A good decision can yield gains of hundreds of percent in crypto for some investors while other people can lose everything in a day.
Choosing a cryptocurrency and minimizing the risks
The first step is to choose which cryptocurrency you wish to invest in. Read Product reviews for you to know. There are fast and no hard rules here as almost any currency can rise one day and fall the next. It takes a lot of luck for a newcomer to crypto investing to anticipate these moves. Still, there are some steps you can take to protect your investments.
Beginners should choose a currency like Ethereum or Bitcoin, which has a long history of development and corresponding demand among brokers. If you want to sell coins quickly, you will find it easier to find a buyer for them. A higher market capitalization frequently means lower risk.
If you’re ambitious, confident in your investing skills and willing to risk excess money, take a look at the emerging alternatives. They are cheaper and promise faster wins, but they also come with some downsides. Don’t put all your eggs in one basket, rather invest in different cryptocurrencies to protect yourself.
Read the fine print and product reviews for you
When choosing a cryptocurrency and exchange, don’t get carried away by fantastically generous offers. Even in the unique environment of cryptocurrency, handouts don’t exist. When you’re promised super wins, look for the catch.
Product reviews for you: How to stay protected when trading cryptocurrencies
Using a secure communication channel for all your crypto transactions is essential. For example, if you access the website of a platform over public Wi-Fi, criminals might be able to interrupt transaction details. They can spoof a website to steal your funds.
Trading over your home network rather than a public network is safer, but you need to protect it properly. The first thing you should do is replace the router’s default password with your own. The default password is often the same for all routers of the same model, making your Wi-Fi vulnerable to brute force attacks.
In any case, it is always best to conduct all crypto trading through an encrypted VPN channel as this provides an extra layer of security.
When choosing a VPN service, pay attention to the connection speed and the availability of a kill switch. The latter is particularly important for high-risk transactions. If the secure communication channel fails for any reason, the kill switch automatically disconnects your device from the internet and thus prevents data from being sent unencrypted.