Bitcoin and other cryptocurrencies were established to bring about a new and secure means of transaction, free from bankers and brokers.
But, as this technology becomes more popular across the world, many people are now becoming uneasy with the idea of being the only ones with access to their online investment.
Investors are realizing that technology’s high security also means they could easily get locked out. More alarming is the fact that cryptocurrencies are now a breeding ground for cybercriminals.
Hackers are now targeting cryptocurrencies because it’s immediate and ready money. This article tackles how to stay protected when trading cryptocurrencies irrespective of your location.
Dangers of Trading Cryptocurrencies
While cryptocurrency is known to be the more secure way of transaction, it comes with its own risks as discussed below:
- Phishing and Malware
- Human Error
- Investment Scams
Phishing and Malware
Now more than ever, phishing and malware attacks are on the rise as cybercriminals take advantage of the heightened anxiety brought about by the current Covid-19 situation.
Phishing emails advising people on how to buy treatments for the virus, protective equipment, and testing kits are on the rise.
These emails are being sent to unwary individuals asking them to click on the link or attachment that subsequently leads them to a fake website that possibly collects sensitive data or asks for Bitcoin payment for the fake goods.
With the intangible nature of cryptocurrencies, human error or password amnesia can result in the total loss of your crypto fortune.
The constant risk of losing hardware or being locked out and the price volatility of cryptocurrency make this investment a risky affair.
What’s more, high-profile investors risk being exposed to direct physical security dangers like kidnapping, ransom, and extortion.
Crypto investment scams are all over, with fraudsters impersonating crypto dealers and crypto exchanges, and promising large profits to investors who buy cryptocurrencies such as Bitcoin, which is the most dominant on the market.
Best Ways to Stay Protected When Trading Cryptocurrencies
- Keep your Cryptocurrencies in Different Places
- Consider a Cold Wallet for Storing your Coins
- Avoid Free Public Wi-Fi or Use VPN
- Use Strong Passwords
- Use Two-Factor Authentication
Here are some of the tips to help you protect your internet fortune.
Keep your Cryptocurrencies in Different Places
Just like any other investment, you should not keep your eggs in one vessel when it comes to cryptocurrencies.
Should an exchange incur problems for one reason or another, you’ll be able to protect your investment and reduce the impact of your losses by spreading out your cryptocurrencies.
Consider a Cold Wallet for Storing your Coins
Another way to stay protected when trading cryptocurrencies as a crypto investor, you should be able to feel and see your money.
That’s why it is a good idea to consider using an offline hardware device such as a hard drive or USB and avoid online exchanges.
This is because hackers are always targeting online wallets and exchanges to steal coins.
USB devices come with buttons that allow users to cancel or confirm a transaction by tapping on the device. That means hackers cannot be able to record your keystrokes.
Avoid Free Public Wi-Fi or Use VPN
Avoid the temptation of using unsecured public wi-fi when accessing your wallet to prevent someone from eavesdropping and sidetracking your money to someone else.
If you have to use public wi-fi, consider using a VPN. What a VPN does is encrypt your traffic online and ensure anonymity when you trade your crypto.
Use Strong Passwords
Make sure your wallet and backups are protected by using a very strong password. This is a password that can’t be easily remembered or cracked.
Make sure your password has a mixture of numbers, lowercase and uppercase letters, and symbols. Remember, the longer and more diverse your password, the harder it is for the hacker to crack it.
Use Two-Factor Authentication
Another best way to stay protected when trading cryptocurrencies is to use 2-factor authentication e.g Google Authenticator.
Other than using a strong password, investors should consider using multi-signature to authorize a cryptocurrency transaction since this will considerably reduce the chances of hacking.
Just like market volatility, crypto investors face other dangers. The good news is that many of these threats can be avoided with just a little common sense.
Following the above tips are some of the crypto investment advice to keep you continually safe and protected when trading cryptocurrencies.
Amy is a content strategist at TechFools, a tech blog aiming to inform readers about the potential dangers of technology and introduce them to the best ways to protect themselves online. As an outspoken advocate for digital freedom, Amy is dedicated to empowering her readers to take control of their digital lives with her thought-leadership articles.