Are you thinking of investing in cryptocurrency? Before you do, make sure you are aware of the risks and benefits associated.
So, what are the benefits?
Cryptocurrency digital transactions are considered safe due to a two-key system required for transactions and in terms of your personal security, there is no identification of who is buying or selling in crypto transactions.
There is also potential for higher returns on crypto investments and because it is decentralised, it cannot be inflated or deflated as a result of what is going on in the economy.
However, in terms of the risks, the law has been slow to react with undetermined and unknown legislation in Australia. While intentions have been tabled, this undoubtedly raises concerns of a lack of regulation or control over cryptocurrencies if a coin is lost, stolen or fraudulent. On the other hand, transactions are difficult to falsify and there have been no fraudulent issues made to-date.
If you are certain cryptocurrency is the investment for you, be sure to follow these four security measures to keep your funds protected.
1. Research about exchanges
Prior to contributing a single dollar, ensure you do your research in regards to cryptocurrency exchanges. These exchanges let clients buy and sell advanced monetary standards, however, there are various trades to pick. So, complete your homework.
2. Store your Crypto safely
One of the best ways to protect your investment is to secure a wallet; physical (or “cold”) wallets which look like USB drives and act as a physical store for tokens or coins. These physical/cold wallets appear as USB drives and act as an actual store for tokens or coins. Every equipment wallet is connected with a private key: a secret key or piece of code that permits you to unscramble the wallet and access the coins or tokens that it stores. There is a risk – lose your password key, you lose all content.
3. The use of different passwords is essential
Best not to use the same password for cryptocurrency services as they are a popular target for cybercriminals. The best system is the Two-Face Authentication (TFA) which provides additional security for your online accounts so that knowing your password alone is not enough to access an account. The second factor in the TFA is a randomised time six-digit code, known as a time-based one-time password.
4. Diversify your investments
Diversification is a good investment strategy always. It is best to spread your investments as there are thousands of options. The beneficial point of diversification is that it helps to minimise the risk of capital loss across your investment portfolio.
New Taurus client, Quantum Assets, a digital currency technology company founded by Peter Kazacos reassures customers that cryptocurrency can be a secure investment with the use of his security based on Quantum Technology. Peter Kazacos states that the biggest problem with cryptocurrency is that it is unregulated, so investors holding money are most vulnerable to hackers. In the case of the safety of funds, Kazacos uses quantum technology to produce a new class of quantum cryptographic keys. By creating this new class of quantum keys, unpredictable and entirely random, the safety levels on cryptocurrencies will remove the threat of hackers.