TOP Practices You Should Have As a Crypto Investor
The cryptocurrency market has soared and plunged multiple times since its beginning, where the market recovered stronger and better after each crypto winter. Cryptocurrencies have gained traction over the years as it has been deemed as a lucrative way to increase your net worth, however, entering this industry is often intimidating to many. In this week’s article, we have summed up the top practices that crypto investors should adopt before embarking on their journey.
1. Keep your keys safe
Your keys are highly important when transacting in the crypto space as they could grant you authorized access to your wallet. This makes the safety of your keys crucial as anyone could enter and manipulate your funds when it falls into the wrong hands. The easiest and fastest way many of us use to store our keys is by simply taking a screenshot and referring to it whenever required, however, this is a bad practice that should never be considered.
By doing so, you are exposing your entire crypto portfolio to enormous risks, as, chances are you are going to forget that such information is lying around. Each time you send in your faulty device for servicing or leave unlocked devices around you are at risk of losing everything. Not to mention, the fact that cloud storage solutions will increase the chances of that. To sum it up, we strongly encourage the practice of storing it in a physical hard copy by writing it down on a piece of paper.
2. Stay vigilant about mobile phishing
Phishing is rampant in the crypto space where one could be a victim just by being a member of any crypto group chat. It is definitely going to be worrying if you receive a message from an admin saying that your funds are stuck unless you transfer some gas fees to free them, however, eliciting fear to get a reaction is what scammers do best. The general rule to ingrain in your heads is that no admin would dm you first, and you should have the practice to question every single thing you receive on the net.
3. Understand cold and hard wallets
Both types of wallets offer different sets of pros and cons and you should choose the option that best suits your needs. While hot wallets are easily accessible and convenient where you will be able to trade cryptocurrencies anytime you desire, it is not the safest option out there. You should factor in the possibility that if a crypto exchange disappears overnight, you will be waking up to a 100% loss! We recommend you to have a hardware cold wallet to store a bulk of your assets while leaving some in your hot wallet if you prefer to have ease of trading.
4. Know when to TP
This is crucial and something that I believed many have learned the hard way after the recent crypto crash. What is the point of keeping HODLing your assets and watching them go to your initial buy price again? It is crucial to form your own deductions instead of being influenced by the crypto culture where HODLing is a widely accepted norm. You should detach yourselves from norms from time to time and formulate your own ideas and strategies.
There are many habits and practices you should have when approaching this industry, where you will pick up most through experience. We hope that you have learned something from this article, let us know what you would like to see next. Till next time CoinWinders!