While the process of buying cryptocurrency is very easy, the process of storing it securely requires completely different knowledge and skills. Therefore, there is a great need for ideas to help keep cryptocurrencies safe and sound.
Cryptocurrency is based on encryption. Thus, it can be said that hacking a blockchain or a private key is impossible because trying to hack an algorithm protected by cryptography requires the massive computational power that computers today lack. However, the threat is not so much about crypto hacking as scammers and hackers targeting target users for their abuse.
Beware of phishing scams
Phishing can be defined as a fraudulent attempt to obtain sensitive information from a user by pretending to be a trusted entity. Scammers use a very common scam technique that involves creating a fake mirror of the exchange platform or web wallet page used by cryptocurrency holders. They send the link attached to a confidential message to the victim. This message then convinces them to log in and take immediate action.
There have been many cases where people have interacted with these scam messages, accessed these sites, and entered their data. The scammers then use this data to do whatever they want. To avoid phishing, make sure that the link shown in your browser is the same as the one in your trading platform or web wallet.
Avoid storing cryptocurrency on cryptocurrency exchanges
Even if you take the right precautions to keep your cryptocurrencies safe, this does not mean that your cryptocurrency trading platform can do the same. There have been many cases in the past which prove that these platforms can be hacked or escaped with users' money. This could be due to technical errors or hacking. If you are not planning to exchange your coins anytime soon, transfer your coins from the trading platform to your external wallet.
And if you insist and want to store your cryptocurrencies on exchanges, you can check out some of the popular platforms like Coinbase, eToro, Binance, and Kraken. They have proven themselves, which means your coins will be safer on these digital platforms.
Buy a hardware wallet
The hardware wallet is often cited as one of the most secure ways to store cryptocurrency. A hardware wallet is defined as a physical device that holds the private key, protecting it from the eyes of criminals, and providing the user with easy and offline access to cryptocurrencies.
Avoid public Wi-Fi networks
Wi-Fi can turn your browser to any page. The conversion may sometimes be for a version that mimics the trading platform or wallet you are using. Accordingly, those behind public "Wi-Fi" will be able to collect the data transmitted over the network, and if they hold the password you wrote down, this will make it easier for them to undo you.
Therefore, we recommend that you do not connect to your wallet on public Wi-Fi. And if necessary, use a Virtual Private Network (VPN). It is a way to add privacy and security to private and public networks such as the Internet and Wi-Fi hotspots. As businesses mostly use VPNs to protect their sensitive data.
Ensure the security of the device
Make sure not to install any software if you are not completely sure. You should never download suspicious attachments. Before installing any software on your system, be sure to do thorough research on its reputation. You can use Google and social media platforms like Reddit or even ask your friends.
Enable two-factor authentication
Two-factor authentication refers to the extra layer of security added to the authentication procedure. This makes it difficult for hackers to take over your wallet or target your trading account. Because the password alone is vulnerable to cyber-attacks. In general, most cryptocurrency exchanges and wallets require two-factor authentication.
Beware of Bitcoin gambling sites
Many people are attracted to bitcoin gambling because of the anonymity it provides. Anonymity can sometimes be harmful. This makes it difficult to verify whether the platform has the appropriate licenses or whether there is a guarantee that your tokens will not be stolen. To keep your cryptocurrency safe, you must first avoid bitcoin gambling sites.
Do not enter for pumping and draining sets
Pump and dump is a tactic used by a group of people or influencers to create buzz to convince many people to buy cryptocurrencies simultaneously. By doing so, the price of the target cryptocurrency skyrockets and dumps, allowing the organizers of this tactic to sell everyone at a higher price and leave them in the middle. This practice is illegal in the cryptocurrency and physical markets. Therefore, we advise you to stay away from it to keep your cryptocurrencies safe. Organizers can encourage you to participate by promising big returns. But the truth is that only the regulators will benefit from it.
Use strong passwords
When creating a wallet or account on a cryptocurrency trading platform, you must use a very secure password. The password contains numbers, uppercase, and lowercase letters, symbols, etc. It could be a combination.
Password Generator is an online password generator tool that helps generate secure and random passwords instantly, given that the password is stored in a safe place. The best thing you can do is keep it offline or on a piece of paper.
Keep your private property
There have been many cases of attacks and even murders by bad actors trying to steal cryptocurrencies before. Cryptocurrency theft seems attractive to both criminals and scammers due to its anonymous nature. If money is stolen from a bank account, it can usually be linked to an asset and retrieved, but the owner of bitcoin and other cryptocurrencies cannot be traced in the crypto market. For this reason, you should never tell anyone how much cryptocurrency you own to avoid being a target.
It is worth noting that cryptocurrency theft has become very common in the past few years. Its growing popularity and privacy have caught the attention of many hackers because the cryptocurrency market is getting more profitable every year. But as we mentioned in the tips above, prevention is better than cure, and following these tips will prevent losing your coins.
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Cryptocurrency trading