Since 2010, Bitcoin has remained the leader in the pack of digital currencies. While it has gained traction among many modern-day investors, most of the knowledge surrounding its proper management has remained elusive to users. One of the most trusted sources for achieving proper management is expert tips. However, sometimes, they’re not available for the average user.
To help with this, the following are 6 Bitcoin managing tips from experts you should know about:
1. Learn How to Trade Bitcoin
There are various Bitcoin management and trading methods. However, the shorting of Bitcoins is a rising trend in the cryptocurrency world. When shorting, Bitcoins investors take a calculated guess that the value of a Bitcoin will depreciate in the short term. Based on that guess, a Bitcoin investor sells their digital assets off at the current price to make their profit later when the price of Bitcoin drops.
The fast adoption of Bitcoin shorting has made it important for just about all Bitcoin investors to learn how to short Bitcoin. The benefits of shorting Bitcoin include profit-making and prevention of investors holding overpriced digital assets.
Continuously learning and researching on the shorting of Bitcoin is a guaranteed way to make the best out of this investment method.
2. Ensure Your Bitcoin Transactions are Secure
When it comes to managing Bitcoins, experts advise that investors should always ensure that their transactions are secure.
Here some of the ways to ensure secure transactions:
- Always Use A Secure and Trusted Network: Bitcoins and pretty much every crypto asset rely solely on the internet. Network breaches are more likely to occur on random and public internet networks. Therefore, in order to ensure a higher level of security in transactions, crypto experts advise that investors should use a personal or home network.
- Always Use A Personal Computer: For the mere fact that Bitcoin transactions involve your hard-earned money, experts advise that you carry out transactions on personal and passworded computers. That way, it’s more difficult to lose your data to malware infection from multiple usages and direct syphoning data from your computer.
- Use Two-factor Authentication For All Accounts: This security method requires at least two personalized pieces of information for you to sign in to any of your accounts. This allows the system to double-check the individual accessing the accounts and reduces the investor’s risk of fraud.
3. Use Verified Cryptocurrency Exchanges
Cryptocurrency exchanges primarily offer trading services to customers and, sometimes, storage functionalities. However, there has been a rise in the number of cryptocurrency exchanges, including both trusted and untrusted platforms. Therefore, it has become important to choose a cryptocurrency platform that has been verified by the Securities Exchanges Commission (SEC).
Verified exchanges are given a Registered Investment Advisor (RIA). RIAs have a fundamental responsibility to their clients to provide investment advice. Also, their policies are always in the client’s interests. By using RIAs, cryptocurrency investors can minimize the risk they take from Bitcoin management and trading.
4. Store Your Coins In Wallets
It’s almost impossible to manage Bitcoin assets without cryptocurrency exchanges. However, experts often advise that investors should use exchanges specifically for trading and management purposes, but store their Bitcoins away from the exchange. The reason for this is that exchanges are highly prone to cyberattacks due to the volume of transactions that they handle.
No exchange platform is completely free from these cyberattacks, so investors should keep their assets stored away in separate and verified vaults – wallets. Both online (hot) or offline (cold) wallets are generally safe to use for your crypto assets. \
5. Back-Up Your Private Keys
A private key is an alphanumeric number that every Bitcoin owner needs to send Bitcoins, and it’s important to keep your private keys safe. Therefore, if your private ends up in the wrong hands, then your digital assets are compromised.
Due to the importance of these keys, experts advise that they should be backed up in cloud storage or written out clearly in paper that’s safely kept.
6. Conduct Smaller Trades and Don’t Publicize Your Prowess
A guaranteed way to dissuade hackers from targeting you is to conduct small trades per time. Making a practice of smaller trades also means you’re less likely to incur huge losses. Needless to say, a Bitcoin holder with a track record of huge trades is deemed a better target for hackers.
Experts also advise that investors should limit how they discuss feats they’re making in Bitcoin trades and investment.
The management of Bitcoin assets remains a careful practice for investors. One of the rising Bitcoin management trends is Bitcoin shorting. Bitcoin shorting is highly profitable for investors who’ve gained proper knowledge about its processes. Smaller trades are advised for Bitcoin holders who want to remain in the crypto business in the long term.
Also, a huge chunk of Bitcoin management involves not leaving a trail for hackers. This is because hackers and fraudsters are always looking for ways to cheat people off their priced digital assets. Using cloud storage, verified crypto exchanges, and ensuring your transactions are secure are some of the ways to ensure security.