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6 Foolproof Tips for Safely Trading Cryptocurrency

Exchange services, cryptocurrency processing systems, and web wallets are each susceptible to online theft. Despite this fact, cryptocurrency continues to be one of the safest ways to move money online. Here are some tips to boost your cryptocurrency security.

6 Foolproof Tips for Safely Trading Cryptocurrency - bitcoin image

Photo by Andre Francois on Unsplash

Watch out for High-Volume Altcoin Trading

Treat any cryptocurrency exchange that engages in high-volume trade campaigns involving altcoins with caution. Altcoins are an alternative to Bitcoins. And, if the particular altcoin the exchange is pushing has a fishy reputation, steer clear. Another sign of a shady exchange is participation in “initial coin offerings.” You put yourself at risk when trading in new coins.

Trust Your Intuition

If it walks like a duck and quacks like a duck, it’s probably a duck. In other words, if an exchange seems shady, they probably are. You can learn a lot about the future prospects of a cryptocurrency exchange if some of their big names quit the company. For example, the director of MyCoin exchange resigned right before it became clear they were running a Ponzi scheme.

Diversify

If you put all of your eggs in one basket, you’re in big trouble when that basket falls. You don’t want your trading posture to have any one point of failure. To avoid this, diversify your risks. You can do this by investing in many different cryptocurrencies, storing your coins offline, and using more than one exchange service.

Be Careful Using Your Smartphone

You might want to purchase a separate smartphone specifically for cryptocurrency trading. And, if your smartphone has a ton of apps, do not conduct transactions on it. Cyber thieves can gain sufficient privileges to get your private information and blackmail you just by hacking one of the apps. If there are apps on your phone that you never or rarely use, uninstall them.

Protect Your Email Account

Use a strong password containing special characters and lowercase and uppercase letters to safeguard your email account. Add an extra layer of security to your account with multi-factor authentication. The vast majority of cryptocurrency-related hacks happen when a user’s email is compromised.

Keep Your Personal Email a Secret

Your personal email address should not be public knowledge. When you sell or buy cryptocurrency, exchange services typically submit notifications to your registered email ID. Attackers can track your transactions by compromising your email account. They can then potentially gain unauthorized access to your crypto wallets.

With these tips, you can have peace of mind as you enter the booming cryptocurrency industry.

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