Many cryptocurrencies have come into the market following Bitcoin and Ethereum’s success, investment sites too. Many cryptocurrency trading sites offer exchange services for bitcoin and other digital currencies but some are a scam. The investment world is yet to accept cryptocurrency as a form of an investment portfolio. But ironically, people’s interest in the currency is multiplying.
Many illegitimate cryptocurrency buying sites online continue to scam people for their money. They offer fake trading, mining, pump & dump schemes, and even malware. It is essential to find the right/simple investment site to avoid being a scam. Let’s check our guide below.
Use a Crypto Scam Investigator
Use reputable scam investigator sites for crypto brokers to confirm the authenticity of the trading site. These investigator sites update the list of scam brokers offering illegitimate crypto trading services. There are also pages of authentic crypto exchange and brokerage sites. Check if the trading site is on the real page or the blacklist and submit a request to the provider for further information if you can’t find their name.
Remember, most scammers offer ridiculously high rates of returns to attract new investors. As highly volatile assets, promising such high returns may be exaggerating the claim. Here, it’s crucial to research the potential returns of either holding, trading, mining, or cryptocurrency investment.
Brokers trading cryptocurrency are in no position to predict the profit. That is to say; no genuine crypto investment firms promise a particular amount in returns.
Security Check for the cryptocurrency trading site
Reputable cryptocurrency investment and trading sites will use advanced security features on their platforms. You can now research how they employ their security protocols. You can also see whether they apply top measurements before you buying cryptocurrency from them. How to figure this element out? Check if they possess a security check on the search engine result. Do not use unsafe websites because they contain malware that can immediately steal personal and financial data. You immediately sign up for an account or click any button on these sites.
Check Availability of Altcoins on Airdrop Sites
Another eligible way to identify the digital currency exchange site’s genuineness is confirming them on popular airdrop sites. When it comes to altcoins, hundreds of options and airdrop sites have the initiative to present them on their page. These sites list down crypto projects along with their stats and link to their website. Reputable airdrop sites only list credible altcoins that you can choose. Check whether the crypto investment site is on the airdrop list.
Mistakes to avoid when indulging in cryptocurrency trading
1. Do not invest in crypto trading blindly.
When you are new to trading, then you are more prone to mistakes. However, you need to be careful when taking your first step into cryptocurrency trading. Remember that cryptocurrency has massive volatility.
Well, this is why you should not invest in this market blindly. Only invest what you can afford to lose. The mistake most initial-level traders make is that they invest blindly. As a result, they end up with massive losses coming their way.
2. Revealing your private address
When you create a wallet, then you get access to two addresses. One is the public address, and the other one is the private address. The personal address is the key to your wallet. You should not reveal your private key to anyone. The reason is that people will be able to access your wallet this way and steal your cryptocurrency.
Going for a wallet that is not secure
Some traders tend to compromise with their cryptocurrency wallet. They do not opt for two-factor authentication. As a result, their purse is insecure. Secondly, some traders invest their trust in online wallets. The truth is offline wallets are more secure in comparison to online wallets.
3. You are not diversifying your portfolio.
Another mistake that beginner-level cryptocurrency traders make is that they do not diversify their portfolios. They invest their money in a single cryptocurrency. It means that if this cryptocurrency suffers a loss in the market, then the trader will lose his investment.
The best approach is that you should think along the lines to diversify your portfolio. Invest in different cryptocurrencies. The benefit is that if one cryptocurrency fails, you can still make money if you invest in various cryptocurrencies.
Is investing in a bitcoin website smart?
There’s no reason to keep wondering if investing in bitcoin is a smart thing to do because investing in bitcoin is one of the smartest ways of making money today. Depending on the platform and the amount you invested, you will have the opportunity of receiving a certain percentage based on the agreed terms. Bitcoin is a very popular currency that has made an impact on finance and the global economy. Investing in bitcoin doesn’t mean that your money is gone because you can easily trade for cash or other special assets for low fees. Bitcoin has high liquidity and can generate short-term or long-term profit due to its high market demand.