It’s been a couple of years since the cryptocurrency was introduced and became popular around the world. At the end of 2017, the price of Bitcoin increased by $20,000 in mid-December. Since then, investors have been wondering when the value of cryptocurrency might go downhill. As of today, 2,000 different types of cryptocurrency exist.
Technology has been developed day by day, and people use online methods to pay for goods. Many companies and consumers prefer to use online payment. Nowadays, cryptocurrency has been known to be used by companies to pay for products and services.
What Is Cryptocurrency?
Cryptocurrency is a payment system that doesn’t require any bank-verified transactions. It allows you complete freedom of transactions, both for sending and receiving. It is a digital method that exists in an online database. The transactions done by the users are recorded in a publicly-accessible ledger. It can be kept in a digital wallet for further usage. You can have a cryptocurrency lawyer to make sure you have legally secured your account to be on the safe side.
Many companies use cryptocurrency to exchange their money into tokens for online goods and services. It’s similar to casino chips or arcade tokens. You need real currency to get cryptocurrency for the goods and services. All types of companies want to have cryptocurrency. It’s been 10 years that cryptocurrency has come around. It cannot be duplicated or faked, and it is straightforward to identify it when they are traded.
It operates by a technology named Blockchain. It is a recorder of any transactions of cryptocurrency. Cryptocurrency has advanced coding involved in storing and transmitting data. The main goal of encryption is to give safety and security.
Is Cryptocurrency Secure?
Blockchain technology is used to build cryptocurrencies. It records transactions as blocks and the time when the transaction happened. It’s a very complicated technological process that even hackers have a hard time breaking into.
Every transaction requires a two-factor authentication process to verify the user. Like any other login procedure, it requires a username with a password, then, it will send a verification code to your personal cell phone to confirm your login. However, cryptocurrencies are always not unhackable.
Cryptocurrency is a risky investment. There may be some profits, but in the long run, nobody really knows when the value might go down. It has a higher chance of loss than gain, although in today’s market its price is too high. Many people say it might crash in only a day. So, don’t rashly spend on the cryptocurrency with the hard-earned money of yours.
4 Tips to Invest in Cryptocurrency Safely
Investment in cryptocurrency can be a risky step out there. If you are planning to invest in cryptocurrency, you should focus on the following steps.
Prepare for Volatility
Cryptocurrency is a volatile currency system. It goes up and down in a short period of time. If you get stressed out when you are losing money, you should avoid investing in cryptocurrency. Cryptocurrency is popular around the world currently. However, you should be well aware as it’s quite risky to invest in cryptocurrency.
Back in 2017, the value of 1 Bitcoin was $900, which then went up to $2,000 but then again went down. It’s like it can drop in the blink of an eye.
There are lots of Unknown Factors
Try to keep all of your information about cryptocurrency secure. Many internet sources, such as online forums and sites, find and create a cryptocurrency attack. Investors face a more significant threat when they invest a lot of money in cryptocurrency.
Cryptocurrency is a very shady currency system in its current state. It is very reckless if you are not aware of what you are doing with those cryptocurrencies. Make sure you know how to deal with the profits and losses.
Keep Your Digital Currency Secure
If you buy cryptocurrency, you need to store it in a digital wallet. There are many kinds of wallets out there, and each has its own benefits and security.
Two-factor authentication: It is a must for you to utilize two-step authentication. Two-layer identification offers your account protection whenever you access it. Even if a hacker gets your password, they can’t get access to your account because the second step of verification requires human elements such as the face, fingerprint, or ID.
Strong Password: Using the same password in different accounts is risky. Although most of the people know about this, almost 50% of them make the same mistake. A weak password makes it possible for hackers to attack your digital currency wallet.
Try to make your password at least 16-characters long, and use real character combinations, unique numbers, and special characters so that hacking tools can’t find out what the password is. Never share your password, and if you write it down, don’t lose it because you can’t access your cryptocurrency account without the password.
Only use the authorized device to access: Access your digital currency account only on authorized devices. If you access your account from an unauthorized device, it will pose a risk to the security of your account.
It is natural to worry about the safety of your cryptocurrency. Some people use a specific device only reserved for getting access to their funds. There is some malware that comes from general web browsing. In this case, using a specific device ensures the account isn’t compromised.
Keep in Secure Network
Only access your cryptocurrency account on a personal PC or device and trusted network. Your computer and device need to be entirely private with no other accounts in it. Investors who have cryptocurrency in their account cannot afford to take the risk of a single virus in their account because it can lead to the loss of thousands of dollars.
It is time-consuming and complex to secure cryptocurrency from any kind of trouble. However, ensuring the safety of your cryptocurrency is a must. It is imperative to take all precautions to save your Bitcoin from unauthorized access.