Do you know that poor digital currency security led to $204 million in losses in the first quarter of 2023, according to a recent report published on Techopedia? This is a testament to show that data breaches in the crypto world don't only exist but also lead to the loss of millions of dollars periodically.
When data breaches happen, hackers and scammers tend to go away with millions of dollars, while investors are left to nurse their losses. The good news is, that with great financial technology companies like Swissmoney, investors and consumers can enjoy the protection of their assets against any form of data breach.
Before trading currencies, one important step an investor must take is to familiarize themselves with the best practices to protect their currencies. However, most of them assume that all digital assets, like Bitcoin, are inherently secured because of their customized blockchain.
While this might be the case when referring to the overall BTC network and other blockchain systems, investors tend to store their currencies in third-party platforms known as exchanges, giving unrestricted access to unsanctioned or regulated exchanges to their digital assets.
Essentially, this will mean that investors cede their measure of authority to these exchanges, a situation that promotes security vulnerability and the rise of different complications.
Below are effective, expert-inspired strategies to safeguard your cryptocurrencies from scammers and hackers;
There is no surest way to keep your digital currencies than storing them on secure, personal, air-gapped devices. Not storing them yourself gives third parties access to your money and may risk bankruptcy or losing your money in other ways.
However, keeping them yourself does mean they are totally safe from scams. This is why it is important you do this correctly. Make sure your currencies are kept in a secure backup in a separate location.
Pick a cold storage wallet.
In the crypto space, cold and hardware wallets are considered to be the most secure due to their privacy keys, the fact that they don't leave private keys online, and numerous likely threats.
Therefore, you must conduct a diligence study before choosing your crypto wallet. Look out for 2-factor authentication, strong encryption, secure backups, and other security measures and mechanisms.
Also, ensure your private keys are protected at all costs and at all times. Experts will tell you to scribble them down and store them in a secure place. In case you don't know, one of the easiest ways to lose your funds is to expose your private keys.
Not Every Public WiFi is Good for You
One prevalent preventive measure against currency theft and losses is to avoid using public WiFi to access your crypto wallet account. Public WiFi is known for lacking security and is highly vulnerable to cybercrime.
However, if there is a need to access your crypto account through a public WiFi network, ensure you use a VPN. This will help you reinforce security layers that prevent external forces from unrestricted access to your account.
Opt-in for a robust password option
As an investor, it is safe for you to create a unique passcode for your crypto account. You do this by fighting any prompting to duplicate passwords across different accounts and using a secure passcode manager to create and prevent your passcode.
Using a flimsy password could open the access for hackers to have access to your accounts. Choose passwords that can be best known and remembered by you.
Avoid hackers and scammers.
Even though it is essential you keep your funds using different methods to safeguard them from unauthorized individuals. It is quite important you stay away from people you perceive to be scammers.
Right now, cyberattacks on crypto and exchanges pose a serious threat that law enforcement is struggling to curb globally. So, it is your responsibility as an investor to be aware and conduct due investigation to ensure you don't fall into dangerous tricks and fake websites promising unrealistic higher returns.
Don’t Store Your Passwords in a Browser
Another expert tip to guard against crypto theft is to avoid storing your password information on Google Chrome to help you keep it should it skip your mind. One dangerous thing about if someone gets access to that device is that your passwords are exposed.
Having your password in a secure place is the best form of protection you can give your funds. Don't forget that you may lose your device and have it stolen. This will mean that all your details will fall into the wrong hands.
There is a variety of digital assets combined with a lack of regulation, which makes digital currency investing a focal target for scammers of all calibers. Therefore, you should take due diligence (with a healthy dose of paranoia) much more than when working with traditional finances.
Move with the consciousness that scammers are everywhere in the digital sphere, and be watchful of every step you take and the actions you make.
It is good to know all the tips and try to guard against cybercrime, but taking responsibility is the greatest way you can do this. This simply means taking extra caution and conducting diligence before engaging in transactions with anyone in the crypto world.
Always be conscious that the space is filled with hackers and scammers, and do everything necessary to avoid being scammed. Remember that the greatest protection you can give to your currencies is yourself.
Be smart enough to know when scammers are approaching with juicy and unrealistic offers, such as giveaways, romance scams, and phishing schemes, and kindly avoid them.
In conclusion, being an investor is not only about investing your currencies in selling or buying at a favorable rate; it is also about being security-minded as well. The crypto space, like the traditional banking system, is filled with scammers and hackers, and you won't want to lose your investment to people looking for ways to dwindle people.
Being security-minded will help you take some crucial considerations, such as overall good online security to protect your currencies.