scams, vulnerable apps, and trackers.
This is all the more perilous for military personnel, considering that such a misstep can threaten national security, and bring an end to their careers with no options for recourse.
There are plenty of ways to trade crypto using legitimate platforms, exchanges, and apps that can help budding investors stay clear of the dangers that abound this new lawless frontier.
Which is why it remains essential to have a deep understanding of this market, and its inner workings before taking the plunge.
4. Secure Your Investments
Unlike traditional banking and financial markets, cryptocurrencies can be quite unforgiving to those who make simple mistakes, and errors in judgment. For example, all of your crypto wealth can be stored in a USB drive, which if packed with the wrong set of bags, can mean losing your entire portfolio.
Similarly, if you lose your private key, you end up losing your entire holdings, with few options for getting them back. There are a number of solutions that address such risks, with cold wallets, or cold storage solutions being an increasingly popular option.
Either way, staying safe and securing your investments ultimately boils down to effective research. There is absolutely no reason why anyone should risk storing their crypto in a USB drive, and this hole for armed forces and military personnel who are constantly forced to pack-up and relocate over the course of their careers.
Final Words
Cryptocurrencies have ushered a paradigm shift in global financial markets, and it would be unfair to keep military personnel, and their families away from what could be the most potent wealth creation opportunity of this century.
There are no blanket bans, or guidelines restricting ownership or trading in crypto, so as long as you put in the effort to research, and stay within the boundaries of your unit, branch, and relevant federal and local laws, there is absolutely nothing to worry about.