10 cryptocurrency user mistakes
Cryptocurrency from the mainstream has long since become commonplace. If you have electronic coins, no one looks at you with surprise anymore. Many analysts are still arguing about the similarities and differences between crypto and traditional money. Despite the fact that the same bitcoins can not be stored in the closet under the sheets, as "stashed for a rainy day" dollars or euros. However, apart from other properties, fiat money has one more thing in common with it - it is very easy to stay without it.
We have highlighted 10 most typical mistakes that can lead to almost 100% loss of your existing cryptocurrencies.
Mistake #1. You don't keep backup copies of your wallet keys
Despite the fact that cryptocurrency has only electronic form, it can hardly be compared with ordinary electronic currencies like WebMoney or PayPal. While an electronic wallet requires a password that you create yourself, a cryptocurrency wallet requires a private key that gives you access to your funds.
If you lose your e-wallet password, you can restore it with special procedures. If you lose your private key - no more cryptocurrency money, there is no procedure to restore the private key from a cryptocurrency wallet. Therefore, be sure to keep a copy of your private key and, very preferably, not on electronic media, but on paper and in a safe place.
Mistake #2. You ignore two-factor identification when using cryptocurrencies
Really, who would like to constantly confirm that you are you, especially when using cryptocurrency exchange services often enough? And we'll tell you that those who think about the security of their crypto-savings like it.
The emergence and development of digital assets has contributed to the emergence of a large number of fraudsters, although it would seem that there are even more. At the same time, hackers come up with such sophisticated ways to "take money from the public relatively honestly" that it is quite easy to fall victim to them. Always use two-factor authentication and, if possible, avoid services that do not provide it.
Mistake #3. You are using only one trading floor
A smart man never puts all his eggs in one basket. Traders and investors know this approach as risk diversification. There are no cryptocurrency exchanges that are absolutely resistant to hacking - it's all about the price of the issue. There are plenty of well-established cryptocurrency exchanges around the world, use more than one of them.
Mistake #4. You don't want to be verified
Most cryptocurrency exchanges and exchangers, located in the U.S. and EU jurisdictions, in their work observe the principle of KYC (know your customer), which is part of the American and European anti-money laundering AML laws.
By providing personal information to a cryptocurrency site, on the one hand, you lose anonymity, which is one of the key principles of cryptocurrency, but, on the other hand, you add additional protection to your account.
In addition, if an exchange or exchanger does not require its customer to pass the verification, it is a reason to think about the legality of the service and the possible consequences "if something goes wrong".
Mistake #5. You store cryptocurrency on an exchange
To trade on a cryptocurrency exchange or currency exchange, you open a deposit on the exchange to which you deposit your funds. This deposit is essentially a "hot wallet" because it can be accessed over the Internet.
You can't do without it - trading requires quickly available liquid funds. However, this does not mean that you have to "pour" all the amount you have into your deposit - scammers do not sleep a wink. It's best to keep your crypto in "cold wallets" that are not connected to the Net.
Mistake #6. Transaction inattention
The more digital coins you have, the more private keys you have to keep. Although so-called cross-platform atomic transactions (swaps) are moving from theory to practice, they are very, very far from being widespread. And it is very easy to get confused right now.
Looking in the wrong line, you can, for example, transfer your ethers to a bitcoin wallet. As you know, one of the properties of cryptocurrencies is the irreversibility of transactions. This means that you can forget about the transferred ethers.
Mistake #7. You are using public Wi-Fi networks
In the morning at the cafe, you connect to an external wi-fi network to send your friend Kolya some bitcoins. And in the evening you make round eyes when you see that you have zero point zero zero in your wallet BTC.
Public Wi-Fi networks have long been beloved by hackers for all sorts of "holes" that allow access to your personal data, including private keys. Don't take any unnecessary risks.
Error #8. Potentially dangerous plugins are built into your browser
Extensions for Internet browsers are very widespread, pardon the tautology. The use of plug-ins is really very convenient, and there are so many of them that you can choose extensions for any taste and color.
However, you should understand that by installing an extension to your browser, you are giving it the permissions it needs to work properly. It is quite possible that some plugin, in addition to open functions, can send your private key to intruders.
Using a separate clean browser to handle cryptocurrency is a bit paranoid. However, as the popular saying goes, just because you're paranoid doesn't mean no one is watching you. When it comes to money, it's better to be safe than sorry.
Mistake #9. You are using insecure passwords
This mistake is not only common when working with cryptocurrencies. If you value your account not only on a cryptocurrency site, but anywhere else, you shouldn't use insecure passwords. As a rule, it's the use of first name, last name, date of birth, car number, etc.
And if you also ignore (ouch-ay-ay) the two-factor identification, your password is the only barrier between your hard-earned cryptocurrency money and the scammers.
If you had your coins stolen because you did not use 2FA, but set the word Alexandr1990 as a password, no representative of the exchange or exchanger administration will even lift a finger to help you, and he will be right. The safety of your money is primarily your concern.
How do I remember my bitcoin wallet password? 8 not the most reliable ways
Mistake #10. You don't use common sense
Everything is obvious here. Nevertheless, there have always been and always will be people whose brains turn off when they turn on their greed, just think of MMM and other super-profitable "organizations.
Yes, cryptocurrencies cannot be touched, crunched, or tinkled. However, they are worth money - bitcoin, for a minute, is worth several thousand dollars. And the fact that it can't be touched doesn't make it any cheaper. Remember, it's your money. And if someone with honest eyes offers you to invest into a super profitable ICO which will bring super profits by the end of the day, you need to switch off your greed and use your common sense. You will immediately realize that this man is not lying - super profits will definitely happen. But not for you, but for him. At your expense as well.
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