In recent years, cryptocurrencies have been gaining popularity as a viable investment. There’s been an explosion of information with regards to safely trading in these currencies, but not enough on how to stay safe while you are trading!
It is important that when investing in cryptocurrencies that you are aware of the risks and take steps to mitigate them. Read on to learn some advice on safely trading crypto so that you can invest worry-free!
Research All The People You Trade With
Wherever there is money involved on the Internet, there are people who will keep finding ways to steal it. You have to make sure you can recognize, and therefore avoid hacked exchanges so that this doesn’t happen to you. It’s a common occurrence because you are dealing with an unregulated, anonymous market.
Cryptocurrency is a safe way to conduct business online, but it isn’t infallible. You have to do your research when doing trades in order to keep yourself and your money safe from thieves that may be lurking around the corner just waiting for unsuspecting crypto-traders like you!
You need to know what kind of people are out there who will take advantage of others if they can gain access through any means necessary. They don’t care about anything other than getting their hands on something valuable so they can steal it away without anyone being able to trace them back or stop them in time before more damage is done.
It’s not always easy spotting these criminals in this day and age because the Internet has given them so many ways to be able to hide behind anonymous usernames and act like they are someone completely different.
Create A Strong Password
It’s essential that you create a strong password to safely trade cryptocurrencies. Many people don’t know how to create a secure password, which is why you should follow these steps:
- Use a combination of letters, numbers, and symbols. Don’t use words from the dictionary or anything personal to you such as your birthday or phone number, this makes it easier for hackers to figure out how they can access your accounts.
- Create passwords that are easy to remember but hard to guess. You should create unique and strong passwords for each website you use online, no matter how big or small!
- Use a password manager, such as Dashlane or LastPass, to safely store all of your passwords. This ensures that you always have access to each one if needed and can create super-strong ones without having any trouble remembering them!
- Complexity is key here, so it’s important to avoid common passwords such as “123456” or words that are in the dictionary.
- You should also change your password every once in a while, especially if you believe that your account may have been hacked or compromised. This will help to further ensure the safety of your assets
Use A Two-factor Authentication On Your Accounts
Two-factor authentication (or “two-step verification”) is the single most important security feature that you can enable on your online accounts. This method adds an extra layer of protection to sensitive actions like changing a password, withdrawing money from an ATM, or authenticating yourself in cryptocurrency trading platforms.
When logging into these services on new devices (e.g., smartphone, tablet), users will need both their regular account password as well as a one-time passcode generated by their mobile phone app or received via SMS text message. This way even if someone gets hold of your password they cannot log in unless they also have access to your physical device!
You can use verification questions, where the website will ask you a question only you know. If you cannot answer this correctly, your account may be compromised, and make sure to change these as well if it is!
Use A VPN To Shield Your Information
VPNs are useful tools that allow you to safely trade cryptocurrencies. You can use them on your computer, or install them directly onto your router for all devices in your home. VPNs encrypt data that is sent between both the device and the internet so nobody else can see what information you are using online. This makes using a VPN an important step towards staying safe when trading with cryptocurrency via exchanges.
Your IP address will remain hidden when you use a VPN. This means it will be harder for hackers to break into your computer and steal data like logins, passwords, or credit card numbers.
You can safely trade cryptocurrencies with peace of mind once you connect through a VPN which is important if you are using an exchange that does not require two-factor authentication. The information on trading websites requires this method to set up both email addresses and cell phone numbers so they have more than one way to identify who you are before allowing trades!
Don’t Share Personal Information
Don’t get too friendly with your fellow traders. They may not have your best interest in mind and could be planning to sell you a fake coin or trick you into revealing personal information that can put you at risk of being hacked.
Never share any financial details including bank account numbers, social security numbers, etc., even if they ask for it directly. There is no reason why someone would need this from the average trader who isn’t doing anything nefarious with cryptocurrency trading like money laundering or tax evasion.
You should not even give away family information because there are people out there who will use this to their advantage. Some hackers have been known to ask for photos of family members or other seemingly innocent pieces of information that can be used against you in the future.
Use A Hardware Wallet To Store Cryptocurrencies
Hardware wallets are amazing tools that will help you safely store your cryptocurrencies for trading. These devices are designed to make securing your virtual valuables as easy as possible, protecting against theft or loss of assets.
It is important to use a hardware wallet when storing cryptocurrencies because it allows users to safely send and receive digital currency transactions without having online access to their private keys. This means that an internet connection isn’t required in order to execute trades.
By using offline storage instead of keeping funds on exchanges or web wallets, the security risks involved with crypto-trading are significantly reduced since there’s no risk of hackers getting their hands on your details should they breach the exchange’s servers.
Cryptocurrencies are a great way to make money if you know how to trade and how to stay safe. Watch out for hackers by researching every trader and having a strong password.
Use a two-factor authentication system and use VPN to hide your information. Don’t assume other traders are your friends and don’t give out any personal information. It’s very smart to use hardware wallets to store your cryptocurrency coins so that they’re extra safe!