Smart contracts are digitally stored contracts that are automatically executed upon meeting pre-set terms and conditions. They’re used to automate contract execution to immediately assure all participants of the outcome without a third-party involvement or time wastage. Smart contracts are prone to vulnerabilities, and attacks such as reentrancy, front running, ETH send a rejection, and integer overflow or underflow. However, smart contracts are fast, efficient, and accurate, and they promote trust and transparency. Since they are encrypted, they’re hard to hack, ensuring security. Here are best practices for Ethereum smart contracts security.

1. Conduct smart contract audits

A smart contract audit is a security check conducted on smart contract on-chain code to ensure it is free of bugs and other security vulnerabilities. The audit process is done to identify issues, errors, and security concerns in the code to recommend improvements and fix them. Audits increase a business’s credibility and help win user experience. To mitigate any risks, involve the auditors from the early stages of contract designing. This helps ensure your code’s security and the safety of clients’ investments.

2. Ensure careful rollouts

Being attentive and careful will help identify and fix bugs before they can cause long-term complications in a smart contract’s functionality. To ensure intelligent contracts are free from bugs before release, comprehensively test the arrangements to identify any bugs better. If you don’t succeed at finding the bugs, look for a professional bug bounty hunter to help with the effective rolling of your smart contract. Consider rolling out your smart contract to simplify the identification of vulnerabilities.

3. Stay up to date

Keeping track of the latest developments helps improve an intelligent contract’s design to identify bugs quickly. To successfully track new developments, carefully check your contracts to identify any new bugs. Staying up to date with the latest security advancements helps to identify bugs quickly. Consider adopting new security techniques that seem productive as a smart contract best practice. Additionally, upgrading any tool or library helps with bug fixes and security updates that strengthen your smart contract’s security.

4. Keep the contracts simple

Complex smart contracts may lead to increased errors and vulnerabilities. To ensure contract simplicity, choose clarity over performance and simple contract logic. Where possible, use an already written code and modularize it to keep functions and contracts small. If parts of your system need decentralization, only use blockchain.

5. Pay attention to blockchain properties

Some of the blockchain properties to beware of include external contract calls that may perform malicious code, alter control flow, and remember gas costs and the block gas limit. Don’t forget that public functions can maliciously be called in any order and that anyone can view intelligent contracts. Beware that timestamp isn’t precise on a blockchain, but miners can impact a transaction’s execution time with a very short margin.

6. Be prepared for failure

Since non-retrieval contracts may have errors, ensure that your code can respond to bugs and vulnerabilities by managing the amount of money at risk, pausing a contract in case of any issues, and having an upgrade plan for improvements and bug fixes.

Due to various contract vulnerabilities, smart contract developers should pay attention to intelligent contracts security best practices. This ensures the system’s security and the safety of all financial investments.

Cryptocurrency has been one of the hottest topics of discussion for the last few years. This is why most people know what it is and are willing to invest in it right now. However, you might not know that cryptocurrency is thriving across the globe.

Especially when the COVID-19 debuted last year, many investors turned to bitcoin (and other cryptocurrencies) as an investment option. Today, there are multiple reasons why cryptocurrency is growing and is here to stay. So If you’ve been looking for the top reasons behind the massive growth of this currency, you’ve come to the right spot. 

Read on to learn five reasons why cryptocurrency is booming.

Fees Are (Typically) Negligible

One of the primary reasons behind the massive success of cryptocurrency is low fees. Bear in mind, the varying payment options on the web entail a certain deduction whenever a transaction is made. In contrast, when you deal in cryptocurrencies, the fee is typically small. Therefore, it is mindful of people to pay through cryptocurrencies and also rest assured about the safety of their payment.

Potential for Substantial Profits

Of course, another primary reason for people to put faith in crypto is for the chance to make substantial profits. Lots of people who invested a few years ago are reaping incredible profits right now and crypto trading hasn’t cooled down in the last few years.

Cryptocurrency is Decentralized

One of the biggest reasons to put faith in cryptocurrency is because it isn’t associated with any government. Because it is a decentralized currency, it isn’t controlled by any firm or government. So people willingly invest in it without any fear of demonetization. Therefore, this currency has the power to remain stable, even if the economic situation isn’t healthy. The potential that cryptocurrency is the safest option In the future makes it even more appealing to everyone.

Security is Paramount

In today’s time, with fraudulent practices on the rise, everyone wants to rest assured about the privacy of their information on the web. Because cybersecurity has become a major concern for everyone today, people are looking for a payment method that is safe and secure. Luckily, the availability of cryptocurrency breathes life into these goals. The security provided by cryptocurrencies is what has allowed many people to trust them blindly.

It’s Easy to Get

You don’t have to be a millionaire to get cryptocurrency. Contrary to popular belief, anyone can invest in cryptocurrencies. All you have to do is, look for a reputable exchange where you can buy crypto. A few years back, people might have thought about cryptocurrency as something hard to get. Now, it is all over the place, and anyone can invest in it. If this is your first time investing in this option, you will find the process to be customer-friendly and simple. 

Disclaimer: This is a sponsored post written by a third party. Readers should do their own due diligence before taking any actions related to any company, product, or service mentioned in this article. BitcoinAfrica.io is not responsible, directly or indirectly, for any loss or damage caused by or in connection with the use of or reliance on any content, product, or service mentioned in this post. 

How much should I put in bitcoin? This is a question that many people ask these days. They want to obtain exposure to bitcoin but want to do so in the way that makes the most sense for them and their financial lives.

It’s no wonder why people want to invest in bitcoin. It’s on the rise.

In recent years, crypto-monetary activities have acquired considerable traction and provoked quite a bit of enthusiasm and excitement, particularly among investors. In the first week of 2021, bitcoin’s price reached a new high record of $42,000. Right after that, though, bitcoin’s value plunged by more than 20% while others still declined. But many believe that this industry is here for the long term and are still investing in several cryptocurrencies, diversifying their portfolios, and sticking around for a while.

Now, it is in these times when individuals must learn the fundamentals of investing.

Making decisions based on excitement and commotion is highly hazardous. It is vital to maintain a more holistic perspective when making your bitcoin investments. Remember that discipline and the appropriate knowledge are necessary to create valuable gains.

Here is what you must know about allocating capital toward bitcoin.

Buying and Investing in Bitcoin

Bitcoin’s value was increased from $3,237 in December 2018, the world’s first and most popular cryptocurrency. Bitcoin, unlike other cryptocurrencies, is emerging as a clear store of value despite its far greater volatility than many tried-and-true assets such as equities, bonds, and mutual funds.

Purchasing bitcoin or other cryptocurrencies may be a fascinating way to discover more powerful returns with a new type of investment. But, like cigarettes, it should be labeled with caution: “This item may be detrimental to the health of your money and invest wisely.”

But the idea here is not to frighten you. Instead, it is to assist you in determining how to allocate to BTC. Here are clever strategies to invest in bitcoin that will lead you in the right direction.

Is Bitcoin Worth Investing In?

Essentially no investment is “good” or “bad.” It all depends on your risk tolerance, investing plan, and financial goals. Bitcoin is a volatile investment since it is still a fairly new asset.

It can provide significant gains but one must understand how to approach it in the right fashion. Indeed, there is a profit possibility.

You should evaluate your personal goals and establish what you want to do in your investing activities thoroughly before considering bitcoin as an investment. Would you like passive revenue to grow? Will you be an investor full-time? Do you seek to save for a type of pension? Responding to these questions will help you determine how much you should allocate to bitcoin.

Pros of Allocating to Bitcoin

The significant advantage of a bitcoin investment is that you may make enormous profits, potentially up to 200 percent or more. The core point here is that bitcoin is supposed to reach the status of gold. That means that bitcoin has quite a bit of potential ahead of it. It is known as a store of value and that means that bitcoin is likely to have staying power, durability, and longevity.

The positives of investing in bitcoin are that you obtain exposure to the future, to digital currency, and capturing energy in a new monetary asset.

Cons of Allocating Towards Bitcoin

Bitcoin’s extreme unpredictability makes it a risky commodity, and if you don’t take caution, you may lose money.

The danger of pumping and dumping strategies in bitcoin and other forms of cryptocurrency is considerable. The key point over here is to make sure that you are looking at allocating capital toward bitcoin in a more holistic way. This means that you will ensure to have more strategic ways of looking at it. As such, you can protect your downside and maximize your upside.

Innovative Ways to Allocate Capital to Bitcoin

One can see that there are many methods to, directly and indirectly, invest in bitcoin. You may invest in businesses that use bitcoin or take part in bitcoin mining. Moreover, some ETFs contain shares of firms that work with bitcoin and blockchain technology. Of course, you can invest in bitcoin directly by purchasing through different facilitators.

The following are intelligent strategies to study before BTC becomes a part of your portfolio.

1. Invest what you have the courage to risk

Financial risk-taking might make some individuals uncomfortable, while others take full advantage and take a chance. It is worth thinking carefully before investing in cryptography if pushing boundaries gets you uneasy as it is pretty unstable. However, if you’re a risk-taker, you can ensure to purchase satoshis, fractions of a bitcoin, or even a few whole bitcoin. It all depends on your net worth and what you can afford to lose.

You need to invest the money you can lose. The main objective of funding, whether traditional or digital, is to add value to and not lose your present money.

2. Lead a strong portfolio of cryptocurrencies

Investing in more than bitcoin is part of a suitable crypto portfolio. This technique reduces losses and maximizes profit. Yes, it’s complicated but better than just investing in one currency. Cryptocurrencies are very volatile in price, and the right ones have different value points and elements to offer to your portfolio.

By investing in several cryptocurrencies and diversifying your portfolio, you will enable you to cover any risks.

You will not be exposed to a concentrated single investment by doing so. It is better to win and lose some than to lose it all. Diversification is one of the best and most clever ways to diversify and stabilize your profits.

3. Do not buy into the hype

As with any other traditional investment, it will be essential to ignore the hype and filter the noise from the bitcoin chamber. When it comes to investment in bitcoin, your choices should not depend on what others say. A wise Bitcoin investor never makes hype- and noise-based judgments since they are very hazardous. Just depending on what the mob says about Bitcoin isn’t sensible. Remember to think about your investment from your own perspective.

The initial price may start dropping, resulting in an appalling waste. Patience and the appropriate knowledge are necessary to create valuable gains.

Instead, intelligent ways of investing in bitcoin would be to research the market extensively, use information obtained to take measured risks, and contact professionals for advice if need be. It is vital that people who have enough understanding of trade and investment strategies only seek guidance. That way, you may develop your techniques and filter undesirable hypothesized information successfully.

4. Instead of a significant start, begin modestly

Given its brief but extremely unpredictable history, it is typically advisable to maintain a relatively restricted initial investment of bitcoin when starting out. Bitcoin purchases are somehow much like the purchase of other types of investment. You must constantly be aware that its prices are rising and falling relative to other assets.

Remember that the most advanced investors started by dipping their toes into the market before allocating more capital to bitcoin over time. Despite the exaggeration and the projections, keep your discipline by not adding much more capital than you can afford to lose.

5. Work with entities that Trustworthy

Many digital exchanges arise and move on. It is of the utmost importance to pick a platform with periodic security assessments and effective security procedures and protocols.

Based on the physical absence of bitcoins, experienced bitcoin investors keep them in different types of digital wallets. One can either store it on digital or hardware wallets. A hardware wallet can be an offline portable device that secures the private key required for your bitcoin holdings to be transferred from one place to another. If you are looking for a bitcoin wallet, you can find many that are free and available.

6. Trade Bitcoin on Short-Term Volatility

Asset volatility is one of the most popular reasons why many people invest in bitcoin.

If they do not feel like sticking around for the long-term, they can trade the volatility regularly and make gains that way.

Indeed, bitcoin is synonymous with dramatic value fluctuations. Just looking at a one-year chart, you can see how unpredictable Bitcoin is, which is suitable for short-term traders. Not surprisingly, investors will ride it up and down, sell at the heights, and purchase at the bottoms. This is undoubtedly the most difficult of the techniques presented and puts the most significant risk on investors; yet, it might make the returns. It might bring in more returns if one is more active. If one is active in the markets, know how to read charts and loves to speculate, then this can be a valuable way to grow one’s assets.

The Simple Takeaway and Crypto Portfolio Allocation 2021

Bitcoin is a growing asset class that brings about a more trust-less world. Thanks to the blockchain and other innovations, one can see that it can have staying power. Further, it continues to show that it is a store of value as it has increased in value over the course of ten or more years.

But remember that bitcoin is a highly volatile asset prone to significant and rapid changes in value, offering a chance to achieve substantial profits while representing a considerable danger.

It is up to you to figure out how much capital you should allocate to bitcoin. Many experts note investing from one to ten percent of your total net worth into this emerging asset class. If you are able to take it slow and steady and approach bitcoin in a more reasonable way, you can find that you can increase your portfolio value while keeping your risk at a more bearable level.

You should look at your goals, your investment horizon, and your risk tolerance to invest the right amount into bitcoin.