How To Prevent Cyberattacks On Your Cryptocurrency Investments?

How To Prevent Cyberattacks On Your Cryptocurrency Investments?


While Blockchain technology was designed to make secure transactions, its online features and immutable transactions have attracted hackers. Hence, maintaining proper cyber hygiene is important for Crypto traders and investors.

Many hacks use social engineering to trick people into handing over their accounts, keys, and access to the Crypto assets. At the same time, other hackers hack the Crypto exchange platform and online digital wallets directly.

Seeing how the whole Crypto trade market is prone to cyber-attacks taking necessary safety measures to stop yourself from becoming one of their victims is essential.

The Crypto Trade market has been one of the most profitable businesses in the last decade. It has been seen that the Cryptocurrency market has given more millionaires to the world in the last decade than any other industry. If you are thinking of ways to make money with Bitcoin, this software might help you with that.

How To Protect Crypto From Cyber Attacks?

With the cruise in Crypto trade popularity, Cyberattacks have also increased. Here are the three common mistakes that most Crypto traders make.

  • Exchanges hacked
  • Sim-Swap hack
  • Social Engineering

The mistakes mentioned above might seem very small, but it can certainly make you lose all your Crypto assets.

Let’s explore more about these mistakes and what are the possible solutions to counterattack these mistakes.

1. Exchange Hacks

In May 2019, Binance lost its 7000 Bitcoin to a cyber attack. Binance is the largest crypto exchange platform. This shows that even the largest and most secure of the Crypto exchanges can be hacked easily.

If you are using a Crypto exchange platform for your Crypto trades, here are how you can keep your assets safe.

●       Insurance

Many exchange platforms have some kind of insurance policy that states that their asset will be kept safe in cyber-attacks. For instance, Coinbase offers an insurance policy to every customer and holds only 2% of the total asset online.

●       2FA

2FA stands for two-factor authentication. Many exchanges have 2FA to ensure that double security layers protect your assets. In 2FA, an individual needs both a password and security to access the assets.

●       Unique Passwords

One of the main reasons why people’s accounts are getting hacked is weak passwords. Mix your passwords by adding different kinds of letters, numbers, and special characters.

2. Sim-Swap Hack

2FA has become the best way to keep your account safe. With the two factor authentication, hackers will need your mobile to access your account even if your password is hacked.

Sim swap has become a great instrument for hackers. This practice helps hackers to get your phone number. They pose like victims and ask the telecom provider to grant them access to the call details and important messages.

Can you save yourself from Sim Swaop attacks? Yes, you certainly can!

●       Cold Storage

It is the best option to keep all your Crypto assets. Cold storage is the device that stores all your Crypto assets information offline. Hence, it cuts off the internet connection that can potentially be used by hackers.

●       Set A Pin

Many wireless carriers ask the user to generate pins that add additional security to the transactions.

3. Social Engineering

Social engineering is one of the most widely used fraudulent activities. It is performed by tricking the victims into transferring Cryptocurrency into their wallets or turning their Cryptocurrency credentials to the hackers.

Here is how you can protect yourself.

●       Be Skeptical

You will find people claiming to make you gain double what you invest in. Be wary of these kinds of people; either they are talking of high-risk, high return, or they are outright scammers.

●       Regulation & Reputation

Today, Cryptocurrency has created a good reputation among groups like SEC and FINRA. Hence, if you find something wrong with the digital platform, you can ask them for advice.

The Bottom Line

The dramatic rise in the Bitcoin price evaluation has made one of the prime choices for cybercriminals. While most cyber-attacks are made with special engineering help, other technical hacks can be taken care of with safety precautions.

Keep the tips we have mentioned in the article to ensure that your account remains safe and secure from fraudulent activities.

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