Digital trading

Ensuring Transaction Security in the Digital Trading Arena

Published: 10/04/24


The internet has made it possible for people from all backgrounds to invest and trade in stocks, crypto, forex and commodities online. Whether you’re a beginner trader or a professional, ensuring transaction security is essential.

While platforms are generally secure, there are multiple examples of cybersecurity breaches and fraud cases, with platforms and traders losing millions (Carnegie Endowment).

Protecting your online transactions is the best way to enjoy digital trading without risking your finances and personal information.

In this guide, we’ll share everything you need to know about secure payment processing and share some great tips for staying safe online.

Understanding digital trading

Digital trading is a convenient way to invest in stocks, cryptocurrency, forex, commodities and NFTs online. Before the internet took over the world, people would have to use a broker to invest and deal with hefty fees, but digital trading levelled the playing field.

As Forbes reports, digital trading apps are paving the way for new generations of traders to learn about markets and make investments. However, aside from the many benefits it offers, there are also security risks associated with digital trading.

Common threats include:

  • Cryptocurrency scams: With many people choosing to invest in cryptocurrency, scams that promise high returns are growing in popularity. They often lead to substantial losses.
  • Security breaches: Trading platforms attract hackers because they store sensitive financial information.
  • Ransomware and Malware: Both ransomware and malware can disrupt operations by infecting devices, and hackers can take control of your account.
  • Identity theft: One of the most common ways for cybercriminals to exploit the internet is by accessing their victims’ personal information. They might use this information to make transactions, apply for loans and impact your credit score.

How to stay secure trading online

While there are threats associated with digital trading, the good news is that you can take steps to mitigate them and enjoy a safe experience. The following tips are easy to implement and will give you long-term peace of mind.

 

Secure trading online

 

Choose reputable platforms

The European Securities and Markets Authority (ESMA) sets regulations and directives for financial platforms in the EU. All trading platforms must adhere to these strict guidelines and protect investors from risks.

When choosing a platform, check its website for licensing information. The platform should list its regulatory status, which often appears at the bottom of the website or on a separate page.

If you’re unsure whether a platform is regulated for European consumers, the ESMA has a warning and publications section.

Safe-proof your trading account

Remember to protect your personal information and take steps to prevent unauthorised logins. Choosing complex passwords that don’t contain easy-to-guess phrases and avoiding using the same passwords can prevent hacking attempts.

Two-factor authentication can add an extra layer of security to your account. The trading platform will send a code to your mobile or use an app to verify that you are trying to log in.

If you receive a message and you’re not trying to log in, report the potential breach immediately
and change your password.

Protect your computer and software

You might not think so, but failing to update your operating system can put your devices at risk of breaches. As IT Convergence reports, many malware and ransomware scams succeeded because of outdated systems.

Installing reputable malware detection and anti-virus software is also beneficial because they regularly scan your device for potential breaches, providing instant updates.
Monitor the platform for security alerts

Reputable trading platforms will inform their users when potential problems occur. Checking for security alerts ensures you can take action if hackers compromise the platform and prevent them from stealing your personal information.

Even if you regularly use a platform, it’s always advisable to check whether it still has a valid SSL certificate. When you type the URL, you should see a padlock icon in the address bar, which confirms that an SSL certificate is in place.

Never trade on public networks

Public WiFi can provide internet access for people with limited mobile data, but it’s unsuitable for banking and trading. Unsecured connections make it easier for hackers to access data, whereas your private network is more challenging to breach.

Trading on a secured, private network and implementing additional security measures like VPNs is the best way to invest safely.

Use prepaid virtual cards

Naturally, cybercriminals will go to great lengths to access your payment information, resulting in significant losses and emotional pain.

Using an online prepaid card instead of debit or credit cards on trading platforms prevents hackers from accessing sensitive information. These cards aren’t linked to your bank account; you’ll need to preload them before usage.

You can use the card to invest without sharing personal information that hackers could access. It also comes with encryption and Mastercard 3D Secure 2.0 for added security.

As there are no credit checks involved, it’s easy to open and use a virtual prepaid card within minutes.

 

CTA - discover our virtual prepaid card

 

Go through your account regularly

We advise going through your trading accounts regularly to check for any discrepancies. The statements will detail all of your transactions, including withdrawals. Contact customer service immediately if you notice anything unusual, and secure your account.

The bottom line

Digital trading makes investing in shares, forex, and cryptocurrency accessible to anyone, making it a beneficial way to diversify financial portfolios.

Yes, there are some risks associated with using trading platforms, but taking steps to secure your accounts can help you avoid cybersecurity threats.

To recap:

  • Know the risks of digital trading, and choose a platform authorised to operate within your country.
    When setting up your account, implement a password that’s hard to guess and enable two-factor authentication.
  • Check your operating system regularly for updates and implement them. Some updates take a while, but they are integral to keeping your computer safe.
  • Check the trading platform for regular updates and follow your gut instinct to determine whether it’s safe.
  • Using a prepaid virtual card means you don’t have to provide trading platforms with your bank account details. With the Getsby Black Card, you can order up to 25 single-load cards a month, creating a safe way to enjoy digital trading.

Order your Virtual Cards online

 Apply for a digital prepaid card online and receive the activation code via email within 2 minutes.

 

Get your Card now
Stock Trading

Financial Management Tips for EFT, Forex, and Crypto Traders

Published: 05/04/24


Whether you trade cryptocurrency, forex or EFTs (exchange-traded funds), developing and deploying a comprehensive financial management strategy is key to long-term success.

Financial management in trading is vital for minimising risk and achieving growth by having optimal position sizes. According to Moneyshow, 90% of traders frequently lose money in the markets, resulting in a cycle of instability.

However, money management can prevent these losses and protect your investments. In this guide, we’ll reveal some top tips for getting the most out of your forex, EFT, and crypto trading strategies.

Disclaimer: This content may contain affiliate links, which means Getsby earns a commission if you click on the link and sign up for the platform. We only recommend products and services that align with our commitment to offering our readers value and advice.

What is financial management in trading?

online tradingRegardless of the markets you’re trading in, volatility is part of the process. Gains can quickly become losses, and not having a strategy can put your investments at risk. Financial management is a set of rules traders set to protect their money.

While risk management looks at the potential downfalls of investing in specific markets, money management focuses on protecting your funds and preventing losses.

Stable investments always have the opportunity to turn into profits, but losses are often unrecoverable. By maximising gains and reducing losses, anyone can become a successful trader.

With that in mind, let’s explore some crucial money management tips.

Tip 1: Know your markets

EFT, forex, and cryptocurrency markets undergo significant changes due to economic events, politics, and demand. Successful traders know that staying updated with any changes is integral to managing their money effectively.

Even a small event can cause a significant downturn in the market, but on the plus side, capitalising on market alterations is a profit-making opportunity.

Staying updated with your markets makes it possible to prevent losses and go into each trade with clarity. Luckily, there are numerous publications available for traders, with the most popular options including:

These resources offer instant updates and the latest market news, letting you stay ahead of the curve and adjust your investments accordingly.

Tip 2: Determine your risk per trade

Risk per trade quantification is intrinsic to financial protection. It enables you to define how much you’re willing to lose on each trade. Some people have a high risk tolerance, while others will need to set clear stop-loss orders.

Following these steps can help you set a comfortable risk amount:

  • Look at your financial situation and determine how much risk you’re comfortable with.
  • Define a set percentage of trading capital you’re willing to risk per trade—most traders set it at between 1% and 3%.
  • Use the percentage and available capital to calculate your position size, then implement the stop-loss order.
  • Look at your trading assets and adjust the position size based on their volatility.
  • Regularly assess your limits and decide whether you want to adjust the strategy for better results.

Tip 3: Set strict limits

One of the most valuable tips for traders is to set realistic limits and only spend what you can afford. It’s easy to get carried away and deposit a large amount of money, but this puts you at more risk of losses.

Setting a realistic monthly loss amount ensures you’re only risking what you can afford.

For example, if you have €1,000 left over each month after your expenses, losing it won’t cause any financial issues. However, spending a large amount of your income on trading can result in significant money worries.

For this reason, many traders avoid using traditional credit and debit cards in favour of prepaid cards. They purchase a virtual card online and preload it with a set limit, which means they only spend what’s on the card, protecting their bank accounts.

Tip 4: Portfolio diversification

As the saying goes, don’t put all your eggs in one basket. The best way to prevent significant losses is to diversify your investment portfolio.

By spreading your investments across various markets, it’s easier to strike a balance between calculated risks and potential gains.

You can achieve portfolio diversification in many ways, including:

  • Allocations: Many traders focus on a combination of EFTs, cryptocurrency, and forex markets for a robust portfolio with greater stability.
  • Sectors: Making investments in different sectors is always a good idea. Investing in stable industries and emerging sectors can prove highly beneficial.
  • Locations: Many traders also invest in sectors and companies in different countries to reduce the impact of localised events.
  • Time: Market downturns can significantly impact your investments, but spreading them over different periods can prevent losses.
  • Companies: Again, investing in just one company means you’re relying on that company’s survival. Choosing different businesses to invest in offers more peace of mind.

Portfolio diversification will reduce some risks, but there are always potential losses when investing money.

Tip 5: Choose your platform wisely

There are plenty of trading platforms available, but not all of them offer users a secure experience. Choosing the right platform is integral to protecting your money and personal information while enjoying seamless transactions.

Reputable platforms will be fully regulated by the countries they operate within and integrate security measures. Trading services such as AvaTrade have education centres and numerous resources to help traders safeguard their investments.

Performing due diligence before signing up for a trading website gives you long-term peace of mind and transparency regarding commission costs.

 
 

AVATRADE Banner

Tip 6: Use technology wisely

Artificial intelligence is changing the way we work, communicate and invest. In the past, trading was only accessible to trained professionals, but robo-advisors are facilitating the democratisation of trading.

However, while machine learning has benefits, it’s not a replacement for human traders with years of experience in the industry. Relying on machine learning alone often means investors don’t recognise and appreciate the risks associated with each trade.

As Sage Journals reports, algorithmic trading can expose people to more risks, especially if they lack an in-depth understanding of the market.



Tip 7: Regularly assess your money management strategy

Trading is an ongoing process that involves ups and downs. It’s easy to become impulsive when the market experiences a downturn, but focusing on your strategy and being patient can prevent losses.

Discipline is vital for traders who want to see a return on their investments and take steps to balance their emotions during fluctuations. Once you understand how your strategies are performing, you can adapt them to suit the market.



Tip 8: Monitor for regulatory changes

Understanding your responsibilities as a trader can protect your investments and reputation. Regulations can change due to many factors, including the impact of taxes on your responsibilities.

Monitoring the markets and countries you usually invest in ensures compliance and prevents repercussions.

Prioritise money management with Getsby

Getsby makes it easy for you to stay safe online and take control of your trading account. Our Premium Virtual Mastercard – Black Edition is a single-load payment solution that lets you preload it and make transactions on your trading platform.

With a range of features, including superior security, a convenient €500 load limit and up to 25 cards a month, our Black Card aligns perfectly with your financial management plan.

Order yours online today and enjoy the safe way to invest in your future.
 

Get your Card now