The hype surrounding cryptocurrency is real, but so is the risk. They are becoming trendy in the industry. It’s a market that has exploded in recent years, and it shows no signs of slowing down. With their prices skyrocketing and values constantly changing, they are an intriguing form of currency. Because of their digital nature, there are several ways in which you can be vulnerable to cyber-attacks.
Trying to make sense of it all can be confusing for newcomers to the field, especially with news stories about significant breaches and stolen funds. If you are thinking about investing in cryptocurrency, such as Bitcoin, here are some security steps to protect yourself from cybercriminals.
1- Choose Wallets Carefully
This seems obvious, but many people don’t realize the importance of choosing your private key wisely. Don’t store your cryptocurrency on a website or an exchange because that could expose you to hacking. You want to make sure you’re using a secure wallet, such as one created by Bitpay. These companies conduct thorough background checks on employees who are allowed access to their systems, which helps reduce the risk of a breach. Every time you make any transaction involving your cryptocurrency (e.g., send it to another exchange), you must move it into your E-Wallet before completing the transaction to keep your cryptocurrency safe from theft by malicious parties who might have gained access to it. Using an online wallet might sound convenient, but it’s not worth the risk.
2- Set Up Multi-Factor Authentication
Set up multi-factor authentication for all online accounts, including cryptocurrency accounts. The concept of multi-factor authentication is relatively simple: when logging into a site that requires authentication, the user provides two (or more) identification before being allowed access. This means that without one or more of the different authentication factors, it would be impossible for someone to gain access to your account. You also need something else — like a code texted to your phone or generated with an app on your phone — to prove it’s you accessing the account.
3- Beware of Scams and Don’t Give Out Personal Information
Scammers target everyone from newcomers to cryptocurrency veterans with false promises of high returns and low risks. Don’t fall for sales pitches that guarantee big profits or suggest that cryptocurrencies are safe because they’re “decentralized” or “cryptographically secure.” Make sure to check out crypto forums like Bitcointalk and Reddit before investing in any currency or project to verify whether it’s legit.
You might think your contact information is being collected for marketing purposes only by giving out personal information — but what happens if hackers see it? And attackers are increasingly targeting sites where consumers share personal data like email addresses and credit card numbers.
4- Never Invest More than You Can Afford to Lose
The most important thing about investing in cryptocurrency is that you must be prepared for any eventuality. This means that you need enough information about the market and the various factors at play before deciding about buying and selling.
Cryptocurrencies are volatile, and there is no such thing as making a 100% safe investment. Don’t invest more than you’re willing to lose because if something happens and your investment goes down the drain; you’ll be left with nothing.