Is Cryptocurrency safe?

Cryptocurrency can be safe and secure provided you proceed with care. 

There is a number of unique potential risks to be aware of when trading Cryptocurrency in comparison to fiat trading markets.

'Fiat' currency is legal tender whose value is backed by the government that issued it, e.g. US Dollars. 

Cryptocurrency by definition is not operated by a central authority and therefore is less regulated. Generally, these risks are all under your control and can be managed by ensuring you are educated, informed and proceed with caution.

Cryptocurrency - Some things to be aware of:

  • Each coin being traded is unique. They have different Blockchain networks, algorithms and requirements, meaning they all operate a little differently. Make sure you research and familiarise yourself with each coin you purchase and trade.
PLEASE NOTE: Whilstsome currencies run on the same network, eg. ERC-20 tokens run on the Ethereum network. This does not mean they are the same currency.
  • All services and exchanges, such as Cryptopia, operate differently.  Each exchange may vary in the type of products or services they offer, their fees and differ in their specific processes. Make sure you research each exchange and ensure you are using an exchange platform that suits your needs.
  • As all exchanges and coins are unique, what works on one service, for one coin, may not be the same for a different service or coin.
  • Trading Cryptocurrency is speculative and can be highly volatile. We recommend never investing more than you can afford.
PLEASE NOTE:  If something seems too good to be true, it may well be. Always do your own due diligence and research. 

Cyrptocurrency - Good practices:

  • Familiarise yourself with the functionality of each service or 'Exchange' (for example, Cryptopia), before buying or trading significant funds.
  • Familiarise yourself with the requirements, value, and transaction times for each coin you may wish to deal in, before buying or transferring significant funds.
  • Keep up to date with news from the development team behind each coin, as well as the news on any exchanges you store or trade your coins on. Updates from Cryptopia can be found on our News page and Twitter.
  • Coin specific information and exchange market status is often indicated on Cryptopia's Coininfo page.
  • Send a small transaction first to test the way things work when using a new service or coin.
  • For long term storage, using a personal wallet is highly recommended, as this ensures you have complete control over the wallet and keys securing your coins.
  • Use a unique email address, password, and dynamic Two Factor Authentication setting for each service you use. Change these immediately if you suspect that your information may be known to an unauthorised third party. Much of your information, and access to your accounts, can be gained from access to your email accounts, so please ensure these are kept secure, ideally with dynamic Two Factor Authentication also set up. To reset on Cryptopia see What do I do if I think my account has been compromised? and How can I change my registered email address?
  • Avoid using shared or public devices and networks to access online services.
  • Always log yourself out after completing your activities.
  • Keep your personal computer and devices secured when not in use.

For further information see Is Cryptopia safe? and How do I make my account more secure?