Looking for the ultimate advice when it comes to securely entering the cryptocurrency space? We’ve got you covered with these simple 4 tips easing you into the often seemingly overcomplicated world of cryptocurrencies. From the big dos and don’ts to avoiding rookie mistakes, here is a solid start to digitizing your investment portfolio.
How To Decide Which Cryptocurrency To Buy
One of the more important decisions when choosing to join the crypto revolution is deciding on which cryptocurrency to invest in. With over 15,000 and counting, the choices are endless.
First and foremost, you’ll want to start with a coin that has been around for a while and has a good reputation among seasoned traders, options like Bitcoin and Ethereum do well here. These coins also come with highly liquid markets, meaning should you wish to sell quickly there will always be buyers.
Before investing in a cryptocurrency, however, we encourage you to do plenty of research. Become familiar with the core concepts of the project, what solution they’re looking to solve in the blockchain industry, and the leadership behind the project. For more info on how to research a cryptocurrency project, see our helpful guide.
What Are Crypto Wallets And How Do They Work?
An often overseen element to your crypto safety is the crypto wallet you choose to use. Crypto wallets are digital wallets that “store” your cryptocurrency and you get two types: hot wallets and cold wallets.
Hot wallets are typically software-based and constantly connected to the internet. This makes them more susceptible to hackers, so enabling 2FA (two-factor authentication) is highly recommended. Cold wallets are either hardware wallets, like a USB drive, or paper wallets, where your wallet details are stored on a piece of paper.
Different from traditional (fiat) wallets, crypto wallets facilitate all transactions, meaning that they allow you to send and receive crypto, as well as store them. Another difference is that crypto wallets are specific to the blockchain of the cryptocurrency that they support, so for instance you can’t send Bitcoin to an Ethereum wallet or ETH to an XRP wallet.
Here is a more in depth guide to crypto wallets and how to find the right one for you.
How To Stay Protected When Trading Crypto Online
Online security is imperative in this step, and one that is often overlooked. Be mindful of the WiFi network that you are using, and avoid accessing your crypto wallet from a public network whenever possible.
Ensure that your home network is secured with a unique password (router passwords can be generic to a specific model) and that both your smartphone and desktop have reliable up to date antivirus systems.
As a large amount of money lives in the crypto world, hackers are naturally enticed by it, so ensuring that you use the utmost security measures is imperative.
Be Aware Of Crypto Scams
Not all scams are created equal and unfortunately, cybercriminals are getting smarter by the day. If something sounds too good to be true, it probably is. Always do ample research on a cryptocurrency, platform and wallet before parting ways with your cash, and be on the lookout for anything that seems not quite right.
Another area to be vigilant in is the ICO scene. During the ICO boom in 2017 many investors lost large amounts of money due to exit scams, and the same has been true for the projects in the DeFi movement. If you do adequate research you are likely to be able to avoid these types of scams, however, it is always important to do your own research.
Here is a guide to spotting Bitcoin scams, relevant across the industry.
Top Tip: Make The Most Of Oobit
You can buy, sell, trade and store cryptocurrencies through the Oobit platform with peace of mind. All digital assets on the platform are secured using a military-grade air-gapped vault designed by cyber security experts. The processes are streamlined to provide the smoothest experience, including getting the identity verification down to 5 minutes with more accurate results. Sign for your free Oobit account here.
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