6 tips to safely invest in cryptocurrency – here’s what you need to know

cryptocurrency wallet getting hacked

As the amount of cryptocurrency increases almost daily, so does account hacking.

The popularity and price of and Ethereum, for example, has made these digital currencies a target for hackers. As a result, are looking for ways to take advantage of these valuable assets.

 Jack Mannino, CEO of nVisium, had said that the economics of hacking suggest that attackers will continue to gravitate towards digital currencies. This is due to the increase in the of assets, which means that hacking is becoming more common in our daily lives.

To save yourself the stress of tracking the work of hackers (which can frustrate you) as their tracks cannot be digitally removed, it is better to be aware of security tips.

Since it is an unregulated industry, if you fall victim and your account is hacked, you have no legal recourse. To your cryptocurrency investment, here are 6 to follow.

1. Research

This is the first step you need to take, especially if you are doing this all by yourself for the first time. It is important that you research the before you a penny in cryptocurrency. This way, you will learn about exchanges as platforms that offer the ability to buy and sell digital currencies.

According to .com, with over 500 to choose from, you need to do your research, read reviews and consult more experienced investors before selecting an exchange.

Coinbase, GDAx, eToro, and Bitfinex are some of the top that are highly recommended.

2. Keep most of your offline

When it comes to digital security, you need to take a approach as online wallets are becoming increasingly popular and attracting the attention of hackers. Offline or physical wallets should be used to store most of your cryptocurrencies while keeping only a small number of currencies in the online wallet.

Also, make sure that the physical is kept in a secure place like a safe or safe deposit box. It is therefore necessary to separate the and public keys, and both should be secured with strong passwords and multifactor authentication.

It is expected that more security measures will come as becomes more mainstream, but for now, you need to keep your cryptocurrency safe.

3. Diversify your investments

Diversifying investments is a key strategy in business. You should practice this in the industry as well. To have a shock absorber, never put all your money in Bitcoin, for example, just because it’s the only cryptocurrency you know. Look at other options in this and spread your across multiple currencies.

To even get good advice on diversifying investments, you could consult a good financial who will advise you on good asset allocation. Such a person could even your money for you. For example, some have SmartAsset’s free tool that can match you with advisors in your area based on your financial needs.

4. Prepare for the worst

In an unregulated industry, anything can happen. Since cryptocurrencies are not regulated by any government, it is a volatile business. So be prepared for ups and downs.

In this business, you will see dramatic fluctuations in prices. So, it is important to be mentally prepared for what the market tends to offer.

Once the mental aspect is taken care of, it can be said that is a wise choice for you.

As an initiative that is still in its infancy, is an that comes with a huge challenge. So to be prepared, get involved, do your research, and conservatively to get started.

5. Understand the volatility

Since it is an unregulated industry, it comes with a lot of risk that you must be prepared to bear. For this reason, it is important to know where you are buying and selling your digital currencies. You need to know some basic rules to survive in this industry that is always evolving, in simple terms.

Many have asked if Bitcoin, as the number one cryptocurrency, is safe. But you should know that the is a maelstrom of risk.

The /simple fact here is that buying is much like buying any other currency. So, you need to pay attention to the price volatility compared to other currencies.

6. Secure your digital asset

The digital currency is different from traditional investments because you either have to hold the coins yourself or entrust a third party to do so.

If you hold them yourself, you run the risk of not storing them properly and losing them forever to hackers.

But if a third party holds them for you, they may have necessary ways to them. Digital coins are unlike dollars or that can be stored. Once you lose the coins to hackers, they cannot be easily replaced.

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Nothing on Cryptinus constitutes professional and/or financial advice. Always think for yourself and make sound decisions when investing. Never money that you can’t afford to lose.¬†