Crypto trading is an accessible activity for everyone with a good internet connection and a smart device. Plenty of platforms allow people to buy cryptocurrencies, offering access to a wide range of digital coins with simple and effective purchasing methods. According to Binance, crypto’s volatility gives traders and investors the possibility to take advantage of large price fluctuations to earn a profit.
Trading crypto is not particularly rocket science, but you need to learn how to keep your digital coins safe; otherwise, you might experience losses. The rise of the crypto industry has made digital assets very attractive to traders, investors and cybercriminals alike. This is why the crypto cyber-attacks and fraud have increased considerably lately. So, if you want a smooth trading experience and are serious about crypto trading, you must protect your digital assets.
Here is a guide that will help you keep your digital currencies safe and ensure a better piece of mind while you navigate a fast-evolving and ever-expanding market.
Opt for a trusted crypto exchange
Crypto trading takes part on the exchange platforms, which provide a variety of features, services and tools that allow users to sell, purchase, and trade virtual assets such as Ethereum, Bitcoin and other popular cryptocurrencies. Many crypto exchanges are on the market, so choosing a trustworthy one might be challenging.
But how can you choose a safe crypto exchange? Well, the best way is to opt for a reputable one, like Binance, as it ranks high in terms of safety and has security measures to protect users’ digital assets.
Be careful of threats
The lack of a comprehensive or consistent framework has led to people comparing crypto space with the Wild West. Cryptocurrencies are built on blockchain, and although these platforms have many good advantages, they have also opened the door for fraudsters, scammers and other malicious entities who want to fool people and gain access to their funds. For example, in 2021 alone, the financial damage caused by cybercriminal activity amounted to $7.7 billion worth of crypto.
So, if you are trading crypto or want to do it in the future, you need to be aware of these risks and threats. Knowing this information will help you identify potential hazards faster and take the necessary measures to stay safe. Crypto scams are a real threat to investors and traders, as scammers employ a variety of strategies such as rug-pulls, fake exchanges, phishing, and social media giveaways to convince users to give out their assets and gain access to crypto wallets. So, the more you know about these crypto scams, the better protected you will be against these events.
Consider two-factor authentication
In theory, everyone knows they must use advanced security measures to protect their crypto assets, but convenience often gets in the way. As a result, people use the same password for many accounts, be it online baking, email or crypto wallets. If someone gets access to a crypto wallet, the outcomes can be fatal, as people can lose all their investments.
The moral of the story is to stay protected and create unique and strong passwords to secure all your accounts, especially the crypto wallets. You can even ensure your accounts have two-factor authentication, as nowadays, many exchange platforms have this feature to increase the security of users.
Use a cold wallet
Depending on people’s preferences, you can store your digital assets in many ways. Most people prefer to keep their cryptocurrencies on exchange platforms, which ensures greater convenience. However, this might not be the most suitable alternative from a security perspective. Even though you have chosen a safe crypto exchange, you might still experience a cybersecurity breach, and you surely don’t want that to happen, as you might lose all your funds.
Although this scenario might not be that likely, it is better to be cautious and use a cold wallet to store your digital assets. Cold wallets are opposed to hot ones, which are based on the internet, so they can be vulnerable to cyber-attacks. On the other hand, cold wallets are not connected to the internet, making them more reliable and safer. If you want to use cold wallets, it is advisable to spread your holdings across many wallets to keep the risk to a minimum.
Make sure to keep the private information private
You should always refrain from disclosing information about yourself online, as every detail you share can become a liability in the right context. Nowadays, fraudsters and cybercriminals have become more skilled in exploiting vulnerabilities, and you will never know what can happen with the data you have chosen to share in your virtual space.
This is especially important when we are talking about owning cryptocurrencies. So, you should never brag about the crypto investments you possess to reduce the risks you expose yourself to. The less people know about your crypto investments, the safer your digital coins will be.
Is crypto a safe investment?
Investing and trading crypto is considered quite risky compared to other assets such as stocks and bonds. While cryptocurrencies are generally legal across many parts of the world, several aspects of digital currencies remain unregulated. Fluctuation regulations make crypto vulnerable, and it is also a factor that increases its volatility. Another factor that leads to crypto volatility is that it is quite a new domain, and people don’t know exactly what to expect from it.
Cryptocurrencies don’t have the same history proof as other assets, like stocks, and this is why they might be more prone to price swings.
Virtual coins are a high-risk investment, so before you choose to invest in digital assets, you need to know the risks and ensure you don’t buy more than you can afford to lose. Also, you need to be aware of the threats you might find on the market, as the crypto environment is subjected to a high risk of fraud, scams and other cyberattacks. Therefore, it is very important to go the extra mile and secure your assets and accounts to maximize your trading success and enjoy a piece of mind.