As the end of 2020 brought new all-time highs for Bitcoin alongside new, bigger waves of mainstream adoption, safety and security are back at the forefront.
So as we kickstart what's sure to be another big year ahead for crypto, check out Quadency's 5 tips for safer trading in 2021:
1. Use services you trust
Reputation matters. As adoption increases and new companies join the ecosystem, be sure to DYOR before signing up on any new exchange, platform, or service. Check out their website, social media, team, partners, etc. to learn more about the company or join their communities to connect with other users. At Quadency, one of the many ways we earn trader trust is by working exclusively with industry leaders to offer many of our tools free.
As a general tip, when trading on an exchange via 3rd party be sure to limit API permissions, which you can learn more about in our previous article on API trading.
2. Secure your accounts
A complex, difficult-to-guess password is of course vital in the world of finance and trading. And in light of recent industry hacks compromising user data, ensure you're using different passwords for each of your crypto accounts.
Perhaps more important to secure trading is enabling two-factor authentication (2FA) across your accounts. This provides a crucial layer of security for your funds by requiring verification before completing account activities like signing in or withdrawing funds.
While there are several popular 2FA apps including those from Authy and Microsoft, Quadency leverages Google Authenticator due to its robust security and ease of use.
Click HERE to enable 2FA on your Quadency account.
3. Beware of scammers
If it's too good to be true, it probably is. Unfortunately 2020's market growh was accompanied by an increase in scammers looking to take advantage of novice traders. Securing your funds can help keek you safe from hackers but as we saw in the widespread Twitter hack soliciting BTC deposits, scammers are another story.
Crypto scammers use tactics common to other industries like phishing emails, impersonating team members, and offering free giveaways - so remember:
- NEVER click on suspicious e-mails, Telegram invites, or Telegram DMs.
- NEVER send crypto to anyone claiming to immediately send you back more.
- NEVER send crypto to any individual claiming to work for a service you use.
- NEVER send crypto to anyone who messages you first.
As you can see below, scammers will go as far as to impersonate real members of the team...then pretend to help you with false promises before eventually asking you to transfer funds.
4. Test your strategies
Using historical data, a backtest can help you test your strategy without the risk of trading live. Backtests are also helpful to refine and tweak the configuration of your automated trades. Quadency tries to make it even easier for beginners with the Smart Suggest tool to help you access and configure winning strategies.
5. Avoid FOMO
Last but not least, try to avoid FOMO trading. Fear Of Missing Out reigns strong in crypto, and has only been furthered by Defi's recent growth. So take your risk tolerance into account and don't let your emotions take control.
One of the many reasons Quadency focuses on automated trading tools is to help investors take emotion out of the equation, while their bots do all the hard work.
- Use Services you Trust
- Secure Your Accounts
- Beware of Scammers
- Test Your Strategies
- Avoid FOMO
Disclaimer: contents of this article are for general market education and commentary and not intended to serve as financial, investment, or any other type of advice.
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