Is the crypto market for amateurs? The answer is “too, but it depends.” Despite housing large and experienced investors, it is very common for people with little time in the field to live in this field.

Misconceptions are common and are everywhere. They can reach newcomers, as well as, in some cases, those with more time from home. Thinking about it, Starten has gathered some tips, very important, than not to do anywhere in the crypto world.

1. Exchange is not wallet

Exchanges are digital platforms, through which it is possible to buy, sell and exchange cryptocurrencies. Even if saving is one of the functions of this space, trusting a lot of money there – and for a long time – is not the right attitude.

When cryptocurrencies are transferred on the exchange, the broker is given “ownership” over the tokens delivered. Because the crypto market is volatile, brokers have their money management model and eventualities can happen and directly affect their assets.

This is the case, for example, in brokers that make loans from the cryptocurrencies deposited there. Faced with a crisis, with the significant increase in cash, the money present in the broker may not be enough and, with this, the exchange become insolvent – when it does not have the resources to pay its investors.

In this way, it is important to place tokens in these spaces, only when you are trading.

2. Stop prioritizing investment in projects with own wallet

When choosing which cryptocurrencies to invest in, it is important to appreciate security and autonomy. Therefore, it is important to choose projects that offer their own applications. With these facilities it is possible to be closer to the activities of the project and also to the technical support, in the face of any problem.

Still in this sense, through these portfolios, it is usually possible to leave comments, with compliments, thanks, doubts and suggestions – which can serve as a closer support of the founders.

3. Stop having your own hard wallat

It is important that investors have a personal hard wallet: a device capable of storing cryptographic keys (such as a USB stick, a networkless computer or a hard drive), that can be accessed in the absence of internet.

Ideally, the “wallet” is stored in a secure place and that only you have access to it. This reduces the risk of invaders, which primarily reaches people with, politically exposed – but does not completely exclude beginners from the target.

4. Despair, in the face of any movement

An investor knows the time to spend his money. With this, first, research, establish a filter and always carefully analyze the project you want to invest.

Faced with an ideal time to buy cryptocoins in an interesting project, buy, but do not compromise all your money, leaving aside priorities with rent, water or electricity bills. You have to be responsible and aware at these times.

It is not new that the crypto market is volatile and that periods of low currency prices, too, are part of the game. Therefore, if you already invest in the project and are facing a situation where prices have fallen a lot, it is important that the eyes are focused on the internal reactions of the project. Make sure everything is okay and understand what the most experienced are talking about. The fall can be a common drive.

Just as the crypto market can generate high gains, there is also the high possibility of loss. In this space, the ideal is to think about the long-term, with returns that come with the passage of time. So it takes calm and patience.

5. Share Inside Information

There is information in projects that are confidential and, with this, only specific people have access. These data, called “privileged information”, when shared with people outside those initially indicated, configure a crime for those who reveal and for whom it appropriates.

So projects can’t reveal inside information. In such cases, the person sharing may even be exonerated from the project.

6. Fully trust internet ads

Technology brings alternatives that make it easier to solve everyone’s day-to-day problems. Even those of the daily lives of the scammers. With the internet, virtual scams are increasingly common, which calls for attention and caution on the part of investors.

Therefore, always be wary of ads with exorbitant earnings, be very careful with negotiations that take place through social networks and messaging applications and remember: blockchain has no refund and, in Brazil, it is difficult to get someone to be punished.

Then watch out! With caution and security, your pocket thanks you.

7. Call all cryptocurrency tokens

Every cryptocurrency is a token, but not every token is a cryptocurrency.

A token can be understood as the digital representation of an asset on an existing blockchain. In this way, he can represent real estate, works of art, services, investments and the most diverse goods of the real world. Among them, they are also monetary assets.

There are several types of tokens. Among them are Payment Tokens (in Portugues, payment card) encompassing digital currencies. These are resources used to transfer capital – which also includes cryptocurrencies and act as electronic money, with blockchain.

8. Don’t pay attention to passwords

The passwords of your investments are as valuable as the digital currencies themselves. Therefore, careful choice of characters and care when saving this information are very important.

It is important that they are not stored on mobile phones or in messaging tools, because these are not safe means. In addition to potential cyber attackers, there are risks in which all humanity is subject, such as theft of the device, loss and damage. These problems can be irreparable and lead to much bigger problems. So choose a safer place.

Another factor that calls attention is the choice of password digits. Don’t put in obvious, easy-to-reach numbers. Scammers are getting smarter and, with this, people who adapt to the convenience of the 123456 are very easy victims.