As you know, Bitcoin and Altcoin have given some crazy returns in recent months.

The entire decentralized thinking on which these currencies are based gives the population around the world a greater degree of freedom. Freedom from corruption, government interference, etc., but with greater freedom also comes with greater responsibility.
If you want a world where the state does not interfere with who, what, where and when do you act, then you must also expect that the state does not help one when things go wrong.

Crypto currencies are, as trading instruments, a great way to hedge against a global economy that swings up and down and against manipulation of economies, as we have seen before. But in a world without control, greater responsibility is imposed on individuals. Everyone in the crypto exchange market should be aware of the risks that have arisen with this new type of currency.

The biggest risk you encounter when shopping these crypto currencies is hacking attacks. You should have security as the first priority when you are in the market, whether it's an investor or a speculator.

Keep your computer safe

Having a dedicated computer where you only handle crypt currencies on the Linux operating system is preferable. But since it is rarely possible for the average leisure stretches, you should at least think about keeping your windowsmith updated.

Most viruses tend to host targeted windows users. Antivirus programs are not always 100% effective and can wipe your computer significantly. However, it is a necessity if you want to keep your capital safe.

If you browse the Internet with a Windows computer, keep your crypto-related activity separate. Mac computers tend to be more secure and Linux is considered to be the best solution. This is the main reason that most servers in the world are running on the Linux operating system.

Update your computer regularly

Updates often fix errors and security issues, so it's important to drive them as often as possible. Open source software tends to have frequent updates because there are several who revise the code. People sometimes suspend updating of their computers, leaving them susceptible to hackers. When vulnerabilities become known, many hackers will create viruses to exploit them.

Use strong passwords

The codes that most people use on their computers are usually not quite safe.

The use of force cracking is the most common way for hackers to access your account. People often make the mistake of using really easy passwords like "andersand123". Another common mistake is to use the same password on multiple accounts.

The best passwords are at least 16 characters long with a combination of numbers, letters, and special characters. (ex mango23! ate12russia #) If you find this too hard to remember, use a sentence that is at least 20 characters long.

Use two-factor authentication

If your password is hacked, 2FA still prevents the hacker from accessing your account. This is an additional level of security that generates a secondary password from an app on your phone or text message. Not only does the attacker need to steal your password, they also need physical access to your phone.

TWO-FACTOR AUTHENTICATION is an absolute must to use Crypto exchanges. (If you do not use this, you are the bottom apple on the tree and you will probably lose your coins at some point) You may also consider using it for your primary email address.

Double check all URLs & Wallet Address

You can use all the security in the world, but if you send your coins to a fake website you will lose your money. There are many fake websites that mimic genuine Crypto pages, but they change a letter in the domain name to fool people. You must always double check the url and never send money to a site that is not encrypted with https.

When sending bitcoins to someone, it is always important to double check the address. Human error is also a common mistake, and Crypto transactions are final. My main rule is that I check the first and last 3 numbers in an address and see if they fit.

USE A HARDWARE WALLET

Bitcoin has a Hardware wallet like Trezor, which provides security as cold storage but with ease as a hot-wallet / exchange. Cold storage is considered the best way to keep your private keys secure, but sometimes it may be time consuming to implement.

Paper wallets can not be reused and can be vulnerable when the key is placed on another wallet. Hardware wallet can be the perfect tool to help increase common users' participation in crypto because they are safe and easy to use.

3rd party risk is underestimated

To act as a speculator or invest in a crypto market, it is necessary to transfer money from cold storage to an exchange. When doing this you expose yourself to third party risk. The reason for this is as soon as you do not have control of your key (private key) you have no power but only trust the exchanger to get you off.

Just think about the GOX project or a new case with bitfinex. If the exchanger gets hacked, goes bankrupt, some bandits or something else, there's actually nothing you can do. One can reduce the same risk for the entire portfolio

1. Use multiple exchanges
2. Only transfer the trading funds you need and keep the rest on cold storage.

Do not hold coins on an exchange when you do not trade actively
Use only 20-30% of your coins on trading (if you are speculative, this is my main rule)
Diversify your coins among several exchanges.
Always check exchanges to ensure that it has a good reputation in the "crypto community"

USE ONLY PHONE OR WEB WALLETS FOR PETTY CASH

I do not use any software wallets (in addition to coinbase) or mobile wallets since I do not think they are safe enough.
If you need a mobile wallet because you buy products IRL, you should only transfer the least amount of money you need

What now?

These advice is of course just my input, others may have different opinions. One should, however, always be aware of security as a completely overwhelming project in the crypto market.

Use CFDs to trade Bitcoins with

One way to completely avoid all the uncertainty about Bitcoinhandel is by using a CFD provider for trade at. When you choose this, you do not own the Bitcoins traded at any time, and they can not be stealed from you either.

This can of course be a disadvantage if you want to buy Bitcoins and keep them for many years. But if you just want to trade them in less time, Bitcoinhandel via CFDs is definitely an exciting option. It's another fairly new phenomenon, but Spreadmarket.com made an interesting product, which we looked forward to testing here in June.

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