Cryptocurrency holds a lot of promise, with many people seeing it as the future of payments. But like with any new asset class, there are risks that come along with investing in it. Keeping your coins safe is essential to protecting your investments and keeping them secure. If you’re just getting started with crypto, it’s probably very difficult to understand the risks involved. Even experienced investors can be duped by fraudulent schemes and scams. And given the high profile hacks we’ve seen recently, even amateur investors should take precautions. With that in mind, here are 5 ways you can keep your crypto safe from criminals and scams:
Backup Your Wallet
This may sound like an obvious tip, but you would be surprised how many people forget to do this. If you’ve had your crypto for less than a year, you should back up your wallet. This means saving your private keys, so that if something happens to your computer your coins are still safe. You should also back up your wallet on different devices. Backup your wallet on paper, or in an online storage service. You can also use a crypto wallet app. Be sure to keep your wallets’ backup safe, as losing this could result in your coins being stolen.
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Only Deal With Trusted Sources
You may have heard that there’s been a surge of new ICOs in the past few years. Whilst this may be true, the vast majority of these are scams. There are a few things you can do to be more sure you’re dealing with a reputable company. Firstly, do your research before you invest. Research the company and their plans, and make sure they have a track record. You can also use a third party like TrackICO to check if the ICO is legit. This will allow you to research the ICO and determine if it’s a reliable investment.
Educate Yourself On The Risks
This may seem like a no-brainer, but many people are under the impression that investing in crypto is easy. The truth is that it’s extremely difficult to get a good return from investing in crypto. The high volatility of the markets makes it a high-risk investment. That’s why it’s so important to educate yourself on the risks involved. This will help you to better understand the high risk associated with investing in crypto. The first thing you can do is to make sure you understand the differences between various types of cryptocurrency. There are many kinds of coins, and some are more risky than others.
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Avoid Scams In Real-Time
Once you’ve gotten your head around the high risk of investing in crypto, you should be keeping a keen eye out for scammers. This is crucial, as you can’t rely on the government to keep you safe. As soon as you see someone trying to scam you, you have the right to report it. If you see an ICO scam, let the ICO’s management know, so they can take action. When it comes to scammers, the best thing to do is to avoid them.
Always Be Vigilant
If you want to keep your coins safe, you have to be vigilant. This means keeping your eyes open for scams, and watching for suspicious activity when it comes to exchanges. If you keep your guard up, you can avoid most scams and hacks. But if something does happen, it’s best to be prepared. This means making sure to keep your coins and wallet secure. It’s also a good idea to report any suspicious activity that you see. This will allow the crypto community to keep an eye out for potential threats.
Also Read-Cryptocurrency: How It Works, What You Need to Know About It
Conclusion
Cryptocurrency holds a lot of promise, with many people seeing it as the future of payments. However, like with any new asset class, there are risks that come along with investing in it. Keeping your coins safe is essential to protecting your investments and keeping them secure. If you’re new to the game, it’s probably very difficult to understand the risks involved. Even experienced investors can be duped by fraudulent schemes and scams. And given the high profile hacks we’ve seen recently, even amateur investors should take precautions.
