6 Ways to Protect Your Crypto Investment Today
Everybody wants a piece of cryptocurrency in today’s world. Being one of the most popular financial trends, people of all ages are flocking towards the currency of the future. Today, anyone with an internet connection can easily buy, sell or hold their crypto assets from any part of the world.
Cryptocurrency is one of the best forms of trading as it is highly secured and unhackable with the help of blockchain technology. However, the threat to your cryptocurrency investment is mainly through your digital wallets or exchange platforms as they have been prone to cybercrimes.
Hackers are highly sophisticated as they use multiple ways to scam or hack crypto users through fraudulent activities. There are a lot of crypto newbies who fall into the hands of these hackers as they are unaware of certain essentials in protecting their digital currency.
In this article, we will focus on a few ways you can protect your digital investment and mitigate any kind of loss.
Use Cold Wallets
Online wallets are the most popular form of storing your crypto investment. However, they can be easily hacked if your wallet is not secured properly. New users who are interested in joining crypto tend to use the online wallet service provided by their exchange.
When users store all their assets on these wallets, they are more susceptible to hackers because most exchange platforms do not focus on wallet security. That’s why you should consider using a cold wallet or an offline wallet as they can be assessed through different devices as they are encrypted and keep your private keys and public keys safe.
Choose the Right Exchange
Before you start investing in crypto, you must choose a crypto exchange platform where you can sell, hold and buy your digital currency. These platforms are designed to have several advantages which enable users to make their transactions easily and smoothly without any hassle. Want to know about trading cryptocurrency in Australia, Best Crypto Exchange Australia has reviewed over 100 platforms and compared them through different factors like customer support, trading fees, security, and so on.
Independent Digital Wallet
Using an independent digital wallet is always a better choice than the one provided by your exchange. Just like exchanges, digital wallets are designed to store, hold and sell your cryptocurrencies securely. The difference is that independent digital wallets offer more flexibility, technological features, and higher security.
That’s why when choosing your wallet, make sure they are independent wallets and not offered by your exchange as they can be hacked and hijack your crypto account. Keep in mind the type of crypto wallet you choose will also enhance your crypto trading experience and boost your journey.
When using crypto, you need to have access to a secured internet connection. When you are conducting crypto transactions or trading assets, avoid using public networks as they make your crypto asset accessible to hackers.
When you use a VPN on your home network, it offers many advantages which protect your crypto transactions and keep them secure. When you use a VPN network, it changes your location and IP address when accessing your crypto accounts which keep you safe from cyber attacks.
Remember Private Keys
The private key is one of the best components of your digital wallet as it is private only to you and no one else. If you manage to lose the key or forget it, you will not be able to recover your crypto wallet account.
The best way to protect your crypto investments is by erasing any digital data that stores your private key and save it offline on a piece of paper or save it in a safety deposit box if you have to. You can do the same for any other password or passcodes of multiple digital wallets and change it on a regular basis to avoid being hacked.
Before investing in the cryptocurrency market, make sure that you are aware of all the latest technological advancements and trends. The reason is quite simple, if you are investing blindly into the market through the first possible solution, the chances of you losing your investment are higher.
So before making any decision, ensure that you read about the market, the coins, the exchange platforms, wallets, private keys, and so much more. If you know someone who is already investing in crypto, you can speak to them and learn some trading tips which will help you make a profit.
Ever since the launch of crypto in 2009, year by year, the industry is evolving and developing new ways to protect your digital funds. As much as being up to date with the latest security features is important, make an avid effort to protect your investments.
Since cryptocurrency is a highly volatile market, make sure you diversify your investments with multiple coins over multiple wallets so all your investments are not allocated in one place. While investing in crypto, making sure that you use the right trading strategies is important, so do your research and plan your investments well.