Crypto Investing 101: Safe Investing Practices

February 7, 2023
8 min read

The main idea of investing is to generate a positive return on investment (ROI) over time. Whether you choose to invest in cryptocurrencies or follow the traditional investment path, there are several important factors to think about.

What are your financial goals? What are the market conditions? How about risk? The answers to these questions, among others, will help you decide on a trading strategy. It is important to remember that investing always involves risk, and returns are not guaranteed.

Good research, diversification, and using the right tools are essential for making informed investment decisions.

In this article, we will talk about some safe investing practices to consider before you start your journey as a crypto investor.

What are cryptocurrencies, and how do they work?

Cryptocurrency is a digital or virtual form of currency that uses cryptography to secure transactions on a blockchain.

Unlike traditional fiat currencies (such as the US dollar or Euro), cryptocurrencies are not issued or controlled by any central authority like a government or financial institution. That’s why there are many different crypto assets out there.

According to Statista, there are nearly 9,000 cryptocurrencies as of 2023. However, they are not all made equal, and it is believed that the top 20 cryptocurrencies make up nearly 90 percent of the total market.

Some of the most well-known cryptocurrencies, to mention a few, include:

  • Bitcoin
  • Ethereum
  • Tether
  • XRP
  • Cardano
  • Solana
  • Polkadot
A megaphone anouncing the Big 5 collection and its crypto assets
With Ovoro, you can invest in the top cryptocurrencies with just a few taps on your phone.

Cryptocurrency characteristics

Cryptocurrency is still new and largely unexplored territory, and the potential benefits of investing are limitless. However, the market being very unpredictable, it also comes with greater risk. Here are some basic characteristics that cryptocurrencies have as opposed to traditional currencies.

Digital and global

That makes them more accessible than traditional assets which are often subject to restrictions based on location or jurisdiction.


Since cryptocurrencies are not subject to the control of any one government or financial institution, it makes them less susceptible to manipulation and interference.


Unlike traditional assets, which are subject to disclosure requirements, cryptocurrencies can be bought and sold without revealing the identity of the parties involved.


Cryptocurrencies are built on blockchain technology, which is a publicly accessible ledger that contains data on all past transactions. Due to the nature of blockchains, the data cannot be manipulated by any single party. That makes cryptocurrencies a more safe and more transparent investment than traditional assets.

Highly volatile

Cryptocurrencies are notoriously volatile, which makes them a risky investment but also one with the potential for high returns. That attracts people who buy when the price is low and sell at its peak to turn high profits. However, that makes cryptocurrencies unstable which is why not many companies accept them as payment.

Trade 24/7

Unlike currency and stock markets, the crypto market works 24/7. That can be convenient for price speculation traders and also makes it easier to liquidate your investment at will. But then again, it also makes it very difficult to keep track.

The crypto market operates 24/7.

Having mentioned all of the above, investing in crypto might seem like an obvious choice, but — as with any investment — there are risks involved. One major risk worth considering as a beginner investor in crypto assets is scams.

According to a Statista article from 2022, over $20 billion in investments were lost over the previous five years, mainly through crypto scams.

A inforgraphic from Statista including the biggest crypto scams
Rug pulls are common scams and something to be aware of.

Best Safety Practices for Investing in Cryptocurrencies

Here are several of the best safety practices for investing in crypto, so you can avoid scams and make the most of your investment.

Do your research, get educated, and keep up-to-date

Use reputable sources

If you are new to crypto markets, there is a lot to learn. The first thing you should always do when trying to educate yourself on any topic is find reputable sources and double-check your information.

Investing in cryptocurrency requires a good understanding of the basics, knowledge about different types of investments, and the ability to distinguish between legitimate opportunities and scams.

It is easy to get caught up in the excitement, especially if you have a get-rich-quick mindset. Speaking of excitement, educating yourself, and keeping up to date with current information will spare you the consequences of poor decision-making based on strong emotions and biases.

Research the team behind a crypto project

Not all cryptocurrencies are created equal, and, as part of your research that can help you determine which crypto assets are the right for you to invest in, you should familiarize yourself with the underlying technologies behind them.

In addition, you should always have a clear idea about the team behind the currency and their track record before deciding whether a cryptocurrency is worth investing in. A strong team will have a solid foundation with specific goals they met in the past. If you cannot find any information about who is working on the project, what they have accomplished, and what comes next, steer clear.

The crypto markets are highly volatile, which opens the doors to making high profits, but there is also an equal chance of losing. So if you get promises that seem too good to be true, such as consistent 100% returns, be careful, they are likely scams, and the people behind those promises do not honestly care about your success.

a working team looking at a presentation and discussing
Knowing the team behind a project is crucial to determining if a project is trustworthy or not.

Consider world events

Because most markets, including crypto markets, may be affected by external factors such as natural disasters or world politics, it is essential to keep up-to-date with current events. Make sure you know what is happening around the world so that you can protect your investment or look for new opportunities.

We at Ovoro not only help you invest in carefully preselected crypto assets without the need for you to do extensive research or be an expert trader, but we also offer up-to-date news from reputable resources in our app to help you get familiar with the comings and goings of the crypto market so that you can make informed and educated decisions when investing.

Use a Reputable Exchange

The next important thing to do is open an account with a reputable exchange. There are many exchanges out there, but some have been shown to have poor security practices and customer service. Working with an exchange that is reputable and has a good track record will help you avoid scams and protect your investment.

Investing in unregulated exchanges is likely to lead to a loss of funds. If an exchange becomes bankrupt because of a market crash, it is unlikely that investors will get their money back.

If it is not secure enough, hackers can break into it and steal user data or coins stored on them. That is why you should not take any chances when choosing an exchange.

An image listing the Binance, Coinbase and Kraken exchanges
Binance, Coinbase, and Kraken are just examples of some crypto exchanges that traders use.

At Ovoro, we automate cryptocurrency trading using preselected crypto assets that trade individually on the largest cryptocurrency exchange and blockchain ecosystem: Binance. But while we currently use Binance, Ovoro is designed to not rely on any specific exchange.

Keep your private keys private

Your private keys give you access to your coins, so you must keep them safe and secure. Make sure they are backed up and stored in a secure location you can reach quickly when needed.

The most important thing is to never share your private keys with anyone, especially any unknown entity approaching you via email.

Two of the best ways to safeguard your keys are:

Use a hardware wallet

A hardware wallet stores your private keys offline and signs transactions in a secure environment. Hardware wallets are considered the most secure way to store your cryptocurrencies, as they are not connected to the Internet and are, therefore, not susceptible to hacks.

Hardware wallets are considered very secure.

Use a paper wallet

A physical piece of paper with your private keys printed on it that you keep in a safe or a safe deposit box is another way to protect your private keys from malware.

Diversify Your Portfolio

When you invest in cryptocurrencies, make sure to diversify your investments. That means investing in several digital currencies rather than putting all your eggs in one basket. That way, you do not risk losing your entire investment if your asset of choice experiences a sudden price drop.


Investing is a journey. Take your time to research reputable sources, learn, and work your way up from the basics to ensure that you make informed investment decisions.

How can Ovoro help?

Ovoro provides a unique opportunity for beginner crypto enthusiasts to invest in crypto assets without the need for deep knowledge of the market or years of experience as a trader.

Our AI algorithm analyzes the market behavior 24/ 7 and makes informed decisions for you. At the same, our asset collections help you diversify your portfolio from the get-go, so you do not need to research every single crypto asset out there while keeping you informed about current news and events from the crypto world.

*Real-money investing will be possible when we complete our beta stage. Now is the best time to test Ovoro with our virtual money and see which trading opportunity best suits your needs.

Remember! The performance of the Ovoro Collections reflects the real world. All the results — good or bad would have happened with real money, too.

Check out our Road Map to see what we have achieved and what’s next for Ovoro.

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