Crypto rules to follow3 min read
With the boom of cryptocurrencies a lot of people have decided to join the revolution and buy some crypto as long or short term investment. Before you invest you should make your due diligence and make sure that you know how to store and keep what you buy.
Here are the top 10 Rulez in order to keep your funds save.
- Never keep your assets on the exchange. There is always a risk someone will hack the exchange (or even the exchange to run with your money). There have been a lot of previous incidents so make sure you keep only currencies you are buying and selling everyday. If you want to keep it for long run, remove it as soon as possible from the exchange.
- Invest in hardware crypto wallet. There are 2 big hardware wallets worth investing in – Ledger and Trezor. Both are good and cheap enough to be worth investing in. Be careful if you buy them from online sites (ebay, amazon and etc) because there have been accidents with people buying second hand or not from the retailer. Best option is to buy it from the original sites ledger.com and trezor.io
- If you plan to keep it in software wallet, check the computer you are creating the wallet on. There is a change your computer is infected and by creating wallet on it, you are compromising yourself. After you create the software wallet, remove it on flash drives and use it only when you need. Don’t keep it on a computer/laptop that you use everyday.
- Always have several backup of your wallet/keys. If you bout hardware wallet, make at least 2 copies of your keywords and keep them on different location. If you use software wallet, keep your wallet file at several flash drives. There is always a change that your flashdrive gets corrupted and without a backup you are screwed.
- If you trust your family/wife/husband/children make sure they know what is cryptocurrencies and how to access your funds in case of your death or something else happening to you. Had a friend who died in a accident and he didn’t tell no one where his wallet and private keys are, so his family could not access the funds and they are forever lost.
- Don’t follow any advice from youtubers/gurus/forums etc. Always do your research before you buy any cryptocurrencies. Most of the people advertising some token or currencies have some benefit for doing it.
- Don’t fall victim to airdrops or coin split. There were a lot of crypto coin splits (BTC > BTC GOLD, BTC > BTC CANDY and more) that required people to put there key from the coin before the split, and run with the coins. If there is going to be split, your coins will automatically be copied to the new coin. Wait couple of months before putting your private keys in the new coin wallet.
- Keep your day job for now. Don’t quit it because you make 1000% profit (that is easy to accomplish in the crypto scene). The way you make 1000% profit in a day, can be 1000% lose the next day. Keep your job for now and think about the way you want to go from there.
- Invest what you can lose (whatever you put inside crypto is money you can afford to forget about). If it becomes obsession to buy and put more and more money (take loan to buy crypto, get money from friends to invest and etc) just stop yourself and seek help (just like gambling).
- Never put all your eggs in one basket. Diversify. While the potential to earn more is increased with the amount of money you invest into a coin, the potential to lose more is also magnified. Between January 2016 and January 2018, Corgicoin has increased by 60,000x, and Verge has increased by 13,000x. During the same period, Bitcoin has increased by 34x. While you would have gotten impressive gains from Bitcoin, expanding into other coins could have landed you potentially larger ones.