Maximize Your Crypto Trading Safety: 6 Essential Security Tips for Traders
Ready to start profiting from the explosive growth in the crypto market? With success stories, it’s no wonder the market gained 17 million verified users in 2018. But as the market grows, so do the risks. In 2019, Bitrue lost $4.2 million in a hack, and a three-year phishing scam led to over $100 million in cryptocurrency being stolen. Don’t miss out on this opportunity — learn how to protect yourself and start trading crypto today.
Effective Strategies for Protecting Your Cryptocurrency Investment
· Protect Your Crypto Accounts: Audit Them Regularly
Do you know what’s going on in your crypto accounts? Conduct regular audits to safeguard your wallets, logins, and other related accounts. Start by making a list of all the crypto platforms you’re registered with and keep an eye on their activities. By monitoring your accounts regularly, you can prevent unauthorized access and respond quickly to any suspicious activity.
· Don’t fall for Fake ICOs — Learn to Spot Them
Initial Coin Offerings (ICOs) are all the rage in the cryptocurrency world, but the truth is, they are often a breeding ground for scams. The allure of great technology and high ROI is hard to resist, but before you invest in any ICO, you need to know how to spot a fake.
Don’t be a victim! The first step is to check the website’s team members and investigate their social media activity. Red flags include a large number of followers that don’t match account activity.
Ensure that the whitepaper contains reliable resources, a sound implementation plan, and an extensive financial model. Obtain sample code or samples uploaded to repositories such as GitHub, and if you do not possess the skills to verify them yourself, you may hire a developer online.
It is also important to confirm that the ICO developers have established a legitimate escrow service in order to receive investor funds.
Never trust anyone who receives funds via a cryptocurrency wallet. It is important to be aware that scammers are becoming more sophisticated every day.
A fake ICO was even created by the US Securities and Exchange Commission (US SEC) in order to demonstrate the telltale signs of a fraudulent offering to investors. There is always the option of walking away if you are experiencing FOMO and there does not seem to be enough substance.
· Use 2-Factor Authentication and Restrict API Keys
To ensure the safety of your crypto account, it’s highly recommended to implement two-factor authentication and restrict your API keys. Avoid using SMS 2FA as it can be easily intercepted. Instead, crypto enthusiasts suggest using the Google Authenticator App, which is secure and offline. If you use third-party software for trading, restrict your API keys to specific IP addresses to prevent unauthorized access. Taking these measures will safeguard your account and prevent potential losses.
· Protect Yourself from Phishing Scams
In recent years, hackers have become more adept at creating convincing phishing emails. To avoid falling for these scams, it’s essential to remain vigilant when receiving emails with external links. Remember to always check the email’s domain name before clicking any links or providing personal information. If you’re suspicious of an email, search for the company’s contact information and reach out to them directly. It’s also important to avoid sending cryptocurrency via email, as this is not a standard practice for ICOs or crypto exchanges.
· Store your tokens in a private wallet, preferably a cold wallet.
It’s not advisable to keep all of your money in a crypto exchange due to the risk of hacking attacks and other security issues that have compromised user accounts over the years. To protect your tokens, it’s recommended that you store them in a private wallet, preferably a cold wallet. Cold wallets, such as Ledger Nano S, Trezor One, and KeepKey, have a Secure Element (SE) chip that secures your private keys offline, making them less vulnerable to potential hacks. Leaving your trading funds on the exchange may be convenient, but it’s essential to remove your profits regularly and keep them offline to minimize your risk.
• Use a VPN to hide your digital footprint in order to protect your privacy and crypto assets
Digital footprints describe all the information that can be used by hackers to access your personal information, including social media posts, comments, cookies, IP addresses, and login details. With a Virtual Private Network (VPN), you can keep your online activities private and hide your identity while browsing the internet. In order to ensure your privacy online, and to mask your IP address and encrypt your data, you should download and install a reputable VPN program.
In the world of cryptocurrency, security is a shared responsibility that must be taken seriously by both users and service providers. Fortunately, advancements in blockchain technology have allowed cryptocurrency service providers to improve their security measures. A recent attack on an exchange by hackers attempting to blackmail the platform serves as a stark reminder of the importance of security. While the hackers were able to access the funds, the multiple security measures in place prevented them from transferring any of the money. It’s critical for users to take precautionary measures and for companies to address any vulnerabilities in their systems. It’s worth noting that unlike traditional banks in Europe, there is no guarantee of compensation in the event of hacking or fraud.
Don’t take any chances with your cryptocurrency security!
In the rapidly evolving world of crypto trading, it’s crucial to take proactive steps to protect your digital assets. To ensure security, it’s recommended that you store your crypto in a cold wallet, leave only your trading balance on the exchange, and conduct regular account audits. Taking these steps can help protect you from the increasing threat of hacking.