7 Security Tips Every Crypto Trader Should Know

Cryptocurrency is undoubtedly a significant growing trend in today’s financial market. Since they have developed into a viable alternative for managing personal and professional finances, people are beginning to take digital currencies seriously. Additionally, as the stakes rise, there’s a growing demand for cybersecurity solutions.

If you’re a crypto trader, you’re likely serious about what you do. You’re maybe pleased because you can use your digital currency to invest, trade, and perhaps save a lot of money. Yet, what would happen if all of your coins vanished one day? You’re inclined to blame the hacker initially, yet protecting your assets is partly your responsibility.

Here are some security and privacy tips that’ll help secure your cryptocurrency funds:

Conduct Extensive Research On Exchanges

Before investing time and money into the crypto market, do your research and understand crypto exchanges. Thankfully, there are many exchanges where you can sell and buy cryptocurrency. If you want to start crypto trading, don’t forget to read reviews and communicate with experienced investors or traders. And make a decision based on your knowledge.

This procedure can also be applied to password managers because entrusting crypto passwords to password managers is a risk in itself.

Double Check The Web Address

Using fake websites is one of the effective cryptocurrency scams through which scammers attempt to steal your cryptocurrency assets. They’ll create a fake website that seems quite real––the branding, the URL, and practically everything else that a real website possesses.

With such fake websites, only a keen eye for details can detect the difference. Most scammers use bogus domains to draw you into their baits; the domain names resemble the original websites. But how do you recognize a phony domain from a legitimate one? By looking for it in small details.

They usually utilize letters that are numbers in actual domains and vice versa. For example, they replace I with ‘l’ or ‘1.’ If you receive an email with a link, copy it and paste it into a word document before pasting it into your browser.

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Never Use Public Wi-Fi

For cryptocurrency holders who treasure their funds, public Wi-Fi is a no-no. Many attackers steal from their targets over public Wi-Fi, so exercise caution whenever you access the internet via your phone, computer, or tablet in a public place. If unsure, don’t connect. Also, don’t lend your phone to strangers. If you live on campus, keep an eye on your smart devices.

Choose The Right Cryptocurrency Wallet

A crypto wallet is a vital tool for managing private keys. So, you must choose the best crypto wallet based on features, technology, security, and cost. Using offline storage and cold wallets can also be used to improve security in some instances. Hence, understanding the various types of crypto wallets could help you secure your crypto investments.

Wallets are divided into two types: hot and cold. The main distinction between hot and cold wallets is that hot wallets are online while cold wallets aren’t. So, cold wallets are regarded as more secure for digital asset storage.

Keep Your Private Key A Secret

The private key is used to access a cryptocurrency wallet, and it must be stored securely to prevent unauthorized access. Someone else can simply access your wallet and use your bitcoins if you lose or expose your private key. Hackers can easily discover that two wallets belong to the same owner by tracking the wallet address. Like the private keys, you must continually update your wallet address to prevent hackers from noticing any patterns in your transactions.

Prevent Getting Phished

Cryptocurrency phishing scams using fraudulent advertising and emails are common. So, avoid questionable and unknown links when transacting in crypto.

CryptoCore, a hacking gang, recently attacked cryptocurrency exchanges using spear-phishing. Since 2018, hackers have targeted the US and Japanese corporations, stealing USD$200 million in cryptocurrencies. Before launching a spear-phishing attack, CryptoCore conducted reconnaissance to identify the email accounts of employees and security officials. Primarily, they used phony domains mimicking affiliated companies and workers. 

Use 2FA

Two-Factor Authentication (2FA) is a security feature that works hand in hand with your passcode. If you have 2FA enabled, certain operations within the software will require you to enter a code.

Malware, phishing scams, or simply discovering and utilizing passwords, PINs, or seed phrases are all sorts of cryptocurrency crimes. No single defense can guard against all threats. The good news is that you can ‘harden’ your devices and accounts, reducing the risks of theft and impersonation. And 2FA is one of the best protections against account abuse and crypto theft you can use.

Conclusion

Observing security measures properly can protect your cryptocurrency from theft, loss, etc. Remember that making the right choice can lead to big profits, while a minor error might lead to losses.