Introduction
The debate about Bitcoin investment safety is one of the most common questions people ask themselves when they first invest in cryptocurrency.
The answer to this debate is not simple, but it can be simplified into two parts: security and storage. The first part, security, is often not a problem if you’re investing with an expert or a well-established platform. The second part, storage, is always a problem since there are so many different ways to store Cryptocurrency Crash that are all vulnerable in their own way.
Below, we’re going to take a look at both parts of the debate. We’re also going to look at something else that makes Bitcoin a risky investment: its signature volatility.
Security: The Biggest Problem for Bitcoin Investors
Security is the biggest problem for Bitcoin investors. It’s also one of the most important issues to cover when talking about cryptocurrency as an investment, especially in light of recent hacks, scams and theft in the space. There are many different ways that your cryptocurrency could be stolen or lost. If you’re investing with an expert or a well-established platform like Bitcoins Era, then this probably won’t be a big issue for you. Check out their Homepage here to know what a good exchange looks like!
On the other hand, if you’re a beginner and you don’t have a clear idea of what you should be doing then this is the most important thing to consider. It’s also worth noting that if you lose your private keys or passwords, there’s no way to get them back. Your funds will be lost forever.
How Can You Amp Up Your Security?
Choosing the Right Exchange
The first thing you’ll want to keep in mind when thinking about security is choosing the right exchange. The best exchanges will have a solid track record of security and they’ll also offer two-factor authentication as well as other features that can help protect your funds. You should also be sure to enable 2FA on all accounts and devices where possible, including email accounts associated with exchanges.
Taking Care of Your Public and Private Keys
There’s also something to be said about making sure your keys are safe. Your public and private keys, which you use to conduct transactions, need to be kept somewhere safe. You should never share these with anyone, including exchanges and other users. If you lose your keys or someone else gets ahold of them, there’s no way to recover your funds.
Storage: The Other Side of the Coin
So far, we’ve talked about a couple of good security practices when it comes to your crypto. But what about storing your cryptocurrency?
There are a few ways to do this, but you should always be sure to store it somewhere safe. This can mean keeping your coins in cold storage or keeping them on an exchange (but only if it offers 2FA). In most cases, you’ll want to forego exchanges because of their lackluster security, and go for a cold wallet.
What Is a Cold Wallet?
A cold wallet is a type of cryptocurrency storage that’s not connected to the internet. This means that there’s no way for hackers to access your coins if they’re stored in a cold wallet, as they can’t get through any firewalls or other security measures.
A cold wallet is offline, so there’s no way for you to accidentally spend your coins either. This makes them ideal for storing cryptocurrency long-term because, to sum up their biggest advantage, there’s no point of vulnerability where a hacker can access these offline wallets.
Volatility: The Biggest Thing to Keep in Mind
If you want to invest in cryptocurrency, you need to be prepared for the fact that its value is highly volatile. This means that it can swing up and down by huge margins in a short amount of time, making investing a high-risk activity. While volatility can be exciting for traders who are looking to make money quickly, it’s not ideal for long-term investors who simply want their money to grow over time.
Conclusion
Cryptocurrency is a fast-moving and exciting investment opportunity, but it’s not without its risks. The good news is that there are ways to avoid getting burned by cryptocurrencies. By doing your research, setting up an offline wallet and keeping some cash on hand for emergencies, you can make sure that you have adequate protection from the most common pitfalls of investing in cryptocurrency.
