How to protect your crypto?

The crypto market is different from traditional financial markets. Therefore, it attracts investors, giving them an opportunity to yield a profit rapidly. Nevertheless, it is important to remember that digital assets are a rather complex and unpredictable instrument. That is why it is so important to know how to keep your virtual money safe when purchasing, storing, investing, and trading.

Ways to protect digital assets:

• Buying
  
  Buying cryptocurrencies is getting easier every day. Today, you can purchase digital money on centralized* and decentralized** exchanges, cryptocurrency ATMs, P2P marketplaces***, and other floors. Each option has its own advantages and disadvantages, and also differs in the level of security. Investors are now increasingly choosing centralized exchanges with a good reputation that offer a perfect combination of attractive conditions and security. Centralized exchanges are getting so popular because they are regulated and stick to anti-money laundering principles. At the same time, many crypto investors consider decentralized exchanges with audits to be the most reliable way to protect their digital assets.
  
  *Centralized crypto exchanges are digital platforms that run based on principles similar to that of classical stock exchanges. They are managed by specific legal entities that make sure that platforms operate reliably and user funds are safe.
  
  the functioning of the platform and the safety of user funds.
  
  **Decentralized exchanges are online apps for crypto trading using smart contracts, rather than centralized trading systems.
  
  ***P2P marketplaces are platforms for trading crypto between users.
  
  
• Storing
  
  After investing in crypto, it is time to think about how to store it safely. At this stage, there are two most common options. Thus, wishing to stay independent, some traders keep their assets in crypto wallets. You can find more about crypto wallets in one of our articles. Meanwhile, other investors decide to store their digital money on crypto exchanges. Here there is a delicate nuance: if you hold assets on a crypto exchange, you will have no access to the keys to the wallet.
  
  
• Trading
  
  Here are a few tips on how to ensure the safety of your crypto when trading:
  
  
  • Choose a digital asset and analyze the market, including forecasts, prices, growth prospects, etc.
  • Assess potential risks and be mindful of them in the future.
  • Carefully scrutinize crypto exchanges before picking one.
  • Select an efficient long-term or short-term trading strategy.
  • Find out more about trading instruments as this will help determine trends and predict future movements of coins.