Cryptocurrency trading is quickly becoming one of the world’s most popular forms of trading, especially among young people. Unfortunately, crypto trading can be very dangerous. Sophisticated gangs of hackers and fraudsters scour the internet daily, looking for people to steal from. If you don’t secure your cryptocurrency properly and make an effort to cover your tracks online, then there’s a chance that you could fall prey to these gangs.
In this article, we are going to explore all of the different ways that you can secure your investments and avoid cyber security threats when you’re trading crypto.
When you’re planning on investing in cryptocurrency, you will need to create a wallet. A cryptocurrency wallet is an application that enables you to store your digital assets online. When you create your wallet, you will be given a recovery phrase, a PIN, and a password. It’s important that you carefully store this information so that you don’t lose it. Lots of people have lost their crypto fortunes because they didn’t store their crypto wallet’s password safely. If you want to add extra security to your wallet, then you can enable two-factor authentication.
You can also store your cryptocurrency in an exchange, although experts say that this is very risky. While it’s rare nowadays, exchanges can be [and have been] hacked. If the exchange that you store your crypto in is compromised, then you could potentially lose everything. The exchange won’t refund you either, because crypto is an unregulated market.
Another way to secure your crypto is in a paper wallet, which is perhaps the strongest and most secure method of crypto storage. When you create a paper wallet, your crypto information is printed off on a piece of paper, which means that it can’t be found online by hackers.
As was just mentioned in the previous point, crypto exchanges can be hacked. It’s important to find one that offers robust security because according to Hedgewithcrypto, since 2012 at least 46 Bitcoin exchanges have lost funds through cyber security breaches and cumulatively, nearly $2.58 billion has been stolen from crypto exchanges since 2012. If the exchange that you use doesn’t take care of your information and doesn’t go to great lengths to secure it, then you’re a sitting duck. Sooner or later, a hacker will find a way to exploit the exchange and steal your investments.
Another reason that you need to do research and find a quality exchange is that some exchanges are created by hackers with the sole intention of farming people’s information. It’s hard to spot a fraudulent exchange because they’re usually designed to a professional standard and list all of the currencies you would find on a genuine exchange. Make sure that you do your research on each exchange you consider using. There are lots of internet forums frequented by crypto traders, where you can ask questions about specific exchanges.
Try to limit the amount of personal information that you release online. Hackers will be able to use your personal information to recover your accounts and acquire dates that they might need for verification purposes, such as your birthday. Keep your personal information mostly offline. Security experts all agree that the amount of information that people broadcast about themselves online nowadays is incredibly dangerous and puts them at risk of being hacked. Avoid social media where possible and never broadcast your information or location.
Another way that hackers are able to crack people’s crypto wallets is through mobile phishing scams. Phishing is when criminals lure you into clicking a link, downloading something, or using an application that then harvests your data and allows the criminal to watch what you’re doing on your device in real-time. If you fall victim to a phishing scam, it can be very difficult to counteract the hacker. They’ll probably have all of your information before you even realise that anything’s wrong and they might not necessarily use it immediately. Instead, they might watch you for a while and learn as much about you as they can, with a view to stealing as much as possible.
To avoid falling for a phishing scam, make sure that you only download applications from recognised and trusted app stores. Don’t download applications from online app stores that you’ve never heard of before, or from websites that try to download things without your permission. Make sure you only use safe and respected browsers, never ones that are unheard of. In addition, you should also download some anti-virus software for your phone and laptop. Regularly run viral scans to see if any viruses can be detected.
If your wallet requires you to make your own password or pin, make sure that it’s something that’s unique and that you don’t use anywhere else. If you reuse and recycle passwords and pin codes, then hackers might be able to steal your information from other websites. Try to use a password that’s not at all related to you personally, (i.e your name, number, birth date, or any information that’s related to your family or friends). When you reuse and recycle passwords, it makes a hackers job much easier. They can just go through all of your accounts and email addresses, until they find the password that you use universally, then use that to get into your crypto accounts.
In addition, you need to make sure that you never share your passwords with anybody. While it’s not good to distrust people, it’s unfortunately something you need to do when crypto’s involved. Because of how unpredictable the crypto market is, you can’t guarantee that a friend won’t go behind your back and try to steal your digital fortune when your investments begin skyrocketing. Make sure that you store your passwords safely, somewhere that they can’t be found. Don’t ever share your login information with anybody, even if you trust them more than anything.
Unfortunately, internet hackers do exist. With this article, you’ll be able to beat them at their game and prevent them from stealing your investments. Make sure you take your internet security seriously. Don’t ever take chances with your investments.