Have you decided to invest in cryptocurrency? Follow our guide to avoid the most frequent mistakes made by beginners and avoid losing funds.
A decade after launch from the initial Bitcoin exchange, the world of cryptocurrency remains akin to it’s Wild West. Some people find that one smart decision could yield hundreds of percent while others could be wiped out in one day. How do you safeguard your initial capital from changes in exchange rates, and protect your investment from scammers?
How do you choose a cryptocurrency that is safe and minimize risk
First, you must to decide the cryptocurrency you wish for your investment. There aren’t any strict guidelines here. Almost any cryptocurrency will rise on one day, and then fall in the following. A beginner investor in crypto requires some luck in order to be able to predict these fluctuations. However you can take some precautions to safeguard your investment.
For those who are new to the market, it is recommended to choose an option like Bitcoin or Ethereum that has a history of success and popularity from traders. These currencies don’t tend to increase in value as fast as other altcoins (little-known cryptos) and, in the event that you have to sell tokens fast and need to sell them, you’ll have a better to find a buyer for the tokens. It is possible to view a listing of the most well-known currencies as well as their exchange-rate changes here for instance; greater market capitalization typically implies less risk.
If you’re an ardent investor, confident in your skills and ready to take a risk with your cash check out emerging altcoins. They’re cheaper and can promise higher returns, however they do have drawbacks, like the fact that they have a their low popularity among traders which, as previously mentioned they are difficult to convert into actual money. Don’t put all your money in one potmake sure to invest in multiple cryptocurrencies to diversify your risk.
Take a look at the small print
When choosing a cryptocurrency and an exchange, you shouldn’t be caught up in the excitement of extravagantly large-scale deals. Even in the unique setting of investment in cryptocurrency there is no such thing as a free meal. If you’re offered huge gains, you need to know the naysayers.
Remember the cautionary tale of PlusToken, the Chinese product PlusToken that promised investors a profit of between 10% and 30 percent per month. More than 3 million users (many of them not in China) accepted the promise and made PlusToken valued at $17 billion when it was at its prime in the spring of 2019.
Early investors did receive their promised profits, however others weren’t so lucky. It was clear that the “revolutionary platform” was nothing more than an Ponzi scam. Chinese authorities have detained some of the scammers, however, the majority of the money disappeared without leaving a trace.
The majority of Ponzi schemes don’t go to the extent that PlusToken did however it doesn’t mean that their creators aren’t as clever. For instance it was the the XtraderFX trading system has been shut off in United Kingdom, used well-known known, trustworthy names from the world of finance and television to deceive customers into advertising its services.
Common indicators of a crypto news that is not trustworthy are:
- The individuals on the team for this project have not had prior mentions in news about crypto genius pro. In certain cases the team may include faces of famous actors. faces of actors who have been famous with different names however, this is not common.
- The creators of cryptocurrency promise to guarantee profits. It smells like the Ponzi scheme.
- The repository for project code on GitHub is rarely changed. This means that either no project is in existence, or there is no one is ever assigned to it.
If any of the preceding applies to your preferred cryptocurrency, think about changing your approach.
What are cryptowallets and how can they keep tokens?
Tokens are kept in cryptowallets and you will require one of them. This earlier post describes how they work and the best way to select the most secure option.
In simple terms, “hot” and “warm” wallets are software-basedand constantly linked to Internet which allows for the swift transfer of money. But they’re also vulnerable to hacking due to the permanent Internet connection. If you’re planning to use an online wallet, make sure to turn on 2-factor authentication to improve the security of your account and to make hacking which occurred to an investor who lost over $70,000 and was unable to recover, more difficult. It’s also better when the two-factor authentication token isn’t sent by text instead, via an app or other methods, in order to reduce the chance of SIM replicating.
Securer “cold” wallets are standalone gadgets. They are typically shaped like the shape of a keychain or flash drive the most popular models range from $50 to $200.
The cryptoexchanges offer users an online wallet that is hot, however we do not recommend keeping all your assets in it since the trading platform is always in the sights by cybercriminals. It is best to use it for only short-term transactions and keep the majority all your money in an insulated bank.
Also, keep any codes and passwords you encounter when creating as well as using your account. For your safety the majority of wallet makers display these only once. Note them in a notebook if confident you won’t misplace them (or your children won’t write on them, or do anything else that could harm their security) However, no matter the level of confidence you have safe storage, like the password management system is more secure.
Be aware that if you lose the password, you’ll not be able to regain access to your wallet which means that your money are lost. Don’t want to be that Silicon Valley worker who accidentally lost the flash drive with an enormous wallet are you?
DAI Vs USDC: Which stablecoin Should You Choose?
January 16 January 16, 2019
Stablecoins allow users to transact with crypto blog without the volatility that is common to many cryptoassets. Stablecoins could help boost cryptocurrency adoption as a means of exchange that doesn’t fluctuate from day to day. Two popular stablecoins will be discussed which are based within Ethereum. Ethereum network. DAI and USDC (USD Coin). The number of stablecoins increased dramatically in the year the year 2018. At least one of the most prominent stablecoin-related project has been shut down. So how can investors and traders decide which one to go with?
usdc vs dai
stablecoin that is collateralized by MakerDAO was first introduced on the Ethereum mainnet in December 2017.
USDC is a stablecoin that is backed by fiat and is supported by Coinbase and Circle Invest and first announced in September of 2018.
Stable value doesn’t mean everything. Investors and traders also need to have faith that their stablecoin will not be destroyed due to an unexpected black swan-related event.
- USDC is secured by US dollars that are held by banks in accounts.
- Contrary to that, Dai is backed by ETH that is held in MakerDAO’s smart contracts. Although MakerDAO is one of its most secured smart contracts traditional bank accounts, they have a more long experience and are more thoroughly aware of the risks.
The freezing of funds
Decentralization matters. If a central organization ultimately controls the stablecoin you have, then you run the risk of getting your money frozen with no notification.
- Dai is completely decentralized and MakerDAO’s smart contract does not permit any person to block Dai.
- However the USDC user agreement grants Circle the power to block your account at any time at their discretion. It is possible that you’ll not be in violation of the terms of Circle’s agreement however, the business of money transfer has been known to freeze customer accounts without proper procedure.
Any business with enough resources is able to issue stablecoins. But a stablecoin must have better to stand out from its rivals. A community that is committed to the project can to create network effects and make the difference over the long run.
- MakerDAO is the project behind Dai has broad support by the Ethereum community and is a vibrant community. MakerDAO’s goals and values are more than just revenue.
- Compare it to USDC which is a product that is sold through the partnership of Circle Invest and Coinbase.
If people are unable to find and use a stablecoin to transact and it isn’t, it’s going to struggle to stay on the market.
- Dai traders can trade through the decentralized marketplaces (though Coinbase Pro recently introduced the DAI in exchange for a USDC trade pair). This is what makes Dai extremely difficult to control and is accessible to anyone. It also ensures that Dai’s future is in line with the successes in the Open Finance movement.
- USDC is traded mostly on central exchanges. Coinbase allows free swapping from USD and USDC However, central exchanges block access to accounts for specific types of individuals.
Advantage: It’s based upon who you’re
The decision to choose DAI or USDC is based on the needs of your business! If you’re comfortable with the traditional financial settings and aren’t concerned regarding being subjected to shifting rules of centralized entities, then you may prefer USDC. However it is if you do not desire a third party to be in control of your money or transactions, and are convinced of the possibility of democratizing open finance, then you may opt for Dai.