With the value of bitcoin reaching an all time high at the beginning of this year, more and more people are getting on board to invest in this cryptocurrency. With so many people jumping onto the bitcoin investment train, there are bound to be some hiccups along the way when it comes to managing your investments. Here’s our top 10 ways to manage your bitcoin investment to avoid making any blunders that would prevent you from earning huge profits from this volatile cryptocurrency.
1) Use a reputable exchange
The first step to managing your bitcoin investment is using a reputable bitcoin exchange. There are many scams out there, so make sure you do your research before investing. It is also important that the exchange you use is regulated and trustworthy. Some exchanges have been hacked in the past, so it’s important to find one that has a long history of providing good service.
2) Use a hardware wallet
A hardware wallet is a type of cryptocurrency wallet that stores the user’s private keys in a secure hardware device. The device signs transactions internally and only transmits the signed transactions to the connected computer. It can be used as an additional layer of security to protect your money from malware, viruses and keyloggers when using a PC or laptop.
3) Use a mobile wallet
A bitcoin wallet is a software program where you can store, send and receive bitcoins. There are a number of types of wallets: desktop wallets, mobile wallets and hardware wallets. Desktop wallets are installed on your computer and provide more security but limit the mobility of your funds while mobile wallets are available on smartphones which provides the convenience of accessing your funds on the go but lack in security.
4) Use a paper wallet
Paper wallets are a great way to manage your bitcoin investment. There is no need to download anything or pay for any hosting, which means there’s no risk of hackers getting into your account. All you have to do is print out the paper wallet and load it up with bitcoins. The only downside is that if you lose your paper wallet, you lose all the bitcoins stored on it!
5) Use an online wallet
One of the most popular ways to store your bitcoin is through an online wallet. Think of this as a bank account for your digital currency. An online wallet provides you with a place to store and manage your bitcoin addresses, or in other words, it is where you can send and receive bitcoins from. Some wallets also allow you to buy and sell bitcoin on their site. One of the most popular ways to use an online wallet is through Coinbase, which has more than 10 million users.
6) Set up two-factor authentication
To protect your investment, you should set up two-factor authentication. This is a security measure that requires a second form of confirmation (e.g., a code sent to your phone) before you can log into an account.
7) encrypt your wallet
Encrypt your wallet Encryption is the process of changing data into a form that cannot be read by anyone except for those who have access to a key to decrypt it. When you encrypt your wallet, you are essentially creating an encrypted version of your wallet file on your computer. This means that if someone were to steal or find your computer, they would not be able to get into the files without the decryption key.
8) use a strong password
One of the first things you should do to be more secure with your bitcoin wallet is to use a strong password. This will help prevent someone from trying to figure out your password and stealing some of your bitcoins. A strong password will have at least 8 characters, with one upper case letter, one number, and one symbol or punctuation mark.
9) keep your private keys safe
Keeping your private keys safe is the most important thing you can do to manage your bitcoin investment. The more people who know them, the higher the risk that they will get stolen. For this reason, it is imperative that you store your private keys in a secure place like a hardware wallet or a paper wallet.
If you have an extra computer or external hard drive lying around, this can be an excellent way to store your bitcoin.
10) diversify your investments
Diversifying your investments is an important part of any investment strategy. You don’t want to put all your eggs in one basket, and the same rule applies to cryptocurrency. There are many ways that you can do this. First, you can invest in different cryptocurrencies. This way, if one coin takes a hit or crashes, then you will still have others that are doing well and might even be able to recoup some of your losses from the less fortunate ones.