Cryptocurrencies have come a long way since the moment they appeared more than ten years ago. During that time, they managed to change the very concept of finances and influence the trajectory of human civilization. The future is quite bright and favorable for everything and everyone that is connected to digital currencies especially the top ones. And Ethereum with all of its lucrative features is surely among them.
Many investors have recently begun to look closely at more cryptocurrencies apart from bitcoin. This is quite obvious given that Ethereum has grown by more than 800% over the past year and has no place of slowing down. Despite things being so promising and seemingly without any issues, we should remember and understand that crypto investments have their own sets of nuances. And it is better to know them ahead of your investment and involvement if you want to preserve your digital portfolio and be successful in your business. In this article you will learn exactly that.
How to store your crypto assets?
First of all, you should act responsibly while choosing storage for ETH or any other cryptocurrency you may opt to buy. You can hold cryptocurrency in different ways, all of them specifically designed to allow you easy access and safe storage. You can choose to store the currencies you have:
- on local wallets located on your personal computer or laptop
- on specialized mini-devices (for example, special pieces of hardware wallets by Trezor, KeepKey, Ledger, etc.)
- on web-based resources and platforms stored and accessed online
The latter options include online wallets and centralized cryptocurrency exchanges, both of which are among the most common ways of storing crypto assets.
Storing coins in local wallets requires a certain level of technical knowledge regarding how cryptocurrencies actually work and what you need in order to utilize them the right way.
What is more, long term storage of cryptocurrencies requires user awareness (regardless of the type of wallet). No one but the user is responsible for the safety of their own money, nor is anyone to blame if they are not careful enough with it.
- If the user does not guard their device against viruses, hackers and cybercriminals can steal the wallet address or file, and no one can return the stolen coins to you.
- If the user does not make the backup of the wallet file on time and the computer breaks down, then the cryptocurrencies (and therefore the fortune behind them) might be lost forever.
- If the user forgets the password, no one will or can help them get access to their hard-earned cryptocurrency back.
In all of these cases it is up to nobody else but the owner and investor to safeguard and protect their balance at all times.
Storing cryptocurrencies in wallets of online resources, including cryptocurrency exchanges, is more suitable for beginners since they have everything they need in one and the same place. However, new problems arise here potentially, the first and main of which is the choice of a resource to trust. It should only be an online plaform site with a long term positive reputation and a good experience in the cryptocurrency field. But as you know, even large centralized sites are susceptible to hacker attacks. This means that they also cannot guarantee you a 100% safety of your funds. Just like anything else on the web, there will always be a slight chance of hacking and failing, but the more trusty the source and their tools and features, the safer you will be.
How to exchange cryptocurrencies?
If you are planning to become a cryptocurrency investor, then most likely you are wondering how to convert ethereum to bitcoin, or other virtual currencies, quickly and profitably. Nowadays, there are many different tools for it, but the fastest and easiest is the Godex decentralized platform.
To work with it, you do not even have to open an account or register. The whole exchange procedure is carried out in just a few clicks. Not only that, but the platform does not even ask for your confidential information. So you should not worry about the safety of your personal data since you will never leave any of it on the platform.
How to avoid getting caught by scammers?
- Do not participate in the Ethereum giveaways.
This type of scam appeared a couple of years ago and it has taken advantage of numerous people who thought it was legitimate. On behalf of famous people, bots on Twitter advertise a free cryptocurrency giveaway in exchange for your modest donation in the form of a small Ethereum donation. You might already guess the essence of the fraud and it sounds fishy to you, good. You will be that much harder to take advantage of if something similar ever appears on the web.
This problem has become so global that bots are starting to copy users even with three thousand subscribers. Sometimes scammers manage to get a checkmark on a verified Twitter account, which further misleads crypto investors and makes them fall for the fraud.
We hear you asking how you can protect yourself here, and the asnwer is very simple really. Simply never send your coins to strangers on the internet and unless you have established a legitimate trade partner with whom, you will be performing business, never trust anyone.
- Always check the sending address of the cryptocurrency.
Crypto transactions cannot be reversed unlike traditional means of payment, which presents a lot of opportunity for fraudsters to steal away assets from others. If you end up sending coins to the wrong address, it means your complete loss and the perpetrators success. The inattention of users has become the reason for the emergence of a special class of malware. The virus simply replaces the fraudster’s address in the sending field and you may send it to the wrong person without even knowing it.
How to protect yourself here? Before proceeding with the transaction at hand, carefully check the address of the recipient of the cryptocurrency. This should especially be the case if you pasted it from the clipboard or anywhere off the internet. Double and triple check before finalizing the deal to prevent bad experiences and unnecessary losses.
- Do not invest in risky ICO
Due to the crowdfunding boom, hundreds of companies rushed to get into the industry through ICO. Their fate was predictable since most of the startups did not last longer than the token sale. The rest existed another year before being completely forgotten.
With such scenarios and opportunities, think twice before buying an unknown coin you do not know anything about. Better study it carefully and do some research about the team, the product, and the need for a token. Internet is your friend here so make sure to understand it before putting your money forward.
Conclusion
Investing in cryptocurrencies is a rather risky business, and it always has been. However, it can potentially be a very profitable business as well. If you are still a complete newbie in this still largely unexplored game, better start to understand the topic before making any real moves. After all, knowledge brings money and if you want to succeed in some business, you need to understand every single aspect that surrounds it.