Hackers are actively targeting cryptocurrencies. In fact, more than the 3 million Bitcoin has been lost, perhaps forever. It is not uncommon to hear that people are losing their cryptocurrencies in high scale cryptocurrency exchange hacks. Some people even lost their cryptocurrencies. Meanwhile, others had them stolen. Understandably, the cryptocurrency market comes with a variety of risk 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 inthenumber of hacks and cryptocurrencies being lost, their services are more in demand. Meanwhile,Wallet Recovery Services is a service which helps people to find their lost cryptocurrencies. On their website, it warns to visitors to expect a slow response time because there is a high volume of new requests.
With the explosive growth of cryptocurrencies, all the hackers in the world are turning to cryptocurrencies. Let’s take a look at why Bitcoin was created in the first place. It was born out of a distrust of traditional markets and the desire to establish a new system. Essentially, it would be a decentralized system, which is free of brokers or bankers.
However, this leaves the responsibility of protecting their assets to investors themselves. Many people are growing and it easy because hackers are becoming more creative with the ways that they hack into other people’s cryptocurrency assets. In fact, investors are finding out that high-security systems make it easy for them to get locked out.
According toblockchain tracking company Chainalysis, there are more than 3 million Bitcoins that have been lost. Bitcoin was initially created with a limited amount of supply. It means that over 14% of the currency could be gone for good.
Cryptocurrencies are a dream for cybercriminals. For example, if you manage to steal someone’s Social Security number or banking information, that is not money but information. Therefore, you need a broker to sell the data before you can obtain anything of value from that information.
Bitcoin makes it simpler to take something away from investors. It’s immediate because it is already cash. Therefore, all the hackers in the world are targeting cryptocurrencies. For early adopters of Bitcoin, they didn’t understand the growth potential of the coin when they first bought it. Because of a stupid mistake, many lost the Bitcoin’s that could have been worth millions.
Here are some tips that you can take into consideration on how you can hold on to your cryptocurrency assets.
- Be careful where you do business
- Use offline storage methods
- Always backup
Many people have been reported to send cryptocurrencies to the wrong address. However, what happen is probably more sinister. In fact, the probability of sending coins to the wrong address is very minimal. This is because people’s keys are consisting of along string of numbers and letters. Therefore, if you type in one wrong character, it is unlikely that you found another key.In reality, the person was probably defrauded by whoever convinced them to send his or her coins.This is the newest version of fraud in the cryptocurrency market.
Another example of cryptocurrencies scams that people often fall for is Ponzi schemes. The creator of these schemes is growing increasingly creative on how they shape their business model. Therefore, before you get involved with any cryptocurrency schemes, you need to ask how long they have been around? Reputation is very important when it comes to the credibility of the business. Furthermore, to verify the credibility, you must know who are the people behind it. If they have been involved with 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 well-known exchanges. Granted, there are still had that happen to these large exchanges. However, the probability of your crypto assets are being stolen is much higher, with smaller exchanges that do not have any reputation for protecting their users.
One of the biggest mistakes that you can make when trading cryptocurrencies are storing them on an exchange. In fact, 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 online. Therefore, when someone downloads a game which includes of virus, the actors are automatically sent to a hacker. You would be surprised at how many stories similar to that have emerged since the inception of cryptocurrencies.
Instead, you should transfer your points and private keys to a hardware wallet.Popular ones include the Ledger Nano S and Trezor (prices range from $100-$200).This is a USB -looking device that can help keep your cryptocurrencies of the Internet where they are more vulnerable to hackers.
Think of it this way. If you buy physical gold, the first thing that you want to do is buy a safe. The same thing applies to cryptocurrencies. When you buy them, you will quickly understand that you must buy a digital safe.
With a hardware wallet, you need to set up an 8-digit PIN. Furthermore, it also provides you with a set of 24 words that you can use in the case that you forget the PIN. In comparison, if you depend on an online exchange and you lose your 64-character private key. There is no way that you will have access to your coins.
When it comes to cryptocurrencies, there is no way that you can be too secure. This is because you can’t go to the bank and asked them to fix any mistakes that new date. Therefore, you must ensure you keep those 24 words that give you instant access to your cryptocurrencies. Store them in a safe place.
You can enter those words into cryptosteel, which is a device that can withstand temperatures up to 1500°C. Then, place it in a fireproof safe. In areas such as California, which are supposed to the risk of wildfires, these layers of security are important. At least when the wildfires finally go down, you are safe word will still be there.