The most common 3 errors when managing cryptocurrencies

The 3 most common mistakes when managing cryptocurrencies. Some food for thought ... and caution!

Even if we talk about now cryptocurrency in a much more current way, many of us commit very common and very harmful errors on the correct management of virtual currencies.

Let's try to summarize them!

Deal with exchanges like banks

Mt. Gox it is a name that, to the "cryptocurrency" of longer memory, will generate some thrills. It is in fact a Japanese company, now bankrupt, which was once the largest stock exchange in the cryptocurrency sector. Unfortunately, however, its platform was hacked in 2011 causing the loss of 1,35 million BTC and, in 2014, for 450 million dollars of currency. More recently, a 2016 hack cost users $ 72 million Bitfinex, which then followed up on a controversial strategy of "socializing" the losses accrued among its users in the subsequent period.

In short, even if security has certainly improved across the industry criptovalutario, investors should however take accurate measures for protect their savings and their investments.

As InfoSec wrote, vulnerabilities in the industry still remain. And unfortunately many cryptocurrency investors continue to treat exchanges as if they were banks, although exchanges do not offer consumer protection tools.

Neglecting taxes

Another very common mistake is that of neglect the fiscal aspects. Even in this area, however, much has been done: the majority of exchanges have activated tax consultancy services for their customers, even if customers should certainly not expect too qualified sharing.

Lost wallets

I cryptocurrency wallet, although their offline nature (offline wallet ) protect them from hackers, do not offer similar protection against their destruction. Suppose that the wallet is ruined, it gets wet, gets lost or something else: the savings it contains are permanently deleted.

In short, if it is true that i hardware wallet have determined a good step forward in terms of security compared to what it was not possible to verify with online wallets (and especially with those managed by exchanges) ... attention to how you keep and manage them.