5 Crypto Management Mistakes to Avoid
When investing in cryptocurrencies you cannot avoid the mistakes that can affect your cryptocurrency. Some of the mistakes in this article can help you avoid risk and ensure your investment experience is safe and secure.
Lost your private key
A private key, also known as a secret key, is a variable in cryptography that is used with an algorithm to encrypt and decrypt code. Secret keys are only shared with the key’s generator, making it highly secure. Private keys play an important role in symmetric cryptography, asymmetric cryptography and cryptocurrencies.
Losing your keys means that losing your access to the coins that you own. It is different from forgetting your password or your pin where you can request to reset your pin or have it sent to your email address. There is no customer care for the blockchain and no way to recover your key if you lose it.
So, you should make physical copies of your private keys and store them somewhere safe from fire, water, and other damage.
Not using two-factor Authentication (2FA)
Most online wallets support some form of two-factor or multi-factor authentication. 2-FA is very important in order to increase security. If hackers obtain your username and password, they will still need to have an extra factor to access your account.
So, you need to take every measure possible to keep your account secure, especially since real money is on the line.
Keeping coins in hot wallet
Hot wallets are crypto wallets that are accessible over the internet and it’s that connectivity that opens them up to considerable risk.
Instead, you should keep as little money in hot wallets as possible. Obviously if you’re going to day trade or swing trade crypto, you’ll need some amount of liquidity. But generally speaking, crypto should be stored in cold wallets for maximum security.
Using Public Wi-Fi Networks
You should never use a public Wi-Fi network (in a school, hotel, airport, or coffee shop) to perform cryptocurrency transactions.
The security flaws in public networks are well-documented, and there are plenty of ways hackers can steal your data when you’re on public Wi-Fi. You need to ensure that you don’t inadvertently reveal your private keys or exchange passwords to a snooper.
Fall for cryptocurrency scams
As cryptocurrencies have gained in popularity in recent years, more and more people turn their attention to this sector. Just as it attracts genuine investors and enthusiasts, it also encourages various scammers to find ways to take advantage of the situation. It is also clear that with the spread of the internet, scammers have many more options and much bigger leeway to do harm.
So when making money via crypto trading or investments requires a lot of due diligence by the investor.
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