You may not be able to insure your crypto currency investments, but having the right type of assurances is key to a safe and secure investment in crypto. Here are a few related tips and pieces of advice that will help you to look for the right kind of these assurances.
Crypto is Volatile… Accept This
The best way to feel more assured in your crypto investment is to accept that it is an extremely volatile investment sector. Firstly, in real terms this is still an incredibly new form of investment and as such it is expected that there will be huge movements in price as related to the perceived value of the currency. If you accept this from the outset you will be able to operate and invest in a manner that suits this specific asset class. It means keeping a constant eye on the prices and exchange rates to be able to make the most of any volatility in your specific crypto investment.
No Investment can be Insured and Guaranteed…Especially One That can Yield Incredible Short-Term Returns.
Again, accept this from your every first crypto purchase and then act appropriately. The recent crypto integrity scare related to Binance and the FTX exchange has seen an increase in proof of reserves/ assurances being offered by the top rated crypto exchanges such as at OKX.com. This will provide the best assurance that your Ethereum or bitcoin and other crypto actually exists on the exchanges crypto balance sheet and in some cases, it will be guaranteed against a market or exchange crash, hack or failure.
The Occasional Regular Audit
The best assurance for an investment that is based in a decentralized ledger is to be able to have constant proof of the transaction and your financial position. Having access to a Merkle Tree with a full audit of the crypto exchange you use or your own crypto investments is the number one way to stay on top of an investment that is as ever changing as crypto.
It is Based on Genuine Blockchain Tech
Yes, all cryptos are based on a blockchain, but you need to know that not all blockchains are created equal and nor will they all have the same abilities and capabilities. The best assurance that you can have is the fact that the crypto you choose is based on a genuine blockchain. Do your due diligence and research the foundations of the currency, just as you would any other currency-based investment.
There are very few investments that are truly secure and if they are, then perhaps there is an incredibly low return to be expected from your investment. Crypto currencies can definitely not be insured against loss based on the use of the wrong blockchain or their volatility. However, you can definitely look for some of the aspects of blockchain and crypto as mentioned here that should serve to make you feel a whole lot more assured about the investment that you have made.
