Crypto currencies: tips for investing and trading more serenely

Investing in crypto currencies can pay off big, but the risks are just as important: risks of hacking, operational, technical, linked to the lack of knowledge or the emotions of crypto investors, price volatility, new products…

Let’s find out how you can minimize risk in your cryptocurrency trading with some tips.

Choose a serious and reliable crypto platform

The risks of scams are significant in the world of crypto currencies. This is why you must make sure to choose a known, serious and reliable intermediary if you wish to acquire crypto currencies or trade them.

Cryptocurrency exchanges are not really regulated. You should therefore focus on the best known and most popular platforms such as Coinbase, Binance or Kraken. There are also French players like Coinhouse, Deskcoin or ZEBITEX.

If you want to use cryptocurrency derivatives, you should always select a regulated stock broker to benefit from maximum protections and guarantees.

Using a VPN to Trade Cryptos

NordVNPAll transactions made with crypto currencies appear in the blockchain, which acts as a public ledger. Hackers can easily view the transaction log and trace back to your IP address.

Many traders therefore use a virtual private server (VPN) in their crypto-trading to better secure and protect their online data and crypto-transactions from malicious actors on the web.

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A VPN allows you to hide your real IP address and your geolocation for better anonymity, to secure your data with protection algorithms, to bypass restrictions related to the use of certain sites in certain countries to take advantage of all the trading services, to stay protected regardless of the type of Internet connection you use…

This is the case with for example NordVPN which has more than 14 million users worldwide for almost 10 years.

Take advantage of risk management tools for crypto trading

Whether it’s classic trading or crypto trading, having a money management strategy in place is key to protecting your capital.

Depending on your trading strategy, your risk aversion and your financial goals, you can for example use stop loss orders, take profit orders, vary the leverage effect, adapt the size of your positions to the conditions of the market, follow the news, etc.

Good risk management also involves improving your knowledge of crypto trading and controlling your emotions.

Transfer your tokens to a cold crypto wallet

You still need a wallet to keep the tokens you have purchased. A cryptocurrency wallet acts a bit like a bank account: you can store your tokens there, receive them, send them and sometimes convert certain virtual currencies.

To avoid having your crypto funds stolen, or losing them in the event of the bankruptcy of the online platform that keeps them, it is always advisable to avoid leaving your crypto currencies on the platform’s wallet and to transfer them to a cold wallet. The latter is a type of internet-disconnected hardware wallet that often looks like a USB flash drive.

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By using an external physical wallet, you prevent your funds from being easily accessible to hackers. This option is ideal if you have invested a large sum in crypto currencies or if you intend to keep your tokens over the medium or long term.

Diversify your crypto investments as well as possible

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Diversification is a key concept in trading. By investing in different asset classes, in different currencies, in several geographical areas and in different sectors of activity, you will obtain an optimal investment portfolio with uncorrelated (or weakly) correlated assets.

This is how you will be able to reduce the risks that weigh on your portfolio to avoid significant financial losses due to positive correlations between the assets in your portfolio.

Even though the cryptocurrency market tends to generally move in the same direction, and often follow the direction of Bitcoin, it is better to invest in several different tokens than to put all your capital in a single cryptocurrency.

Consider the Dollar Cost Averaging method

One of the most difficult aspects in crypto trading is knowing when (or price) to enter the market. This is even more true if we take into account the extreme volatility of the market.

The recurring investment method, or DCA (Dollar Cost Averaging) method, is a popular strategy for smoothing the average purchase price of a cryptocurrency over time by investing recurring amounts to minimize the risk of an investment. .

You will also be able to better control your budget thanks to this strategy with automatic tools like StackinSat’s Savings Plan and avoid letting emotions like FOMO take over.
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*See conditions on the site

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All of our information is, by nature, generic. They do not take into account your personal situation and do not in any way constitute personalized recommendations with a view to carrying out transactions and cannot be assimilated to a financial investment advice service, nor to any incentive to buy or sell instruments. financial. The reader is solely responsible for the use of the information provided, without any recourse against the publishing company of being possible. The responsibility of the publisher of can in no way be held liable in the event of error, omission or inappropriate investment.

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