New Zealand is a unique country. It has the most extensive coastline and the smallest population, with only 5% of living beings as humans. The rest of the 95% is the wide variety of animals.
NZ has about 1.76% of Kiwis who own cryptocurrency, while the global average is 3.9%. That said, New Zealand is likely to catch up soon as people become more aware of its lucrative opportunity.
Despite its small population, the people are highly advanced and accept alternative investment and trading opportunities that crypto presents. However, crypto is not regulated in New Zealand, posing several risks to your investment.
Therefore, if you are looking to buy crypto in NZ, these are the precautions you should take.
Beware Of Crypto Scams
Each new investment opportunity comes with a similar scam designed to dupe customers out of money. The same goes for crypto.
Scammers see the popular currency’s lucrative opportunity and have developed multiple scams to make people deposit their hard-earned cash into fake schemes.
Since cryptocurrency gave people huge returns during its initial run, these swindlers will use the lure of high returns, discount offers, holiday offers, and similar antics to make the scheme appear attractive.
Caution is necessary when investing in crypto and avoiding all unsolicited contact. Only use reliable digital wallets to buy crypto in NZ.
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Watch Out For Crypto Thieves
You may wonder how someone can steal cryptocurrency. It is not so difficult. All they have to do is send you a link with malicious software under a pretense.
Once you click on the link, you unknowingly download the software on your device, which will then record your login information and send it back to the robber.
Now that they have access to your account, they can quickly transfer the crypto to their account, and you will not realize what happened until it is too late. While NZ is the least corrupt nation globally, your crypto wallet can be emptied by outsiders.
Use Two-Step Authentication
With the rise of crypto account hacking, you must use a two-factor authentication process to secure your wallet. You have a password and another verification method such as a fingerprint or one-time passcode.
This ensures that even if someone knew your password, they would not access your account unless they have the second verification method.
Encrypt All Devices
With smartphones in auto-sync mode to ensure continuity, you need to ensure that all your devices are fully encrypted. If you use a wallet on your smartphone, which is encrypted, but your laptop is not, you risk hacking every time both devices sync.
Therefore, making sure that all communication devices use high levels of encryption is a must when you buy crypto in NZ.
Apart from third-party threats, you can face the risk of volatile returns as the market is unregulated.
Since trading in the alternative currency is available 24×7 without any holiday, you may end up with significant losses or gains overnight. Therefore, only buy what you can overlook without losing too much sleep.
Unregulated In Most Countries
Even as you see million-dollar deals being carried out using cryptocurrency, you need to understand that the currency is unregulated in many countries globally.
It makes money prone to more significant risks, and therefore, it is recommended that you invest small amounts and use different cryptocurrencies to minimize risk.
People talk a lot about crypto nowadays, and most of them rush in. It is best to enter the market with a cautious approach when you buy cryptocurrency in NZ, as it can lead to unprecedented losses in no time.