Crypto currency: Do's, don’ts and how to avoid online scams ▷ Kenya News

Today's word has digitalised almost everything and the currency sector has not been left out.

Crypto currency, a form of digital currency, in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operates independently of a central bank.

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The first successful crypto currency was invented in 2009 by Satoshi Nakamoto, and is widely known as Bitcoin. Photo: UGC
Source: UGC

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The first successful crypto currency was invented in 2009 by Satoshi Nakamoto, and is widely known as Bitcoin.

It is a form of electronic cash that is used to trade. Other examples are; litecoin, ethereum, dogecoin and Zcash.

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Cryptos are used in online trade, forex trading, binary options and buying and selling of bitcoins depending on its value in a certain currency.

There has, however, been emergence of online illegal trader so one has to be very cautious before starting to invest in bitoins.

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The following are some of things you should have knowledge of before you start:

Do's

Comprehensive research

It is usual that when you want to start up a business, you inquire about it.

It is wise to know the benefits and risks of cryptos and at least consult an expert. Read about bitcoins and how they are mined.

Check security

Bitcoin trade is conducted online. The currency is stored in cyber-based wallets, for instance, coinbase and paxful which is most common in Kenya.

You can purchase cryptos from these accounts too and the payment is done via mobile mobile services like M-Pesa.

Ensure that you activate 2 factor authentication with Google so that every time you log in to your account you are authorized and it protects your transactions too.

Ensure that you activate 2 factor authentication with Google so that every time you log in to your account you are authorized and it protects your transactions too. Photo: UGC
Source: UGC

READ ALSO: How to Get Started with Bitcoins in Kenya

Exercise caution

If you are approached online by traders, be very careful and make sure they are licensed and the trade is accepted in their country.

Avoid binary option traders.

Don'ts

Avoid online stories

Nowadays social media will give you what you want. There will be unverified stories of how someone has made a million for example through olymp trade or purchasing bitcoins.

When the deal is too good think twice.

Don’t store too much bitcoins in your phone or computer

There is an increment in cybercrimes. There are hackers and I’m sure you don’t want to lose some huge amount of money to hackers who may targeting your computer.

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Never transfer bitcoins to a private addresses

Such transactions are not reversible, so make sure you are certain of the account you are transferring to.

Don’t share your personal details

Such information includes; the amount of bitcoins you have, your passwords or even email.

All your information should be private and confidential.

Story by Flora Limukii, TUKO.co.ke Correspondent

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Source: Tuko.co.ke