Say what you will about crypto, but you can’t ignore it. Cryptocurrency has taken over the world by storm and it doesn’t look like it’s going anywhere. While many people are talking about the rise of cryptocurrency Prevent Bitcoin Wallet and its impact on the world, a lot of people are also asking the question: “Is cryptocurrency safe?”
There are so many scams and hacks happening in this space that it can be difficult for newbies to understand how they can keep their money safe. That’s why below, we’re going to talk about the absolute must-know tips you’ve got to read before getting started with trading cryptocurrency.
Caution Comes First
If you’re just getting into cryptocurrency, the first thing that you need to do is make sure you have a back-up plan. Diving into the crypto world with a solo plan is the worst blunder than every new investor makes. As you are concerned enough to go through this article for knowing the warnings in crypto realm, do not forget to keep a backup plan always ready in your hands for saving your digital assets from getting drowned in the market due to a sudden crash or cyber attack.
The last thing that any trader wants is to lose all of their money overnight because they made one small mistake. So before even thinking about trading cryptocurrencies, make sure you’re not overinvesting – or investing in the wrong coin!
Use Stop-Losses to Block Your Losses
The first thing that you need to do is set up stop-losses. A stop-loss is a sell order that gets triggered if the price of the coin drops below a certain point. If you don’t have this in place, you can lose all of your money overnight because of one bad trade where you bought at the top and sold at the bottom.
Even if you lose, it will be much less than if you didn’t have any stop-losses set up.
Stay focused on quality over price People think that if the price of a coin is low, then it must be a good time to buy. But the truth is that there are no rules when it comes to investing in cryptocurrencies. You can’t just look at the price and decide whether or not you should invest; instead, you have to consider all of the factors before making any decisions.
For example, if you see a coin that has just been released and is trading at an above-average price, then it’s probably not worth buying. This is because most cryptocurrencies have a pump-and-dump cycle; this means that when they’re first released, people will buy them for low prices in order to make a quick profit.
Don’t Forget to Diversify Your Assets
Diversifying is a great way to save your money. If you’re not sure what this means, it simply means that you should invest in multiple cryptocurrencies instead of just one. This way, if one goes down while another rises, then you’ll still have some profit left over.
People from all over the world have got passions and hobbies to collect different coins and other vital items. If you hold the same passion, then you can utilize your talent in a similar way in the crypto world for diversifying your crypto collections. For example, if you want to invest in Bitcoin, then it might be a good idea to also buy some altcoins (alternative cryptocurrencies) like Ethereum and Litecoin available on the exchange you’re using. Keep in mind that you should be using a trustworthy exchange like the Bitcoin Prime app, which is intuitive, easy to work with, and has high liquidity for your trading needs!
Rely on cold wallets over the hot ones
When it comes to choosing your wallets, do not forget to choose hardware or a cold wallet over the hot ones as they are mainly mobile wallets. On the other hand, hardware wallets keep your data and access keys to your assets. They’re like USB drives that can be used on any computer and are completely offline, so hackers can’t get into them remotely. The most well-known hardware wallets use two-factor authentication and have a long list of supported cryptocurrencies, so you can store them there if they’re available on that platform.
After reading the above article, you can already get a few steps forward towards a better and planned way of investment. Hence, try to follow each above-mentioned tips for carrying out safe transactions. Or, well, you at least won’t lose as much money. That’s a guarantee!