How to have a perfect cryptocurrency experience? Follow these 5 tips to have the best experience with cryptocurrencies!
5 Tips to have a perfect cryptocurrency experience
1) Use a good wallet
A good wallet should keep your funds safe from hackers, but it can also make it easy for you to purchase goods and services from merchants. Some wallets only work on desktop computers, whereas others are designed for use on mobile devices. It’s important that you choose a wallet that best suits your needs.
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The safest option is to use a hardware wallet, which stores your private keys on a secure chip that isn’t connected to any networks. Unlike software wallets, hardware wallets can be easily recovered if you lose or break them. If you don’t plan on storing large amounts of funds or using cryptocurrencies for everyday transactions, you can use mobile and desktop wallets instead.
These are easy-to-use alternatives that usually provide instant access to your funds but aren’t as secure as hardware options. Software wallets make it easy for you to buy and sell cryptocurrencies, but they generally don’t offer advanced security features and leave you vulnerable if your device is lost or stolen.
2) Don’t store all your coins on an exchange
It’s not uncommon for people new to cryptocurrency investing and trading to store their coins on an exchange or online wallet. This is generally considered unwise because if your funds are stored on an exchange, you don’t control them (and you may not be able to access them at all).
It’s best practice to create and save your wallet seed offline—on a hard drive, pen drive, CD-ROM, or whatever you feel most comfortable with. If you want help keeping track of your crypto portfolio, check out these apps designed specifically for that purpose.
Your best bet is to create your own wallet and transfer your coins there. It’s also important that you regularly back up your wallet in case of an emergency. If you don’t know how to do either, follow these easy steps: Download and install a desktop or mobile wallet app; create and save your wallet seed offline—on a hard drive, pen drive, CD-ROM,
or whatever you feel most comfortable with; and write down 12 or 24 words from your backup seed phrase on a piece of paper (this may be tricky if English isn’t your first language). After creating a backup of your currency, send any funds you plan on trading immediately into cold storage (explained above). This will lower the risk considerably.
3) Keep your private keys safe and secret
Keeping your private keys safe and secret can be one of the most important steps in ensuring that you have a positive experience with cryptocurrency. You never want to put all of your eggs in one basket, but if you’re holding cryptocurrencies on an exchange, it means that all of your currency is being stored by a third party.
If something were to happen on their end – like getting hacked or going out of business – then you could lose everything. So remember: don’t keep all of your private keys with any single entity. Holding them yourself makes for a safer user experience and helps keep more control over how much money you ultimately earn from investing in digital currencies.
Private keys are what give you access to your crypto and if you lose them, there’s no way for you to ever regain control of that currency. This means that if someone else gets hold of your private keys, it could be possible for them to drain all of your currencies from any associated accounts. For example, let’s say that someone steals your laptop and installs a keylogger (malware designed to record keyboard input).
Then, whenever you enter in an address or private key on your computer, it logs everything you type and sends it off to be stored elsewhere. That means that even if it is just stored locally on your computer, malicious software can still compromise how much money you end up with at any given time.
4) Backup your wallet regularly
A hacked wallet is not only devastating emotionally, but it can also leave you with nothing. Backing up your wallet is an important preventative measure that ensures that, even if your coins get stolen somehow, you still have access to them.
Just be sure not to back up your wallet in something like Dropbox! Instead, create a separate backup file on an external hard drive or online storage services like Google Drive or OneDrive. Also remember that even if you lose access to your coins, they are recoverable with seed keys so long as they aren’t spent or transferred away first.
It’s also important to keep your wallet secure with strong passwords and 2-factor authentication. Many wallets let you encrypt your private keys, which adds an extra layer of security. If possible, set up automatic backups for your wallet so you can recover it in case anything happens, like if someone hacks into your computer or hard drive.
Remember that if you don’t control your private keys and a hacker does, there is no way to get back into your account – not even by contacting customer support! Store backups somewhere safe where no one else can find them such as on an encrypted flash drive stored away in a safe deposit box. Finally, make sure that you don’t share these words with anyone but yourself!
5) Stay up-to-date with news about the cryptocurrency world
It’s difficult but important. Cryptocurrencies are constantly in flux; they never sleep. If you want to be up-to-date with news in your world, you have to commit time every day (if not multiple times per day) to keep yourself abreast of changes and advancements that are taking place.
If you take 5 minutes each morning before work and scan Reddit and Twitter, you’ll stay more on top of things than almost any other cryptocurrency user out there. Pay attention: Keeping tabs on cryptocurrencies is a lot like staying engaged on social media—you can easily lose track of time if you don’t pay attention, which means some information might fall through the cracks.
To stay up-to-date with cryptocurrencies, you can’t just glance at Reddit for a few minutes each day. You need to devote time to each of your devices, which means you might consider deleting your social media apps and focusing on one or two platforms that are best suited for keeping track of crypto news. That could be Twitter, Reddit, or an industry-specific forum like BitcoinTalk or Bitcointalk.
Check out our guide if you need more ideas about where to start your research and get some reading recommendations.
Start saving before it’s too late: Crypto is all well and good, but there are other financial priorities in life—namely, saving for retirement or paying off debts like credit card debt.
With so many virtual currencies flying around, it’s important that we take advantage of these opportunities. Because each new technology has its own protocol, or set of rules, mastering one currency doesn’t mean that you’ll be an expert at them all.
Each new digital coin comes with its own unique utility and risks; understanding what those are is important in ensuring your success. How can you ensure your success? By being smart about how you buy and store your coins. Hopefully, these tips will serve as a helpful guide.
5. Research, research, research! Don’t just jump on board because you’ve heard of something or someone new or exciting. Learn as much as you can about whatever it is that interests you. You don’t want to invest time and money into something only to find out that what you thought was true isn’t at all.
Knowing everything about your investment will put your mind at ease and keep you from jumping ship too soon (and also might make for some interesting conversation down at your local bar).
Tip #3: Diversify! How often do we hear that word? But what does it mean? In finance, diversification means spreading around your risk—with investments and with currencies.