Investing in cryptocurrencies remains one of the most risky investments of the modern days. This is due to the fact that prices on cryptocurrencies have been extremely volatile and there are still no regulations governing them. However, for those who are ready to be accept these risks and would like to ensure that their savings in cryptocurrencies are safely stores, here are a few tips.
Tips for Storing of Cryptocurrencies
One of the main advice for secure cryptocurrencies’ storage is accuracy and reasonable decision making. What it means is that before taking any investing decision, one should carefully examine information about the chosen currency, changes of its prices, and the predictions of economists as to its growth. Moreover, the security measures which this system applies are to be taken into special account.
In addition, one may also follow these hints:
- Invest in bits: initial investments should be kept very low, around 2-3% of the investment corpus.
- Withdraw principal: the capital investment from Bitcoins must be withdrawn as soon as possible, and only the profits are to be kept in the wallet.
- Keep the key locked up: carefully use the key, since if someone else lays their hands on it, they can easily access the holdings.
There are also several recommendations as to usage of wallets. The general one is not to use Online web wallets, like blockchain.info, Coinbase, etc. In general, this rule applies to all wallets which keep the private key on their servers. Furthermore, hot wallets or app on computer or phone must also not be used. It can be used with small amounts to make payments, but not for storing your whole money.
It is usually better to use cold storage. Cold storage in the context of Bitcoin refers to keeping a reserve of Bitcoins offline. There are a few methods for keeping Bitcoins offline, such as on a USB drive or other storage media, paper wallet, bearer item such as a physical bitcoin, or Bitcoin Hardware wallet.
Sometimes small things make the biggest difference. This implies that protection of general digital life helps defending one’s cryptocurrency as well. Such measures may include a password manager, two-factor authentication, leverage of enhanced security protocols for your email address. For the especially concerned, turning on Gmail’s new Advanced Protection feature, and adding defenses like a PIN or password to phone number, may significantly help to protect sensitive private data.