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“In no case”. 18 tips on how not to lose your bitcoins

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The world of cryptocurrencies is known for the fact that here you can lose all your money without even having time to start investing. Following simple rules will help to avoid such risks.
The cryptocurrency market is well known for being incredibly easy to lose all your money. There are so many possible pitfalls and mistakes that it can be very difficult to figure them out on your own. We talked to industry representatives to come up with a list of tips for trading, holding funds, and other aspects of digital asset management that can help you keep your funds safe.
Do not use leverage or trade with credit money. This recommendation was suggested by a private trader Alexander Boyarintsev. He called this the main mistake that novice users make, many of whom decide to take out a bank loan to buy digital assets.
Don’t forget about risk control. Boyarintsev recalled that it is extremely important to count on the risk per transaction, that is, not to bet a large amount for the sake of a relatively small benefit. If, for example, you risk $ 200, then the profit should be at least 3-5 times more. The main rule of any trader is: minimum loss – maximum profit.
Don’t count on trading as your only source of income. The trader explained that trading in cryptocurrencies is not easy to replace work, especially for novice users. Therefore, you should not immediately quit, even if you have already achieved some success.
“It’s important to have multiple sources of income. Trading and the derivatives market is a very complex, risky and competitive environment. It is too frivolous to hope that this will immediately become the only source of income. This is a difficult and constant work on oneself, therefore it is important to remove the significance and have additional sources of income (business or work). That is, if you start trading, you don’t need to quit right away, ”Boyarintsev advised.
He added some more tips:
Never give your username and password to anyone who appears to be a support service or an employee of the exchange, etc. Otherwise, you may lose all funds. This warning was voiced by the director of Binance in Russia and the CIS, Gleb Kostarev. He also recommended that all exchange accounts have two-factor authentication (2FA) installed, which is the best way to keep cryptocurrency safe.
“Hackers or scammers may try to contact you as technical support representatives and try to get your account information from you in every possible way. Don’t fall for the ruse. Remember, the official representatives of the exchange never ask for any passwords, 2FAs, or any data associated with your account, “said Kostarev.
Do not use public WiFi networks on devices that are connected to the exchange. Kostarev explained that social networks are dangerous, as their owners can set their own rules that you will not know about. For example, they can redirect your browser to a phishing version of an exchange or wallet, or collect data, including passwords.
Stay alert when visiting sites. You should always check the URL of the exchange or another service, preferably twice, Kostarev emphasized. Otherwise, you can become a victim of phishing – hackers create fake web pages that are identical to real ones. Users go to these sites, enter their data, and hackers instantly gain access to accounts with cryptocurrency.
Kostarev named several actions that will help you avoid becoming a victim of phishing:
Do not leave all funds on the exchange. Storing money on marketplaces is generally unsafe. They can be hacked or unreliable, in both cases the loss of all capital is likely. But this risk is higher for smaller platforms, which have significantly less security funds.
You shouldn’t transfer funds to small, unpopular exchanges with low trading volume. If necessary, it is safer to start with a small amount to see if the platform has withdrawal options. Fraudsters can turn off this function in order to embezzle traders’ funds, attracting them, for example, with inflated rates.
It is safer to keep on the exchange only those funds that are needed for trading. The rest of the capital is safer to store in a cold wallet.
In 2020, the DeFi sphere is very popular. In particular, thanks to “profitable farming”. This is about opening a deposit on decentralized services, through which you can receive payments in cryptocurrency.
Profitable farming is in high demand because of the high, sometimes insane rates. Their size can reach thousands of percent per annum. However, the risk is no less. For example, in early October, a user lost $ 140,000 in cryptocurrency after connecting to the DeFi service, approving permission to withdraw funds at any time and without knowledge.
Don’t use questionable platforms. Including those from the DeFi sphere, which did not pass the code audit. This advice was voiced by the head of the fintech company Exantech Denis Voskvitsov. He warned that any unknown crypto project could turn out to be fraudulent, and not all potential vulnerabilities are clear today. To interact with an unreliable smart contact, it is better to allocate a separate wallet and transfer as much money to it as you do not mind losing.
Don’t buy cryptocurrency in questionable places. This was recommended by Roman Yankovsky, member of the Commission for Legal Support of the Digital Economy of the Moscow Branch of the Russian Lawyers Association. Also, if the origin of the coins is suspicious, it is better not to mix them with the rest of the capital.
The purchase of a dirty, illegal cryptocurrency and its subsequent transfer to the exchange, most likely, will lead to account blocking. This is how companies fight money laundering. For example, in January, Binance froze a user’s account at the request of the Ukrainian police.
Do not neglect the conclusion of contracts. Yankovsky explained that it is safer to back up transactions with a large amount of cryptocurrency with a document. This gives “ghostly hope” that the conditions will be met if the other party refuses to comply.
In no case should you get involved with a cryptocurrency that is positioned as a valid or potential Russian means of payment. Moscow Digital School expert Efim Kazantsev insisted on this. He recalled that from 2021, settlements with digital money for goods, works or services on the territory of the Russian Federation will be prohibited, the corresponding law was signed in July by Russian President Vladimir Putin. For the same reasons, since January, it is also not worth making transactions to exchange digital coins for others or for fiat money directly, without the participation of qualified intermediaries.
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You can find more news about cryptocurrencies in our telegram channel RBC-Crypto.

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