How to reduce the risks when trading cryptocurrency
In their popularity, cryptocurrencies have long overtook some traditional assets, and confidently took one of the first places in terms of transactions.
Unlike other assets, cryptocurrency trading, in addition to course risks, covers a large number of other troubles, and you should know how to minimize them.
At the same time, some risks of using cryptocurrencies can be identified only in the process, so I will try to tell you what I came across in my work.
Sometimes a few simple actions make it possible to reduce the majority of the risks listed below almost to zero and save money.
Basic, non -course risks of cryptocurrencies
In addition to the exchange rate risks associated with the volatility of cryptocurrency prices, there are other equally important risks that you should know if you trade in cryptocurrencies or make calculations with their help:
- Problems in transfers - your cryptocurrency may simply not reach or the translation depends in the status "in the process".
Not so long ago, I ran into a situation when, when transferring to one of the crypto-foreign, the amount of 2 Ethereum hung for almost a day. After long correspondence, the money all the same entered the account, but the course has already changed to a less profitable one.
In order to reduce the risk of such a situation, it is better to translate large amounts in parts, the crafts of the amount hang much less often.
- Brokes of exchanges - cryptocurrency exchanges are subjected to constant attacks by attackers, as a result of which you can lose their funds.
So that this would not happen not to store money on trading floors, but to use it only for exchange.
- The wallet did not pass the AML check - this usually happens if your wallet lit up, somewhere when paying for dubious goods, services or money was received from illegal operations.
Such a nuisance is often detected in the exchange of funds, the field of this transaction is frozen, and the money, at best, returned back.
Whatever happens, periodically check your wallet on Aml, now there are a lot of services that allow you to do this.
- User mistakes are almost everyone who translated the cryptocurrency at least once and was mistaken, most often this happens when choosing a blockchain.
For example, the USDT transfer by the ERC-20 network to the TRC-20 address-funds may be lost irrevocably. Therefore, always check several times not only the address, but also the blockchain where the money will be sent.
- Loss of access to the wallet - for a number of reasons, you may need to reinstall the cryptocurrency wallet if it is installed on your phone. At the same time, you can lose a key phrase and forever lose access to your money.
Whatever happens, it is advisable to write a phrase on paper and hide in a safe place, without indicating what wallet this phrase belongs to.
Any troubles are easier to prevent than after trying to correct the consequences of these troubles, and in the situation with cryptocurrencies, you can lose your funds irrevocably.
One option to avoid most problems is to trade cryptocurrencies through brokers - https://time-forex.com/kiptovaluty/brokery-kriptovalut
In this case, you not only exclude the occurrence of problems with wallets, but your funds will also be insured by 20,000 euros.