Even though cryptocurrency has been around for quite a long time, it’s still difficult to say what could happen to it. Although, one thing that’s quite clear, there’s more to expect.
Assuming that you already know how crypto works, you should also know that technology is one of the foundations of crypto. Since technology continuously evolves, it’s safe to say that crypto could get a whole lot better in the upcoming years.
One of the top-performing cryptocurrencies has recently hit its all-time high. This means its market value is by far the highest it has ever been. That said, investing and trading with crypto today is probably one of the best things you could do.
But one thing to keep in mind, there are still risks that could compromise your investment. This article will show three things to avoid to keep your investment safe when trading crypto. Remember to always rely on reputable and secure crypto platforms such as Kraken, Gemini, or Bitcoin Up to avoid financial and data losses.
#1. Using A Low-Rated Online Wallet
When you start investing or trading with crypto and your funds are starting to climb, you will need a wallet to store your funds. Crypto wallets can also play a critical part in your investment since this is what you will be using for almost the entire time. If you are using a low-rated online wallet, it could pose a huge threat to your funds. Cybercrime is one of the most significant issues many people have with crypto.
As crypto’s value increased, reports of cybercrime also started to pile up. Funds getting hacked are not new to crypto, and it has been around for quite a long time. Experienced traders and investors know how threatening it is to use online wallets, but it’s still valid for quick transactions.
If you transact with another party or want to buy a product using crypto, you can quickly pay them using online wallets. But then again, since online wallets are connected to the internet, other users can still hack them.
If you are well aware of the many risks of crypto, you should know how important it is to protect your funds. There are tons of wallets that you can find on the internet, but one of the factors that you should look at is their security rating. If you want extra protection for your funds, buying an offline wallet is a great idea.
These wallets are not connected to the internet and come in a physical form. It’s difficult for other people to access your offline wallet as they must be physically there. You might need to spend a little more, but they are still great for added security.
#2. Unreliable Crypto Exchanges
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Cryptocurrency exchanges are one of the best platforms that can help you start a crypto investment. There are tons of exchanges you can find today, and some platforms are suitable for beginners, investors, and traders who already have experience.
Crypto exchanges have different benefits, and some even have different purposes. What’s good about these crypto exchanges is that they can also help you learn some of the basics of crypto and guide you along your journey.
Before deciding which exchange to use, you must remember that there are many choices you can choose from. Of course, not all of them perform as expected, but others stand at the top. Choosing the right platform is important for beginners since platforms will be responsible for protecting your data and investment.
A good factor you should keep in mind when choosing a platform is its security features. A reputable crypto exchange typically has robust security features, making it a good choice. In addition, it’s also best to use more than one crypto exchange rather than do everything on one platform.
If things get worse, you still have another platform you can rely on. One thing you have to make sure of is to use different and complex passwords for each platform.
#3. Being A Target for Hackers
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People with malicious intent seem to have come up with new ways to access other people’s funds, and if you are not careful, there might be a chance that they will come for you too.
As long as we are connected to the internet, hackers will find ways to access our data and steal them. If they can get access to your data, that means there’s a chance they can get access to your crypto as well, which poses a massive threat to your investment.
To give you an idea of how these hackers can access your idea, one of the common ways this can happen is through an email, otherwise known as email phishing. Hackers will send you an email that can look like an offer, discount news, or anything that looks too good to be true. When you open this email, you are giving them access already.
Luckily, there are tons of ways you can do to avoid these types of fraud. One of the standard practices that have also been proven to be effective is being careful. Being able to determine whether it’s true or if it’s reliable is a good way of identifying if it’s real or not.
If it sounds too good to be true, it’s a scam. It’s always better to take extra precautions, especially when it involves money. Your goal in a crypto investment is to gain something out of it, not the other way around.
Conclusion
All investments have certain risks, and the best way to handle them is by preparing yourself. Come up with a solid strategy so that you will know what to do when you face a particular problem. Crypto is already considered a worthy asset to invest in.
Experienced investors and traders have already gained something out of crypto. So, to protect your crypto investments and funds, consider avoiding the ones mentioned above. They might come in handy when the day comes.
