Table of Contents Hide
- Carefully select the cryptocurrency you want to invest in
- Go for a dependable crypto-exchange website
- Use a device that is secure for your investments in cryptocurrency and transactions
- Start by investing a small amount
- Utilize a cryptocurrency tracking and management tool
- Use a virtual private network (VPN) when making transactions
- Use a cryptocurrency wallet
- Do not disclose your secret key
- Use different passwords for all of your cryptocurrency accounts
When Bitcoin first came into the limelight over a decade ago, many people saw it as a passing trend. However, technology enthusiasts were very much interested in blockchain technology from the get-go. So started the rave that is cryptocurrency investing. How to make safe investments in cryptocurrency.
Subsequently, complementary innovations gained ground with the development of crypto tracking and management tools to help investors to keep tabs on past transactions, their value, and their origins and destinations.
The same cannot be said about the rest of the world as it was not seen as a profitable investment method.
With many more cryptocurrencies being created within the past few years and bitcoin being the most valuable, many folks are now interested in investing in cryptocurrency.
If you want to invest in cryptocurrency, it’s a good idea for you to know how to keep your investments and crypto safe.
Cybercriminals usually target cryptocurrencies like Bitcoin and Ethereum due to their rising popularity and high value.
Also, cryptocurrencies are still unregulated by any government agency or central bank, so investors have little legal recourse when their accounts are compromised.
Follow the tips below to keep your cryptocurrency safe and make safe investments.
Carefully select the cryptocurrency you want to invest in
There are several different types of cryptocurrencies in existence, and they all have unique price points.
Though there are several types of cryptocurrencies, it is not a good idea to blindly invest in both popular and less popular ones without proper research.
You need to do a lot of research before deciding which cryptocurrency to invest in.
You can research effectively by creating a list of the most valuable cryptocurrencies that perform the best. At the moment, Bitcoin is the most famous and valuable cryptocurrency.
As a beginner investor, you may be wondering why this is such a vital step. Many cryptocurrencies that flooded the industry in the last decade have either plateaued or vanished altogether.
If you invest without proper search, you risk losing a lot of your money.
Go for a dependable crypto-exchange website
An important thing to do to make safe crypto investments is to locate an exchange with a good track record.
AML stands for Anti-Money Laundering, while KYC refers to getting to know your customer. Preventing financial crimes is made easier thanks to these regulations. If the exchange abides by these rules, you’re probably making the right choice.
Don’t forget about the need to submit personal information like your complete name, e-mail address, mobile number, and postal location when signing up for the crypto exchange service.
To comply with KYC requests, you must provide some of your personal information, which helps keep users secure while transacting online, but it also comprises a bit of your privacy.
Reading customer reviews is also a good idea to get a sense of what others say about the exchange. Please remember that no exchange will be free of one and two-star reviews.
To understand the benefits and downsides of using a particular cryptocurrency exchange, you need to go through a wide range of reviews.
Use a device that is secure for your investments in cryptocurrency and transactions
It doesn’t matter if you’re using a phone or a PC; security should always be a top priority. To protect your device, there are several things you may do.
This involves ensuring you’re up to speed on the newest software and security fixes and keeping your computer safe with an effective antivirus application.
You should also examine the URLs. Do this by ensuring your browser has the padlock icon and the prefix “HTTPS” in the address bar whenever you’re using a crypto website or exchange.
Don’t open or install any files or programs you don’t recognize. Also, refrain from using public computers and Wi-Fi.
Start by investing a small amount
When it comes to cryptocurrencies, values can rise and fall at any time, making them very volatile.
Before investing in cryptocurrencies, at least six months’ worth of liquid assets should be available.
If you haven’t invested in cryptocurrency before, you can begin by investing in stocks so you can discover your level of risk tolerance.
When you have discovered your level of risk tolerance, you can begin investing in Cryptocurrency once you’ve proven that you can withstand the market’s volatility.
Ensure only to invest about 5-10 percent of your earnings.
Utilize a cryptocurrency tracking and management tool
You can keep an eye on the changing market price and keep track of your investments at any time with this tool.
CoinStats has one of the best cryptocurrency portfolio management tools. Use it to help keep your investments safe.
Use a virtual private network (VPN) when making transactions
By using a VPN anytime you perform a monetary transaction, you’ll have no fear about the safety and security of your transactions.
Some situations may require you to access your crypto or bank account when using public wifi.
Hackers who try to steal your data across networks that are not secure are known as “man in the middle” cyber attacks.
A good VPN solution will protect you from these types of attacks. With a VPN tool, even the most skilled and experienced hacker would find it difficult to decipher the encrypted data protected by a VPN’s 256-bit encryption methods.
That is to say, your information, as well as your identity, is secure.
Use a cryptocurrency wallet
It is a tool that holds your private and public keys and serves as a connection for both you and the blockchain wherein your crypto assets are stored.
Several people mistake crypto wallets with cryptocurrency storage, but in reality, they only allow you to access your crypto on the blockchain via a cryptocurrency address known as the key.
You will not be able to do any transactions without the keys.
Do not disclose your secret key
The purpose of the secret key is to verify that the owner of the wallet is the person who is performing transactions, and it is very unwise to disclose the existence of the key to strangers.
The most effective and highly secure way to store your key is cold storage. Cold storage stores your private key offline and completely erase all your private key’s digital evidence.
To reclaim your private key, you can utilize a seed. A seed is a random string of characters that a user can manipulate. Ensure you do not store your seed phrase digitally because hackers can access it quickly this way.
Print or write down your key phrase and store it in a private, secure place.
Use different passwords for all of your cryptocurrency accounts
If you use the same password for all of your cryptocurrency accounts, it is effortless for hackers to access your accounts.
Always presume that a data breach can happen at any time. Even though cryptocurrency is an innovative technology that keeps evolving, a great way to protect your investments and wallet is to use established security methods.
This involves two-factor authentication to reduce your vulnerability.
You can also use a password manager to help you generate strong passwords and store those passwords for you so you’ll avoid using the same one for all your accounts.
Investing in cryptocurrency is very lucrative. However, you want to make sure that you make safe investments. You can do this by following the tips above and using the CoinStats portfolio tool.