Hackers are actively targeting cryptocurrencies. In fact, more than 3 million Bitcoins are lost forever. It is not uncommon to hear that people are losing their cryptocurrencies in high scale cryptocurrency exchange hacks. If you trade cryptocurrencies, the market comes with a variety of risks that investors should know before they enter the market.
When an investor opens a cryptocurrency account, there are a lot of vulnerabilities involved. McCann Investigations is a private investigation body that specializes in cryptocurrencies. With the increase in the number of hackings and cryptocurrencies being lost, their services are more in demand. Also, Wallet Recovery Services is a service which allows people to track there are a lot of cryptocurrencies. As there are quite some people wanting to track back their cryptocurrencies, the service provider has stated that there will be a slow response time as there is an overwhelming demand for their services.
With the explosive growth of cryptocurrencies, it seems like the attention of the hackers has turned to cryptocurrencies. Bitcoin is a unique virtual currency that was born out of the need for the community to have an asset that they can manage on their own without the interference of any centralized institutions. In essence, it was created because people wanted a new system where people could be in charge of their finances.
However, this leaves the responsibility of protecting their assets to investors themselves. Many people are getting hacked because hackers are becoming more creative ways to hack into wallets and exchanges. In fact, investors are quickly finding out that they may not be up to par in the process of protecting their cryptocurrency assets as these high-security systems can easily lock them out.
Bitcoin makes it simpler to take something away from investors. It’s immediate because it is already cash. Therefore, the majority of hackers in the world are targeting cryptocurrencies. For early adopters of Bitcoin, they may not fully understand the growth potential of the coin when they first bought it. In fact, some people mined Bitcoin in the beginning because they wanted to support the community instead of making money out of it. Due to a simple mistake of not backing up their wallet or using a shady exchange, people lost Bitcoins that could have been worth millions today.
Here are some tips that you can consider to ensure that your crypto assets remain safe.
- Double check the address you’re sending funds to
Many people have been reported to send cryptocurrencies to the wrong address. However, what happens is probably more sinister. In fact, the probability of sending coins to the wrong address is very minimal. If you’ve seen a Bitcoin wallet address before, you would know that it consists of a long string of numbers and letters. In the case that you wrongly input it, it is highly unlikely that you will get the correct at address. The only instance where the funds would go through if the person was scammed. This is the newest version of fraud in the cryptocurrency market, and a lot of people fall for it.
Another example of cryptocurrency scam that people often fall for is Ponzi scheme. The creator of these schemes are increasingly creative on how they shape their business model to make it more appealing to others. Therefore, before you get involved with any cryptocurrency business, you need to ask how long the business has been around. Reputation is very important to check the credibility of the business. Furthermore, to verify the credibility, you must know the people behind it. If they have been involved in a lawsuit, there is a high probability that they are not trustworthy.
When dealing with the buying and selling transactions of your cryptocurrencies, always stick to established and popular exchanges. Granted, hackings do happen more often to large exchanges. However, the probability of your crypto assets being stolen is much higher with smaller exchanges that do not have any reputation for protecting their users.
- Learn how to store your cryptocurrencies well
One of the biggest mistakes that you can make when trading cryptocurrencies is storing them on an exchange. Also, many people store their cryptocurrencies on their personal computers. As a result, this exposes the cryptocurrencies to risk of it being hacked as it is still connected to the Internet. Therefore, when someone downloads a game which has a virus, this enables the hacker to obtain your private keys easily. You would be surprised at how many people were hacked since cryptocurrencies climbed up in value.
You should consider hardware wallets such as Ledger Nano S and Trezor. They look like USB devices which can help keep your cryptocurrencies of the Internet as they are less vulnerable to hackers. Of course, it requires an initial investment to purchase these hardware wallets, but it will go a long way to protect your cryptocurrencies.
Think about it this way. If you bought physical gold, you would want to have a safe in your house. The same thing applies to cryptocurrencies. The only difference is that you need to find a digital safe for your cryptocurrencies. Hardware wallets will require you to set up a PIN number. It will also provide you with 24 random words which you can use to access the account if you forget the PIN. If you depend on an online exchange and you lose your private keys, there is no way that you can access your account again.
- Always back up your cryptocurrencies
When it comes to cryptocurrencies, you can never be too secure. This is because there is no one else taking care of your cryptocurrencies for you. You are fully responsible for the safety of your cryptocurrencies. Therefore, store your crypto coins in a safe place.