The cryptocurrency market offers earnings prospects that are out of all proportion to those of other markets. This is how it attracts many budding investors, sometimes very little aware of the dangers it contains and the scams it can engender investing in cryptocurrency.
Scams, we had already talked a few weeks ago in the article “Bitcoin, crypto-currencies: beware of crooks” . Following several testimonies from injured readers who had not followed our warnings and the recommendations of our various departments, we decided to take stock of the situation.
Danger, we will talk about it today as the explosion of the number of trading platforms can very quickly turn the heads of the first arrivals.
Indeed, when you start in this market, you must first familiarize yourself with two essential tools:
- Exchange platforms, where cryptocurrencies are bought, sold and traded;
- Wallets (wallets), where they are stored to guarantee maximum safety.
Each exchange platform has its qualities and its faults, its advantages and disadvantages. Perhaps you want to sacrifice simplicity for ever more security, or do you prefer to have more flexibility and responsiveness for your exchanges – while maintaining a minimum of security. It’s your choice.
But security is the key word.
To help you optimize it, here are our 10 tips to implement immediately.
1 – Open accounts on multiple trading platforms
Even if you end up using only one or two, it’s important to be registered on multiple platforms – among those we recommend. Some platforms sometimes take time to check the accounts and each one has a list of different crypto-currencies. You may miss some opportunities if you wait until the last moment to register on a platform that offers the desired cryptocurrency. Among our favorite platforms, Coinbase, Kraken, Binance or Bittrex, for which we provide step-by-step user guides.
2 – Have your account validated as soon as possible
Most trading platforms follow basic guidelines for identifying customers. This means that they will have to confirm your identity: they will need your e-mail, your phone number, your address and a piece of identification. The verification process can sometimes take weeks as most platforms are not up to date in terms of customer service.
3 – If you have any doubt about safety, abstain
We often receive emails from readers who express their doubts about the honesty of a platform they just fell on. The first intuition is often the right one: if you do not feel it, avoid it. And, again, focus on our favorite platforms.
4 – Systematically conduct test transactions
Whichever new platform you use, never forget to make a first test transaction of one euro or its equivalent in the crypto concerned to verify that everything is going well. So, if you make a mistake, you will lose only one euro.
5 – Type the address of the exchange in your browser and save it as a favorite
Then use this favorite each time you visit the site. Hackers create exact replicas of trading platforms, with URLs so close that you will not be able to see the difference. Do not omit this step.
6 – Use safe and unique passwords
For each exchange platform a corresponding password. Do not reuse your passwords and do not use identifiable formulas. Never keep your passwords in a Dropbox folder or on the desktop of your computer. All this can be hacked.
7 – Use a dedicated browser for all your cryptocurrency exchanges
Better yet, use a Chromebook or a computer dedicated only to cryptocurrencies. If you have a computer other than that, put it offline when you’re not actively using it to trade – and turn it off when you’re not using it. All this, of course, to the extent possible and your means.
8 – Never download random extensions
Whether it’s a Chrome extension or software updates, be very careful when downloading them to a computer that you will use for cryptocurrencies. Check several times.
9 – Beware of links in emails or email apps
Unless they come from reliable sources, of course. Sometimes they contain malicious programs. Be particularly careful … and be twice as cautious about any link found on social networks.
10 – Avoid publishing information on social networks
This may seem exaggerated, but it is better not to talk about your investments in crypto-currencies on different social networks. This makes you a target for robots – and humans – who are looking for the slightest flaw to hack you. To live happily, live hidden!