The adoption of cryptocurrency has steadily been on the rise over recent years, and security for it has never been more in demand.
The past few years have seen an institutional wave of adoption for cryptocurrency, and is on course to transform the way we think about the realm of digital assets. This includes the various intricacies like top hardware wallets that form a part of the digital asset industry’s ecosystem. We are on the cusp of a revolution that will transform financial markets more than ever. The approval of Bitcoin exchange-traded funds (ETFs) in the US set the pace for US investors to gain exposure to an asset class on the rise, with other countries expected to follow soon.
But with the rise of its popularity and a similar promise of high returns, the digital currency world presents its fair share of risks and challenges. When you invest in cryptocurrencies, you’re betting on the potential future value of digital assets based on technological innovation, market demand, and adoption trends. While undoubtedly promising, it also opens itself up to various avenues of cybersecurity risks.
Cryptocurrency markets are highly volatile, with prices subject to rapid fluctuations. While volatility can present trading opportunities, this poses risks for investors, especially those unaccustomed to the inherent unpredictability of digital assets. While it offers the potential for financial inclusion, efficiency gains, and innovation, challenges such as volatility, regulatory uncertainty, security risks, and environmental concerns must be addressed for the sustainable growth of the crypto ecosystem.
Here are some ways to make trading in cryptocurrency more secure:
Using Hardware Wallets
A hardware wallet is a literal piece of technology that securely guards a crypto user’s private cryptographic keys in offline or “cold” storage. It’s similar to how one uses a USB thumb drive, with its main purpose being to keep the user’s private keys (needed for accessing their coins) safe for later access to the blockchain.
But unlike a conventional physical wallet, a crypto hardware wallet doesn’t contain any of a user’s existing coins. Most hardware wallets can even work with multiple blockchains simultaneously, allowing a user to manage many different types of coins from many different exchanges on a single device. All of the data stored in a hardware wallet can be easily backed up with a single recovery phrase or PIN code. Some of the most trusted and best-known hardware wallet manufacturers include Trezor and Ledger.
It has many advantages, one of the main ones being the loss of a hardware wallet won’t affect any of your holdings. If you accidentally spill water on it or run in through your washing machine, it doesn’t matter. As long as you still have your seed phrase your wallet can be recovered.
Two-Factor Authentication (2FA)
Two-Factor Authentication or 2FA is a security system that requires two separate, distinct forms of identification to access an account. This process seeks to prevent unauthorized users from gaining access to an account with nothing more than a stolen password. The two factors involved in the 2FA process include a knowledge factor, such as a password or PIN, and a possession factor, which could be a smart card, security token, or mobile device.
The main purpose of a 2FA in cryptocurrency is adding an additional layer of defense. Users can set it up by logging into the security settings of their crypto platform, selecting a preferred 2FA method, such as an authenticator app or SMS, and then following the setup steps to protect their assets from illegal access. Since it greatly improves cybersecurity and shields critical data from illegal access, it is frequently used to secure a variety of online accounts, including email, banking, social media and most importantly, cryptocurrency wallets. Some of the most common ways to utilize 2FA include SMS or text message codes, mobile authenticator apps, email codes, and more.
Strong Passwords and Password Management
Along with all these rising cybersecurity risks, password management has become a crucial aspect of protecting your digital footprint. As businesses increasingly rely on a myriad of applications and systems, maintaining the safety and security of sensitive data can be challenging. Weak or improperly managed passwords greatly elevates the risk of security breaches, with password-related errors being implicated in a majority of these incidents.
An easy solution for this would be password managers. Password managers are a powerful tool to help you create and securely store all passwords for seamless login to online accounts across all devices. A password manager is typically installed as a browser plug-in to capture your passwords and save your credentials, and when you return to that website, it offers to log you in automatically. You can even save multiple logins to one site if needed. It then monitors when a username/email address and password combo are required and pops up to assist the user.
Software Updates
Software updates are another essential component to maintain the security and performance of your devices and applications, all of which include your cryptocurrency wallets. They can protect you from cyber threats, improve your user experience, and ensure compatibility with other software and hardware. The risks of not updating software extend beyond user experience, where outdated software is potentially more susceptible to cyber attacks as hackers exploit vulnerabilities that have been discovered but not yet patched. This can put you at a higher risk of having your personal information, such as passwords or financial data, compromised.
Network Security
Public WiFi networks is a cesspool of cybersecurity risks.These networks provide convenient internet access in coffee shops, airports, hotels, and other public spaces. But while public WiFi networks are awfully convenient in a pinch, they also present significant risks, particularly for individuals engaged in cryptocurrency transactions. They are not without their own set of risks, particularly for individuals engaged in cryptocurrency transactions.
Conducting cryptocurrency transactions over a public WiFi network opens your data up to fraudsters that clone your cryptocurrency wallet or worse hack into it and leave you with empty pockets. By adopting best practices such as using encrypted protocols or employing VPNs, staying vigilant against rogue networks, and keeping your devices secure, you can significantly reduce the likelihood of falling victim to cyberattacks and protect your valuable crypto holdings.
Beware of Phishing and Fake Apps
You also have to look out for internet pirates that steal personal financial information with “phising”, literally pronounced “fishing”, to accurately describe exactly what they’re doing: “fishing” for your personal financial information. These scammers can use email or text messages to try to steal your passwords, account numbers, or social security numbers. If they get that information, they could get access to your email, bank, or other accounts, even going so far as to sell your information to other scammers. Scammers launch thousands of phishing attacks like these every day, most of them unfortunately successful.
One of the best ways to avoid being scammed or phised is to never provide your personal information in response to an unsolicited request, whether it is over the phone or over the Internet. Emails and Internet pages created by phishers may look exactly like the real thing. They may even have a fake padlock icon that ordinarily is used to denote a secure site. If you did not initiate the communication, you should not provide any information.
Regular Wallet Backups
One of the most crucial aspects of this cryptocurrency security is ensuring you have a reliable backup and recovery plan for your wallet. A wallet backup is essentially a copy of your wallet’s private keys or recovery phrases. It ensures that you can recover your cryptocurrency if your device is lost, stolen, or damaged. Backing up your wallet is a fundamental practice that every cryptocurrency user must undertake to protect their digital assets. A digital wallet backup protects your digital funds against computer or software failure. It may also help you retrieve your funds after your device was stolen or lost.
A backup is absolutely needed to be able to import your wallet in case anything happens to your device or application. It can be also used to recover your wallet after it was deleted. If you lose access to your wallet, you can use your backup to recover your funds through either software wallets, hardware wallets, paper wallets, mobile wallets, or more.
Using Antivirus and Computer Security Tools
The importance of a good antivirus software should not go unsaid. Antivirus software serves as your digital guardian, shielding your computer from a plethora of cyber threats. It offers a comprehensive security framework that, when kept updated, can thwart a variety of malicious attacks. Cybercriminals are persistent in their endeavor to bypass security measures. With every passing day, they concoct new malware strains and sophisticated attack vectors to compromise computer systems. Regularly updating your antivirus software empowers it with the latest threat intelligence, enabling it to identify and mitigate newly-emerged threats effectively.
To prevent attackers from exploiting their platforms, causing losses, and disrupting the digital experience of genuine users, cryptocurrency companies must consider ways to strengthen cryptocurrency cyber security. They must take proactive action to ensure security of their platforms and their customers’ accounts, most of which can be achieved by investing in a good, fool-proof antivirus software.
As crypto trading becomes increasingly mainstream, security for it has never been tighter and more pressing. While it does seem scary having a lot of your digital data be vulnerable, you can dramatically improve your digital security by following some of the steps listed in this article. Not only will this help protect your funds, it can be applied to the rest of your digital life as well.
It pays to understand how to safely store your cryptocurrency because no storage method is 100% secure. Review and enhance your security practices regularly to protect your digital assets!
Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.
