Cryptocurrencies have become very popular since their launch, with people from all over the world looking to integrate them into their portfolios to drive revenue and ensure that their assets can withstand the changes occurring in the trading environment, whether it’s inflation or currency depreciation events. As a result, youโve most likely noticed people starting to include more and more coins in their list of holdings. Some are focused on the most well-known names such as Bitcoin, Ethereum, and Solana, while others prefer the meme coins and check the latest shifts in the pepecoin price or how well Dogecoin has performed.
NFTs, Ordinals, and exchange-traded funds are popular among traders as well. However, cryptocurrencies remain high-risk investments, and keeping up with all the developments taking place in their ecosystems can be quite challenging. The fluctuations and volatility are the reasons why investors should always have a robust, customised strategy when approaching the crypto environment. Since the changes are also pretty much impossible to predict, it is also essential to be responsible and not carry out ventures you feel unsure of. Just because cryptocurrencies carry higher risks than traditional assets doesnโt mean that you shouldnโt engage with them at all, but you need to be aware of some of the best strategies to keep yourself safe.ย
Careful who you trust
One of the most important things when it comes to navigating any online space is to remain cautious. This applies to crypto just as much as it does to social media platforms and forums. You must remain vigilant at all times and donโt trust anyone with your personal details and credentials, even if you believe them to be your online friends. Donโt ever brag about how many coins you have online, just like you wouldnโt brag about inheriting tens of millions of dollars.
Remember that crypto wallets are highly sought after by cybercriminals who aim to access and extract the funds. After they succeed in doing so, getting your money back is pretty much impossible due to the way in which blockchains are built. Hackers can attract you into different kinds of scams in order to obtain your credentials, with some pretending to be your friends or even romantically interested in you, while others claim to be part of tech support teams and pressure you for your account details. Remember that exchanges will never ask you to divulge this type of information over email or social media. They also donโt call customers on the phone.
However, since the scams have become so sophisticated, they might seem so realistic that youโre worried about dealing with the repercussions if you donโt do anything. You can reach out to the platform you use in this case and ask them to confirm whether the request is legitimate or not. As a general rule, if youโre feeling threatened or pressured to make a choice right away or are asked to share your passwords, you can be certain that youโre dealing with illicit activity.
Cryptojacking
Apart from ransomware, malware, and social engineering, digital asset users also have to deal with cryptojacking, a phenomenon involving the unauthorised use of your deviceโs processing power in order to mine cryptocurrency. Hackers will install malicious scripts on your system without your knowledge, and they will drain your computer’s resources. It wonโt lead to stolen funds, but it can definitely harm your devices, their performance, and their lifespans.
If you notice that any of your computers or laptops work more slowly than they used to, become very hot, and their fans are constantly running, and the battery drains faster (this also applies to smartphones), you might be dealing with someone whoโs hitchhiking on your computational power. In some cases, you will also notice an increase in your energy bills as a result of the elevated power consumption. Monitoring tools such as Task Manager can reveal unusually high processing power usage. Using a reputable antivirus program and being careful with the links and attachments you open is key to avoiding cryptojacking.
You can also install browser extensions built specifically to block cryptomining scripts.
Hardware wallets and passwords
Hardware wallets are the safest way to store crypto, especially if you own a considerable number of them and plan to do so over the long term. With them, your private keys are stored offline, giving them nearly full immunity to online hacker attacks. Offline storage is not connected to the internet, so malware can only compromise it if you connect the device to a computer that has been infected with malicious software before. Back up the walletโs seed phrase to be extra sure and so you can restore the funds on a different digital wallet if the previous one is damaged, stolen, or lost.
Donโt store your seed phrase digitally, whether on your computer or in cloud storage, as it makes it much more vulnerable to hacker attacks. And always stay away from public Wi-Fi networks, no matter how convenient they may seem. Anyone else using the network can intercept your data and set up fake hotspots to steal private and valuable information. Using a VPN will encrypt your data traffic, so if you absolutely have to access your crypto account in a public setting, make sure to always use one. Donโt make transactions while connected to public networks either.
Accounts and thresholds
Remember to monitor your accounts regularly to determine if thereโs any suspicious activity on them. Doing so allows you to detect hackers before they have time to make a move and cause more damage. Both wallet services and exchanges can notify you if withdrawals, logins, or transactions have occurred without your consent. If someone tried signing in from their device or attempted to complete a withdrawal, you should be informed. Check your transaction history from time to time as well, and if you discover any transaction you donโt recognise, change your password quickly and contact your providers right away.
While large transactions will typically draw your attention, there are also situations in which hackers will extract tiny, basically undetectable amounts over a long time, quietly amassing a large number of coins. Change your settings to require two-factor authentication for withdrawals and set lower thresholds for single-transaction withdrawals.
To sum up, entering the crypto world requires significant planning and no small amount of attention to detail. Prioritising your security should be a top priority and is the only way to ensure your portfolio is safe.
The above information does not constitute any form of advice or recommendation by London Loves Business for investment, nor is it intended as investment advice, financial advice, or trading advice. Cryptocurrency mining and staking involves risk. There is potential for loss of funds. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities.
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