You can no longer say that cryptocurrencies are just a fad that keeps everybody’s attention glued to them. It has become something of the real world that is fast catching up with everybody. It is so popular that, as of today, there are 200 million Bitcoin wallets. And some 16% of the American population has, at some point or the other, traded in Bitcoins, like this trading system. So just imagine where Bitcoins have reached in recent times.
Things have reached such a pass that cryptocurrencies are the latest currencies and crypto wallets are the latest banks where you store them. With such popularity enjoyed by the coins, it is necessary to make trading in Bitcoins easier and more convenient. And traders and exchanges have to follow the best practices for a better and safer trade.
Best Practices to Be Followed While Trading Bitcoins
Practice 1 – Do Not Rely Entirely on Technology
Everybody knows that Bitcoins run on technology entirely. There is no doubt about it. Despite all the technology surrounding Bitcoins,humans should have little space. You should not depend entirely on technology alone. Should any aspect of your software malfunction, then everything come to a standstill which is not at all desirable?
In the exchanges, employ people who can attend to the call centres and the helplines so that customers can be properly guided. They need proper guidance, at least in the initial stages. This eliminates unrequired complexities that can create problems.
Practice 2 – Self Custody Of Private Keys Is Not Safe
If you are storing your assets in a non-custodial one,refrain from doing it. Self-custodial wallets are risky because you have absolute freedom to do anything you like with your coins and enjoy total freedom, but you also have the responsibility of guarding your private keys. If anything goes wrong anywhere, then you alone are responsible. You might lose your keys, or your account may somehow be hacked.
But again, you should hand over all your assets to any particular company. Ensure appropriate and adequate firewalls. This will help reduce the risks of losses.
Practice 3 – Do Not Store Assets in One Wallet
It just may be that you have a lot of crypto assets, so in that case, never commit the mistake of storing all your assets in one single account. You should have various wallets but ensure that whichever type of wallet you store your assets in is safe and secure. If your wallet were hacked, you would lose everything in one go because the hacker will not take some and leave some for you. If he is here to steal, he will clear you of everything.
But spreading ensures that only a part of your assets is lost. For this, gather some expert advice.
Practice 4 – Take A Backup of Your Wallet
You know very well that computers and mobile are all electronic gadgets prone to breakdown at any point in time. There is no relying on them for everything. Just as it is necessary that you create a wallet, it is equally necessary that you take a backup of it. Without proper backup, you may consider it a property that has gone into vain. To ensure a steady backup always.
Practice 5 – Reusing Wallet Addresses Is Wrong
They say your transactions are anonymous. Only those with access to your blockchain will know a little about your activities. But that is wrong. Bitcoins are in no way anonymous and your blockchain is accessible to the public. So never make the mistake of reusing your Bitcoin address over again. If you make the mistake of using one address for multiple wallets, hackers can easily trace all your links and find everything one by one. Your privacy and security stand compromised.
While closing, one more word of caution on following a safe practice that ensures a safe transaction. It is true for everything that you do in life. Do not make your Bitcoins public. Do not make a show of all your crypto assets. Never advertise publicly about how many Bitcoins you have. You fall under the scanners of fraudsters. You become an easy target and prey to hackers. So, it is you who can ensure your safety. But again, using apps for a safe trade protects you and helps you trade in oil.