Cryptocurrency is the hottest new thing in finance, and it’s not going anywhere anytime soon. If you’re ready to get your feet wet and buy cryptocurrency, here are some simple do’s and don’ts to keep in mind.
Do Use a Bank Account or Credit Card That You Own and Will Not Mind Losing
The first thing you need to do is make sure that you’re ready to lose any money you invest in cryptocurrency.
You need to be able to afford losing it all because the truth is that there’s no guarantee that cryptocurrencies will continue their upward trajectory. In fact, they could go down significantly tomorrow or next month. You just don’t know what will happen with them in the future, so it’s important that your cryptocurrency portfolio reflects this uncertainty and doesn’t put too much of your financial health at risk.
So, when you buy crypto with a credit card, be careful as it increases the risk of losing track of the amount invested.
Do Use Trusted Wallets
There are many different types of cryptocurrency wallets out there, but the most important thing to remember is that you should only use a wallet that has a good reputation. You want to make sure that it’s well known and trusted by users around the world.
You also want to make sure that your wallet has excellent security measures in place so that you don’t lose any money if someone hacks into your account or steals your device. If a wallet doesn’t have good security, then you’re going to want to find another one!
It also helps if they have good customer support services so that if something does go wrong with your account, then there will be someone around who can help fix it for free before anything bad happens with all those coins sitting safely in their digital vaults waiting patiently for their chance at greatness!
Do Keep Your Cryptocurrency Secure
- Don’t use public WiFi when you’re buying cryptocurrency.
- Don’t use a public computer to buy crypto, either.
- Make sure to use strong passwords along with two-factor authentication always.
Don’t Send Your Cryptocurrency to Anyone You Don’t Trust to Pay a Bill or Rent
Don’t send your crypto to anyone you don’t trust. Never give out any information about yourself or your account. It is not worth it to lose your hard-earned money because you have fallen for a phishing scam. The scammers will use scripts and software to make it look like they are authorized by the site when they are not. Don’t fall for this!
Avoid giving out personal information when asked by an unknown person on the internet. If someone asks you for an ID, passport photo, or other sensitive information that could be used against you at a later date, don’t do it!
Don’t Give Away Personal Details to Anyone Making Offers of Free Cryptocurrency in Exchange for Giving up Information
Don’t give away personal details or identity to anyone making offers of free cryptocurrency in exchange for giving up information.
This is one of the most common scams out there, so it’s important that you know about it. The scammer will say something like, “I am from XYZ company and we are giving away free money,” or “we want to give our customers some crypto as a gift.” They may even say they’re an investor who wants to invest in your business, and they need your contact information first before sending over the funds (which are never going to come).
Do Get an Offline Wallet to Store as Much of Your Cryptocurrency as Possible
An offline wallet is a way to store your assets in a safe place. You can use a hardware wallet, paper wallet, or cold storage wallet. Hot storage is when you keep your currency on an exchange that offers it, while the opposite is cold storage.
Wrapping up
Buying cryptocurrency is an exciting prospect, but it’s important to take precautions before you do so. To keep your crypto safe and secure, you need to think about where you are storing it. You also need a strategy for how you will buy and store cryptocurrency as well as how you will spend it in the future. It’s easy to get caught up in the hype of all things blockchain-related, but taking time out at the beginning of your crypto journey can save a lot of headaches later on down the line. Additionally, be careful even when you convert cryptocurrency (to fiat currencies).
While buying cryptocurrency has many perks, it is important to be aware of the possible scams that are out there. With a little research and preparation, you can avoid these schemes and make your purchases safely.