📚 How to invest in cryptos safely
Like other financial assets, investing in cryptocurrencies can be risky and result in financial losses. Below, we offer you six essential tips to make buying and selling cryptocurrencies safer:
✏️1. Do your own research
The acronym DYOR means "do your own research." It is important to understand the fundamentals of blockchain technology, such as the different types of cryptocurrencies and market dynamics, before investing in any cryptocurrency.
Books, blogs, podcasts, and forums are good starting points. You should also research the projects, teams, and technology behind various cryptocurrencies to make informed decisions.
✏️2. Beware of scams
The cryptocurrency space is full of innovation and interesting products, but unfortunately, it is also plagued by all kinds of cryptocurrency scams. Do not trust strangers online and pay attention to potential pyramid and ponzi schemes.
If you need help, contact the official customer support channels. Be careful of identity theft, multisigs, airdrops, and gift or lottery scams. Carefully review social media accounts to avoid falling into the trap of fake profiles. Consider using a trusted password manager and make sure to keep your private keys and recovery phrases in an offline backup. You can also split your recovery phrase for added security.
✏️3. Start small
The crypto market can be volatile and unpredictable, especially when it comes to less popular coins. It is safer and wiser to start with small investments that won't hurt your wallet in case of losses. This approach allows you to experiment and develop a better understanding of market trends without risking too much.
✏️4. Stay informed
The cryptocurrency landscape evolves very quickly, so it is important to stay up to date with news, technological advancements, and regulatory updates. Make sure you understand the projects well before taking risks.
✏️5. Choose a reputable cryptocurrency exchange
Choosing a well-known and secure cryptocurrency exchange for your investments should be your top priority. If Binance is not available in your region, start by comparing different options related to trading volume, fees, customer service, security, interface, and available cryptocurrencies.
✏️6. Practice risk management
Before investing in any cryptocurrency, it is essential to implement some risk management techniques. For example, investing what you can afford to lose and setting stop-loss orders to limit potential losses can make a big difference.