If you are involved in cryptocurrencies, you are almost certain to have noticed several significant events in the past that were related to market collapses or crypto assets being stolen from accounts. The security of cryptocurrencies is really important. This article is a brief explanation on how to increase the security of your crypto assets. Wether you already have crypto investments or you are planning on starting, you will find valuable information here.
Usually, the funds people invest come from a lifetime of savings from hard work. Losing this money by keeping it in an insecure account can be a real tragedy. We will therefore outline some security measures you can follow in order to make safe choices when investing in cryptocurrency. Your broker selection, as well as your currency portfolio are very important factors that can help in securing your digital investments. The fact that we are dealing with digital money makes security different but not less important than the one in your bank account.
The process of securing your cryptocurrencies
- Determine what you need from a market provider or broker. Also, determine what kind of investments you are interested in.
- An investment strategy is certainly a crucial aspect during decision-making and in securing your cryptocurrencies. Do you intend to buy stable cryptocurrencies with the purpose of long-term keeping and save them in a crypto-wallet? Then, search for a stable secure market with a per-transaction fee. Transaction costs might be higher than in other markets, but making few transactions means these fees are not as important. In this case, the security of the market and currencies is paramount.
- If, on the other hand, you wish to constantly trade cryptocurrencies based on their rate variations, you will need a company with minimum transaction costs and a wide spectrum in their cryptocurrency offering. These platforms might not appear as stable as others, but your funds will not be there for long.
- Read about the exchange or broker on Internet forums and blogs, and then test it with a small amount. There is nothing better for ensuring the security of your cryptocurrencies than testing your selected provider yourself.
What to do with your cryptocurrencies
- The best possible way to select a digital currency market is via its users’ reviews. This tells you a lot about their security. Also consider that these platforms can also be influenced or bribed. Therefore, you need to research in as many information channels as possible and take into account the number of user reviews each site has.
- Every time you send funds to a new provider, you should start with a small portion of your savings. With this amount, you can make some test trades in that particular platform. After that, you must transfer part or all of these funds back to your bank account. Doing this, you will test whether this market or broker really will send back your money when requested.
- Hold your previously determined strategy in the long-term and try not to change it all the time.
One last thing about the security of your cryptocurrencies
- Before transferring funds into an investment account, you should have a clear strategy in mind. In general, strategies can be classified into two categories: “buy and hold” or “progressive cryptocurrency trading”. No matter what strategy you choose, you should hold it even if there is a downturn in your portfolio. Every downturn has an end and changing your strategy will only make it more difficult to plan for the future.
- Successful traders have found that most of their long-term losses come from breaching their own trading rules. These changes normally come from a momentary emotion and affect their long term earnings.
- Choose your crypto provider well. Even if you have strong passwords and two-factor authentication, untrustworthy brokers should be avoided at all costs.