Is it safe to do Crypto Trading?
While many popular companies have started accepting Bitcoin as a way of sending and receiving payments, people are more than ever inclined to cryptocurrencies. The exponential growth of cryptocurrency has welcomed a number of frauds and thefts with open arms in trading platforms.
Be it Central America or South Asia, the raging cryptocurrency is making rounds everywhere, but not everyone is happy with it. With the growing number of cryptocurrencies, let us not forget the serious impact on the rapid customer growth and the massive thefts in the online world.
From stealing wallets to hacking accounts, crypto trading is no longer a safe haven for investors, at least for now. A recent research report by Crypto Head says that the increase in crypto crimes has surged up to 312% per year recently. Having said this, let’s find out if it is really safe to invest in cryptocurrency today?
Is Cryptocurrency secure?
There can be no better assurance of cryptocurrency security except that it is built on secure, encrypted, and decentralized blockchain technology. It’s one of the main reasons why people trust the credibility of cryptocurrency in making contactless payments and using it as a store of value. In the blockchain, many different types of blocks are held together with unique codes that are given to the users.
Besides, cryptocurrency is completely decentralized, which means no third party can interfere without your permission. Obviously, this tells that cryptocurrencies are not easy to hack, but criminals can still sneak into one’s crypto wallet and steal all the coins.
To make crypto transactions further secure, an effective security measure called two-factor authentication has recently been introduced. Whichever crypto transaction you make, you have to pass a two-factor authentication in order to have access to your cryptocurrency.
Despite these security factors associated with cryptocurrency, it is highly exposed to frauds, thefts, and scams. Big names in the crypto industry like Coincheck and BitGrail have lost cryptocurrency worth millions of dollars in the blink of an eye.
Tips for investing safely in cryptocurrency:
Investing in any cryptocurrency takes enough courage to make yourself ready for the expected profits and unexpected losses. Although investments are risky, implementing a few helpful tips can save you from the edge and losing your money.
- Do your homework:
One of the most common reasons investors end up losing their money is doing wrong or incorrect research. When exploring cryptocurrencies, the best practice is to evaluate every aspect in terms of safety. From the safest cryptocurrency exchange to the most protected crypto wallet, you can’t afford any risk with your cryptocurrency.
- Don’t put all your eggs in one basket:
As per the observation, investors who put all their eggs in one basket end up losing all their money. While everyone suggests you have a diversified portfolio, you must invest your cryptocurrencies in different investments. Mostly, investors tend to invest in the highly profitable Bitcoin, but the high volatility is no one’s friend. Among more than 4000 cryptocurrencies, the best practice is to choose at least 3-4 cryptocurrencies in different investments.
- Safely Store Your Cryptocurrency:
Storing cryptocurrency is one of the major aspects of trading cryptocurrency which most crypto investors neglect. Today, there are more options for storing digital cryptocurrency than ever before. From crypto exchanges to crypto wallets, only choose the best and safest place for storing cryptocurrency. Any crypto wallet you choose, make sure it has a good impression and can promise you a win-win trading situation.
- Take Care Of Volatility:
No matter how many years we spend with cryptocurrency, the volatility will always be there. These price spikes not only make cryptocurrency risky but also interestingly unpredictable to invest in. Ever since the launch of the first cryptocurrency- Bitcoin, the crypto world has experienced the most dramatic volatility in terms of prices. No matter what time you invest cryptocurrency in, there’s always room for volatility you need to take care of.
Conclusion:
From the high price volatility to the major thefts and scams, trading cryptocurrency is no piece of cake. Like other digital activities, trading cryptocurrency is also open to numerous cryptocurrency crimes that you must consider when investing in cryptocurrency. Lastly, we suggest you look for other safe options for using cryptocurrency, including mining, yield farming, staking, holding, etc.
