Tips to Make Your Cryptocurrency Investment Secure
The cryptocurrency market is fast-paced and full of excitement, but you might feel left out if you are a rookie to cryptocurrencies. Investing in this digital currency may seem like a daunting task for anyone cautious about their money.
But with some tips and guides on investing in cryptocurrency, even a novice can get in on the action with wagering on NFL odds and other sports with crypto. Below are useful tips that will help both beginners and advanced crypto investors give their crypto investments a secure future:
Use a Digital Wallet that Supports Multiple Cryptocurrencies
If you want to buy or sell different types of cryptocurrency through a single platform, you should ensure that your chosen platform supports all of the coins you wish to use.
Many exchanges offer support for just one or two cryptocurrencies, but others support more than 20 different coins.
Safeguard Your Private Key
Your private key offers you access to your funds – if someone else has access to it, they can take them away from you by transferring them out of your account without your permission!
Keep copies of your private key in several locations so that if one gets lost or stolen, you will still have others available for backup purposes.
Don’t Invest More than You Can Afford to Lose
Important things you can do when investing in cryptocurrency are to set a budget and stick to it. You can do this by saving a specific amount of money for investment — say $10,000 — and then only spending what you have allotted.
If stuff goes wrong and your cash is lost, it won’t be as painful financially as if you had used all your savings on cryptocurrency.
Use Cold Storage
If you have large amounts of cryptocurrency that you want to store securely, consider storing them offline in cold storage. Cold storage refers to any method of storage that does not use an internet connection or other form of connectivity.
The most basic example is storing your private keys on a piece of paper or metal rather than online.
There are many ways to store cryptocurrencies offline using cold storage; some wallets support it natively, while others require extra steps, such as printing out your private keys.
Do Your Research
The first step towards making a successful investment is doing your research. You should start by reading about digital currencies and learning how they work. You will also need to know how the market works and what factors influence its prices.
You can start by looking at Bitcoin’s white paper for more information about how digital currencies work. Once you have done your research, look for coins with strong fundamentals and growth potential.
Then choose one or two coins from several different categories: privacy coins, payment coins, utility tokens, and platform tokens, among others.
Buy Only From Reputable Exchanges
There exist various exchanges where you can purchase cryptocurrencies. However, only a few exchanges are trustworthy enough to be considered reliable sources for buying cryptocurrencies like Bitcoin, Ethereum, or Litecoin.
Always try to buy from these exchanges as they are more likely to provide you with truthful information about their products and secure transactions.
Use a Strong Password
Your password should be ten characters long and contain both letters and numbers. Avoid using common passwords like “123456,” “password,” or “qwerty” — these can easily be guessed by hackers, so they’re not ideal choices. Use hard-to-guess pins, even if they’re easy to remember.
A good way to set up passwords is by using passphrases rather than single words: “I love chocolate cake!” would become “Ilovechocolatecake9.”
This makes it easier for humans to remember but harder for computers to guess correctly when trying different combinations of letters and numbers.
Keep Track of Your Transactions
This is the most important thing regarding securing your cryptocurrency investments. If you don’t know where your coins are going, then there is no way for anyone else to tell you either!
Ways to keep track of your transactions is by using a software wallet like Electrum or Mycelium. With these wallets, all of your transactions will be recorded automatically, and there will be no need for manual input from you after each purchase or sale of bitcoin.
Use A VPN for Online Transactions
If you do any online transactions with cryptocurrency — buying or selling, sending funds to an exchange or wallet provider — it’s important to use a virtual private network (VPN). A VPN hides all of your information so that no one else can read it or steal it. If they manage to get your data, it’ll be gibberish to them because of encryption.
Even if someone can get into your computer and capture keystrokes as you type in passwords or other sensitive information, they won’t be able to read what they see on their screen because everything will be encrypted.