The Security Pitfalls of Cryptocurrencies and How You Can Fix Them

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Negosentro.com | The Security Pitfalls of Cryptocurrencies and How You Can Fix Them | Investing in cryptocurrency requires planning, preparation, and a whole lot of risk-taking. After all, there’s no telling how much money you’ll lose, or how long it’ll take for you to lose said money. But people invest anyway. Why? Because cryptocurrency offers a lot of monetary gain for anyone willing to gamble with their finances.

But while many investors focus on the financial risks involved in crypto-trading, not as many focus on another, separate major issue: security. 

Security issues plague the crypto-market, yet not many investors worry themselves over these issues. “What issues,” you may ask. Let’s go over a few of them.

3 Security Threats Affecting Cryptocurrencies

1. Common Crypto-Fraud

Lurking on the corners of the Internet are cybercriminals, people who would love nothing more than to steal your information and drain your bank account. Unfortunately, the crypto-market isn’t invulnerable to their presence.

Whether it be through investment scams or ransomware attacks, cybercriminals all but lack ways to scam you out of your cryptocurrency. 

2. Disreputable Trading Platforms

Without trading platforms, cryptocurrency becomes defunct—a relic of another age. Trading platforms allow for investors to invest, sell, and earn cryptocurrency, and there are dozens of them! 

But while dozens of trading platforms exist, not all of them are safe to use. Many trading platforms contain major security flaws or are outright scams, meaning many investors end up in an unsafe position with their cryptocurrency.

3. Phishing Scams

Thousands of people around the world find themselves victims of phishing scams every year. Emails, phone calls, sketchy websites: no form of communication is safe from phishing.

For those who aren’t aware of what phishing scams are, phishing is when a scammer uses social manipulation in order to extract information out of someone, both financial and personal. 

The crypto-market is filled with phishing scams, with scammers attempting to get wallet addresses and various other information.

5 Ways to Protect Yourself from Crypto Security Threats

After detailing all of the threats that affect any investor (yes, including you), it’s time to go over the ways you can protect yourself from them, from software to practicing common sense.

1. Email Scanners

The number one source of phishing scams is your email. Scammers are allowed to send mass emails any time they want to anyone they want.  This—predictably—leads to many people falling for scams quite often, especially when some of these emails look just like official emails.

And while most email hosts do a good job trashing and detecting scam emails, some get through. For these, you’ll want an email scanner, a program that adds an extra layer of security to your email.

2. Research On Trading Platforms

While many trading platforms possess major security issues or disregard the security of its users, some take good care in making sure investors everywhere can buy, trade, and sell in relative peace.

Remember, not all trading platforms are designed equally. Some developers take good care of their platforms, and some build up their trading platform to be one giant scam.

3. VPNs

Bitcoin rose to prominence due to its promise of complete anonymity for users—the ability for investors to trade and sell without leaving a digital footprint. And while the anonymity afforded to investors is nice, it’s not always enough; sometimes more privacy is needed.

This is where VPNs come in.

Virtual private networks (VPNs) allow investors to reduce their digital footprint more by anonymizing the data their device(s) sends out and hiding their IP address. To keep your Bitcoins secure, think about installing a VPN.

4. Anti-Malware Programs

Going back to the subject of trading platforms, let’s talk about anti-malware programs. Certain trading platforms hide malware, viruses, and other harmful software in their platforms in order to scam investors and users. 

To make sure that you don’t fall victim to this trick, be sure to download and use anti-malware programs in order to protect your devices. This sounds like a small, insignificant change, but it’ll drastically improve your safety while investing.

5. Safe Spaces for Your Devices & Information

A major part of practicing proper cybersecurity is taking care of your physical devices, especially when putting them up. Whether you’re at home or out-and-about, it’s important to keep your devices secure.

Fortunately, there are a few ways to do that. Setting a passcode/password for your devices will go a long way in securing your device. Plus, making sure your devices are in a safe spot and in your reach will make sure they don’t get stolen.

Conclusion

The world of cryptocurrency offers so much for investors. However, the offerings it brings only means so much if the user in question doesn’t secure their devices and takes care, then it all doesn’t matter. 

Practicing proper cybersecurity, however? That will make sure your cryptocurrency experience remains great!