Forget your wallet password
Thousands of people are locked out of their wallets due to this serious mistake. Thus, we want to discuss it first.
Many people have had to come to terms with the idea that they may never be able to access their wallets with crypto fd coins worth the equivalent of millions of dollars. While you might assume this will never happen to you, it’s a good idea to have a secure way to remember your passwords. Your wallet password and the device hosting it should be kept secure if you need to access your coins in the future.
Saving passwords offline is something you should immediately take note of. The browser can crash, you can delete it, clear it, reinstall it and all passwords will also disappear. This is not to mention the breakdown of the equipment you are working with. An offline duplicate of passwords is simply necessary in this case. If you don’t do this, you risk losing all your access, and along with it, your money.
Transactions
When sending cryptocurrency, there is a lot of information that needs to be verified. If you missed something, you will have to say goodbye to your funds: all operations that occur on the blockchain are irreversible.
- Choose a trusted service
First of all, you should beware of phishing websites. A popular way in which scammers often steal your funds is by creating fake pages on various sites, including:
- platforms;
- exchanges;
- wallets;
- any other services.
If a scam site has high quality, it is very difficult to distinguish it from the real one. If you share your information or send crypto to the wallet specified here, you will permanently lose your funds.
- Carefully review the information
An error in address or wallet when sending cryptocurrency is a fairly common problem faced by both new and experienced cryptocurrency users. Transactions on the blockchain are not reversible. This means that once a transaction is entered into the blockchain and receives confirmation, it cannot be canceled or changed.
This is important to consider when making cryptocurrency transactions. To avoid mistakes when sending cryptocurrency, you should carefully check the destination address before making a transaction. Most often, the user copies the address manually. This way you risk not capturing the last or first character, so the address will be incorrect.
We recommend using the built-in function to copy the address, which is available on many sites. It will copy your wallet address in just one click. Although, even here, checking will not hurt because sometimes exchanges freeze, which is why the number is not copied. So, your money may not go to the desired wallet, but to a website, phone number, or set of words that remained in the paste buffer. Many wallets have address verification mechanisms that help prevent erroneous transfers.
It is also a good practice to make your first transfer, especially on unfamiliar services, for a small amount. This way you won’t lose much money if the new platform turns out to be a scam or doesn’t support your wallet.
Storage
Investments in cryptocurrency are always high risks, and the main issue is the safety of storing funds. Every year, hackers and scammers steal hundreds of millions of dollars from users’ cryptocurrency accounts.
Today there is no universal way to store cryptocurrency with Coindepo. Users choose one option or another depending on their goals and convenience. For example, a trader will use a hot web wallet for quick transfers, and an investor who has invested $100 thousand in crypto assets for the long term will most likely choose a hardware solution.
You can reduce risks if you use several wallets of different types. For example, when closing a trade transaction on a crypto exchange, transfer funds from a web wallet to a desktop wallet for storage. Cold wallets provide the maximum level of protection. At the same time, you should keep in mind that you are your own bank, that is, you are fully responsible for the safety of your wallet and funds.
For a significant portion of users, exchanges provide the easiest way to manage cryptocurrency: there is no need to remember private keys or keep the software and hardware safe and protected, the user interface is usually intuitive and easy to use, and the support team is ready to help with various issues.
If you decide to store your cryptocurrency on an exchange, make sure the platform complies with local regulations and ideally offers some form of insurance against worst-case scenarios. For example, the CoinDepo platform, one of the leading financial services providers for digital assets, is registered and approved by regulators, and also has one of the strongest compliance teams in the industry. In case of emergencies, all users’ crypto assets stored on the platform are fully insured.
Trading and Investing
There are several ways to go wrong when trading or investing in cryptocurrency. The first and perhaps most common mistake is choosing the wrong exchange or platform. Some exchanges are not reliable and can cause you serious problems such as losing your cryptocurrency or stablecoins. Therefore, before you start trading cryptocurrency, it is important to choose a reliable exchange that offers safe and convenient trading conditions. We suggest going with well-recognized exchanges such as Binance, Coinbase, Huobi and Kraken for trading. On the other hand, if the goal of your cryptocurrency investment is to earn guaranteed passive interest income, we recommend the CoinDepo platform. The compound interest rates on cryptocurrencies and stablecoins offered by CoinDepo are, without exaggeration, the highest in the industry.
The second common mistake is the lack of a trading strategy. Trading cryptocurrencies requires a strategy that will help you make decisions based on facts rather than emotions. Without a strategy, you risk losing your investment and not making a profit from trading.
Are you relying on indicators you don’t understand? This mistake is very common among novice traders. They heard stories of people getting rich overnight in 2017 and are hoping for the same result. A lack of knowledge makes us act impulsively. Learn technical analysis of cryptocurrencies, learn all about trading indicators, and be patient while waiting for a few net profit trades. Demo accounts on cryptocurrency exchanges are an important tool for traders who want to hone their trading skills and avoid initial mistakes.
Another common mistake is failure to follow risk management rules. Trading cryptocurrencies is a risky business and you should be prepared to lose your funds. Risk management rules will help you minimize risks and protect your investments. Blind faith in the cryptocurrency market is a rookie mistake. It’s safer to invest only what you can afford to lose in a worst-case scenario, or choose the option of generating passive income from your crypto assets without trading risks.
Bottom Line
To sum up, there are several ways to go wrong when dealing with cryptocurrency. In addition to tips on how to keep your emotions in check, diversify your portfolio, and take care of the security of wallet access, don’t forget about less obvious but important lessons, such as double-checking the address and carefully choosing a crypto exchange, investment platform, and other parties who will interact with your funds.