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Cryptocurrency has recently exploded into the financial world, appearing on various media outlets and being a topic of discussion for many. It has gone as far as claiming to be the currency of the future, but nothing has been confirmed about this as of yet. There’s also been an increase in many online stores selling various novelty items and collectables for all crypto lovers, such as lamps, clothing and accessories! Many people have even invested in cryptocurrency with the hopes of becoming millionaires in the future. But, just like all things, even cryptocurrency has its risks. Here are a few things you should consider before dipping into the world of crypto:
1. Never share your wallet private keys – A private key is a set of numbers which are generated for each individual wallet where your crypto coins are stored. This identifies and allows you to send and receive funds. If the private keys are put into the wrong hands, all your funds can be stolen and lost forever.
2. Don’t invest in what you can’t afford – Many individuals thought cryptocurrency would make them into millionaires and actually went forward with mortgaging their properties and personal assets in order to invest into cryptocurrency. Seeing how the market is right now, they must be in a huge pile of debt, so don’t do this.
3. Do your research – Cryptocurrency is a new era of money and there are a lot of fake promises in this field. Certain branded cryptocurrency coins or ICO’s may promise you a large sum of money in return for investment, but it can end up to be a scam.
4. Don’t store cryptocurrency on exchange sites – Many individuals store their funds on exchange sites because it’s convenient as all their wallets are in one place and trading is also easier this way. However, exchange sites can get hacked and funds can be stolen. The official wallet app is normally the safest to use.
5. Stay updated – Keeping up to date with the latest news on cryptocurrency is important to understand the state of the market, especially as it operates on a 24/7 basis unlike regular share markets.
Until next time.