No investment is 100% secure – that’s the nature of the game after-all, and the value of your assets always has the potential to go either up or down.
However as a cryptocurrency investor, there are lots of things that you can do to help protect your investment, both on a practical level and in terms of performance.
Protection against theft and hacking
One of the key safety considerations is the security of the wallet that you use to store your crypto. When you buy your cryptocurrency on a popular exchange such as Coinbase, you’ll also have the option of storing it there. These exchanges do take measures to protect their users’ investments, but they’re far from the most fortified place to keep your currency.
Instead, many experts recommend moving to a hardware wallet. This is a physical device, similar to a USB drive, which stores your digital currency for you. You’ll then need a password key in order to access the currency and make transactions. Just be aware that it can be difficult if not impossible to recover the contents of the wallet should you ever lose the password key. This isn’t a reason to avoid hardware wallets, but a reminder to keep the information safe.
Avoiding common scams
The same scams that you need to avoid in everyday life – think phishing emails and fraudulent phone calls – also apply to crypto investors. Con artists may try and extract information about your online accounts by posing as official organisations or investment platforms. There are also many scams currently running on social media, where people will create fake cryptocurrency investment opportunities with the aim of having you transfer your currency into their accounts.
Some key principles to avoid these scams would be:
- Never reveal your security details to anybody
- Always do thorough research into any new investment opportunity, looking for information from others who have already tried it
- Work with companies that have a strong reputation and good reviews from their users
- Check that you’re where you think you are. Scammers have been known to make copies of popular investment platforms, so double check every URL
Working with experts
When it comes to the performance of your crypto investment, you need to be aware that you’re investing into a volatile market. It’s highly likely that you’ll see the value of your investment rise and fall over its lifetime. In the long-term, though, crypto investments typically do perform well.
The best way to protect your crypto’s value is to take advice from seasoned experts. There are many different investors now offering tips and analysis online, so you don’t have to invest blind. If you see a new investment opportunity, look at what the experts are saying before you dive in.
You could also consider taking advantage of the expert market analysis offered by automated trading software such as Bitcoin Investment Pro. This software analyses the market in real-time, giving its users information about the performance of different currencies and suggestions on when to make trades. You can start trading with a minimum investment of $250 (approximately £182 at the time of writing) and get access to a range of automated trading tools.