As an investor, you are concerned about how many checks and balances there are. The key is to always keep your digital currency under your control to avoid cryptocurrency fraud.
Becoming a “hard target” will make your digital currency less attractive to hackers. The lack of global regulation of cryptocurrency has its advantages and disadvantages. Crypto has seen rapid innovation, but security has not yet been standardized. You are responsible for managing it as a user. Therefore, you can take some steps to maintain the security of cryptocurrency, including precautions in the age of crypto.
Here’s how to keep thieves, hackers, scammers, and scammers away:
1. Invest in reputable and safe exchanges
Cryptocurrencies are bought and sold on exchanges, just like stock trading. There are many cryptocurrency exchanges with large trading volumes, and there is always more. Kraken, Gemini, Coinbase, Crypto.com, and Binance are arguably the safest and best crypto platforms out there. Kraken covers 99% of the world and has a dedicated cybersecurity team.
The New York Department of Financial Services regulates Coinbase and Crypto.com, while the Federal Reserve regulates Gemini. Cryptocurrency exchanges like the ones mentioned above have a robust cybersecurity infrastructure and store user crypto in geographically dispersed, heavily monitored, and armed storage facilities.
2. Use a secure internet connection
You should keep your encrypted account secure by avoiding public WiFis and suspicious websites, but this is not the only precautionary measure you should take. Especially if you are trading cryptocurrency at home, you need a little bit of security setup. For online security, set up your firewall and anti-malware software and create a strong password for your router.
Most routers have a default password. To stay safe, update your router software, enable network encryption, and disable network name broadcasting. Add security by investing in a Virtual Private Network (VPN). VPNs mask your online activities and encrypt your communications with your ISP so that no one can view your activities.
Finally, it is advisable to use a dedicated device to access crypto-assets online.
3. Take the lead – don’t be a follower.
Before using a coin or lending business, research it thoroughly. Don’t be afraid of getting lost and don’t succumb to peer pressure. An investor who rushes because of FOMO will have his portfolio destroyed.
In a survey conducted in September 2021, celebrities influenced nearly half of the investment decisions of cryptocurrency investors in the United States. In less than one month after it was approved by Najma, EMAX has lost more than 90% of its value, which shows that such behavior can negatively affect investors.
4. Don’t fall victim to phishing
Historically, phishing has been more common than crypto as a scam. Phishing scams involve tricking you into giving your sensitive information to a criminal via email, text or social media. They offer free cryptocurrency or NFT on their website to trick you into giving them access to your wallet.
Once they have the cryptocurrency or NFT, they can take it. Do you think it will never affect you? Think again. Well-known actor Seth Green was the victim of a scam that cost him thousands of dollars. For cryptocurrency security, do not click on random links that you receive in emails or text messages. Do not provide wallet recovery passwords or phrases to suspicious websites, nor should you allow them to access your wallet.
5. Put your crypto coins into a multi-cooled wallet
The best way to hold cryptocurrencies is to trade them rather than hold them, but from a security point of view, this is not the best option. It’s okay to trade on exchanges, but breaches happen, and some platforms stop withdrawals, especially during a downturn.
It is better to store cryptocurrencies in multiple wallets, preferably cold or mobile devices, and not on exchanges. There is nothing better than a cold wallet because it is not accessible from the Internet.
Cool wallets are best for just about everything. Ideally, keep most of your cryptocurrency in cold wallets and the rest in software wallets or exchanges if you are trading.
Although taking a proactive approach to cybersecurity may seem cumbersome and time-consuming at first, it is better to prevent damage than mitigate it when it comes to money and digital assets. You can reduce the risk of hacking by trading on a secure exchange, splitting your assets among multiple wallets, using secure internet connections, and using multi-factor authentication. You can do everything right, but cybercriminals may still put your information at risk, so make sure you have a plan in place to deal with such incidents.
The author is the founder and CEO of Heru Finance.
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