For many of you, crypto currency is a new concept. You are still trying to figure out whether investing in cryptocurrency in India is legal or not? Do people actually make money through crypto currency? If yes, where do they invest their money in? How to get started with crypto currency? How much should you be investing? There must be many more questions that are running through your mind. We are planning to publish a lot of content in the coming week. However, in this article, I have tried to explain what are the things you need to keep in mind before you start investing in cryptocurrencies.
- 1 Cryptocurrency is highly volatile
- 2 Exchanges are hackable
- 3 Cryptocurrency is not a QUICKMAKEMERICH Scheme
- 4 Caution: Transfer right coins to the right address
- 5 Safety is very important - Better be safe than sorry
- 6 Make sure to enable 2FA
- 7 Private keys are not to be shared with anyone. NEVER
Cryptocurrency is highly volatile
You need to understand that crypto currency is very volatile. Within a matter of few minutes, the prices may come down by even 50 percent. And still, keep falling. I purchased a good amount of SIA Coins when it was at the peak. Since the project is good, I am keeping the coins with me. But let me warn you here. At the current valuation, I have lost 75 percent of the amount I invested in SIA coins. However, I am expecting things to change soon. It is slowly picking up the pace and it may again be back and touch the ATH in less than 2 months time. I am hopeful.
Exchanges are hackable
Bitcoin exchanges should not be used to store your coins. For that you have wallets. Cold storage is best. Now, in my next article, I will explain everything about how to store your coins safely.
One thing to note here is that no exchange is safe. And getting a hardware wallet is most recommended.
There have been many instances in the past where exchanges were hacked and investors lost millions in no time.
Cryptocurrency is not a QUICKMAKEMERICH Scheme
Before you start investing in coins, please understand that crypto currency is not a make me rich in a day scheme.
Well, if you learn the stuff, being rich is not impossible.
What I am trying to say here is: Learn about cryptocurrencies. Gather as much information as possible. Do not be in a hurry and invest everything at one go.
Cryptocurrency is highly volatile. You may just lose 50 percent of your hard earned money in one day.
Be smart, and play it smartly. If you can do that, there is no stopping.
Caution: Transfer right coins to the right address
Never ever transfer TYPE a coin to different coin wallet. So when you want to send Etereum, make sure you are sending to an Ethereum address (and not a Bitcoin or any other cryptocurrency address).
So when you want to send Etereum, make sure you are sending to an Ethereum address (and not a Bitcoin or any other cryptocurrency address).
If you send Ethereum to Bitcoin wallet address, then you may lose the entire amount in no time. You may never ever get back your lost digital currency.
Safety is very important - Better be safe than sorry
There have been numerous effort to scam users by asking for their private key or asking them to send Ethereum/Bitcoin or other cryptocurrencies to the scammers' address. Sometimes, they look so real that it becomes very difficult to identify whether it is a scam or real.
Beware of Scams
I have seen people getting scammed. You may find a lot of emails claiming that they are giving free Ethereum/other coins to all the Ethereum /any other coin holders as a part of their airdrop program. When you click on it, it may look exactly like the official website. What you need to do is to authenticate the web address and the information. Do not hurry.
Here's what you can do:
a. Google it.
b. Reddit it.
c. Post it in our facebook group and ask whether this is genuine or not.
It is not that companies do not conduct air drops, but you need to ensure that the news is legit. Only then, participate.
One of my close friends lost 600 OMG coins in OMG airdrop scam because he thought it was real. As I write, each OMG coin is priced at 7.6 USD. Just imagine, he lost 4560 USD in no time. Please avoid repeating the same mistake. You have been warned.
Here is a screenshot of a similar scam.
Just see how convincing the PHISING message looks.
Unocoin ICO Scam
Let me give you one more example of Unocoin ICO.
Unocoin users got an email in their INBOX stating that they are opening their exchange in multiple countries and they are getting them listed on ICO. Interested users can send Ether to their address and participate in Unocoin ICO.
However, this was not true. Minutes later, Unocoin had sent out an official confirmation to all the users that they are not conducting any ICO and this was just somebody trying to scam Unocoin users. Hence, it is very important to authenticate the news.
The important thing to note here is the email ID.
The sender managed to send the email to all the Unocoin users from their official email ID. That's scary.
So, what should be done to validate the authenticity? It is always better to wait and see what others are saying. To double cross, you can email them officially and they will respond back. Till then, wait.
Also Read: ATC Coin Scam Review
Make sure to enable 2FA
Make sure you have enabled 2FA. While enabling 2FA, ensure that you have taken a print out of your backup key. This will prove handy if you lose your phone or the
While enabling 2FA, do not forget to take a print out of your backup key. This will prove handy if you lose your phone or the phone gets damaged.
Private keys are your password. If anyone gets access to your private keys, they will be able to access your account and transfer your hard earned money to their account in no time. The worst part is, you will not even get any idea, who has taken your money.
If I were to explain Private keys in layman's language, I would say they are like your ATM pin without OTP. Just imagine, if someone gets access to your ATM card, and your mobile phone, would he need you to transfer your money? Certainly not.
I hope by now, you must have got some idea about what you need to keep in mind before getting started with cryptocurrency. In the next post, we will discuss more on which coins might change the future. Stay tuned.
Do not forget to drop a comment and introduce yourself. If you have any questions, please ask in the comment section. I will be happy to help.