5 Easy and Efficient Ways to Store and Invest Cryptocurrency

Last modified: June 7th, 2023

By Justin Rogers

Two silver coins with the Bitcoin logo and text on them are resting on top of another silver coin with the Ethereum logo on it.

The key to efficiency is reducing risk. Since the world of crypto is volatile, we are introduced to a field that is full of opportunity if we can tame it. Efficiency is not just found in the profits and losses from buying and selling as well. There are many ways that you can end up losing money without even doing anything yourself. To avoid these issues and losses some preventive measures should be taken so that you can efficiently store and invest with cryptocurrency.

Here are areas that should be extremely efficient to store and invest crypto:

  1. Investing in Crypto
  2. Storing Crypto
  3. Transferring Crypto
  4. Dealing With Crisis
  5. Understanding the Market
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Investing in Crypto

The first step to being able to store crypto is having some to begin with. Investing in crypto does not have to take up your entire day, as long as you take the time at the beginning of your process to find some trends. Finding trends can be using data from a cryptocurrency’s price and identifying patterns that happen consistently to where you will be able to make a profit from this.

This pattern should be associated with an efficient cryptocurrency. These can be found by calculating efficiency by hand or using an online resource that does it all for you. Efficient cryptos are far better than the assets that look good on paper or that you hear about from a friend, because they have actual data to back them. The measurement of efficiency means that not only does this asset give you good returns, but it also has a low downside potential for losses. Choosing these assets should not be tedious as they will determine your profit and you may find a crypto that you will be investing in for many years to come. The most efficient ways to invest in cryptocurrency start with the asset you choose.

After you find your pattern, you are now able to create your investing system. You can now add in more data and trends if you would like, or you can settle for what you have. The important part is understanding the flaws of your investing system. If you have a system that gives you a ton of signals, they might not always be right. However, if you create a system with higher accuracy, you might miss out on more profit. Balancing these two will give you the system that best suits your investing style.

A darkly colored leather wallet with four golden coins coming out of it with the Bitcoin logos on them and two credit cards.

Storing crypto

Once you have your investing system and have started to buy some crypto we need to figure out how to store this. Investors make the mistake all the time of leaving their crypto on exchanges rather than making a transaction to buy or sell and then waiting till they make their next one. This is not a good idea as crypto is volatile, just like the [exchanges they are being held at].

The safety of your crypto is largely in your hands, but that doesn’t mean that others can’t mess anything up at any time. Hacking into exchanges is a hot target for Black Hat crypto hackers who are looking to make a ton of money by gaining control over lots of different wallets and investors’ cryptocurrency. The best way to avoid getting your money stolen from an exchange is to just remove it from the exchange into a [hardware wallet or software wallet]. The less time you let your crypto sit in the hands of someone else or another business the more secure it will be for you.

Mitigating risk over your profits also includes not storing it in places that can be easily reached. Even your computer can be hacked into, allowing the infiltrator to gain access to your wallet and money if you are not careful. Another way to take advantage of blockchain security is using a cold wallet to prevent this. [Cold wallets are crypto wallets] that are easy and efficient ways to store cryptocurrency that you never connect to anything and rarely touch. They are only used to transfer or hold crypto, not for investing.

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Transferring Crypto

We have our crypto stored in a wallet that is nice and safe, however, is there anything else we should be doing to make sure we are safe when transferring this money? Definitely. Transferring money should always be done efficiently as you do not want to be making small mistakes that could cost much more than expected. These small changes in how you transfer money are well worth it.

Transferring cryptocurrencies requires gas to move money across the blockchain. This blockchain technology does not have a set payment either. Gas fees are generated as transactions go through and high fees can be placed upon you if you are not efficiently transferring your cryptocurrency. Avoiding peak hours can lower fees and transactions might not take as long when there are not as many people trying to move crypto at once. Large events or movements can also trigger an increase in both users making transfers and the price of gas it takes to move around your crypto.

When transferring the crypto the last thing you want is something unexpected to happen causing you to lose all of your crypto. Sending cryptocurrency to the wrong address is a big issue if you are not copying and pasting or misclick so it is important to either save commonly used crypto addresses or double check before sending. Another issue in the crypto space is how often we see scams. Millions of dollars can be taken at a time from these scams and protecting yourself and your money is crucial to maintaining the crypto that you have made from successful investing or have put into your wallets yourself. Avoid using sketchy websites or connecting your wallets to third-party sources.

A laptop computer screen with a crypto candle chart showed on it in green and white with the chart going up and down evenly.

Dealing With Crisis

When black swan events happen, there are great crashes in price, and sometimes entire exchanges go crashing down. The best way to prepare yourself for events like this is to always stay in tune with what is going on in crypto. Regulation attempts can come out of nowhere leaving you with accounts frozen and not able to withdraw your crypto until an entire lawsuit is over. The way that you can avoid getting your funds seized. Another way to get around the problem of centralized exchanges holding your funds is by [using a decentralized exchange] where not even they have control over your funds.

Aside from the crypto lockdown, there are other ways to protect yourself. Having an easy backup plan can get you out of a pickle fast. When you research and find something that you believe will cause something extreme in the markets that could affect you, go to this backup plan. This may be a different type of crypto wallet or crypto exchange depending on what you find. Your backup plan could even be backup assets if something were to happen to one of the assets in your portfolio. Preparing for these issues will help you reduce the impact of something bad happening to your money.

A book with a black cover is sitting open showing a white page that has a crypto candle chart in black and white next to words.

Understanding the Market

Understanding what the blockchain is can help you see through the noise that may be holding back serious crashes in the market or other ways that your money can be affected by others. There is some benefit to this as well. When you are researching the blockchain and crypto, you will be the first to know about the latest cryptocurrency storage methods, allowing you to get priority and first access to safer technology. Keeping up with the times can even help you find the newest cryptocurrency investment strategies.

There is nothing bad that comes from being more aware of the space and this includes studying market psychology. When you study market psychology, you will be able to understand how other investors will react to unique mishaps that involve the markets, exchanges, or regulations. Being able to predict others in times of unpredictability would feel like a superpower giving you the upper hand on the market to not only preserve the money you have in crypto but make a profit off of other people’s mistakes.

A golden coin with the Bitcoin logo on it sitting on top of a pile of other differently colored coins all on a white surface.

Final Words

How do you stay efficient when you invest in and store crypto?

Investing in crypto is a lot more than just buying and selling, where you have to be efficient in the way you store and transfer your cryptocurrency as well. This efficiency comes from planning, investigating the market and crypto space, understanding the possible downfalls, and being able to fast to change.

What is the most important part of avoiding potential downfalls?

Speed. Those who struggle to act fast will be left behind, getting hit the worst out of everyone, making speed a big part of avoiding the risk in crypto as a whole while maximizing how much of your profit you get to keep.

Why should investors care about efficiency?

Efficiency helps you maintain your profit by reducing your risk. This is not just risk with buying and selling, but also the risk you hold with your cryptocurrency and how you move it around. Keeping your wallets and cryptocurrency safe will help protect you from the potential downsides that are both predictable and unpredictable.



The information provided in this article is not investment advice. We are not responsible for any losses incurred by readers who choose to invest in cryptocurrency. Readers should do their own research before investing in cryptocurrency. Cryptocurrency is a volatile asset and there is a high risk of loss. Readers should only invest money that they can afford to lose.

Desire to be a better Investor?

Are you ready to start implementing scientifically proven methods into your crypto investing?

Desire to be a better Investor?

Are you ready to start implementing scientifically proven methods into your crypto investing?

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