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Digital assets have become a popular investment option. Yet, the safety and security of buying and holding cryptocurrency can be a concern for many people. With the rise of cybercrime, knowing how to buy and store your cryptocurrency is essential.
This article will review some best practices for choosing crypto to buy now wisely.
7 tips on wise crypto investments
Do your own research
Before you start buying cryptocurrency, it’s essential to do your research. You should understand cryptocurrency, how it works, and the risks involved.
Research the different digital assets and determine which ones are the best cryptos to buy for you. Look at the cryptocurrency’s history, performance, and potential for growth. You should also research the exchanges where you plan to buy and sell cryptocurrency. Look for good-reputation exchanges that are regulated and have strong security measures.
Choose a reliable exchange
When buying crypto, you’ll need to use an exchange to make the purchase. There are many platforms to select from. You should look for one with robust security measures to protect your investment.
Look for an exchange that has two-factor authentication (2FA) enabled. 2FA adds an extra layer of security to your account by requiring a code and your password to log in. You should also consider the platform’s reputation.
Set Up a Secure Wallet
Once you’ve purchased a cryptocurrency, you must store it somewhere. Cryptocurrency is stored in a digital wallet. It’s a software program that stores the private and public keys that enable you to send and receive digital assets.
Several wallet types, including hardware, software, and paper wallets, are available. Hardware wallets are the most secure option as they are stored offline and are not vulnerable to hacking. Software wallets are stored online and are vulnerable to hacking, but they are still a secure option if you use a reputable provider. Paper wallets are the least secure option, susceptible to physical damage and theft.
When setting up a wallet, follow the provider’s instructions carefully. Write down your private key and keep it in a secure location. Your private key is the key to your cryptocurrency. You could lose all your investment if it falls into the wrong hands.
Use a Strong Password and Enable Two-Factor Authentication
When setting up your exchange account and your wallet, make sure you use a strong password. A strong password must be 12+ characters long and include letters, numbers, and symbols. In addition to it, you should also enable two-factor authentication (2FA). 2FA adds an extra layer of security to your account by requiring a code and your password to log in. Many exchanges and wallets support 2FA. Always enable it if available.
Be cautious
Phishing is a common way for hackers to steal your cryptocurrency. It involves sending emails or messages that appear to be from a legitimate source, such as an exchange. The emails or messages usually contain a link to a fake website that looks identical to the actual one.
Suppose a crypto user falls victim to a phishing attack. The hacker can use the stolen information to access the user’s cryptocurrency wallet and steal their funds. It is often impossible to recover stolen funds, as cryptocurrency transactions are irreversible.
Don’t follow the crowd
Avoid the temptation to follow the crowd when investing in cryptocurrencies. Simply because a cryptocurrency is popular or widely discussed does not necessarily mean it is a good investment. It is essential to conduct your research and analysis before making investment decisions and trust your judgment rather than simply going along with the herd.
Have a long-term mindset
Cryptocurrencies can be volatile, and the market can fluctuate rapidly. It’s essential to have a long-term mindset when investing in cryptocurrencies. Don’t invest money you can’t afford to lose; be prepared to hold onto your investments for several years.
Top 5 crypto exchanges to buy digital assets securely
Coinbase
Coinbase is a popular cryptocurrency exchange founded in 2012 and based in San Francisco, California. It is one of the world’s largest and most trusted cryptocurrency exchanges, serving over 56 million users in over 100 countries.
Coinbase offers a user-friendly platform allowing users to buy, sell, and store cryptocurrencies. It also provides a wallet service that enables users to store their digital assets securely.
Coinbase also has implemented various security measures to protect user accounts and funds. These measures include 2FA, biometric authentication, and offline storage for most user funds. Additionally, the platform is regulated by the United States Securities and Exchange Commission (SEC), and the UK’s Financial Conduct Authority (FCA). It provides users with an additional protection layer.
WhiteBIT
WhiteBIT is one of the largest crypto exchanges in Europe from Ukraine. Currently, there are about 1000 specialists in the company. The platform offers 350+ trading pairs, 270+ assets, and 10+ state currencies.
The exchange has eight offices across different countries and continents. It provides services to more than 3.5 million users worldwide. Its goal is to adopt blockchain technology and expand the crypto community by providing a secure and easy-to-use platform.
One of the WhiteBIT key priorities is the security of clients’ funds and personal data. The exchange stores 96% of digital assets in cold wallets and uses a Web Application Firewall (WAF). WAF is needed to detect and block hacker attacks. So funds on WhiteBIT are always safe.
The exchange has been audited by Hacken.io. It’s a leading specialist in providing services in the field of cybersecurity with a specialization in blockchain technologies. According to the audits of Hacken.io and the CER.live certification platform in 2022, WhiteBIT meets the highest security requirements and is among the top three most reliable exchanges with the highest AAA rating.
On WhiteBIT you can buy crypto with a credit card or exchange it for different digital assets.
Gemini
Gemini is an American cryptocurrency exchange founded in 2014. It is headquartered in New York City and is licensed as a trusted company by the New York State Department of Financial Services.
Gemini provides a user-friendly platform that allows users to buy, sell, and store cryptocurrencies. It also offers a range of trading features, including market and limit orders and a cryptocurrency custody service for institutional clients.
Gemini’s top priority is security, and the exchange has implemented several measures to protect its users’ assets. These measures include two-factor authentication, cold storage for most user funds, and regular security audits by independent third-party firms.
In addition to its security measures, Gemini has also established a reputation for regulatory compliance and transparency. The exchange operates according to the highest regulatory standards and has implemented several measures to prevent money laundering and other illicit activities.
Kraken
Kraken is a US-based cryptocurrency exchange that was founded in 2011. It is one of the world’s largest and most established cryptocurrency exchanges, serving users in over 190 countries.
Kraken offers many cryptocurrency trading pairs and features, including margin trading, futures trading, and staking. It also provides various trading tools and resources to help users make informed decisions.
Security is a top priority for Kraken, and the exchange has implemented various measures to protect its users’ assets. These measures include two-factor authentication, cold storage for most user funds, and regular security audits by independent third-party firms.
Kraken is also known for its regulatory compliance and transparency. It operates by the highest regulatory standards and has obtained various licenses and approvals from regulatory authorities, such as the US Financial Crimes Enforcement Network (FinCEN) and the UK Financial Conduct Authority (FCA).
Huobi
Huobi is a Seychelles-based crypto exchange that was founded in China in 2013. It has since expanded to serve users in over 130 countries and is currently headquartered in Singapore.
Huobi offers a wide range of cryptocurrencies for trading, including Bitcoin, Ethereum, Litecoin, and many lesser-known altcoins. The exchange also provides some trading features, including margin, futures, and options trading.
Security is a top priority for Huobi, and the exchange has implemented several measures to protect its users’ assets. These measures include two-factor authentication, cold storage for most user funds, and regular security audits by independent third-party firms.
Huobi also strongly emphasizes regulatory compliance and has obtained various licenses and approvals from regulatory authorities, such as the Gibraltar Financial Services Commission (GFSC) and the Japanese Financial Services Agency (FSA).
Conclusion
In conclusion, buying and holding cryptocurrency can be a lucrative investment. Yet it’s essential to prioritize safety and security. By researching, choosing which crypto to buy today, setting up a secure wallet, using strong passwords and enabling 2FA, and being cautious of phishing scams, you can help protect your investment from theft and hacking. It’s also essential to stay informed about potential security risks and keep your security measures current.
With these best practices in mind, you can enter the crypto world and start investing in digital assets confidently.
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