Follow these cryptocurrency security measures to help protect your crypto investments.
Cryptocurrencies— and the public’s interest in them — are surging across the globe, garneringmore than 300 millionusers across nearly 150 countries. How did thishappen so fast? Well, it could be they’re more convenient than your typicalbank, great for avoiding transaction fees, and accessible for anyone looking toinvest.
However, nothing isperfect. There are still cryptocurrency security threats that could makedealing with money on this new digital platform risky. Use this cryptocurrencysecurity guide as a tool to improve your crypto safety. We’ve mined for answersto how safe cryptocurrency is, commoncryptocurrency scams, advantages and disadvantages of cryptocurrency,along with security measures for protecting cryptocurrency wallets.
Let’s dive in.
What is cryptocurrency?
Cryptocurrencyis adigital currency that uses advancedencryptionto make it nearly impossible to counterfeit. Unlikethe money we’re used to dealing with, cryptocurrencies exist on ablockchain. Think of this as a kind of virtual ledger that isseparate and out of reach of official governments and banks.
Beginning withBitcoin (BTC) in 2009, cryptocurrency received its name because of its use ofencryption to authenticate transactions. Since then, the world witnessed therise of Ether (ETH), Binance Coin (BNB), Tether (USDT), and many morecryptocurrencies that sparked further interest in these new digital assets.
How safe is cryptocurrency?
Trading, investing,and making purchases with cryptocurrency can be a pretty secure process. Theblockchain technology used to protect data during these transactions makes itdifficult for crypto scammers to hack.
However, it’simportant you not get tricked into a false sense of security. Hackers have beenworking hard to develop cryptocurrency scams to trick users into compromisingwallet keyphrases or other information that could allow them access to privateaccounts.
9 cryptocurrency security measures
Think aboutincorporating these cryptocurrency security measures to help ensure your cryptowallets stay protected from differenttypes of hackers.
1.Research trustworthy cryptocurrency exchanges
As with any type ofinvestment, it’s imperative that you do your research before committingyourself financially. As mentioned, there are a number of cryptocurrency scams,like investment opportunity scams, attempting to defraud people out of theirmoney, tricking people into compromising private keyphrases, and other kinds ofsensitive data.
2. Createcomplex passwords
Securepasswordsare always your first defense against cybercriminalsthat are up to no good. As you create login credentials for your crypto wallet,choose a password with a variety of letters, numbers, and symbols. This canhelp protect your crypto wallet fromcyberattackslikepassword sprayingand credential stuffing.
3.Diversify your crypto assets
One cryptocurrencysecurity measure people often take to protect their account and investments issplitting up their crypto assets. It’s completely fine to have more than one cryptowallet holding your balances. Creating this separation helps you avoid losingall of your money if a hacker is able to compromise one of your accounts.
4. Keepyour keyphrase private and store them safely
The best way to avoidhaving your crypto wallet hacked is remembering to always keep your keyphraseprivate and to store it safely. This unique phrase is the only thing that cangrant you access to your account and allows you to trade and purchasecryptocurrency online. Never share this with anyone — as a compromisedkeyphrase could lead to theft or fraudulent transactions associated with yourprofile.
Because these aremore complex phrases, you should consider using apassword managerso you don’t have to worry about forgetting it.Lastly, be sure to choose a crypto wallet that has the protective featuresneeded to keep your assets and information Cyber Safe.
5. Avoidpublic Wi-Fi
Public Wi-Fidoesn’t have the protection you need to defendagainst lurking hackers. That’s why you should avoid completing cryptocurrencytransactions until you are connected to a private internet connection you cantrust. Cyberthieves like to usespywareand othertypes of malwareto compromise keyphrases and other kinds of data.
6. Installa VPN
If you find that youneed to complete a crypto exchange or purchase on public Wi-Fi, aVPNis a great tool to have on your device. These work by maskingyourIP addressand network activity so hackers can’t follow yourevery move, which makes identifying potential targets and installingvirusesway more of a challenge.
7. Enabletwo-factor authentication
Most crypto walletsfeaturetwo-factor authentication, a process used to verify useridentitiesduring the login process.Biometricdata from facial recognition and fingerprintscanning software makes it next to impossible for crypto scammers toimpersonate you even after finding out your keyphrase.
8. Beware of cryptocurrency scams
Cybercriminals haveto turn to deception to work their way around cryptocurrency’s level ofencryption. Here are some commoncryptocurrency scamsused to trick everyday people.
- Investmentopportunity scams: Unsolicitedmessages luring you to a fraudulent website to get you to investcryptocurrency in a fake business opportunity.
- Impostercryptocurrency scams: Cybercriminalspose as a trusted company orgovernment agency to get you to complete a purchase or pay a fee usingcryptocurrency.
- Blackmailcryptocurrency scams: Afraudulent message informing you of stolen files that a cybercriminal willonly return after you pay a ransom via cryptocurrency.
- Social mediacryptocurrency scams: A false social media post or ad for aproduct or service requesting payment via cryptocurrency.
- Giveawaycryptocurrency scams: Scamsdesigned to trick people into transferring cryptocurrency in hopes ofreceiving twice as much back.
- Fake appscams: Apps designed to look like legitimatecryptocurrency trading platforms usingspywareto stealcredentialsas people log in.
- Loaderscams: Direct requests for access toyour cryptocurrency account to help with an investment, promising largereturns once complete.
- Romance scams: Hackers posing as online love intereststo trick trusting individuals to send them money using cryptocurrency orother payment methods.
- Phishing scams: Email messages often featuring urgentrequests for money or account issue alerts from illegitimate businessesand/or cryptocurrency companies.
- Employmentcryptocurrency scams: Scamsthat offer employment training sessions in exchange for payment viacryptocurrency.
There's no reason tofeel scared — just remember to look for the obvious signs of a potential scam, likean urgent request for money or your personal login credentials via email.
9.Download antivirus software
Downloadingantivirus softwarecan take a little bit of the weight of avoidingcryptocurrency scams off your back. You’ll automatically receive alerts if youcome across things like a potentially dangerous link or fake crypto websitethat could compromise of your crypto wallet.
Whether you’reinterested in purchasing anNFTor simply want to expand your investment portfolio,cryptocurrency security should be top of mind as you continue exploring thisnew investment platform. Use the information and tips provided to keep yourcrypto wallet and assets Cyber Safe fromemerging threats.
Cryptocurrency security FAQs
Round out yourknowledge of cryptocurrency security by browsing through some commonly askedquestions regarding digital currency.
How secureis cryptocurrency?
The process ofexchanging cryptocurrency is relatively secure. However, hackers usecryptocurrency scams to break into crypto wallets and steal investments.
Is cryptosafe to invest in?
There is risk in investingin cryptocurrencies, but there is also the potential for high earnings.
What arethe most popular cryptocurrencies?
Bitcoin is the mostpopular cryptocurrency, followed by Ethereum, Binance Coin, Tether, andLitecoin.
Which isthe safest cryptocurrency?
Ethereum was one ofthe first cryptocurrencies designed to block interference or fraud from outsideparties.
- Clare Stouffer
- Gen employee
Clare Stouffer, a Gen employee, is a writer and editor for the company’s blogs. She covers various topics in cybersecurity.
Editorial note:Our articles provide educational information for you. Our offerings may not cover or protect against every type of crime, fraud, or threat we write about. Our goal is to increase awareness about Cyber Safety. Please review complete Terms during enrollment or setup. Remember that no one can prevent all identity theft or cybercrime, and that LifeLock does not monitor all transactions at all businesses. The Norton and LifeLock brands are part of Gen Digital Inc.
Sure, I've got quite a bit to unpack here. Let's start from the top.
Cryptocurrencies are digital currencies secured by advanced encryption techniques, operating on a decentralized ledger called the blockchain. Their surge in popularity owes to their convenience, low transaction fees, and accessibility. However, despite their security features, there are prevalent threats such as scams and hacking attempts.
To safeguard your investments, there are several essential security measures:
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Research Trustworthy Exchanges: Investigate and use reputable cryptocurrency exchanges to avoid falling prey to scams.
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Create Strong Passwords: Utilize complex passwords with a mix of characters to fortify your crypto wallet against cyberattacks like password spraying and credential stuffing.
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Diversify Assets: Splitting crypto assets among multiple wallets reduces the risk of losing everything if one account gets compromised.
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Secure Keyphrases: Safeguard your keyphrases as they grant access to your account. Never share them and consider using a password manager for added security.
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Avoid Public Wi-Fi: Conduct cryptocurrency transactions only on trusted private internet connections to evade potential hacking via public Wi-Fi networks.
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Install a VPN: If necessary, use a Virtual Private Network to mask your IP address and enhance security, especially when using public Wi-Fi.
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Enable Two-Factor Authentication: Implement additional layers of security with biometric data or authentication codes to prevent unauthorized access.
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Beware of Scams: Educate yourself about common scams such as investment schemes, impersonation, blackmail, social media scams, fake apps, phishing attempts, and more.
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Download Antivirus Software: Antivirus programs can provide alerts against potential threats like dangerous links or fake crypto websites.
Understanding these security measures helps protect your crypto investments. However, it's crucial to acknowledge that while cryptocurrency transactions are relatively secure, the potential for scams and hacking remains. Conducting thorough research, diversifying assets, and employing robust security measures are key to mitigating risks.
The article also delves into popular cryptocurrencies like Bitcoin, Ethereum, Binance Coin, Tether, and Litecoin. Ethereum stands out for its design aimed at blocking interference or fraud from external parties.
Lastly, Clare Stouffer, an employee at Gen, specializes in cybersecurity writing and covers various related topics. Her article emphasizes awareness and education about cyber safety while acknowledging that no solution can prevent all forms of cybercrime or identity theft.
Understanding these concepts can help you navigate the world of cryptocurrency with greater confidence and security.
