Cryptocurrency is a digital currency that is created through the process of mining. The cryptocurrency market is one of the most volatile and fast-growing markets.
It has been found that digital currency transactions can be easily hacked or stolen by criminals or other parties. It also requires users to have a certain level of technical knowledge to use it properly.
Cryptocurrency security is a very important topic and it is not something that can be ignored.
In order to make sure that your crypto portfolio and trading activities are safe, you need to take precautions and learn how to protect yourself against the dangers of cybercrime.
We should not think of these cryptocurrency security specialists as a replacement for human crypto traders.
They just provide assistance to the digital traders by getting rid of their “fear” and providing them with all the necessary information about cryptocurrencies so that they can trade safely using advanced complex algorithms.
As the status of digital currencies grows, so does the level of activity of cybercriminals who look to steal crypto in any way possible, by launching phishing attacks, finding vulnerabilities in the source code, or pretending to be people who work for companies to get confidential user information such as private keys, passwords, seed phrases, & more.
The major challenge in securing your crypto is considering the range of attack vectors and layers of protection that are required to truly make sure your funds are safe.
Main Risk Factors in Cryptocurrency Trading
Cryptocurrency Circulating Supply is the primary factor for Risk. The first rule is to never lose any funds. A cause of this scenario is if the wallets or exchanges where you keep your coins are hacked or they are washed out by hackers.
Many traders have been losing money due to this problem, and this can be a huge problem for you if you are a beginner or a professional trader.
Breach of contract: If you want to make money from trading you need to follow the possible risks that can affect your trading activity.
It is also advisable for traders who do not have any experience or are beginners in trading to read through basic trading tips and learn from the mistakes of other traders.
The most important thing to remember when setting up a trading strategy is that it should be kept simple. Don’t calculate the odds to see if you can win. This is all about assessing the chances of it working out for you.
The main focus when trading crypto coins is on risk management. and keeping a record of your trades are definitely important, but those things should not take precedence over choosing the right strategy in order to help minimize risk.
9 Cryptocurrencies Security Tips
Try To Use a Cold Wallet/Hardware Wallet
As your digital currency investment keeps on growing, it will be needed to have more and more security.
Storing your private keys in a cold wallet, also recognized as a hardware wallet, is the most practical option as these come encrypted, keeping your keys protected.
Hardware wallets are those devices that you can use to store your cryptocurrency coins securely and helps you avoid losing them because of loss or theft of your device. The best way to protect your investment is by using hardware wallets.
Hardware wallets protect you from hackers and web thieves to keep your investment safe.
Hardware wallets are available in the market with a variety of models and brands. The best hardware wallet is from Ledger.
It also has a new version of its model which can be used to store cryptocurrencies like bitcoin, crypto-currency or altcoins at one time. However, many users of Ledger wallets use the company’s existing models because it is highly recommended by experts.
Hardware wallets are a perfect choice for an individual or a small business to store your digital currency coins safely and securely without worrying about losing them due to misplacing.
Use complex passwords
For several readers, this tip might seem obvious. In your password try to merge upper & lowercase letters, numbers, and symbols.
A strong password is required for security, but it is not enough since there are many online attacks to get into accounts
This is the reason why you need to have a strong password or log in using a tricky password. You can use online password testers to see how strong your password is. Using a password generator to get random passwords is an excellent idea.
Take security measures seriously
Blockchain & cryptocurrency are naturally safe. When you have conversations with other people about cryptocurrencies you’ll simply find the counter-argument that they can hack your cryptocurrency.
This is a misapprehension several people tend to humble upon. This technology is based on a cryptographic algorithm, so the name cryptocurrencies.
By the way, this system is already a great security measure against hackers. To break this you would require a huge computational power.
Social Media Scams
With a number of users joining social media every year, these platforms have become a safe place for scams. Don’t connect if you come across a text or a post on social media.
Any tweet or text that needs you to send crypto is simply a huge scam waiting for you. So try to keep away from these kinds of posts.
Always Pick the Right Crypto Wallet
One more significant addition to best practices for resolving cryptocurrency safety issues is the choice of a suitable crypto wallet. The crypto wallet is a necessary tool for the crypto holder to handle their private keys.
So, you need to choose the perfect crypto wallet after reviewing features, technology, security standards, and value advantages.
In several cases, users can select a hybrid strategy by choosing offline storage with cold wallets to make sure better security.
A better understanding of diverse types of crypto wallets could effortlessly provide you with a benefit for securing your crypto assets.
Beware of phishing scams
You might know about phishing scams as it’s the most common technique to steal your credentials for traditional online banking.
Cryptocurrency exchanges & wallets are also subject to this concealed technique. One of the most basic scam methods used by hackers is to steal your Bitcoin or altcoins.
Phishing scams make a false website that resembles the original site. The user is fooled & doesn’t recognize they have been redirected to a fake site.
The user inserts the username & the password and now the hackers have your credentials. The hackers can send effortlessly the funds to their wallets.
Restrict (2FA) and API keys
The best way to protect your cryptocurrency investment from hackers and web thieves is 2FA. The 2FA is an authentication method that involves two separate authentication factors: a password and an additional code or code generator.
It assures you to remain secure from hackers, cybercriminals and fraudsters in the online world. By using 2FA for your virtual coins, you can earn the security of your wallet without any issues.
But, it is extremely advised to not use the SMS 2FA as it can be interrupted.
Rather, crypto enthusiasts recommend the Google Authenticator application because it can be used offline & are local to your device.
If you’re using third-party software to assist your trades, then it would be good if you place restrictions on your API keys so that they will only work with particular IP addresses.
That way, you’re certain no one will be able to touch your account even if they handle finding your secret keys.
Keep your devices safe
Use your common sense & focus on basic safe user practices such as: don’t download some suspicious files, keeping your firewall updated and enabled & don’t visit notorious hazardous websites.
If you desire to install software constantly check before comments and feedback of other users or if the company behind it is clear enough to trust.
Don’t store all of your funds in an exchange
Over the years, a number of crypto exchanges have become victims of hacking attacks & other safety issues. This resulted in many of their user accounts being blocked or worse, compromised.
That’s why there is no guarantee that your tokens can be securely stored in a crypto exchange platform. It must be stored in a private wallet.
There are four different kinds of wallets: paper wallets, mobile wallets, hot wallets, & cold wallets.
In the crypto world, it is extremely recommended to have a cold wallet, also recognized as a hardware wallet. It has a Secure Element (SE) chip to save your keys in an offline device.
These currencies are issued electronically by a group of people to some specific individuals, who can then trade them either in their own stores or at some other currency exchange counterparts.
This is what makes these volatile and risky as they are completely free from any kind of control.
The cryptocurrency industry is always evolving, & it is your main responsibility to protect your digital funds by securing your wallet with necessary safety precautions.
Update yourself with the newest security news, attack techniques, & prevention strategies.