Five safety tips for investing in cryptocurrencies.

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First-time investors may feel intimidated by the cryptocurrency space because there is so much going on. The news is flooded daily with stories on these big wins or lows in the prices of the digital currencies. Additionally, there have been reports about crypto wallets being hacked and owners losing their funds. This scares anyone interested in investing in cryptocurrencies.

Here are some safety tips for investing that you can take to ensure that your crypto wallet stays safe and your investments remain profitable.

Use a reliable exchange: Always check the platform before using it. There are many fake platforms designed to steal your digital currencies or assets. Know the platform you’re getting into, join their communities and see what people have to say about them. Sticking with the most popular platforms is ok, but you could be limiting yourself to some other worthwhile exchanges with unique features. This is why research is essential. When thinking of opening a bank account to store your fiat currencies, chances are that you spent some time going through what different banks had to offer. For example, with Valorexchange, you can make transactions with zero added fees. This means you won’t get charged any fees for your trades. You can always create an account with Valorexchange quickly and securely in minutes.

Use strong passwords: This is very important when thinking about investing in cryptocurrencies. Remember that these are digital currencies which means that they exist on the internet. Passwords are one of the most important keys to keeping your crypto account safe and hack free. Please do not reuse one password across multiple platforms. If a hacker were to discover the password, it would not only be your account being hacked into. There are many free password generators that you could use to protect your crypto account. Remember, changing your passwords semi-frequently isn’t a terrible idea. Just make sure you have the updated password saved somewhere safe or memorized.

Never share your private key: There is a reason why it’s called a PRIVATE key. The private key allows you to access your wallet and the digital currencies within. Imagine you had a debit card; now imagine if everybody had the password or pin to that debit card. This would mean that if anyone gets access to that card, they’ll have access to the funds in the account to which the card is linked.

You wouldn’t share your card or the pin unless you’re willing to live with the consequences. Public and Private keys are essential because of their functions. A public key is used to encrypt or receive crypto funds, NFTs, etc. Crypto funds are decrypted or accessed using a private key.

Try stablecoins: These types of coins offer safe and secure investment options for risk-averse investors. Stable coins are tied to real world currencies and they are mostly stable in price unlike most other cryptocurrencies. You can buy or sell stable coins like USDT on Valorexchange.

Learn about hot and cold wallets: Although cryptocurrencies are digital currencies, there are many ways to save or store them. There are different types of wallets that give you the option of saving them offline. You can check out our comprehensive article about the types of wallets there are and their different functions by clicking here.

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