The year 2021 saw millions of new investors trying to engage with cryptocurrencies. From seasoned Wall Street experts to amateur teenagers, almost everyone wanted to cash in on the record-breaking growth run of the asset.
While this has been good news for the overall ecosystem, there have been many cases of theft, cybersecurity, and more that have been reported. This has led many crypto exchanges and platforms along with experts to recommend increased safety while trading in cryptocurrencies.
In this article, we are going to look at some important ways to keep your money safe while trading in cryptocurrencies. If you or someone you know has started trading in crypto and wants to make sure that you do not fall prey to any online scams, please read what we have to say.
- 1 List of 5 Important Ways to keep your Money Safe while Trading in Cryptocurrencies
- 1.1 1. Choose a Reputed and Credible Trading Platform-
- 1.2 2. Always maintain the secrecy of your Private Key-
- 1.3 3. Do not trade all Cryptocurrencies using the Same Trading Account-
- 1.4 4. Do not share your investment details or brag about your winnings-
- 1.5 5. Never click any links or open emails which you do not identify on your computer-
- 2 The Bottom Line
List of 5 Important Ways to keep your Money Safe while Trading in Cryptocurrencies
1. Choose a Reputed and Credible Trading Platform-
It does not matter whether you are a novice or a seasoned investor, choosing a credible and trustworthy trading platform can benefit both. Make sure that you do your research when it comes to crypto trading platforms. Look at online reviews and ratings before you decide to open an account and deposit funds. If you go with an established platform like the bitcoin bot app, you can rest assured that you are working with the best name in the industry.
2. Always maintain the secrecy of your Private Key-
By now you must have figured out that most serious investors use a Crypto Wallet to store their private keys. This is what determines the ownership of the crypto and should be protected at all costs. The Blockchain works according to two keys- Public and Private.
If you have lost possession of your digital wallet and keys, you have no way to retrieve your cryptocurrency. Experts recommend storing your private keys in an offline hard drive for the best security.
3. Do not trade all Cryptocurrencies using the Same Trading Account-
A common mistake many traders make is using one single exchange account for trading everything from Bitcoin to Ethereum Shiba Inu and Dogecoin. While there is nothing fundamentally wrong with this, you need to make sure that you are branching out in the event the platform experiences a problem. In this way, only one of your crypto investments might take a hit, but others will still be safe and secure. This is a small, yet effective way to help yourself.
Many of us tend to get carried away when we start becoming successful in the crypto ecosystem. This attracts the wrong type of attention from cybercriminals that will be quick to identify you and target you in different ways. Make sure you are being secretive about your crypto investments, private keys, and other details.
Do not make the mistake of going online and bragging about your winnings in front of unknown strangers and potential cybercriminals.
One of the strategies that most cybercriminals use to enter someone’s system is phishing emails. The emails will look normal enough and request you to click on a newsletter subscription or some offer. However, what you will end up doing is innocently downloading a ransomware file that will seize control of your system. A good way to avoid this is to use a different system for all your crypto trading activities and keep it completely separate.
The Bottom Line
By following all the above-mentioned five strategies, you will be in a position to keep your money safe while trading in cryptocurrencies. There are dangerous elements online that are quick to spot any potential vulnerabilities. If you have any questions, you would like us to address the topic, please let us know in the comments section below. We will be more than happy to help you out in this regard.