It’s said that the cryptocurrency market has gained popularity as an investment option for many in the past decade. The success stories of overnight crypto millionaires are very tempting, but experts recommend a cautious approach to it.
The decentralized nature of the digital assets market is perhaps the riskiest part of investing in cryptocurrency. It’s crucial to understand that cybercrime is rampant in the crypto market, and your portfolio can disappear into thin air without a trace.
However, such cases shouldn’t stop you from investing in crypto. You can follow these simple tips published here to safeguard your investment. Alternatively, this feature can give you insights into navigating the digital assets ecosystem.
1. Wallets are Key to Security
Once you buy your preferred crypto, move it to your digital wallet immediately. Leaving your investment on the platform is risky because hackers can access the exchange floor and wipe it clean.
Primarily, the digital assets landscape has hot (online) and cold (offline) wallets that work as crypto storage. Both wallet options have pros and cons, but experts advise using a cold wallet to safeguard your crypto investment.
2. Exchanges Matter
Investing in the cryptocurrency market requires the same business acumen you’d use in the traditional financial market. You must research the intermediaries offering access to the crypto trading floor.
Exchanges will only protect their interest and can’t guarantee safety for your investment. Additionally, not all exchanges are trustworthy and you could be risking your money buying from any exchange or crypto marketplace. Reach out to the crypto community to learn more about established crypto exchange platforms.
3. Use Strong Passwords
Using a strong password is perhaps classic advice in the information age. Encoding your wallets and intelligent devices to transact cryptos will save you the heartbreak of losing your investment. Select a password you can remember since your wallets can lock you out for not having the correct combination.
Aside from solid passwords, using a public network is also risky if you’re using hot wallets or connected to your cold wallet. Hackers will have an easy time collecting cryptos through the shared network. So, be cautious when using untrusted networks.
4. Sharing Keys Is Careless
It’s best to keep your private keys to yourself. Sharing your private keys jeopardizes your investment’s safety since it validates crypto transactions. You can disregard the request to communicate your private keys in the cryptocurrency landscape.
Typically, experts recommend printing the seed phrase on a private printer and keeping it safe. It’s perhaps an ideal option since most attackers target unsuspecting online users. Further, access your cryptocurrency only when transacting and avoid browsing the exchange platforms while your portfolio account is online.
5. Avoid Dubious Crypto Schemes
In cryptocurrency, you must understand the underlying information before investing. The most basic research will look at the digital asset’s market capitalization and the traded volume.
Cryptocurrency schemes have come up owing to the unregulated nature of the market, and millions disappeared through crypto schemes such as Initial Coin Offering (ICO) in the crypto arena. If you get an invitation to join groups that promise unrealistic returns, reject them and block them altogether.
6. Keep Off Untrusted Links
When transacting cryptos online, avoid clicking unrelated links. You could be exposing your portfolio to cybercriminals. In addition, upgrade your software from trusted sources to back up your crypto investment’s security.
Alternatively, use a separate email address when accessing the internet to conceal your identity. You’ll protect your portfolio from any breach or phishing attempt to access your account.
Keeping your eggs in one basket is dangerous, especially in the digital asset market. For obvious reasons, the market is unregulated and things change very fast. Your safest bet is diversifying your portfolio.
So, spread your investment across the cryptocurrency landscape and leverage opportunities presented by the influx of new crypto making a debut. Though, you must upskill your knowledge of the underlying digital assets.
8. Crypto Hype Is Risky
If you follow the hype in the cryptocurrency market, you might invest in the wrong digital asset and get the timing wrong. The market price changes very fast, and it will not spare your investment.
Consult the cryptocurrency community because investors, crypto enthusiasts, and developers discuss current issues in forums like Quora. It’ll enlighten you to safeguard your crypto investment.
Investing in cryptocurrency requires researching the underlying assets to avoid making wrong moves in the market. Plus, your exposure to risk doesn’t stop hackers from trying to steal from you. You must beware of the market volatility that can empty your investment account in seconds. So, deploying the above tactics can safeguard your investment to enjoy digital assets.