Although cryptocurrencies have opened up many exciting possibilities, they also carry a number of risks and disadvantages for those without experience. To reduce some of the dangers related to using, owning, and trading cryptocurrencies, stick to the two key security principles listed below.
Users of traditional banking systems and cryptocurrencies are frequently the targets of frauds and scams that are similar to each other. However, in cryptocurrencies, a variety of factors are pushing the burden of responsibility on the shoulders of the end-user mainly an inherent lack of trust and immutability of processed transactions.
Banks, which are regarded as trustworthy institutions, have complete custody of your funds. Banks are regulated, and they communicate with one another, making it easier to prevent. You can usually request a chargeback if you are victimized or make an honest mistake while transferring money from your bank account. Transactions in cryptocurrencies are irreversible once they are propagated to the network and confirmed. Maintain awareness.
Learn about common phishing tactics, keyloggers, and other common threats described here. Learning about these threats will help you keep your coins safe.
The first step toward improving your overall security should be to use strong and unique passwords and enable 2FA protection for your online accounts. You should also protect yourself against yourself. Making a mistake when creating backups, sending coins to the wrong address, or simply making the wrong decision can jeopardize your security and cause a slew of problems.
‘Measure twice, cut once‘
Keep your privacy.
Because of the nature of the internet, information can spread quickly and in unexpected directions.
There are many people with malicious intent who use nefarious tactics to steal your cryptocurrencies. Most threats and attacks are broad in scope and act as a net, attempting to catch everyone who is gullible and distracted enough, but not necessarily targeting a specific individual. Avoiding to be targeted make sure to always keep yourself private with some of the ways.
Some ways to keep yourself private:
- To avoid sharing information that is connected to your offline identity
- Not to share your previously used addresses
- Be careful mentioning your balances
- To use encrypted communication channels
Remember to think in a long run, and always consider all risks that could come.