Crypto Crimes are increasing. Learn How to Invest your Money Safely!
Potential investors are highly attracted to cryptocurrencies than any other investment asset. Criminals are too attracted to cryptocurrencies. As per the reports of 2019, cryptocurrency crimes have been increased to 312% every year on average. The crypto crimes include everything from scammers and hackers stealing crypto-coins of investors to people falling for cheating or scamming related to crypto investments. Bitcoin is the foremost cryptocurrency, and it has the most reports of crimes than any other cryptocurrency. Beyond the crimes, the safety of bitcoin as an investment purpose is always questioned, and that is because of its wild fluctuations in its value.
Despite an increase in the number of thefts and frauds, crypto experts advertise the safety offered by the bitcoin network as it uses blockchain technology that makes the entire network secure. Experts have faith in cybersecurity, but there’s no stability in bitcoin investments. So, the only thing that must be going in your mind is, is bitcoin safe to invest in? Well, if you plan to trade bitcoin to know benefits of bitcoin .
Here we will discuss few things about the safety of bitcoin as an asset and what measures you can take to secure your crypto investments.
What things need to be considered before buying Bitcoin?
The most important thing that is required to learn is that Bitcoin is a volatile currency and the savings that you put into bitcoin aren’t safe from fluctuations. Bitcoin makes a volatile investment, and its price can skyrocket, but it isn’t safe. Therefore if you want to invest in a safe investment asset that provides you guaranteed results, don’t invest your money in Bitcoin or other cryptocurrencies. At the end of 2021, Bitcoin’s value was around $30,000, and in March 2021, its value reached $60,000, which is astonishing, but at the same time, there is a high risk to your money as, after March 2021, Bitcoin’s price started decreasing.
Crypto experts recommend investors invest less than 5% of your investment portfolio, and that too for the long term as it is a solid retirement investment plan.
Are there any risks associated with investing in Bitcoin?
The answer to this question is that there are multiple risks associated with investing in bitcoin, and the main risk is fraud and hacking. With each passing day, crypto crimes are increasing, and investors need to be highly careful while investing their money in cryptocurrencies. Most cybercrimes are done by scammers and hackers who request payment in cryptocurrency or send users unsolicited offers to attract them to open messages or links and get hold of their investments. Federal Trade Commission stated that one main sign of a scam is anyone asking you to pay only by cryptocurrency. Make sure to avoid unsolicited offers that are related to bitcoin or other cryptocurrencies. Do your own proper research and make sure to buy bitcoins from a trustworthy crypto exchange.
How to secure your Bitcoins?
Hackers have sharp and creative minds, and they tend to use different creative methods to gain access to investors’ crypto wallets while trying to steal their crypto coins. Therefore it is important to store your crypto investments safely and practice digital security traditions. While crypto exchanges allow users to store their coins in exchanges through hot wallets but these wallets are susceptible to hacking. Make sure to choose cold wallets which are highly secure and provide you ownership of your funds. You can transfer your funds anytime with cold storage without the interference of any third party.
Ensure to trade and hold cryptocurrencies on a platform that provides robust security measures and allows you to keep most of your savings in cold storage instead of hot wallets, and offer two-factor authentication to all users. Some crypto exchanges even offer private insurance policies to their users in case of hacking or stealing. Experts suggest using cold storage wallets to provide the best protection to your wallet and savings against online fraud and hacks. Still, there are some risks related to cold storage, including the possibility of losing access to your bitcoin investment if you lost your keys or forgot your password.