Trading is always risky but according to experts’ cryptocurrency trading is riskier than the others because of the volatility and unpredictability of the digital coins.
However, digital currencies are the talk of the town. With the rise in popularity, the scams related to crypto trading have also risen.
But you need to trade safely and keep your eyes open to avoid getting scammed.
How to know it is a scam?
- If your broker makes promises but doesn’t deliver them.
- If you have been promised a bonus or commission but haven’t received any.
- If you have unexplained losses and no justified reason.
- If you are unable to withdraw your funds.
- If you have lost access to your account.
In any situation, you should immediately get in touch with a professional funds recovery company such as Money Back who will help you retrieve your money in some time.
Here are some tips to safely trade in cryptocurrencies:
Before trading even with one dollar, know all about cryptocurrency exchanges. They are the platform to help you buy and sell virtual currencies.
You have thousands of exchanges to trade in crypto and hence, proper research should be done to pick the right one. Read reviews, speak to professional traders before finalizing one.
Find out how to store virtual currency
If you are looking for a long-term investment, then you have two options. You can either store it on the exchange or in a wallet.
There are different types of wallets available and each comes with its own advantages, safety, and technical requisitions. Make sure you investigate the storage options properly.
Have a diverse portfolio
Every coin will give you a different return. In order to invest in one Bitcoin, you need $34000 while you can buy a Ripple in less than a dollar.
So, if you want to maximize your profit then lower your loss, then it is best to spread your trading in several currencies.
Do not fall into Ponzi schemes or false promises
If a broker promises you 100% profit trade signals or high returns, then don’t go for it. If anything appears too good to be true, then it is possibly fake.