Home Business Insights & Advice How to protect your Cryptocurrency against thieves

How to protect your Cryptocurrency against thieves

by LLB Reporter
15th Jun 18 9:12 am

Read on to find out

If you’re into cryptocurrency trading, then security should be one of your primary concerns. It’s easy to focus all your time and attention on researching what digital assets to invest in and forget the necessary steps needed to protect your investment. And despite what many people would have you believe, simply using a crypto wallet doesn’t mean you’re safe from fraudulent attacks. Keep reading to learn how you can effectively safeguard your crypto against thieves.

First, it’s important to understand the many ways cryptocurrency can get stolen. The immense popularity of cryptocurrency has led to a new breed of cybercriminals. Back in 2016, when crypto wasn’t as popular as today, $95 million worth of Bitcoin was lost to thieves. In 2017, the cryptocurrency market lost about $215 million worth of digital coins due to phishing, exploitation of crypto wallets, hacks, and Ponzi schemes.

Surely, you wouldn’t want to find yourself the next victim of crypto theft. You shouldn’t feel satisfied after learning how does Bitcoin work. You must also be equipped with the knowledge of how you can protect your digital assets. The following are the most common ways for thieves to steal your coins:

Brute forcing – This tactic has existed since time immemorial. The attacker tries guessing your password endlessly until he accesses your account or wallet.

Phone porting – Are you using your phone for verification purposes each time you log in? Hackers know this, so they try transferring the messages to their phone and then change your account password.

Phishing – Be careful of the things you open in your email inbox and install on your computer. Phishing scams install malware that looks for your digital wallet and steals your cryptocurrency and other private information.

Ponzi schemes – You only must read the story of BitConnect to understand what this scheme is about. Basically, investors shell out money to join the scheme with the promise of getting huge returns, but these gains only come from the money put in by new investors.

Mining malware – This involves hacking your computer, so it does all the mining without you realizing it.

How to safely invest in Cryptocurrency

Make sure you encrypt and back up regularly to keep an updated record of your cryptocurrency wallet. It’s recommended to use a mnemonic phrase, so you can easily recover your wallet in case you lose it.

Consider using an antivirus product that specifically hunts for crypto-related malware and viruses.

Online wallets, also referred to as hot wallets, should only be used for small transactions. It’s never safe to store many cryptocurrencies online, regardless of how popular the wallet is. You’re better off investing in an offline wallet for a more secure storage option.

SMS authentication isn’t a safe and effective way of keeping your digital coins secure. Hackers can easily steal your phone number.

Just as you’d want to diversify your cryptocurrency portfolio, you’d also want to diversify your holding by using different crypto exchanges. Each of your accounts should have a unique password.

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