Crypto is still one of the most riskiest sectors in the financial market with Billions of Dollars being subject to hacks on average every year.
In 2023 alone, the overall crypto market suffered from hacks and exploit valuing at around $2 Billion from phishing scams, rug pulls, and downright aggressive wallet breaches.
Usually the number goes up during bull markets, which is why investors need to keep security in mind when exploring the crypto space.
Importance of Crypto Security when Investing
Here are five things that could potentially help in maximizing your security so that you won’t ever have to be a victim of hacks.
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Use Strong Passwords and 2FA
The first thing to keep in mind when transferring money into crypto for the first time is to set up a strong password and use two factor authentication.
Strong passwords are crucial when keeping an account safe, because strong passwords make it hard for hackers to get into an account.
Usually a strong password involves uppercase letters, lowercase letters, numbers, and symbols. Staying away from using your personal information on a password is usually a good thing to do as well, including staying away from using your birthday, name, or home address.
This is because those informations are usually submitted for administrative purposes that can already be leaked online so hackers can easily access them.
After setting up a good password it is important to see if you exchange or platform lets you set up a two factor authentication or 2FA, and if they do, then you should use it to decrease the chance of hackers breaking into your account.
Last thing to do is to backup and write down those passwords so that you don’t forget them in the future.
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Never Click on Random Links or Applications
After you start exploring the crypto space, it is important to note that there are a lot of harmful links and applications that will potentially lead to phishing scams.
Phishing scam is a way that hackers use to make you click or go to a link or an app disguised as a familiar link or app that you use frequently.
When you click on that link or go to that app, hackers will automatically get access to your account and therefore make you the victim of a hack.
The most common scam using this method is a fake app asking you to connect your decentralized wallet on it.
Once you connect the wallet, then hackers will have access to your wallet, essentially taking control of all your cryptocurrencies and will move them into their own wallet.
So remember, be careful when clicking links or using apps in the crypto space so this kind of thing does not happen to you.
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Don’t Believe Something That’s Too Good to be True
When exploring the crypto space, also remember that not all applications and projects are safe to invest in.
This means that while it is not a phishing scam scheme, the project that you are buying the token from might be a scam project waiting to do a rug pull, which is where the project team runs away with investors money after buying their tokens without continuing the development of the project.
Rug pulls are usually seen in new projects that offer high hopes and price gains that are too good to be true.
While some are genuine, some can lead you to be a victim of a rug pull that can lose you a lot of money.
So when you see something that is new but too good to be true, don’t be greedy. Ask around the community and do some research before doing any transaction regarding that project so you can be secure when buying new tokens or using new applications in the crypto space.
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Never Sensitive Share Informations Online
Also, if you are exploring the community, make sure that you don’t share any information, especially sensitive information regarding your crypto account or wallet.
If you are using a centralized wallet, never share your password with anyone, even if they tell you they are from the official platform or exchange team, because if they are, then they can just get it from their database.
If you are using a decentralized wallet, never share your password, seed phrase, private keys, and any information about it with anyone as they can use it to remove your wallet from your device to theirs, essentially giving them access to your money.
Overall don’t give any information that can potentially lead to anyone accessing your wallet, no matter the circumstances.
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Use a Cold Wallet
Lastly, when talking about wallets, especially decentralized wallets it is better to be using a cold wallet rather than a hot wallet.
Cold wallets are safer because they need to be plugged into your device and the internet before being able to use it, whereas hot wallets can be accessed anytime if the internet is on.
Cold wallets, such as Ledger and Trezor Wallet, are wallets that come in the shape of a hardware device, specifically a USB device where the owners have to connect it to a PC, Laptop, or phone that is connected to the internet before using it.
Hot wallets, such as MetaMask or Trust Wallet, are wallets that come in the shape of a browser extension or an application that is always automatically connected to the internet when the device is on.
Hackers can get into hot wallets easier than cold wallets because of their differences in terms of access and connectivity to the internet. So it is safer to use a cold wallet if you have the budget for it.
Conclusion
In conclusion, if you are new to the crypto space then all these five things should be your number one priority to keep you longer and safer in the crypto space.
Bear in mind that hacks and scams are common in the crypto space so you need to be careful when doing all kinds of transactions, especially if it involves a lot of money.
Disclaimer:
The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.
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