There’s no doubt that the crypto world has had a rough year. With multiple crypto collapses, investors have been on edge and have made mistakes with their holdings. If you’re one of these investors, it’s important to be aware of the best practices for staying safe in this tumultuous market.
In this blog post, we’ll discuss how to protect yourself from crypto contagions and keep your investments safe!
Step #1 – Keep Your Private Keys To Yourself
The most important thing you can do to protect yourself from crypto contagions is to keep your private keys safe and secure. Without access to your private key, no one can take control of your funds. Make sure that you store your private key in a secure place, such as on an offline cold storage device.
Step #2 – Do Not Invest With Too Much Debt
Another important sign of protecting yourself is to never over-leverage yourself. This means that you should not borrow money or invest more than you can afford to lose. If you’re in a position where you have to leverage your investments, make sure that you are careful and aware of the risks involved.
The reason why crypto contagions can be devastating is due to investors taking on more risk than they can handle. Make sure that you never put yourself in a position where liquidations or margin calls could occur. As tempting as it may be, never invest money you can’t afford to lose.
Step #3 – Diversify Your Portfolio
Diversifying your portfolio is another key practice for protecting yourself from crypto contagions. This means that you should spread out your investments across a variety of different coins and platforms. If one platform or coin fails, the other investments can help balance out the losses.
Doing your own research and thinking for yourself is also important when diversifying your portfolio. Don’t just follow the herd and invest in what everyone else is investing in. Take the time to understand the project in detail.
Step #4 – Stay Up-To-Date On Market Events
Finally, you should stay up-to-date on the latest events in the crypto world. If a coin or platform is experiencing issues, it’s important to be aware of these changes and adjust your portfolio accordingly. This way, you can minimize losses and maximize gains.
The best way to stay up-to-date on the markets is to use a free crypto portfolio tracker like Moonrig.io. By importing your wallet’s data into this software, you can keep track of your holdings and monitor crypto in real-time. This is the best way to instant crypto alerts without having to give up your private keys or spend hours poring over market news.
The Bottom Line
By following these steps, you can protect yourself from crypto contagions and ensure that your investments stay safe. Remember: keeping your private keys secure, diversifying your portfolio, staying up-to-date on market events, and never overleveraging yourself are key practices for protecting yourself from crypto contagions. Good luck and happy trading!
