The crypto and blockchain world is full of endless opportunities to invest, spend, engage, and much more. It seems that there is nothing you can’t do with the digital assets at your disposal. But this doesn’t mean that cryptos come with zero risk. On the contrary, cryptos come with several risks, including hacks, token loss, data theft, and much more.
One of the keys to having a good crypto experience is knowing the steps to take to protect yourself and your assets. Some of these vital steps are as follows:
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Use a Secure Wallet
Perhaps the single most basic step you can take to stay safe when using crypto is to use a secure wallet. There are many types of crypto wallets available but a cold wallet (a hardware wallet not connected to the internet) is largely considered the safest option possible. As a rule, do not use a crypto exchange as a wallet as your access to your account can be revoked at any time.
There are many crypto wallets floating about at any given time but you have to choose a reputable brand to avoid your tokens getting lost or stolen. And, of course, you’ll want to keep your details safe when you set up this wallet.
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Pursue Anonymity
Many consumers are concerned about their data being made public or mishandled, which is why you need to pursue all the avenues for anonymity using crypto. You can, for example, use an anonymous crypto wallet instead of a traditional one. These wallets do not require any sensitive information from you during signup and this puts you in an advantageous position. There are several such wallets in the market and as Eric Huffman writes, options like the 99Bitcoins anonymous Bitcoin wallets are popular among crypto users.
Other ways to embrace anonymity involve using anonymous crypto casinos, DeFi platforms, and much more.
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Avoid Shady Links
If you spend enough time in crypto spaces online, you’ll almost certainly see random links floating online that promise free tokens, investment opportunities, and so on. While there are many legitimate opportunities online, scammers are also known to trick investors into clicking dodgy links. After they do, the scammers can access their wallets and steal their funds. As such, you should be very careful about clicking random links online.
Only access your service providers through their official websites, be skeptical about links promising free airdrops, and look out for the classic signs of phishing. It is almost always better to miss out on an opportunity than to risk being scammed.
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Do Your Research
It seems that every other day, a new opportunity is popping up in the crypto space, whether it’s a new token claiming to be the next big thing or a new trading platform, there is so much to choose from. But before you put your money into any token or investment scheme, make sure you do your research about it. Search the name of the token or investment vehicle and look for articles about it within crypto-focused media. Read through forums and see what the community thinks about it. Before you make a purchase decision, you should be able to say why this might be a good investment and what the use cases are. Doing this research might also help to spot scams ahead of time.
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Be a Little Sceptical
Because the crypto space is used to seeing tokens multiply their value overnight and the like, it is easy to buy into the hype. In fact, there are countless projects that exist based on nothing but hype and this is something to be cautious of. This links back to our previous point about doing research but you should express some level of skepticism about crypto investments. Put down only money that you are comfortable losing and take your time before you buy any token. It might feel like you will lose out if you don’t invest in the shiny new market option today but taking your time can save you in the long run.
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Leverage Services at Your Disposal
The good news about trying to stay safe with crypto is that there are many services that you can pay for that will make this easier. Crypto custody solutions, for example, will take away all of the complexities of managing your own token storage. There are services that will invest in cryptos on your behalf for a fee, and this saves you the trouble of researching investments by yourself. You can even get insurance for your crypto, making sure that you’ll be protected if anything happens to them. Look into all of these services and consider signing up for them to make your crypto journey that much easier.
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Join Communities
One thing you will not lack when engaging with the crypto sector is community. From Telegram groups dissecting the latest crypto assets to even investor groups pooling together resources to stake or lend tokens, these communities can help you make a profit. They can also help you stay safe while navigating the crypto scene by informing you of the latest scam techniques. When a new crypto token is revealed to be a shitcoin or scammers have new methods to con people, private crypto groups are usually the first to know. By engaging with these groups, you can get this vital information early and thus, protect yourself.
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Use Verified Platforms
Whether you’re looking to trade on an exchange, buy a crypto wallet, or even play games, make sure you only use verified platforms. Shady sites are more likely to steal user data, try to hack into your wallet, or simply give you a terrible experience. Your best bet is to only use sites that are properly licensed and vetted by the community. Read reviews of any site you are looking to use and make sure community feedback is largely positive. If it isn’t, you might want to steer clear.
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Be Careful With Transactions
Crypto transactions cannot be reversed once they’ve been initiated so you have to double and triple-check wallet addresses before you send any funds. Also, make sure the wallet you’re sending to is capable of accepting the type of asset you want to send and that you are using the right blockchain network. Failure to do so can lead to the assets being lost.
Also, make sure your crypto wallet password and recovery phrase are kept as safe as possible. There are millions of dollars lost to this day in crypto wallets because their owners lost the passwords so try not to end up in that situation.
Conclusion
Cryptocurrency can have several risks attached to its use but investors are finding ways to both manage and avoid these risks. As we’ve outlined in this article, you need to choose reputable platforms, do your research, be cautious, and much more. With all of these steps, you should be able to use crypto effectively.
