Investing In Crypto: How to Protect Your Assets From Cyber Attack
Since the inception of Bitcoin, there has been a lot of buzz about cryptocurrency. Due to their immense popularity, the top two cryptocurrencies people are most investing in are Bitcoin and Ethereum. However, investing in digital currencies is not always risk-free. Understanding how to manage your bitcoin account or protect your digital assets can save you from a big loss.
While cryptocurrencies are becoming increasingly popular and people are taking them as a profitable investment option, it is not to forget that they also have risks, particularly regarding cyber-attacks. This article will explore how to protect your cryptocurrency assets from cyber-attacks and provide tips on investing wisely in this volatile market.
But before we find ways, we need to know how hackers steal crypto and the common ways they use to do million-dollar scams. Hackers have been very busy lately. Every now and then, we encounter dramatic headlines about various crypto scams. Crypto theft is not a risk that will disappear overnight. With cryptocurrency growing more widespread and drawing more investors, understanding how to secure your cryptocurrency from cyber-attacks is more important than ever.
How Hackers Steal Crypto
Hackers use two main methods to steal crypto- directly or by tricking users into giving their private keys. People and businesses who invest in cryptocurrencies usually do this through a cryptocurrency exchange. This process involves creating an account and depositing fiat currency converted into the required digital currency. Cryptocurrency is often stored in a custodial wallet, where users are provided with public and private keys. Private keys are meant to be kept secret. Hackers usually target individuals and trick them into sharing these private keys.
If a cryptocurrency exchange account is hacked or private keys are shared, crypto customers can lose all their funds. Moreover, due to the nature of blockchain networks, it is extremely hard to track down the individual or group of hackers who stole the funds.
Common Types Of Crypto-Scam
The three most common crypto scams which cause you great loss are:
a. Email Phishing: deceptive emails scammers randomly send to deceive or trick their victims into releasing sentive personal information like financial details, account numbers, login credentials, etc. In order to get the attention of their victims they make this emails appear to have come from genuine sources like banks, government agencies , etc.
b. Investment Scams: where fraudulent entities or individuals deceive others to invest in phoney schemes. Again the fraudsters will present these investments as genuine schemes that offer potential victims the opportunity to make so much money. A typical investment scam promises extremely attractive returns at very short time with no risk. They often use convincing sales pitches to get people looking for quick returns or those with limited investing knowledge into their net.
c. Romance Scams: fraudsters create fake profiles on dating sites, social media platforms like Facebook and other online communities. They pretend to seek love and romance from unsuspecting users only to end up defrauding them. They create fake identities, fabricate personal details and post attractive but fake pitures to lure victims and establish romantic relationship. Once a romantic relationship is established, they start exploiting the confidence of the victim to extract important personal details or get money from them.
How To Protect Your Crypto From Cyber-attacks?
Now that we have discovered how hackers do crypto scams, let’s look at a few security best practices for investing in and managing cryptocurrency to secure our digital assets.
Protect your wallet
Securing your wallet is one of the most important steps to protect cryptocurrency investments. Hot and cold wallets are two types of wallets where you can store, send and receive digital assets. Hot wallets are easier to use since they are connected to the internet but are also more vulnerable to cyber-attacks. Cold wallets are safer and more offline but more difficult to use than hot wallets.
To protect your wallet, it’s important to choose a reputable wallet provider and enable two-factor authentication. You should also back up your wallet regularly and store your private keys in a safe place.
Choose a secure and reputable exchange
There are several crypto exchanges to choose from; however, choosing the most reputable and secure one is crucial to be safe from cyber-attack. It is best to look for an exchange with a good reputation, strong security measures, and a history of handling large volumes of transactions. You should also consider the fees, the exchange charges, the user interface, and customer support.
Moreover, you can even hire a professional to help you in risk management and building your own investment strategy.
Make great use of VPNs
Using a secure private internet connection rather than a public Wi-Fi network is best when dealing with cryptocurrency investments. A VPN is a technology that encrypts a user’s online traffic, changing their IP address and location. Make use of VPNs as they are a simple way to protect users’ internet data and browsing activities from third parties, including hackers.
Updates your passwords regularly
Many people use the same passwords for a long time, making their personal and professional accounts more vulnerable to threats. It’s crucial to use strong passwords for each account and update them regularly. Additionally, it is suggested to enable two-factor authentication (2FA) or multi-factor authentication (MFA) for additional layers of security for your digital assets.
It is highly recommended to never share your private keys, not even with your friends. The private key is your password, if anyone knows it they can take control of your funds and make transactions. You need to be extremely careful in keeping your private keys safe.
Conclusion
Investing in cryptocurrency can be potentially lucrative, but it comes with risks. Cyber-attacks are a real threat to cryptocurrency investors, but there are necessary steps you can take to protect your assets. By understanding the risks involved, choosing a secure wallet and exchange, using strong passwords, and keeping your software up to date, you can help to protect your cryptocurrency assets from cyber-attacks. Remember to invest wisely and do your research before making any investment decisions.
