Investing in cryptocurrencies has become a choice that many individuals and professionals have turned to in recent years, either for diversification of their assets, or with the goal of generating a higher return than what traditional markets offer.
That’s why it’s important to have some basic knowledge that will help you optimize the security of your cryptocurrency investments .
In this article, we will detail the critical points that you need to pay attention to when you decide to invest in the cryptocurrency market.
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The total amount of stolen funds is estimated to be over 2.2 billion euros from 2014 to today. The explanation behind this is simple: the majority of these platforms are not regulated by any competent authority.
Our first piece of advice is: "Always opt for a platform registered with the AMF" (see the list)
Coinhouse is the first platform registered as a PSAN with the AMF (E2020-001).
In addition to being a leader in the French market, Coinhouse is a historic player in cryptocurrency in France.
Since its creation in 2015, Coinhouse has always prioritized the security of its clients' assets through the most advanced security technologies on the market (in partnership with Ledger) as well as through rigorous KYC processes.
These digital wallets consist of a public key that allows you to receive and send crypto, much like an IBAN, as well as a private key that is the secret code to access it.
There are several storage solutions, such as free online wallets, but the most secure is the “hardware wallet”, which looks like a USB key.
The undisputed leader in this market is the company Ledger, which offers the most efficient storage system available today.
Coinhouse takes the security of your assets very seriously, and we have implemented everything to ensure your assets are secure and easily accessible by you.
It is therefore natural that we have adopted their Ledger Vault technology to store your assets, which is a true digital vault that is completely disconnected from the Internet, commonly referred to as a cold wallet.
By logging into your Coinhouse account, you can communicate with this vault.
If you want to secure your assets yourself on a Ledger key or another external wallet, you can send and deposit the following assets to and from our platform: Bitcoin, Ethereum, Ripple, Litecoin, and BitcoinCash.
If you want to set up a Ledger key, you can also follow our tutorial that we have created.
Unfortunately, it happens fairly regularly that email credentials are compromised on another platform, which may allow a malicious person to access your Coinhouse account.
We encourage you to follow these tips to minimize risks associated with your credentials:
Use a unique email address. If you use an email address solely for logging into our platform, the risk of your email address being leaked will be greatly reduced.
However, if you don't want to create a new email address, we recommend verifying your email address on a site like “haveibeenpwned” to check if your personal data has been compromised in a known data breach.
Use a unique password and change it regularly:
Using a unique password different from your other passwords minimizes the associated risk.
We also advise you to update it periodically; a password of 8 characters is considered secure for a few days, 12 characters for 90 days, and 15 characters for one year.
Today, there are over 11,000 cryptocurrencies on the market. This makes investment decisions more complex, especially since most of these cryptocurrencies are destined to disappear in favor of more solid projects.
According to statistics, no less than 2500 cryptocurrencies are declared dead (abandoned or frauds), which represents almost 1 out of 4 cryptocurrencies.
Other analysts agree that this number is much higher, with estimates reaching 1/3
-“But what happens if a cryptocurrency disappears tomorrow?”
-“The answer is simple: your investment will disappear as well!”
That’s why at Coinhouse we take this very seriously and only offer the most promising projects on the market with solid fundamentals.
Find all the cryptocurrencies available for purchase or sale on Coinhouse.
Cryptocurrencies are listed only after a rigorous study by our analysts and all have solid fundamentals offering good potential returns in the long term.
(See list of proposed cryptocurrencies).
Still unsure about how to build your portfolio?
Visit here to find out which portfolio allocation best suits your investor profile!
Although cryptocurrencies are digital assets, the scams surrounding them are very real and can lead to financial losses amounting to tens of thousands of euros.
Here are some signs to easily detect these scams:
Cold calling: If you receive one or more cold calls inviting you to invest in crypto, this should raise a red flag.
There is a high chance that your phone number has been distributed in a database accessible by various scammers.
Investment through a platform other than theirs:
If the person on the phone invites you to invest on their platform by sending Bitcoin from a platform that doesn't belong to them, immediately cut off contact with them.
There is a very high chance they are trying to steal your funds.
Use of MetaTrader5:
Many scammers will offer you an interface based on MetaTrader5, which allows them to manipulate the visible values in your “wallet,” making you believe you have made a phenomenal profit.
Promises of high returns:
Most scammers will offer returns ranging from hundreds to thousands of percent. This is, of course, unrealistic and misleading. The cryptocurrency world remains volatile, and no serious actor will offer you guaranteed returns.
Installation of an app that allows them to control your device:
An actor registered with the AMF and properly regulated will never ask you to install an app that allows them to manipulate your device. Indeed, these apps pose a real compliance risk, and using them for making investments goes against GDPR guidelines.
However, unscrupulous scammers may ask you to install apps like Anydesk or Teamviewer, giving them full access to your device. They could very easily make a transfer from your bank account to theirs or encourage you to create an account and complete the identity verification steps.
To unlock your funds, you are asked to send crypto or fiat money to pay a tax:
If you have already sent funds to the scammers, it's too late to recover them.
To minimize your losses, cut off all contact with them and report them to the relevant authorities.
Unfortunately, once the funds are received by them, you will probably never see them again, and they will stop responding to you. Stay vigilant!
If you have any further questions, we are at your disposal !
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