Blockchain technology has completely revolutionised the way we think about money. Thanks to solutions such as cryptocurrencies and smart contracts, millions of people around the world have been empowered to take control over their financial future.
Investing is no longer something reserved for Wall Street brokers, thanks to blockchain, anyone can massively improve their finances, but how can you be sure that you are trading crypto in a safe way?
Using credible exchange platforms
Crypto exchanges play a crucial role in determining your trading experience. Other than being the medium to purchase, sell and trade crypto assets, crypto exchanges also act as a convenient vessel to store funds.
Choosing a crypto exchange platform is fundamental to have a safe trading experience. A secured exchange that complies with the regulatory requirements and ensures protection for all users and projects onboard is necessary to ensure user protection.
When choosing a platform, new traders have to look beyond fee structure and token pairs, rather they should ensure to read into the security and safety processes of these exchanges to protect themselves from being easy victims of fraud.
Platforms like ABCC Exchange, allow for their users to securely trade through their unique multi-layered security infrastructure. An exchange with such a user-centric layout allows current users and other crypto-enthusiasts to feel safe diving into the world of cryptocurrency.
Keeping your account protected
Similar to a bank account, it is also important to keep your trading account secured. Although it is an added step that extends the log-in process, enabling at least one secondary authentication (two-factor authentication) will act as additional security that verifies your identity and protects your account and information from any cybercriminal activities.
With recent increase in phishing attacks, traders are also encouraged to have some additional care to not be vulnerable to such scams. A few good practices includes:
- Not having the same or similar account name and passwords on multiple sites.
- Double checking the domain name before logging in, or when depositing and withdrawing funds.
- Using reliable and updated antivirus software to protect the device.
- Avoiding any suspicious emails, message links and attachments.
- Not using unknown and untrusted public networks
Doing your own research is necessary
If you look up the name of any crypto project on the market, you will find a plethora of results convincing you that this particular project will “go to the moon”. Nonetheless, is it really plausible for every crypto on the market to grow exponentially?
In short, even if there are analysts online promoting a certain project, it is always beneficial to do your own research before delving into considering this as an investment option.
When planning to take the leap into crypto, you should always know all the necessary details about the coin you want to purchase. Who is behind it? What use cases does it fulfil?
How long has it been around? Is it decentralised, or fully controlled by someone? Asking these questions prior to making an investment places you in a much more secure position than to wonder why this “hidden gem” has yet to “skyrocket”.
Ultimately, the best way to trade crypto securely and to mitigate the chances of any risks involved in trading cryptocurrency is simple: do your own research and only invest as much as you can afford to lose. Sometimes our emotions may get the better of us, making us prone to indulge in impulse-driven decision-making acts.
Given the volatility of the market, rather than going all-in when particular crypto or a certain trade looks attractive on paper, remember to make well-informed decisions through trusted platforms before investing your hard-earned money.
Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast or infographic
Image Credit: 123rf
The post Crypto trading: How to be sure you are doing it safely? appeared first on e27.