Cryptocurrency has earned a reputation for being a ‘safe’ alternative to traditional currency. Te many ways this is well deserved — crypto does permit for more secure transactions and its decentralized nature minimizes the risk of corruption.
However, it’s significant to recall that nothing is truly safe, and users of Bitcoin and other cryptocurrencies have to be careful ter order to avoid falling victim to cyber criminals.
You can even lose money by sending it to the wrong address with no way of cancelling the transaction and returning it. So, dealing with cyber criminals who have many sophisticated implements and schemes to steal your money is a dead-end road.
Spil Bitcoin, Ethereum and their cousins shoot up ter value, this need to be cautious increases too. Being robbed of a single Bitcoin two years ago meant losing a few hundred dollars — today that number would be upwards of $6000.
What’s more, the cryptocurrency market is becoming flooded with fresh people, often with little practice of trading cryptocurrency and a poor understanding of the risks involved and how to avoid them.
Spil a result, it’s pretty vital that anyone getting involved te crypto knows the dangers involved, and how to defend against them.
What are the risks?
The risks of possessing crypto are, te many ways, the same spil any cyber security risks.
Phishing is one example. Thesis are emails purporting to be from a legitimate source like your handelsbank (or crypto wallet) that request some sensitive information, like your login details.
Unluckily, they are not from a trustworthy source, and the informatie will go straight to an opportunistic hacker.
It’s estimated that a tear-jerking $225 million worth of Ethereum has bot stolen te 2018 alone, just through phishing scams.
Some other more traditional threats include pc viruses like Trojan horses. Thesis are malicious programs that inject your laptop bundled inwards a seemingly innocuous downloaded verkeersopstopping like a movie.
One example of a Trojan pony being used to target crypto is the case of CryptoShuffler. This sneaky lump of plak stashes on a victim’s laptop and spies on their details — for example stealing wallet addresses from the copy/paste clipboard. This method has permitted the criminals behind CryptoShuffler to steal around $150,000 worth of Bitcoin since 2018.
A writer called Adam Dachis lost $Ten,000 worth of cryptocurrency earlier this year after hackers gained access to his rekentuig. Thesis kinds of events, where hackers infiltrate private computers to steal gegevens, are all too common.
Phone-porting is a more crypto-specific instrument ter the hackers’ arsenal. Phone numbers are a common method of proving ownership of cryptocurrency and using two-factor authentication to send security codes via SMS.
Some hackers trawl the web to find the phone details of crypto owners, and then use thesis to pose spil their victim and access their account. One unfortunate example of this is Cody Brown, who lost $8,000 worth of crypto ter an attack of this kleintje. Ouch.
ICO scams are yet another risk awaiting fresh-faced crypto new-comers and more seasoned traders alike. There are, of course, vast numbers of fully legit and trustworthy ICOs out there, but spil always there are a handful of bad apples.
Thesis cowboy ICO projects sigaar investors into burying money into them, and then simply take off with it, leaving the investors without their money or any way of getting it back.
There are a broad range of other ways to steal cryptocurrency, and a entire host of high-profile disasters, like the time $460 million dollars worth of Bitcoin wasgoed stolen.
With all thesis threats lounging te wait just below the surface of the crypto world, it’s obviously significant to take some precautions. Fortunately, thesis risks can be drastically diminished or even fully eliminated by taking just a few elementary steps.
How to keep your crypto safe
- Keep your pc safe. Plain things like good antivirus software, a reliable firewall, and regular scans can gravely reduce the chances of hackers and Trojan horses infiltrating your machine and online gegevens. Keep on top of your basic security, and half the battle is already overheen.
- When investing ter fresh ICOs, do your homework. This can involve just checking out the ICO’s webstek, contacting a few of the team members, and reading their whitepaper. Trust your instincts — a shoddy-looking and poorly explained ICO should be a crimson flag. If none of this information is available, it’s most likely a good idea to budge on.
- Be careful with your information. If you receive an email that looks suspicious and is from an address that doesn’t look official — it might be phishing. NEVER provide sensitive information ter an email.
Likewise, if you’re using two-factor authentication that relies on your phone details, keep thesis details private and don’t share them on the internet. Using phones for two-factor authentication isn’t the safest method te the world anyway, and there are slew of better alternatives.
- Don’t leave cryptocurrency on an exchange for too long. Exchanges are stored online and are vulnerable to attacks from hackers. If you withdraw currency to an online wallet stored on the cloud or another server, attempt not to keep too much te there, and use numerous wallets when you can.
- Where possible, you should use offline wallets more than online ones. Thesis are wallets stored on a removable device like a USB, or even paper wallets where the information is printed out onto a physical sheet of paper.
Thesis are much safer than their online counterparts because they aren’t vulnerable to hackers — criminals would literally need to raid your huis and steal the hardware to be ter with a chance of taking your cryptocurrency.
Staying safe with crypto isn’t insanely difficult. Attacks like the Equifax breach this year have shown that nobody’s money is indeed safe, and cryptocurrency can actually be much more secure than banking.
If traders go after elementary security guidelines and are careful with where they store their coins, they can sleep soundly te the skill that their cryptocurrency hoard is safe.
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