Before you use a cryptocurrency exchange, it is important to first check whether the website is reliable. As crypto becomes more and more popular, more cyber criminals are trying to get their share. They are launching a fraudulent website that looks exactly like a legitimate exchange. In this way they try to scam investors.
Thanks to phishing, crypto traders can lose a lot of money. That is why it is important to check whether you are using a legitimate exchange. It starts very simply: did you spell the name correctly? Does the crypto exchange have a secure, encrypted connection (https)? So do you see a lock with the name? You can see which are safe via the online site.
Because there are so many different exchanges, you may think that you are using a legitimate exchange, while in practice it is used for fraudulent purposes. So first find some neuer capital trading reviews.
Many exchanges claim to be completely safe, but it is still important to take the right measures. A few tips:
- Back up regularly. You will enjoy this tip so much that we will put it at the top. With online wallets you often have the option to make a backup. Also make backups of your offline wallets yourself. Encrypt it in a secure manner.
- Only store small amounts of crypto coins in an online wallet, such as with an exchange;
- Store larger quantities in a hardware wallet ;
- Encrypt your wallets in a strong way. For this you use the most complex passphrase possible, which consists of lowercase letters, numbers and special characters;
- Switch on ‘two factor identification’. Many exchanges offer this option. If the exchange of your choice does not have this, then it is a good idea to look for another party.
A big difference between owning cryptocurrency and owning giro money is anonymity. In contrast to your bank account, it is not mandatory to link your identity to your cryptocurrency wallet. Another major difference between cryptocurrency and book money is decentralization. This means that cryptocurrencies are not managed by a bank, government or authority within the market.