You have finally found an opening to the cryptocurrency trading world and you have also been successful with some of your trades. Now, you have some crypto coins that you want to keep with you either for “hodling” “or to invest in other ventures to further increase your returns. The most important realization you can have at this point is that you are still starting out. If you have never traded before, you should pay attention to keeping what you have earned secure.
Certain mistakes can lead to consequences that most new traders are not able to endure. Whatever cryptocurrency you own right now could be doubled or even tripled in the future, but only if you are able to keep it safe. Here are some common mistakes you must avoid to keep your digital assets safe.
Avoid Fake Bitcoin Brokers
You have a deluge of online brokers that claim to provide you with the best Bitcoin trading platform. When you investigate them, you find out they are nothing more than scammers with esthetic websites to get your attention and lure you into their traps. A Bitcoin scammer list is a great way for you to know about most of them. By looking at this list, you can at least rule out the ones that you know are confirmed fakes and scammers.
These fake companies usually ask you to open an account with the promise that you will turn a few hundred dollars into millions. This is how they make people who are desperately waiting for a breakthrough in life shell out their hard earned cash. So, if you want to keep your crypto coins safe, the first thing you must do is to avoid all crypto broker scams.
Use a Secure Wallet
It is important that you understand the common distinctions and differences between various wallet types. Firstly, you have the hot wallet, which means to keep your money in an online wallet. This wallet is online at all times, and hence it is not considered to be safe because it is always in the reach of online criminals. Secondly, you have wallets that you can switch to online mode but once you are done doing a transaction, you can put them in offline mode as well. You can say that these wallets are mostly preferred by people because they are not always connected to the internet.
Now, the last and the safest method to store your Bitcoin is through the use of a cold wallet. This wallet is not online at all. In a way, you store your wallet address in a USB flash drive or on a piece of paper and you use it only when you need it. This way, your wallet is virtually never connected to the online world. Do keep in mind though that using a completely cold wallet is not as easy and convenient as you might think.
Don’t Invest It All
Just like you treat your other savings, you should treat your Bitcoin earnings as well. If you have been successful with some of your initial trading ventures and you have earned some Bitcoin, you want to keep them safe with you. Keep some amount with you and only trade a small portion of it. Try to turn that amount into a big return as well. You don’t want to risk it all no matter what the circumstances are. If you put all your money into trading and lose it, you will have to start from the beginning, which is not pleasant at all.
Not only is it true that the cryptocurrency industry is new but it is also true that most of the people in this industry are novices. Most traditional and experienced traders have stuck with their conventional assets and trading styles. Now, in addition to that, you should really pay attention to signing up with only legitimate online brokers and avoid Bitcoin scammers at all costs.