When you are buying crypto, you are already entering a risky market. However, your personal information, financial information, and any crypto you buy should be safe. You will want to seek out the best crypto exchange in Canada where you can have confidence that you won’t be hacked or lose your money or your identity. Take a look at the top six ways to stay safe on crypto exchanges.
1. Make Sure That You Have a Secure Connection
When you sign into a crypto exchange, you should make sure that you have a secure connection. Avoid using public WiFi, as it is far less secure. You might even consider getting a VPN which adds a layer of security. As long as your computer software is up to date and you have a secure connection, you can elude any hackers that are looking for opportunities to defraud you.
2. Choose a Safe Crypto Exchange
When you are looking for the best crypto exchange in Canada, security and safety are one of your top priorities. Do some research on the exchange to find out if it has been hacked before and what percentage of its assets are stored offline. Some crypto exchanges have insurance against fraud or theft, which is helpful in the event that something happens in the future.
Make sure that you learn everything you can about the exchange, including how long it has been in business, how transparent they are, whether they are licenses, and how easy it is to get a hold of customer service.
3. Consider Your Wallet Options
When you buy crypto on an exchange, you can often store it in your account. They may have the equivalent of a mobile wallet. Many people exercise this option, but your assets are vulnerable if anything goes wrong. If someone gets your password or is able to get into your account, they can take all of your crypto.
Another option is to have a separate wallet, which can be online or hardware. Hardware wallets look similar to USB flash drives, and they are the most secure. Just make sure that you keep your passwords in a safe location because if you lose access, you won’t be able to retrieve your assets.
4. Always Opt for Two-Factor Verification
Two-factor verification adds a layer of security to your crypto accounts on exchanges. It is especially important because when you buy crypto, you don’t have fraud protection or recovery the way you would with your bank account. If your account is hacked, you will lose your assets. You can often use Google Authenticator by downloading the app for your iOS or Android device. You can also create a new Gmail account to go with your 2FA. Then, turn on 2FA on your account.
2FA is security where you have a unique code generated on your phone that you use when you sign into the crypto exchange. The code is specific to your account, and it is randomly generated over and over again. It is virtually impossible for a hacker to get your code without having your device and your login information. It is especially important with cryptocurrency because if your crypto is stolen, it is extremely difficult to recover it.
5. Don’t Fall for FOMO
FOMO, or Fear of Missing Out, runs wild in the world of crypto. The reason for this is that cryptos are volatile, and they can have sharp increases or decreases, sometimes within the same day. It is never a good idea to invest in something “just because everyone else is,” nor do you want to sell your assets in a sharp downturn.
The best way to invest in crypto is by having a long-term strategy, which means that you will hold your assets for a specific period of time. If you notice one crypto increasing by 15% in a few hours, it is likely already too late to get in on the rise. If you buy in and it turns around and goes back down, you are losing your hard-earned money. This happens to people all the time when they are afraid of missing out.
6. Do Your Own Research (DYOR)
Before you choose a crypto to buy, it is important that you do your own research. Many different people have ideas and strategies, and some people are simply wrong. The best way to keep your money safe is by doing your own research. Consider the crypto exchange to be similar to your bank, and make decisions in the same way.
Before you buy a crypto, find out its history, how much it sells for, its previous high, and what the experts are saying. Don’t follow links in emails, as they could be phishing emails. Stick with your own research from reputable sites before you invest. This will help you stay safe on crypto exchanges.
Comments here are not of the author's opinion. Users are responsible for their comments.