Cryptocurrency New World Security Updates
After Bitcoin smashed past USD 5 thousand in under a week, it regained renewed interest from the public. While this may sound like a good time to invest, always bear in mind about the need to protect your cryptocurrencies. I have found this site which has excellent cryptocurrency security guides.
But I am going to spare you the hassle and summarize the key points from the articles written over in the guides. You should definitely check them out if you have more time as I certainly wouldn’t be able to cover all aspects. But here goes nothing:
1. Not your keys, not your Bitcoin. Never store your cryptocurrencies on exchanges. Exchanges get hacked all the time. They are vast stores of cryptocurrencies and naturally are a magnet for hackers. In fact, research done by Group IB suggests that North Korea has a team specifically for hacking cryptocurrency exchanges. What then should you do? Get a cryptocurrency hardware wallet like a Trezor or Ledger and you can have a peace of mind.
2. Don’t ever let anyone know you own cryptocurrencies. Doing so makes you a target. If your crypto someday balloons in price, you may find yourself being the target of scams and hacks.
3. Don’t invest more than what you can afford to lose. This doesn’t really pertain to security but since it is related to avoiding losses I felt that I should mention it. Cryptocurrencies are highly experimental technology. They could fail or be outlawed by governments who fear their rise in popularity.
4. Get rich quick schemes do not exist. And if they do, they are scams. Cryptocurrencies have made it a lot easier for scammers to carry out their activities. The relative anonymity provided by cryptocurrencies has made them a prime medium to carry out their activities. A notorious example of this is Bitconnect in which users were led to believe they could make plenty of interest each day. The end result though was a loss of USD 2.6 billion by investors.
There is certainly more to understand about protecting your cryptocurrencies. I would urge you to read up about it prior to investing. The link I provided above would give you a complete overview for protecting your crypto.