The most important aspect of cryptocurrency is their security. There have been countless stories in headlines of people losing their valuable cryptocurrency. To help you avoid such mistakes we have listed 5 ways to carry out safe and secure trading using your crypto savings.
Security For Your Wallet Is As Important As Your Cryptocurrency
For cryptocurrencies you are the bank, once the money leaves your wallet you cannot retrieve them. There is a bigger threat to your digital currency through your wallet than the blockchain. The information is usually stored at provider level. This information, including your private key can be stolen by hackers. The best strategy is to only use crypto wallets that belong to reputable companies. Do thorough research before committing to ensure reliability of the service. Make sure you backup your wallet offline to prevent hackers stealing them.
Learn To Use Cold Storage
Another tip to safe investing is never to put all your cryptocurrency in one wallet. Regardless of the kind of storage you use. The best option is to distribute your currency in multiple wallets in such a way that if one is compromised you are least affected. Professional traders recommend using cold storage, it is not connected to the internet and least likely to be hacked.
Invest In Security For Your Electronic Devices
Firstly, never use public Wi-Fi for trading activities and avoid lending your devices to others. Use a 2-Factor Authenticator, it is an application that changes your code after some time. The second protection layer requests a specific code for each login. This guarantees that without direct access to your device no one can open your wallet. Use a strong password to protect your devices. When offered to auto-save passwords by any site, always decline. Invest in a high-quality antivirus program to protect your devices from hacking. Lastly, before you send your device for servicing remove all your cryptocurrency and related data from the device.
Stay Vigilant For Phishing Scams
Phishing scams are getting more common and even professional traders have fallen victim to such scams. It involves hacking, using and spreading fakes of the popular applications and websites. These include fake google, facebook, digital wallets and other applications. Once you download such malware your currency gets stolen within minutes. Be extremely careful and selective when downloading applications on your devices used for trading. Only trust official websites.
Avoid Storing All Your Cryptocurrency On Trade Exchanges
The big trading companies boast about their security features but it is a wise decision not to keep large amounts of your digital currency on any exchange. Although these companies also offer insurances, in case they are hacked your money is gone. Only keep the cryptocurrency you need for trading on exchange and rest in your cold storage wallet. If you are ever hesitant when making financial decisions, hire a professional broker. The forex broker reviews is a recommended group of professional brokers ready to guide you.
Finally, remember these practices can keep your cryptocurrency safe digitally. If you go around bragging about your earnings, you are in danger of physical harm. Keep your investments private and avoid sharing private information with others.