In recent years, many people have begun to open their eyes to cryptocurrency. It is becoming clearer and clearer that cryptocurrency has much greater potential than many first thought .
However, it is not to be underestimated that buying cryptocurrency can be both exciting and scary. Therefore, it is extra important to familiarize yourself well with it before doing anything.
In this article, we are going to give you three helpful tips that you should keep in mind when trading cryptocurrency.
Choose a secure crypto exchange
There are many crypto exchanges out there, but that does not mean that all of them are good choices when it comes to which crypto exchange you should trade with. When buying a cryptocurrency, choosing a cryptocurrency exchange is an extremely important choice.
The last few years have been marked by increased crime in connection with cryptocurrencies, and this has resulted in many companies collapsing because criminal actors have made sure to drain them of too much of the funds they had to their credit.
Of course, this is not the fault of the crypto exchanges, but it does emphasize the importance of choosing a crypto exchange that is secure.
There are a number of examples of crypto exchanges that it may be worth checking out. eToro and Binance are two of the crypto exchanges on the list of crypto exchanges that we can vouch for!
Most of today’s crypto exchanges use 2-FA , which is very practical in terms of security. 2-FA is an abbreviation for 2 factor authentication.
You may have heard the phrase “2 factor authentication” before? This is because this is something that is used in several situations – not just in connection with the purchase and / or sale of cryptocurrency on the crypto exchange. 2 factor authentication, or 2-FA can be compared to BankID.
There are many similarities between 2-FA and BankID. Before, the biggest difference was that 2-FA was a software that was installed on the mobile, while with BankID you were dependent on an external code chip. But as the technology develops, there is now also BankID on mobile and BankID app.
The purpose of activating and using 2-FA is to secure your account in the best possible way, so that scammers do not have the opportunity to steal something from you. For the activation of 2-FA to have any effect, it is important that you keep your password in a safe place.
This is how 2 factor authentication works
Imagine that you just have an account on a crypto exchange , and shortly after you create the account, you will meet a person who shares the interest with you, and you will be very happy with each other. In such a situation, it is easy to end up sharing sensitive information such as passwords. Maybe at this point you thought you should share the account?
After a while, it may end, and the account is again only “yours”. But you did not remember to change your password. First and foremost, we want to emphasize how important it is to change the password when something like this happens, but due to the 2 factor authentication, no damage should have occurred.
The purpose of 2-factor authentication is to ensure that only you have access to your account. In practice, this means that even if you may have told the password to someone who is your ex-boyfriend now, he or she will not be able to access the account anyway because the 2 factor authentication has been downloaded to your mobile phone.
The 2-factor authentication means that you have to enter a verification code every time you log in to a new device. If the person does not have access to this device, they will not be able to log in to the account either.
Try to avoid “rye pulls”
Brand new cryptocurrencies may appear just as they are. But even though it may seem interesting, it is important not to fall for the temptation to jump on it right away.
There are in fact many new cryptocurrencies that have died out after a while, although it seems to go very well in the beginning. In such situations, ” rye pulls ” often occur, and this is of course something you want and should avoid.
Therefore, one should never buy cryptocurrency without having familiarized oneself properly with it first. And when you first buy cryptocurrency, it can actually pay off to go for a cryptocurrency that is a little more familiar, even though it may be a little more expensive to get it.