The market of cryptocurrencies represents one of the biggest trends in recent years. The leader on the market is Bitcoin, followed by Ether, Dogecoin, Ripple, and many other options. Also, we have to mention NFTs, which are the most recent trend.
High values and the potential to earn money by investing in crypto are the main reasons why so many people are interested. However, the main issue is the fact that a lot of people decide to invest in some crypto before learning more about the features of these digital currencies.
Therefore, the first thing anyone interested in trading with crypto should do is to research this market and compare different options to check the potential of possibly profitable assets. Various factors can affect the prices, while this market is known for being highly volatile.
Moreover, the selection of the platform where you can buy and sell these assets is essential. The most important things to check when looking for an online crypto exchange are security, fees, available assets, and speed of transactions. You can check out naijaloaded.com.ng to read more about the best platforms in New Zealand.
You need to understand that security is crucial when you are trading. It is essential to keep your devices properly protected from cyber threats. Also, we have to add that even some of the biggest crypto exchanges had some issues in the past where hackers managed to steal millions of dollars worth of crypto.
This leads to a debate about whether it is a good option to keep your assets on these online platforms. The fact is that you will need to transfer units from an e-wallet to make a transaction. Also, it is much more convenient to use this method. In this article, we are going to analyze more about the best methods of keeping digital assets safe, and which amount should be kept on an e-wallet.
Beware of Risks
As we already mentioned, there were some issues in the past where hackers managed to steal incredibly high amounts of crypto from online exchanges and wallets. This is a serious problem since the amount is getting close to $2 billion. The biggest problem is that it is much more difficult to deal with hackers who are stealing from crypto exchanges when compared to any other type of cyber security threat.
Also, it is not the same case as it could be with banks, where your money is insured, and even if the bank gets robbed, you will still have the right to get your money. The situation with crypto exchanges is more complicated since each unit has a certain hash code that determines its owner. Therefore, the owner is losing its assets in the case that there is a successful hacker attack made on this online platform.
On the other side, things could be much better when you choose a well-known platform. Since they will work on improved status all the time, they will also invest more to keep track of the most recent updates related to online protection. They often use a combination of several security protocols where users will need to generate codes each time they need to access their profiles on these sites.
Keep Your Devices Safe
Chances are bigger that you will face issues by using some unreliable platform, checking suspicious links, and not paying enough attention to the security of your phone or PC. If you receive a malicious file, even if you are using the cold wallet, which is the safest option, you might face some scam at the moment when you link the wallet to the software in order to trade with crypto.
Besides the operating system, internet connection is also important, and you should avoid public connections. Using an online wallet might be easier since you can check your funds while using the phone at any moment. However, your assets will be much safer on the offline wallet.
Never Aim Only for Convenience
The fast is that the most convenient way of keeping your crypto is simply storing it on your profile made on some online exchange. That will allow you to trade all the time without any effort. There are some other benefits as well. For example, we all know that this market is highly volatile and there are changes all the time. If you want to trade more frequently, making transactions from your offline wallet will be challenging since that will require more time.
That is especially the case with people interested in day trading where they need to make multiple transactions every day. When you keep your assets on some online platform, it will be much easier to follow changes and make the right moves that will lead to higher profit.
Still, ongoing security issues make this option much riskier, and it is not recommended for people to store higher amounts of crypto this way. The best solution is to create a strategy where you will determine how much money you want to invest. Also, determine the amount of crypto that you want to use for conversion in daily trades, while other assets can remain on your offline wallet.
Keep in mind that hackers are also aware that many people will choose easier methods, and they will try to target these methods to steal assets. Choose a percentage of the total amount of your assets when you want to trade, and only transfer this amount, while most of it will stay on the cold wallet.
Another important thing related to e-wallets is to always be sure that your codes and passwords are well-protected as well. It would be a serious issue if you forget some passwords since that will prevent you from accessing your funds.
There were already cases where people had to deal with this. The problem is that there is no way to hack into an offline wallet. Therefore, whether you are using a USB or a hard drive, be sure to keep it in a safe place and never forget the codes.