According to some skeptics, cryptocurrencies is the biggest bubble to exist in the world. We know better. Bitcoin, the flagship cryptocurrency just celebrated its 10th birthday and we have been following the charts. Over and over we have encountered the doubting Thomas’s who have been quick to predict crypto’s downfall once they see a red on the chart.
In 2018 alone, bitcoin alone died 91 times and over 350 times overall. However, the beloved currency was still alive when we woke up on the first day of 2019. We won’t pretend that 2018 wasn’t horrible for crypto traders. But its 2019 now, and we are optimistic.
But as optimistic as we are, we have to be quite careful. We just survived crypto’s worst year and we are definitely going to survive any storm on the way (if any). This is a basic guide on how to secure your coins and trade responsibly without becoming a victim of scam and hacks.
Watch Out For 2018-Like Crypto Scams
Many traders may have cashed in on their investments in 2018, the rest of us spent sleepless nights worried of scams, hacks and fake ICOs.
Just when you thought nothing could surpass the MT Gox hack, Coincheck happened and lost over half a billion traders money. A few days later, Bigrail was attacked and the robbers made away with $195 million worth of crypto. The list of attacked exchanges continues and a collective amount of over a billion went to the wind.
It wasn’t just crypto, cyber attacks, pump and dump schemes, twitter frauds, fake ICOs, phishing attacks and market manipulation in 2018 were also frequent.
The Donts For Crypto Traders
We can’t dare to be ignorant in 2019, you have to realize the scams tricksters are using and avoid them altogether.
Don’t leave your money on exchange platforms. They are the weak spots for hackers and they trade billions of dollars. Don’t wait for platforms to secure your money. Take responsibility yourself. Transfer your earnings to a hardware wallet as soon as you trade to be on the safe side.
Don’t fall for any ICO you see. They may not be booming as they were in 2017 but ICOs are still there. Be careful not to jump into fake ICOs. Follow due diligence and seek information from the project team in order to make a decision.
Don’t chase every altcoin. A study has shown that about 1000 altcoins are dead and won’t return to the market. So be vigilant of the altcoins you invest in.
Responsible trading doesn’t stop at the don’ts. You also need to be proactive in avoiding and dealing with scams
The Dos For Responsible Trading
Ever thought of migrating to a decentralized exchange? If you haven’t, it’s time to consider. On the other hand, decentralized exchanges don’t have third party hosts nor middlemen with access to private keys.
Additionally, decentralized exchanges are censorship resistant and authorities can’t ban or force closure. They are also more secure and do facilitate cheaper transaction processing. These benefits are too many to ignore. Some of the best-known exchanges include OpenLdger, IDEX, DEX, Bisq among others.
Consider hardware wallets or wallets highly secure with strong passwords and 2-factor authentication. State of the art wallets like LedgerNano, Trezor are available and ensure an additional layer of security for your crypto.
For more secure trading, you also have to be careful with the browsers you use, back up your information and update your PC with the latest OS and antivirus.