The cryptocurrency market is still very much like the Wild West ten years since the first Crypto exchange launched. Some people can make hundreds of % on a single good decision, whereas others lose all that in a single bad one.
How can you safeguard your capital from swings in the exchange rate and your earnings from con artists?
Selection Of A Coin That Possesses The Least Risks
Choosing a cryptocurrency to put money into is the first thing to do. There are no inviolable laws at play, and any token may see meteoric gains one day and precipitous losses the next.
A beginner crypto investor would need a significant amount of luck to successfully predict such swings. However, there are several steps you may do to safeguard your money.
Look into new alternative coins if you’re a risk-taking investor with confidence in your skills and a healthy amount of disposable income.
While they are less expensive and offer the potential for higher returns, they also have drawbacks, such as the low demand among dealers that makes it challenging to convert them into fiat currency.
Analyzing The Small Print
When choosing a cryptocurrency as well as an exchange, make sure you don’t let yourself get carried away by offers that seem too good to be true. Even in the specialized field of bitcoin investment, there is really no such thing as free. This is a universal truth. If you are promised extremely high profits, you should be on the lookout for a catch.
Even while the majority of Ponzi schemes don’t take that long, that doesn’t imply the people who come up with them are any less cunning.
The Complete Awareness Of Crypto Wallets
In a word, “hot” and “warm” wallets are computer programs that are always online and can swiftly transmit money. However, due to their ongoing connectivity to the Internet, they are particularly susceptible to hacking.
If you must use a hot wallet, like one investor did and lost almost $70,000, then turn on two-factor authentication to boost protection. Furthermore, to avoid SIM cloning, it is preferable for the two-factor authentication key to be delivered in some other way than via text message.
The hot wallet that most cryptocurrency exchanges like bitcoin profit from offering their customers is not a safe place to store your tokens, as these sites are frequent targets for hackers.
Keep track of any codes or passwords you come across while you set up and use your wallet.
Prevention From Crypto-Jacking
It’s important to be on guard at all times, even if you’re confident you can’t be fooled. Be wary of anyone offering you free coins; they may have ulterior motivations. Furthermore, if you are asked to make a preliminary deposit, you are probably being led into a scam.
Keep in mind that scammers are drawn to cryptocurrencies like moths to a flame, due to the speculative nature of cryptocurrency projects and the high-risk propensity of crypto investors.
The Bottom Line
Don’t believe anyone, not even (or especially) a celebrity, who offers you free money: It’s possible that their accounts have been hijacked, but if they haven’t, it’s still probably a scam.
Spread your money around and buy in a number of different cryptocurrencies to protect yourself from sudden price drops. Keep your crypto trading gadgets and Internet connection safe by using antivirus software.