Three Ways to Avoid Losing Your Cryptocurrency Assets

Investing in cryptocurrency is very tempting, you can hope to hit the jackpot sooner or later. However, investors should remember that it is not enough to simply buy cryptocurrency and store it in a wallet. There is a high chance of losing everything if you don't store it properly. The main advice is to learn from other people's mistakes.

Don't forget to write down your passphrase

I bought XRP a few months ago and saved them to an Android wallet that I installed from the Google Play Store. I created a one-time login password and a pin code that I used to access my XRP.

Also, the app prompted me to write down a key recovery phrase when creating the wallet, but I just skipped that option because I thought I would never lose my phone. However, I still lost it and reinstalled the application on another phone. When the app asked me to enter this phrase that it created for me during the installation of the app, I realized that my coins were lost forever.

Purchasing cryptocurrency into a wallet is one thing, but keeping it safe is another. Therefore, do not forget to make backup copies of your private keys. Keep in mind that investing in cryptocurrency is a long-term project and therefore the passphrase should be stored in a safe place.

Store cryptocurrency in an official cold wallet

There are many wallets on the google play store, however most of them are not very reliable. Some of them will happily accept your deposit, but once you decide to withdraw funds, they will make ridiculous excuses.  In this case, you must understand that there is danger ahead.

Before sending cryptocurrency to a wallet, first visit the official website of the cryptocurrency you are going to buy and use recommended wallets. Do not send your assets to any wallet that claims to be genuine and safe to use. You can also check reviews from previous users.

Remember that some tokens are created to pump and dump

Investing in small cap cryptocurrencies can be profitable, but it can also be dangerous. 

Investing in an unknown coin because of its price and market capitalization can easily give you big profits when the overall market price rises sharply and can make you huge losses when there is a slight drop in the overall price. The cheap price of cryptocurrency can make you buy a lot. However, such a cryptocurrency may disappear from the market altogether, so you should be careful.. Before purchasing, always check the history of creation and the team behind the cryptocurrency.