1. Cryptocurrencies are risky
Cryptocurrencies are highly volatile and risky investments. Never invest more money in cryptocurrencies than you can afford to lose. The value of cryptocurrencies is very volatile. You can earn huge money as well as lose most or all of your money. Never borrow money in order to buy cryptocurrencies!
2. Transactions are irreversible
Cryptocurrency transfers are - unlike money transfers in banks - non-refundable. It means that if you send cryptocurrencies to the wrong address, they are unlikely to be ever returned to you. Therefore, always make sure you send your cryptocurrency to the correct address (and to the correct network). Besides, if you are sending Dogecoins, bear in mind that you have to send them to a Dogecoin address, not to a Bitcoin address, for instance.
3. Diversification
Always diversify your cryptocurrency portfolio, never buy/hold just one cryptocurrency, but always try to invest in several different ones. If you have just started with cryptos, invest in Bitcoin (BTC), Litecoin (LTC) and Ethereum (ETH) in addition to Dogecoin (DOGE). You can add more currencies later as you become more familiar with cryptocurrencies. Diversification also applies to exchanges and wallets. We recommend that you use multiple wallets. Over time, you should also open an account on multiple crypto exchanges and don't keep everything on one.
4. Hardware wallet
You can easily buy/sell/hold cryptocurrencies on major crypto exchanges.
Some crypto exchanges even pay motivating interest
(check out Binance interests)
for simply holding cryptocurrencies there.
However, on exchanges, it is advisable to keep your funds only up to a certain limit.
The actual amount of this limit may differ for everyone and depends on your financial possibilities. After this limit is exceeded,
it is recommended to send cryptocurrencies to your hardware (or paper) wallet, such as TREZOR or LEDGER.
The probability of a crypto exchange crash is quite low, but it still exists.
Hardware (or paper) wallets are the highest form of security for your cryptocurrencies.
Remember, not your keys = not your Dogecoin!
5. Keep a low profile
Don't boast or draw attention to yourself unnecessarily. Never tell anyone (not even relatives and friends) how much and which cryptocurrencies you own and how much more you want to buy. That especially applies to online discussions or forums. Remember that a cryptocurrency bought today for $100 may be worth $10,000 tomorrow. If you publicly share how much cryptocurrency you own, you increase the risk of being targeted by hackers. It's unbelievable how many people downplay or ignore this point. If you see someone like this in the discussion, please refer them to these security rules.
6. Computer security
Try to maintain maximum computer security.
If you want to access your crypto exchange or other cryptocurrency sites, please:
- Never access this site from internet cafes.
- Never use free WiFi.
- Only use strong passwords which are long enough, and contain upper and lower case letters, numbers as well as other characters.
- Don't use the same password for multiple exchanges/apps/wallets.
- Never store passwords in your web browsers.
- Always use only your secured PC with an updated operating system, firewall and antivirus.
- If possible, use a separate PC, like an older laptop, for cryptocurrencies. Don't use this PC for anything else.
- Set up a new email account and use it only for cryptocurrency transactions.
- Always set up 2FA (two-factor security).
7. Phishing, spam, ...
Although there is a huge community on the Internet willing to help you with your (crypto) issues, there is also a large group of people who will do anything to rob you of your cryptocurrencies.
- Never give out your passwords/private keys/phrases to anyone. If you give them to someone, you will probably lose all your cryptocurrencies. Especially in discussion forums, you can come across people who pretend to offer help but try to steal such information from users. Official support will never ask you for this information!
- Phishing emails - beware of phishing apps and emails which often use links leading to fake websites that pretend to be genuine.
- Fake URL - bookmark the addresses of your exchanges and online wallets in your web browser and never search for them on Google to avoid entering fake websites.
8. Back up your passwords
Keep all your passwords/private keys/secret recovery phrases offline, on paper and in a safe place. Never keep them on your PC, mobile phone, cloud, or in your email. Do not take a photo of them. At the same time, don't forget to keep them fire-proofed. There are plenty of useful online guides on how to safely back up your passwords/private keys/phrases. If you forget/lose any of them, you will lose your cryptocurrencies!
9. Backup plan
While it's important to keep your passwords and private keys completely secure, it's also necessary to make a backup plan in case something unexpected happens to you. There are hundreds of cases where people have died and yet left no instructions to family members as to how to access his/her cryptocurrency. For this, a will (with passwords/private keys/phrases) stored in a bank safe deposit box should be optimal.
10. Educate yourself
There are a lot of good websites and YouTube channels on the internet about cryptocurrencies.
Find your favourites and follow them regularly. This tip is more important than you might think .