Since you are here you are either new in this Crypto world and you want to be aware of the threats in this world. Or you are experienced and you want to learn more about it. Without further do let’s talk about our 5 security tips for crypto enthusiasts or Forex investors.
Let’s put them in a list before going into details:
- Ask for qualified advice
- Big platforms vs Small platforms
- Money does not grow in trees
- Watch out for ‘amazing’ offers
- Apply basic security to your Crypto wallets/accounts
That being said let’s take them one by one and jump into details.
Ask for qualified advice
Someone with experience has way more knowledge than a blog article (even like this one). And the social media is getting spammed by ‘Crypto Gurus’ all the time. We all have seen those Facebook posts that sound like “Give me 5 bucks and I’ll let you know how to make millions“.
Do you really think that if those people would have the magical power to make millions would they waste their time for your $5?
Probably this one is the most important of our 5 security tips for crypto traders list. Because this is a new area of activity, the crypto world. And a lot of people made some really nice money from it. Of course, everyone wants to do the same, to make money just by investing their economies.
And that’s right, you should get knowledge from someone who is already part of the Crypto world, but take your time when you choose your mentor, ask questions about their past results, ask other people about their advice, become their biggest stalker. And only when you are 100% sure about their skills and their past results, pay them to teach you how to work your way around.
Payment is also an important factor because people don’t just give their time for free, we all got to eat, pay bills, go on vacations, etc. If someone is trying to give you that magical way to become a billionaire, they are either affiliated to some platform that you should use or somehow make money out of your investment. So keep that in mind and don’t expect valuable information that will bring you money without paying the mentor.
How to find a qualified advice?
The internet is huge, Google it, look for “crypto investing consulting” or something close to what you need to do. Or use Linkedin to find qualified people in this world, but again, there might be scammers too, so you still have to become a stalker and take your time before choosing somebody, it applies in both cases.
That’s pretty much it with the first of our security tips for crypto traders, let’s discuss a little about the second tip.
Big platforms vs Small Platforms
We already know from human history that most of the times bigger means better. But in some cases, it isn’t like that. As an example, some time ago there was something called ‘BitConnect‘ let’s see what the internet tells us about it:
BitConnect (BCC) was an open-source cryptocurrency which has been described as a high-yield investment program and as a Ponzi scheme.
Bitconnect closed in January 2018. The BCC token was still in circulation, and crashed in price. As of September 2018, the token has been delisted from the last exchange that traded it, Trade Satoshi.
The alleged founder of BitConnect, Divyesh Darji, was arrested in Dubai in August 2018. (Source: Wikipedia)
Long story short, they were a cryptocurrency company who were marketing themselves like the best way to make a passive income. Their approach was to convince people to invest in their platform, and then they would make their own investments with the money from the customers, pretty much like a classic bank if you ask me.
But like all the magical ways to become a millionaire, it didn’t work for a long time. And when it went down a lot of people lost huge amounts amount of money, some people even lost their houses, families or even lives.
Bitconnect became a big player, and they still scammed a lot of people. So be careful with your investments, and take your time to do a lot of research.
Money does not grow in trees
As in the Bitconnect scenario, you have to brainstorm a lot before putting your money into something and only invest what you afford to lose.
Whenever you find something out, think about it for a few days, ask for an advice, and only when you are 100% sure that it is going to actually make some money start investing. But keep in mind that you should only invest what you afford to lose.
A very important part of our security tips for crypto traders is the limiting part. You have to limit your investments to small amounts that you can afford.
Watch out for ‘amazing’ offers
Out there on the internet are people who trade their assets without any middleman or platform to avoid taxes and to sell/buy for better prices. We strongly do not recommend that!
In the early stages of the Crypto world people did that a lot, and also a lot of them got scammed and basically donated their Bitcoins to scammers. If a guy offers you any coin for a lower price than they would get on the marketplaces, please ignore them or even block their access to you!
Usually, their way of doing this is by offering you a very good deal to buy some coins, they require you to send the money first and then… nothing happens. You basically donated your money to some random guy. It works the other way too, they offer to pay more than the market price for your coins but require you to send the coins first. Obviously, they get the coins and go away, again you donated your coins to somebody.
Apply basic security to your Crypto wallets/accounts
Whenever you make an account on any trading platform or you make a new wallet you need to apply the following security methods to protect your self from hackers.
- 12 character password
- At least 1 special character (~`!@#$%^&*()_+-=][‘\/.,;’) in the password
- At least 1 number in the password
- Do not re-use passwords
- Opt-in for two-factor authentification
If you want to randomly generate a strong password, we have a free generator that might help you. It does not store any of the generated passwords since they are generated by your browser and not by our servers. You can find it here.
5 Security Tips for Crypto Enthusiasts / Forex Investors, case closed!
The easiest way to stay safe while trading is to have a security consultant that can assist you with all these things and many others. If you would like to learn more about that check our Security Mentoring page.
That’s pretty much it for this article. Hopefully, it will help you to stay safe while trading.