How to invest safely in Crypto

 

First of all, Inform yourself!

With Investing money in crypto coins you can earn money, but you can also lose money.

If you choose a cryptocurrency, check whether it has a future. (i.e. is there is a good project and a good team behind it).

If you don't want to do research, stick to Bitcoin or the top cap crypto coins.

Avoid the so-called "shitcoins" that look very nice, but they can be a big risk.

If you want to take a "gamble" in a shitcoin, do so with a limited amount, for example with 100 euros you can sometimes buy a few million worth of shitcoin.

If you are lucky you are rich, if you are unlucky you only lose 100 euros.

Beware of hypes

A Hype can be a “pump and dump.”

This means that the coin is promoted to be the future, mostly supported by crypto influencers.

Afterwards it often turns out that the coin does not live up to what was promised.

Invest on a safe Platform

There are many platforms on which you can invest in crypto.

It is best to choose the large, well-known platforms (Binance, Coinbase, Bitvavo).

An additional tip is to spread your crypto portfolio across different platforms and crypto that you keep for the longer term is best placed in a hardware wallet.

Definitely do not invest with intermediaries who want to manage your money.

This almost always causes problems.

Finally, it is important to only invest with money that you can afford to lose.

Don't invest everything you own in crypto to quickly have a large budget, because then you could quickly experience the opposite.

 

What do you need to trade safely

To trade cryptocurrencies safely, you need two essential tools:

1. A mobile or PC application  from your exchange.
2. A  wallet.

It is recommended to conduct transactions through your exchange's mobile app.
Using the exchange's website in your browser, or using browser plug-ins, is less secure.
Browsers are generally more vulnerable to hacks than mobile apps.
So trading via a smartphone is more secure than via a PC.
Most crypto thefts from users occur by hacking browsers.

As described in our hardware wallet test, Tangem and Safepal X1 are one of the most secure options.
Because trading via a smartphone is most secure, Tangem has chosen to make their wallet compatible only with smartphones.

Cryptocurrencies you actively trade with can be left on your exchange (though with some risk).
Exchanges can be hacked and or can also go out of business.
The cryptocurrencies you do not actively use are best transferred directly from your exchange to your cold wallet and stored there.
Crypto investors who are not actively trading should best keep all their crypto on a hard wallet.

Safe trading.