Starting a cryptocurrency investment is very interesting and gives you some confidence about hitting the jackpot sooner or later. What some cryptocurrency investors fail to realize is that buying the digital assets and storing them in their wallets does not end there.
There is a high possibility of losing every single coin in the wallet if no effort is made to ensure that the coins are safe. This post seeks to point out three ways to avoid losing your cryptocurrency investment.
Don’t forget to back up your Paraphrase
I bought XRP some months back, and I stored them in an Android wallet I installed from google play store. I generated a one-time login password and a pin code which I used to access my XRPs.
Also, I was asked to write down a paraphrase when creating the wallet, but I just skipped that option because I thought there was no way I was going to lose my phone, so no need to waste that time. Funny enough, my phone got missing, and I reinstalled the app on a different phone. The app asked me to check a box if I was trying to access an existing account, and I did. The app then asked me to enter the paraphrase generated for me when I earlier installed the app. I then realized that my XRPs are gone for good.
Buying a cryptocurrency into a wallet is one thing, and keeping them safe is another thing. Do not forget to write down the paraphrase generated for you by the wallet. And also, do not hesitate to back up private keys. Bear in mind that investing in cryptocurrency is a long-term project, and so paraphrase should be kept at a safer play.
Store Cryptocurrencies in an Official Offline wallet
There are many wallets on the google play store, and across the internet, however, most of them are “entry without exit.” Some of them will gladly accept your deposit, but once you decide to transfer them out, some funny excuses will pop up, and at that instance, you should know there is danger ahead.
To send cryptocurrency into a wallet, first, visit the official website of the cryptocurrency you intend to buy, and make use of the recommended wallets over there. Do not send your assets into any wallet that claim to be genuine and safer to use. You can also check reviews of its previous users to make a decision.
Pump and Dump Cryptocurrencies
Investing in cryptocurrencies with small available supply and market caps are good, but can be dangerous. Investing in an unknown coin because of its price and market cap can easily take you to the moon when the general market price is skyrocketing and can dump you somewhere when there is a small fall in the general price. Getting cheap cryptocurrencies can make you buy a lot. However, most of them are bound to make you lose your investment in a market recession. Make a proper background check on a cryptocurrency and the team behind it before you buy them.