Investing Safely in Crypto: the Ultimate Guide
Investing safely is of great importance for crypto investors, both beginners and advanced. Safety in this case is twofold: you want both your crypto to be secure, and your way of investing to have as few risks as possible. We have several tips for both aspects to keep your crypto investments as safe as possible.
Increase security
1. Use a strong password: Ensure you choose a unique and strong password for your account. Avoid obvious combinations and use a mix of letters, numbers and symbols. And remember, never share your password!
2. Two-factor authentication (2FA): Turn on 2FA! This adds an extra layer of security to your account. Even if someone knows your password, they still need a second verification step to gain access. This can be via SMS or an Authenticator app, for example.
3. Use the Authenticator app. Via SMS also works, but an app is safer. It generates codes that are harder to intercept. Many websites prefer securing accounts via the app, so you often require it anyway.
4. Store your password safely. If you use strong passwords, you typically can't remember them. Saving them in the browser is one thing, but also use a secure password manager. All your passwords are stored safely there, meaning you only have to remember one password and you're less dependent on your browser when you log in elsewhere.
5. Cold wallet: Do you have a larger amount of crypto? Then consider a hardware wallet. It stores your private keys offline, just like a real old-fashioned wallet. This way, you have your coins physically with you and it's harder for malicious actors to access them.
Stay alert
6. Keep your software up-to-date: Ensure you always use the latest versions of your apps and software. Updates often contain important security improvements and can prevent leaks.
7. Don't fall for phishing attempts. Be alert to suspicious emails and messages. Never click on links or download files from unknown senders. Does something sound too good to be true? Then it's probably fake! We will never ask you to send crypto to us out of the blue. That's often a trick. Trust your gut feeling.
8. Banks, brokers and exchanges will never do anything that requires you to send money or crypto in advance. This is a common ploy from fake accounts on social media, via email or by phone. Never send crypto to wallets you're not 100% sure are secure. You can always contact us for advice on this; we're happy to help.
9. Never let yourself be spoofed: fraudsters can call you with a fake number, so it looks like it's coming from a trustworthy party, like Coinmerce. This is how they try to gain your trust and ask for personal or payment details. We will never contact you out of the blue to ask for personal information or to move your crypto to other wallets.
Invest safely
Safety is one thing, investing wisely is another. Here are some extra tips to help you on your way:
10. Do your own research (DYOR): before you get involved in anything, read up on it thoroughly. Understand what it is, who's behind it and what its potential is. For example, check out the whitepaper and keep an eye on the price.
11. Spread your risk: don't put everything on one coin. By diversifying your investments, you reduce the risk. Also, decide how much risk you're willing to take.
12. Stay informed: the market moves quickly. Read the news, but don't let yourself be driven by fear or euphoria. Stick to your plan and don't react impulsively.
13. Don't follow blindly: your friends or those influencers may seem very trustworthy, but don't let yourself be led by FOMO (Fear of Missing Out).