Completely safe trade! As a beginner does not lose everything.

For less than 10 years of existence, the cryptocurrency has come a long way from a strange thing to the main character of the headlines of the leading media. The technology of blockchain, which is the basis of crypto currency, has gone even further and is now often used far beyond financial transactions.

All this has attracted a lot of attention to cryptocurrency trading. The last take-off of the price bitcoin, to some extent, opened the eyes of everyone who still doubted what bitcoin is - the gateway to tomorrow's world or the next Ponzi scheme. The incredible fall that occurred with bitcoin just a few hours after this takeoff, frightened many people and made them in a wild panic sell their cryptoassets. However, in fact, everything that is happening can scare only the absolute beginners in the field of cryptocurrency, as more experienced traders remain completely calm and simply buy on the fall. After all, they have observed this situation many times.

Such price swings can multiply the value of your investments or turn them into meaningless figures in just a few hours or less. The number of exchanges that provide trade services is so great that sometimes the exchange rates that they offer can differ from each other by hundreds of dollars. Some exchanges can simply explode, and in this case, in order to anticipate this situation in advance, you need a lot of experience or internal flair.

In fact, all this makes the trade in crypto currency very attractive, but also very risky business. Here are some basic rules that will be very useful for newcomers to this case.

How to invest 

 First, one has to choose what to invest in. There are many people who offer their recommendations, and sometimes their recommendations are very useful. However, professional traders insist that no one should invest their money, based solely on someone's words.

"It's enough to look at the CoinMarketCap, in order to understand  how many cryptocurrencies there are. In addition, their number is likely to increase. Some of them are well-proven projects with their own community, others are just tokens in someone's ICO, others are just new projects that have not yet been widely publicized, and finally there are many scammers among them. In order to distinguish one from others, some experience is needed, "says Svetlana Geller, founder and CEO of the Livecoin cryptoexchange.

"You can not rely on rumors heard somewhere on the Internet. Any responsible trader has to make a narrow research into what they’re about to invest in.” 

Professional traders support this view. Sometimes an inexperienced trader simply can not distinguish advertising from this analysis. In any case, before investing it is necessary to study in detail the chosen coin or currency, as well as its potential and technical nuances. This measure, if treated with all seriousness, can save a trader-novice from losing all his money.

How much to invest

"When it comes to the amount of investment, the main practical rule is quite simple: invest as much as you can afford to lose," says Svetlana Geller. "This rule will reliably protect you from all serious consequences, if the investment fails, but on the other hand, if the coin you select starts to rise, you can quickly multiply your money."

Exchanges and Wallets

When a beginner in dense approaches the cryptoindustry, he can hear a lot about wallets and exchanges. Most of the offering in this regard have both their fans and opponents, and each side can explain why she loves or hates that or other service.

Nevertheless, if you bought a cryptocurrency, then you can handle it in several ways.

The safest way, and with this everyone agrees, is the storage of cryptoassets offline in the so-called "cold wallet". In fact, it is a fully protected flash drive that protects your cryptocurrency from unauthorized access in various ways - from cryptographic passwords to biometric identification.

However, this method is suitable only for investors who rely on long-term investments and do not plan to use the crypto currency on a daily basis. If you plan to use such assets often, you would prefer a "hot wallet", which is an online copy of the "cold wallet". However, in this case, the risk remains that someone can enter your online wallet.

That's why, most experts recommend using both methods, storing some part of assets, a kind of "transaction amount" in a "hot wallet".

Also, cryptoexchange services offer storage services. Each of these offers some additional security measures, such as two-factor authentication, or something similar, to reduce the risk of dealing with digital currencies.

However, this method is much more dangerous than it seems at first glance.

"Perceived security and objective security are two completely different concepts. Perceived security can be achieved by multiple account security mechanisms. But in fact, this basically just hinders the work of the account holder. I believe that a google-authenticator with one IP-address in its whitelist (VPN, which you use to access the exchange) will be enough. With such protection, your account will be hacked only if the offender has full access to your PC and smartphone, which creates almost insuperable difficulties for the Internet criminal. You can create ten passwords and protection levels, but none of them will be just as effective, "says Svetlana Geller.

But even using all security measures, there is a possibility of another problem - the exchange will burst.

Stock exchange will soon collapse!  How to foresee this?

The safest way to protect your investments from the collapse of the exchange is simply to keep them away from any exchange. Nevertheless, it is not always convenient to constantly send currency back and forth, besides it will drag transaction charges, which can make a good amount. For this reason, many people retain a certain operating amount on the balance of the exchange.

Again, there are several main rules that should be followed.

There are a number of signs that indicate that the stock exchange is not all right.

"There is no exchange in the world that has never experienced technical difficulties. Sometimes they just become victims of numerous DDoS attacks, "says Svetlana Geller. "However, if technical difficulties occur too often, this can be a worrying sign. This is due not only to access to the exchange's website, but also to delays in the withdrawal of funds"

After the horrific failure of the Mt.Gox exchange in 2014, the community has become more cautious about online exchanges, because the clients of the exchange lost thousands of millions of dollars. This made many much more demanding to treat the other stock exchanges. Nevertheless, it is customary to trust well-known and authoritative exchanges. 

"The number of users, the daily trading volumes and other open data are an excellent identifier of whether the exchange is reliable or not," says Geller. "Nevertheless, sometimes it is useful to carefully examine customer feedback."

In spite of the fact that bitcoin, like the Altcoins are considered too risky as investment assets, trust in this case is purely a technical issue. When it comes to the human factor, the only real argument in favor of an investment is whether the potential investor will trust the currency in which he is going to invest, and whether he will trust the exchange and the wallet that he intends to use.

The secret of successful traders is that their trust is always well-founded.