7 rules for investing in cryptocurrency safely

On Monday morning‭, ‬I opened one of my crypto wallets and was‭ $‬101,418.77‭ (‬Dh372,515.26‭) ‬richer‭. ‬Right there at the top of my list‭ ‬of coins sat one million PUMP tokens‭ ‬–‭ ‬up 52.88‭ ‬per cent‭. ‬

You hear stories of people who got rich like this in crypto‭, ‬overnight‭. ‬The next day‭, ‬it’s Lambos and caviar‭. ‬Why not me‭? ‬

I was actually staring at one of the most common scams in crypto right now‭. ‬People airdrop fake tokens into your wallet‭. ‬If you‭ ‬click on them‭, ‬or import them‭, ‬they can drain everything you’ve got‭.‬

The world of crypto is evolving fast‭, ‬and the opportunities are real‭. ‬But it’s also a minefield‭. ‬After eight years of investing‭ ‬–‭ ‬and making a lot of mistakes‭ ‬–‭ ‬here are my personal rules for staying safe‭: ‬

Use a dedicated crypto email

Get a new email address that’s only for crypto‭. ‬Don’t store the password on your phone‭. ‬Don’t save it in your browser‭. ‬This email should be the one connected to your exchanges and wallets‭ ‬—‭  ‬and that’s it‭. ‬The less crossover you have with your regular email‭, ‬the better‭.‬

Click on nothing‭. ‬Import nothing‭. ‬Answer nothing‭. ‬Trust no one‭ ‬

This one’s simple and serious‭. ‬Don’t click links from exchanges‭. ‬Don’t import random tokens‭. ‬Don’t respond to anyone asking for info anywhere‭ ‬—‭ ‬even if it looks official‭. ‬No legitimate crypto exchange will ask for your seed phrase or password‭. ‬Trust no one‭, ‬especially if‭ ‬they show up in your DMs acting helpful‭.‬

Know who you are listening to

TikTok is a surprisingly good place to learn about crypto‭, ‬but it’s also full of fakes‭. ‬Even the most honest influencers have dozens‭, ‬even hundreds‭, ‬of impersonators‭. ‬If you comment on one of their videos‭, ‬you often get a direct message from a scammer asking‭, ‬“How’s your crypto journey going‭?‬”‭ ‬Never engage‭. ‬Assume they’re not who they say they are‭.‬

And remember‭: ‬if someone is hyping up a token‭, ‬they probably bought it a long time ago‭. ‬You’re late to the party and you are‭, ‬as is so commonly said‭, ‬providing exit liquidity for them and other insiders‭. ‬Always ask yourself why you’re investing‭. ‬What does the project actually do‭? ‬Who’s behind it‭? ‬Is there a white paper‭? ‬A working product‭? ‬Or just a slick website‭?‬

Don’t be greedy

This one’s hard‭. ‬We are all greedy sometimes‭. ‬In some of the groups I’m in‭, ‬I see people chasing meme coins and the next big small cap like they’re in a casino‭. ‬They’ll ask moderators when a token will hit a certain price‭, ‬as if there’s a script or the moderator has a crystal ball‭. ‬Then when the market dips‭, ‬as it has in recent weeks‭, ‬these same people turn on‭ ‬each other‭. ‬

Go low and slow

You don’t have to go all-in on Bitcoin or any other coin‭. ‬Start small‭. ‬Dollar-cost average‭, ‬just like you would in the stock market‭. ‬I read about a crypto millionaire recently who got rich just by buying Bitcoin every Thursday‭, ‬on his payday‭. ‬Be like him‭. ‬

Diversify‭. ‬Always

Crypto is powerful‭, ‬but it’s just one piece of the puzzle‭. ‬You don’t need to go all-in‭. ‬The big institutional investors are telling clients to put one or two per cent of their portfolio in crypto‭. ‬Other advisers who were early to crypto are recommending up to 10‭ ‬per cent allocation‭. ‬With any investment‭, ‬the right amount is the amount you could potentially afford to lose‭ ‬—‭ ‬and nowhere is this more true than in crypto‭. ‬

Not your keys‭, ‬not your crypto

Many people start out buying on exchanges‭, ‬but if your numbers start creeping up‭, ‬it’s best not to keep your crypto there‭. (‬Crypto exchanges have been known to collapse‭). ‬Learn about hot and cold wallets‭, ‬which come with a set of keywords that only you know‭. ‬Get yourself a workable password and keyword saving system‭ ‬—‭ ‬far from online‭. ‬

The bottom line

Yes‭, ‬it’s work to stay safe in crypto‭. ‬Yes‭, ‬you might get scammed‭. ‬But here’s the thing‭: ‬I’ve been scammed by people in suits‭. ‬Guys with credentials‭. ‬Financial advisers who lied about fees‭, ‬misrepresented projects‭, ‬and‭ ‬at every turn‭, ‬traded in fear‭. ‬So‭, ‬when I feel overwhelmed about crypto‭, ‬when I start to wonder if I really want all this responsibility‭, ‬I remember‭: ‬I’d rather trust myself than a random middleman‭.‬