When searching for the best crypto trading tips, there is always a paragraph to answer the most common question: Is crypto trading safe? And the answer is simply – yes.
After you have done your research, and made sure you’ve taken into the account what affects the price of cryptocurrency you wish to invest in, it is time to do some trading.
However (and it is a huge “however”), the users and traders alike have to do their due diligence to stay safe in the crypto trading world. Crypto trading strategy guides have a few important rules to keep in mind at all times.
Beware of False Claims and Crypto Scams
The best crypto trading strategy for beginners is to err on the side of caution. There are so many scams and different variations, it has become increasingly hard to keep track of every single one of them.
Some Twitter accounts will claim to offer free coins, but only after depositing a sum into their trading account. They are usually a scam version of the legit Twitter users with tens of thousands or millions of followers. So, check the handle and beware of anything looking too good to be true.
False trading bots can also be dangerous. For sure, the legit software for automatic trading can make your life easier, but scams such as Profit Revolution will empty your pocket in no time. Make sure you have checked Profit Revolution review with a trusted source before investing – and the same goes for any other crypto bot.
Keep Your Crypto Wallet Safe
One of the first points of attack for hackers is crypto exchanges and wallets. Some exchanges have hacked for millions of dollars worth of coins because they failed to follow simple crypto trading rules concerning safety.
The first rule for keeping your wallet safe is to never backup passwords or seed words anywhere online. Instead, make sure to be alone and have cameras turned off, and write it all down on a piece of paper. Then store the paper away securely. And never use the same password twice!
The next big rule for safe crypto trading is 2-factor authentication. Always have 2FA turned on. It is highly unlikely that both your phone and laptop will be hacked at the same time, so you can easily remedy attempts to steal your coins.
Other crypto trading tips and common mistakes concern hot and cold wallets. The majority of your funds should be stored in a cold wallet. A cold wallet means that your coins are stored on a piece of hardware, offline. Hot wallets are cloud-based storage options, so your funds are readily available. Keep a small portion in a hot wallet for emergencies.
Recognise and Avoid Phishing Emails
Phishing emails are emails that look like legitimate emails sent from companies and legal entities. Since the perpetrators seem to take great care of details, sometimes they really look identical to the legit ones.
But, a couple of details are hard to mimic. Firstly, the company will usually address you by your name, whereas the phishing email will say something like “Dear valued customer”. Another thing to notice is the email address it is sent from. Next to the sender’s name, you can find the email address between the greater-than and less-than signs <example@example.com>.
Publisher info –
Michael Klias
I’m a blockchain, financial, and technology enthusiast who formerly worked as a reporter and business producer. I’ve worked in the UK and abroad. With 7 years of professional experience as a cryptophile I bring a strong personal engagement, assertiveness, and great energy to the crypto business.