1) The first thing to understand is that if you are buying cryptocurrency to get rich there is a ton of risk involved. This is the only investment advice we offer that if you are buying bitcoins as an investment you are essentially gambling. You should really understand what cryptocurrency is before you own it. Understand bitcoin was built to decentralize the monetary supply by getting rid of banks when two individuals want to do a transaction. It makes transactions easier between parties in different countries. Be sure you understand how it works and what kind of risks are involved. Also understand that transactions sometimes take a while. A while meaning it could be a few hours. Networks go offline sometimes so realize it’s not as quick as most things internet. “Take the power to the people.”
2) Create a wallet. – You need a place to store your virtual currency. CoinBase is the largest and easiest in the US and links to your checking account similar to how paypal works. See our wallet reviews to find one that is ideal in your country. Also know that keeping all your money in one wallet is not the most secure. If it gets hacked it’s all gone. The more money you have the more wallets and accounts you should store them in. Also these wallets go offline from time to time so while that is usually temporary, it’s always good to have a backup. Decentralize your accounts and money. No one can get it back if you lose it or if it gets stolen. The same thing is with the types of currency. You might want to hold more than just one type of currency.
3) Be Sure To Keep It Secure –
Email – use a brand new secure email for your accounts so if your email is hacked you don’t also lose your money. Also because your persona online is associated with your email it’s more likely that hackers will try this email than a new one that is only being used to your money. Just be sure to not forget what it is and the password.
Great passwords – don’t use 123456. This is the first thing anyone tries. Don’t use names of relatives or street addresses. Be sure not to use anything that you have entered as a security question in the past. Don’t use your pets name because there is probably a record of that some where. Make the password long and with capital letters and numbers. Keep the password safe. Storing it on your computer is probably not a good idea in case your computer gets hacked or someone gets access to it.
2 Factor Authentication – This is a great way to keep your accounts secure because even if someone guesses or get gets your passwords they still can’t access your account unless they have your phone number. It is possible for hackers to steal your number but not likely. With this technology a text is sent to your phone or an email with a temporary numeric code. You have probably had this happen when you tried to access your credit card or bank account for the first time on a new computer. The idea here is that you would use this process everytime you access your wallet.
Anti-Virus Software – This will prevent your computer from having trojans or. viruses that can store your passwords and logins and share them with hackers. I personally hate this stuff and I tend to avoid running one on my computer in the background because it slows things down. But if you want to keep your money on your computer you will want to do this in order to be safe.
From The Grave – Unlike a bank account you can’t leave your bitcoins to a relative when you die because they would have no way to access them. You should leave detailed instructions in your will on how the person you pass them on to can access your crypto.
4) Safe Exchange – be sure the exchange you use to trade is safe. Look at our reviews and also research them on reddit. Understand that the price and movement of coins is not based on any science or advanced knowledge. Market efficiency theory says that if the information is available to the public it’s already factored into the price and valuation. You can’t time and beat the market. The best thing to do is hold and if you want to limit risk once your investment has doubled take out the initial investment so you aren’t actually losing any of your real money.