February 19, 2021

5 Tips to Avoid Losses When Trading Cryptocurrencies

Cryptocurrencies are inherently secure because they are built on cryptography. It takes an unimaginable amount of computing power to crack cryptographically protected algorithms. Accessing the user's wallet is nonetheless possible, owing to the inexperience of its owner. Many people, in particular newbies in trading, are not careful enough. That might prove a costly error. So rule number one: protect your precious coins like the apple of your eye. What else can help to avoid becoming victims of scams? Just keep reading to find out.

Strong Random Password

Create complex and long passwords. In a perfect world, every account should have a unique password that’s hard to guess. Make up a combination of uppercase and lowercase letters, numbers, and special symbols, such as punctuation.

Two-Step Verification

It's a great way to keep your digital assets safe. Using dual-factor authentication, you will receive a security code every time you log in. It helps to protect yourself against bad guys using compromised client login credentials. Believe us, because we know. Everyone knows. We just thought you'd like to know too.

Never Use Free Wi-Fi

Public Wi-Fi hot spots are very dangerous. The thing is their hosts can establish their own rules you'll never know about. They, for example, can cause browser redirects to third-party websites or collect sensitive data on your phone (including passwords).  Connect to the VPN server when you need to use the public Internet.

Beware of Phishing Domains

Phishing is one widespread method of stealing money. Hackers create the web-version fully identical to the exchange or wallet. They send the link to the victim, usually with a convincing message. Yielding to the provocation, a person logs in and takes the necessary steps. He goes to a fake site, enters his data, and bam! Skilled computer programmers gain access to his funds.

How to avoid becoming a phishing victim:

  • First and foremost, double-check a URL address. Does it match your exchange or wallet?
  • Never believe the sites that are still on HTTP (instead of HTTPS);
  • Last but certainly not least, you should always be alert when you communicate with strangers online. Now and then fraudsters pretend to be technical support representatives. More than anything in the world, they want to access information about your account. So they will try to do it in every possible way. Don't buy it. Remember: the official representatives of the exchange never request any passwords, 2FA codes, or other data associated with the account.

Social media has a large and growing number of scammers. Be careful with any stranger who tries to get information from you about your assets. Attackers often offer to answer a survey, where potential victims have to provide personal data or send money.

Be Careful When Making Transactions

Crypto transactions are irreversible. A small mistake in one number or letter in the recipient's address would result in a loss of money. Since the address of the crypto-wallet is a bunch of numbers and letters, it is easy to get wrong. To avoid errors, do not enter addresses manually: do the “copy and paste” thing. Nonetheless, even this precaution is not always enough. There is a malicious program that replaces the wallet address with the one that belongs to the hacker. So even when you copy the address, carefully check the first and last characters and make sure they match. Remember: safety is first, last, and always. You can't be too careful these days.

How do you avoid losses when trading cryptocurrencies? Please write your opinion in the comments on TwitterFacebook, or Telegram.