24 Jun 2020 Marsha Tusk
5 Top Tips For Cryptocurrency Beginners
The magic world of Bitcoin and cryptocurrencies can be both very profitable and very dangerous if you are new to it. The journey of every market newcomer who haven`t invested in Bitcoin, or just have started investing, may be very unclear and dark.
Our team has prepared this written piece with useful tips for all crypto enthusiasts, and especially for those that are new to the sector. We have gone through all steps before and we hope that you will make use of the tips – they should help you avoid making unnecessary mistakes.
1) Never miss making backups of everything important
You are at risk of losing access to your wallet(s) if you do not keep records of your private keys. Many of the crypto exchanges have already launched a two-factor authentication feature (2FA), which adds an extra layer of security. Forgetting your passwords and backing up codes can cost you a lot, and you will be at risk of losing all your digital assets. We strongly recommend to keep all vital information somewhere safe, in case you need it for further reference.
2) Be wise about backups safety
We touched upon in the previous point that backups, along with all pertinent details, must be stored somewhere safe. We are encouraging everyone to stay away from keeping their information on their desktop. Folders that directly or indirectly imply that you keep your ”sensitive information” in these folders are increasing the risk of your details being stolen.
Our practice also shows that users consider as a much safer option emailing their backup information to themselves. It is very common email addresses to be hacked and information contained in the emails to leak online. Cryptobrowser.io have already reported in the past numerous incidents of medium and large scale hacks and scams that took place in the sector.
3) Don’t leave your funds on a dodgy exchange
There is a notion that cryptocurrencies should not be stored on any exchange, regardless of its popularity, business operations, security levels, website traffic or any other relevant aspect that comes to mind. However, not all crypto exchanges are that dangerous. This is where the due diligence should occur by you, the end-user.
Some of the exchanges provide insurance policies, such as Coinbase and Binance`s SAFU fund. The reputable exchanges are those that we encourage you to choose, but bear in mind that you should pay extra attention to what their policies state in terms of customer protection. You cannot completely eliminate the risk, but you can take that down to a minimum by doing a thorough research on exchange providers.
4) Don’t fall for scams
Unethical business operations are still present on the market, with a number of exchanges making promises that cannot keep, or they just mislead the user. An example of a such promise is
”Invest $500 now and you will make at least 10x in one week, guaranteed”.
Although this sounds tempting, in reality there is a great chance of coming across obstacles that will be almost impossible to overtake and make profit. Moreover, the chance of becoming a victim of a scam/hack and jeopardizing the safety of your digital assets and personal information will imminently increase.
There are ways of making profit, but we strongly encourage you to spend quality time on understanding how the entire concept works. Be patient, always start with a small amount of funds that you can afford to lose and do not take anyone`s word for granted.
5) Do your own research
Inevitably, this is part of all points above and it is the most important aspect of all. As we mentioned throughout the article, doing your own research and understanding the consequences is vital, not only for beginners, but for advanced traders too.
During the ICO boom in 2017, a large number of people were investing in projects that were only after collecting funds and afterwards they disappeared. Only a handful of projects kept their promises and worked towards delivering the product/services for which they start their fundraising events.
The lucky investors who purchased altcoins of dodgy companies managed to exchange their tokens on time. However, there is a chance that you may not be so lucky, which is why an in-depth research should be at the forefront of your trading and investing plans.
Summary
Research is an absolute must when it comes to investing. If you need help with your research you can always check this beginner investing guide. It applies to Bitcoin as well as all other cryptocurrencies on the market.
The investing guide was crafted with the idea to make your crypto journey less easier, more useful, and to a very large extend – very educational and informative. We believe that the more we can do to limit scams and hacks, and the harder we try to understand customer experiences that are still present in this space, the better it will be for everyone.
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