15. Security in the crypto market – what rules are worth following?
Cryptocurrencies are a tasty treat for criminals. They are just waiting for you to make a mistake or stumble. When using digital assets as a way to invest your savings, it is worth following some downright fundamental rules that will increase your security in this industry. Today, we’ll discuss this topic-dangers in the world of digital assets. We’ll tell you what steps to take to keep your funds safe and your sleep more peaceful.
Security in the cryptocurrency market
You have noticed that investing in digital assets is different from traditional saving, such as saving money on deposit. It is also more dangerous and demanding. Now let’s have a look at the differences that exist between the two ways:
1. When investing your savings in cryptocurrencies, you must first acquire them. This involves setting up an account on a suitable cryptocurrency market. In comparison – when investing in securities, you can turn to a trusted brokerage firm. Of course, the exchanges are secure, but there is no shortage of targeted attacks and consequent theft of asset holders’ funds.
2. The value of cryptocurrencies is highly volatile and depends on many factors. Thus, you can lose all your invested capital at any time or become a millionaire in a short period of time.
3. The cryptocurrency industry is full of fraudsters who are just waiting to scam your funds. Attempts to get into your assets can include: hacking into your computer and trying to get passwords, or sending infected files/links aimed at wiping out your wallet. However, that’s not all. Cryptocurrency scammers can call you and install malware on your phone while using it, manipulating the conversation with you. In this context, it is also worth mentioning the all-too-familiar phishing.
4. Projects and cryptocurrencies that turn out to be scams. We are talking here about concepts that offer you the highest possible earnings in a short period of time, at a low investment cost. In fact, the purpose of such activities is nothing more than to defraud you of your funds.
5. Lack of adequate security for your cryptocurrency wallet. Cybercriminals are keen to gain access to your password. They will use spyware or malware tools to do so. This is why it is so often said and warned not to share your seed with third parties under any circumstances, and to keep it in a safe place.
These are just some of the dangers that await you. However – don’t be discouraged. Following a few basic rules will allow you to invest safely in cryptocurrency.
Rules for investing
As we have already mentioned, both types of threats – email and telephone – can be efficiently minimized. All you need to do is follow the points below:
1. As far as you are financially able, try to have a separate piece of equipment that you use exclusively for investing and logging into your stock market accounts or wallet. You will then avoid accessing suspicious sites, opening equally suspicious links and maximizing your security.
2. Use SMS verification to log in to your accounts.
3. In addition to SMS verification, make sure you also have a two-factor login (2FA). This is said to be almost a necessity in the world of cryptocurrencies. You can use a simple tool like Google Authenticator for this.
4. Ensure that your passwords are secure. Ideally, they should be different to what you normally use. For this, mix them up with numbers, capital letters and special characters.
5. Definitely invest in good antivirus software on your phone and computer. On an annual basis, it’s a small cost that will only benefit you. Remember, it is better to spend a few zlotys on security than to lose tens of thousands later.
6. When creating your accounts on exchanges or investing in projects, read the regulations carefully. Not everyone will provide you with a refund after hacking attacks.
7. You know from previous lessons that we have several types of cryptocurrency wallets. You also remember that a hardware wallet has its own key. Do not, under any circumstances, share it with third parties. Treat it as your holy grail. Only you know it and have access to it.
8. What else concerns hardware wallets – only buy them from recommended and trusted providers that offer the greatest possible security. Read reviews or watch a few YouTube videos describing them before making a purchase.
9. When making any transaction, always check the address carefully. Remember that it is irreversible, so in the event of any mistake – you lose the funds sent.
10. Pay particular attention to emails. If an e-mail seems suspicious to you – do not open it. Move it to the recycle bin straight away. Why tempt fate.
11. The stock market is not your main place to store assets. That’s what portfolios are for. You know how to keep them safe from the previous sections.
12. Regularly update the software on your hardware that you use for trading. We also recommend that you encrypt your disk and make backups.
13. In all your operations, in any way related to cryptocurrencies, apply the principle of limited trust. If you are not sure about something – ask. There are many portals, online groups who will be happy to help and clear your doubts.
14. Always invest only as much as you can lose in digital assets. Don’t take out loans or invest all your savings. As we said before – the crypto industry is very volatile.
15. Regulation. As you know, the digital industry and everything related to it is not completely regulated. Constantly changing rules and regulations, can be problematic for some. Therefore, it is worthwhile to follow the news and keep up to date with this topic.
Summary
There is absolutely nothing wrong with investing in cryptocurrencies. Fact is, they carry a little more risk than the traditional financial system, but if approached sensibly and with your head – everything can be minimized. Cryptocurrencies have been governed by their own rules since their inception. Follow our advice, and it will certainly make investing easier and more fun at the same time.
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