The massive surge that has been witnessed by the cryptocurrency industry this year has attracted an equal surge in the number of new and potential investors trying to get a bite of this awesome cake. Investors from every corner of the globe are trooping into some of the biggest crypto assets like Bitcoin and Ethereum, and with the proliferation of ICOs others are targeting what they hope will be the next big thing in a clutter of hundreds of new cryptocurrencies.
When every a commodity or asset hikes in its value, it is reasonable to expect that the threats to it will exponentially increase. For Bitcoin, Ethereum and the rest of the industry, this threat is further amplified by the fact that cryptocurrencies are an extremely ultra portable asset which makes stealing them a very attractive thing to do for online criminals. Cryptocurrency transactions are also almost universally irreversible once they are initiated making the threats investors face really terrifying as most don’t have any background knowledge on how to efficiently secure their investments.
It is not only everyday users and investors that have and continue to face threats from a growing class of sophisticated cryptocurrency thieves, even the so-called consummate professionals and experts have been victims of cryptocurrency theft. From big exchanges to ICO startups, the cryptocurrency universe is rife with news of hijackings and thefts that makes it imperative for all investors to take necessary measure to avoid such malicious attacks that comes in the form of phishing, spoofing, or outright hacks. Some of the key precautions users can take against malicious activities include:
Wallets, Wallets and More Wallets
The most crucial aspect of any security your cryptocurrency has almost every time boils down to your wallet. Unlike fiat currency where you can take them to a commercial bank for safekeeping, cryptocurrencies are stateless, borderless digital currencies that are not issued by any government in the world and as such no bank will accept it for safekeeping. With this predicament where cryptocurrency holders are given the facilities to store they digital money, it makes them an easy target for hackers who prey on the lack of security knowledge most cryptocurrency users have in order to rob them of their holdings right from their wallets. Hacking attacks are getting sophisticated, some by implanting malicious software others by scoping the user via phishing attacks. There are a few majors one can take to avoid falling to a cryptocurrency wallet heist, this include:
Hardware Wallets: One of the most secure ways of storing your cryptocurrency, especially if it is considerable in volume is by buying a hardware wallet and storing them in it. A hardware wallet is a specialized hardware device designed specifically to serve as a vault for your cryptocurrency. They are among the toughest majors of securing cryptocurrencies due to their cutting-edge security features that make them almost impossible to hack. They mostly come with added features such as PINs to make your storage highly personalized. But make sure you never forget your PINs as getting it back is quite the nightmare process. Hardware Wallets are especially useful for those with large amounts of cryptocurrencies, but they are not ideal for everyday spending. Examples of Hardware Wallets include Jaxx, Nano S etc
Cold Wallets: While Hard Wallets are the cream top of security when it comes keeping your cryptocurrency safe, they come at a considerable cost which is a big put-off for many users who don’t have huge crypto holdings. This doesn’t mean there are no relatively secure ways to store their assets, as cryptocurrency thieves never leave any amount behind when they get the chance. For users in this category, an effective way of staying safe s by adopting the use of cold wallet. These are normal software wallets which are given an added security feature by the user. Being that almost every hacking attack takes advantage of a wallet being connected to the internet, this conduit is purposefully truncated by the user in this case, making the wallet “Cold” instead of the hot ones that are used for every day transactions. A cold wallet can be stored on a PC or Mac that the user never uses an internet connection on, and they must ensure no malicious software is harbored by the system as well.
Trustworthy Wallets: Cryptocurrencies were designed with the goal that they become a more efficient alternative to fiat money and the present banking industry. They were lined up to become the main means through which buy and sell goods and services and as such, there are a great section of people who use them every day to conduct transactions rather than hoarding them as a store of value. For this majority group of cryptocurrency users, security is even more crucial as they are constant at risk of being hijacked due to their constantly being connected to the internet. To mitigate these risks and avoid attacks, users are urged to only use trusted worthy reputable wallets that are known for their emphasis on security. Wallets like Electrum are popular as they offer the user high levels of security despite being constantly connected to the net.
Paper Wallets: To cap off the wallet section of keeping your cryptocurrency safe, we go over a very innovative, simple, yet highly secure means of storing cryptocurrencies which is by the use of paper wallets. Paper Wallets are cryptocurrency wallets designed to imitate fiat currencies, as they are cryptocurrency amounts that get printed on plain sheets of paper in the form of QR Codes following strict guidelines. The genius in paper wallets is that the only way any one can get to them is by coming physically and breaking into the safe or vault you kept them in, which makes them impregnable to online hackers.
Avoid Suspicious Mails and Links
Another important measure to take in keeping your cryptocurrency holdings safe is by making sure you never click on suspicious looking links or mails you don’t recognize as they may be withholding malicious apps that immediately get activated once the user clicks on them. Phishing attacks are getting more sophisticated by the day, and if a cryptocurrency user is serious about truly keeping their assets safe they must on no account ever let themselves click on these suspicious links or open shady mails
Avoid Shady Cloud Mining Outfits
A very attractive way cryptocurrency thieves use to lure out users and steal their holdings is by promising the heaven on earth with juicy rewards if they signed up for their nonexistent cloud mining outfits. These shady cloud mining platforms usually ask the user to submit their wallet address as well as a host of user information when signing up, where they use this info to the detriment of the user by hacking their wallets up and stealing everything in it.
Cryptocurrency Lending Schemes
Unlike cloud mining scams, this kind of cryptocurrency crime is done by outfits that claim to give users inordinate percents in interest if they agree to give their cryptocurrency holdings as a loan. These scam outfits go on to promise the user consistent and impossible returns with their money given back to them intact at the end of the borrowing period. Almost every time these shady lending outfits suddenly go offline without notice leaving those who have staked their money with them empty handed.
Although the cryptocurrency industry is renowned for its high yield over small periods, the cryptocurrency holder must avoid being greedy and gullibly agreeing to absolute guarantees of a percentage of interest or profit, notwithstanding the overriding market conditions which often go south without notice. Not all cryptocurrency lending outfits are scams, as there are those such as Bitconnect that have quite a reputation in the industry. It is therefore incumbent on the investor to make sure they do their due diligence to research the reputation and antecedents of the lending outfit they intend to invest in. Always look for independent review sites or forums such as reddit, to get a clearer picture of whether the investment opportunity is either scam or not.
Up-To-Date Security Apps
This is a point that is often discounted by cryptocurrency users to their own peril. Internet hackers in general have made it imperative on all users to take every available measure there is to protect their identities. This is even more crucial when the user has cryptocurrency resident on their computers or mobile devices. Hackers often turn to the use of tiny and well hidden malware to do their dirty jobs which of course the user has no idea of. This is why having not just the best but the most up-to-date security app is very important, as it can detect, warn the user and get rid of any malware they might have downloaded, or clicked on while surfing the net. The best anti-malware apps are able to dictate every suspicious move being made especially when the user is not actually user their PC. This is why having these cutting edge security apps can save a cryptocurrency user a lot of headache and emptied wallets