28 July 2021
The cryptocurrency trend is undeniably a huge hit in the current financial industry. A growing number of people are participating in the Cryptocurrency world, and it is attracting major investors. Nonetheless, what if something unexpected happened and one day all of your coins are gone? Since Cryptocurrency is based on a decentralized peer-to-peer network, there is no centralized authority accountable for your Cryptocurrency security.
Yes, the digital currency is backed by Blockchain Technology, making it highly impossible to break into the system. Cryptography secures the transactions, and hacking the system would require an unfeasible amount of computational power. Despite the secure environment, Cryptocurrency has faced countless cases of security-related issues. Thus, if you are forewarned, you’re forearmed.
In this blog, we are going to discuss 10 Security Tips Every Crypto Trader Must Follow
1. Look out for the Scams
Phishing is one of the common scams in the Cryptocurrency world. It is a type of fraudulent activity wherein the person impersonates themselves as a trustworthy entity and attempts to obtain the user’s sensitive information. The technique involves a fake account, a similar version of the Crypto exchange or wallet, persuading the users through emails or messages with links to log in. Many users have succumbed to this tactic, accessed and entered their personal information, resulting in data theft and misuse. To avoid scams, you must be vigilant and cross-verify the links with the Crypto exchange or web wallet before filling in or giving the details.
2. Storing Crypto on Exchanges
Over the years, there have been many cases of Cryptocurrency exchanges losing user’s funds through theft, hack, or have faced other security-related issues leading to compromising the account. It is always advisable to store your Cryptocurrency on a Hardware wallet than storing it in the Exchange or Hot wallet.
If you plan to trade, you should transfer only the required amount on the exchange rather than storing everything in one place. Or you can look for reputed and trusted Cryptocurrency exchanges to store your assets.
3. Cryptocurrency Hardware Wallets
Storing your Crypto in a Hardware wallet or a Cold wallet is one of the most secure ways to store your digital assets. A hardware wallet is a physical device that protects your private key, enables easy access, and keeps it away from the hacker’s prying eyes. Besides, it is recommendable to backup your wallet’s private keys offline. You can use Hardware wallets like Trezor or Ledger to safeguard your assets.
Also Read, Know the right way to store your crypto!
4. Device Safety
A digital footprint refers to all of your online activity traces, such as your social network posts, comments, cookies, IP address, and login information are all included. Hackers can use these traces to gain access to your personal information. It is important to have an updated firewall and antivirus software for your device. Make sure you don't install any software that seems dubious, and you aren't convinced about. You must research and examine the software - its reputation and reviews thoroughly before installing it on your device.
5. Add layers to your Password
You must use an extremely strong and tricky password when creating your account on Crypto wallet or exchange platforms. A combination of uppercase, lowercase, symbols, numbers, and other characters is advisable. You can even use the Google Authenticator app, Authy, or other reputed password generators to secure your account. Activating 2FA acts as an extra layer of security to your account. It makes hacking and invading your account difficult. Many Cryptocurrency exchanges and wallets offer 2FA to secure your account and Cryptocurrency.
6. Avoid Public WiFi
You must avoid using Public Wifi at all times, this isn’t only applicable to secure your Cryptos but for the overall security. Your browser can be redirected to any page via Wi-Fi, thus, the chances of you logging on to a clone platform are higher. The hacker will be able to gather data sent across the network to see if it contains the password. If you have to use public Wi-Fi to access your wallet or exchange, you must make sure that you’re using VPN to protect sensitive data.
7. Check your account activity
When was the last time you checked your account? When dealing with money, it is crucial to audit all your holdings, Cryptocurrencies, wallets, logins, and other related accounts. Checking your account activities and keeping track will lower the risk and will help you stay updated. Monitoring your account will help you take action if you come across any suspicious activity.
8. Don’t fall for FOMO, FUD, and Pumps and Dumps
The golden rule of Investment is “Invest what you can afford to lose”. Before investing, always DYOR, and you must have a goal, plan, and strategy, understand your risk tolerance, and have an exit strategy. You can learn about the site through the Crypto community forums or review sites.
The Crypto market is volatile; thus dealing with it can be overwhelming; it is crucial to keep your emotions in check and avoid luring things that look too good to be true.
9. Diversify your Cryptocurrency Portfolio
The Cryptocurrency market is unpredictable, so instead of laying all your eggs in one basket; you must diversify your Cryptocurrency portfolio. Creating a diverse portfolio will aid you in reaping potential future Cryptocurrency benefits. You can even add a Cryptocurrency portfolio tracker.
10. Don’t Kiss and Tell
Well, that’s not exactly what we are getting at, but if you are investing in Cryptocurrency, make sure you don’t broadcast every chance you get. We understand that Crypto trading is the recent bandwagon investment, but it will only harm you. Therefore, do not tell everyone how many cryptos you hold and only share with the ones you trust.
Cryptocurrency security is a two-way street; therefore, it is not only the service provider’s job but yours too! Just like how we don’t leave the house door open but rather locked; similarly, you should not leave your Crypto assets like that. If needed, triple-check your steps before making any Crypto transactions and be updated with the latest Crypto developments and scams to stay ahead of the game; after all, it’s your money at stake.
Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.