What to Watch Out For When Letting Others Take Control of Your Wallet
As mentioned in our previous article, online and offline
security of your digital currency is crucial to protect your investments. Remember how we stress that you need to
protect YOUR currency? Well, there are
many people in the digital currency world that would love to fool you out of
Five years ago when Bitcoin definitely wasn’t worth as much
as it is today, I lost only .01 BTC worth $70 today to a site claiming that I
would get a large percentage back within a day or two. They had a great looking ticker with supposed
addresses and interest percentages and all.
Did I get my .01 back? Certainly not.
This isn’t to say everything’s a scam and there aren’t ways
of making money in digital currency sites claiming huge returns are scams 99%
of the time. Some, that have been around
awhile I suspect are paying existing users with what they make off every new
person they sign up.
I hype freebitco a lot because I had the same account for
years and my BTC in the account never got lost and they’ve baid 4.08% as
promised the entire time. I don’t use
this as my primary account though I use it as an in between to get free
interest before I move BTC to buy other currency or ICO tokens as discussed in
our other article. There are other sites that people rely on as ‘savings’
accounts but need to be researched more before making any claims.
Like I mentioned in my experience above, I got suckered out
of some Bitcoin to a slick looking site so I’ve been wary where my Bits
go. To date, the only site I’ve used to
lend digital currency out is through Poloniex, though recent changes only allows users outside of the U.S. to lend crypto now.
Poloniex allows you to loan 12 different coins to margin traders. Normally the interest is quite low but I’ve
had great returns on different coins by timing interest rates for the coins I
lend at the right time. I’m on the look out for more legitimate sites to try
out but I’ve been very happy with Poloniex.
Several sites including Poloniex offer margin trading. If you’re not experienced in margin trading I
recommend you steering clear of this unless you understand the risks. Margin trading offers high risk, high rewards and only
experienced traders should margin trade and even they should understand the
risk more than you’re willing to lose!
By entering the digital currency arena you need to remember
that just like the wallet or purse you carry, your digital wallet holds your
money and you decide how it’s spent. Determine your strategy on what you want to do in crypto currency and
remember to do your research on anywhere you want to invest, send, transfer or
buy digital currency.