Looking for a way to cash in on cryptocurrencies like Bitcoin?
The current price of Bitcoin makes it an attractive investment in the digital age. However, the accessibility of the internet makes it a risky venture. If you aren’t careful, you might find yourself a victim of an online scam racket.
Don’t feel discouraged yet.
In this guide, we’ll teach you everything about Bitcoin safety. Read on and learn various methods to keep yourself secure:
- Beware of Phishing Scams
“Is Bitcoin security or commodity?” Regardless of your answer to this question, you’re a target for phishing scams. It’s a fraudulent attempt to get your sensitive information by posing as trustworthy.
Most hackers use the usual scam technique of making a fake exchange webpage. Sometimes, they also make fake web wallet pages you use for your cryptocurrencies. They’ll try to use an email to make you click on the link.
The message can be compelling enough to convince you to log in. When it happens, you’re giving your details to these hackers. They then use the data to do anything that would benefit them.
The good news is that it’s easy to avoid phishing scams. Once you get to the website, look at the website URL in your browser. If it’s the same as your web wallet or exchange, it’s trustworthy.
- Avoid Storing Cryptocurrencies on Exchanges
Even when you’re keeping Bitcoin secure, your cryptocurrency exchange might not. Some of the largest exchanges lost their user funds in the past. It happened because of massive hacks or errors.
When trading your funds sooner, transfer them to your wallet. If you’re adamant about using coin exchanges, look for popular and reputable ones in the market. They’re trustworthy and safer than other smaller exchanges.
- Buy a Hardware Wallet
A cryptocurrency hardware wallet is a physical device. It keeps your private key away from prying criminal eyes. At the same time, it lets you access your cryptocurrencies.
Popular hardware wallets store your private keys within an impenetrable circuit. It allows you to sign transactions using a click. These devices also have a seed—a piece of paper for transferring keys to another wallet.
- Avoid Public WiFi
Connecting to a WiFi network allows it to direct your browser to specific pages. Sometimes, malicious hackers will mimic your wallet or exchange website. It enables them to gather data you send and receive through the network.
It means they can see your password information. When you have no choice but to use public WiFi to access your wallet, use a Virtual Private Network (VPN). It adds another layer of privacy and security, whether it’s a private or public network.
Businesses usually have VPNs to secure their sensitive customer data. However, it’s more affordable nowadays because of technological advancements. Get the most out of security by investing in premium VPN providers.
- Ensure Your Device Safety
Ensure that the device you use to access the exchange has updated antivirus software. If you’re not confident about a certain piece of software, avoid installing it. Never download suspicious attachments from emails and enable your firewall.
Before installing new software on your computer, do your homework. Research about its reputation using the internet. Google and various social media platforms are great sources of information.
- Enable Two-Factor Authentication
Two-Factor Authentication (2FA) is another layer of the validation process. Having this on your wallet or exchange account makes it more difficult for hackers to access your wallet. They can’t access them using your password alone.
Most cryptocurrency exchanges knew it was a good idea to secure their platforms. It’s why the majority of them use two-factor authentication methods. A common example is sending a random PIN to your email address or SMS.
- Beware of Bitcoin Gambling Sites
The anonymity that comes from Bitcoin gambling could make you frequent these websites. However, the same feature could be a major drawback for your security. These gambling sites won’t put the identity of the site owner.
The lack of identifying features makes it an ordeal to check for appropriate licenses. To keep your Bitcoin cold storage secure, avoid going to these websites. If you can’t stop your gambling tendencies, look for reputable and trustworthy platforms with good reviews.
- Never Entangle Yourself With Pump-and-Dumps
Pump-and-dump tactics are common tactics for influencers to make people buy cryptocurrencies at once. The central principle of their plan is generating hype around it. As they do, the price of the cryptocurrency increases drastically.
It enables the organizers to dump everyone buying the coin at higher rates. It’s illegal to practice these tactics in both cryptocurrency and traditional markets. To keep your coins safe, stay away from these people.
Some organizers will reel you in with the promise of great profits. The truth is that they’re the only ones that can benefit from these schemes.
- Use Difficult Passwords
A secure password is your first line of defense when making a wallet or exchange account. The ideal password is a combination of the following:
- Uppercase letters
- Lowercase letters
If you can’t think of a random string, look for online password generators. They allow you to make secure and random passwords you can store somewhere safe. Put it on a piece of paper or an unconnected device.
- Keep Your Holdings Private
Bitcoin and cryptocurrencies are attractive to criminals because of anonymity. To avoid becoming a target, avoid telling people the amount of cryptocurrency you’re holding. Keep it to yourself while attending meetups and conferences.
Invest in cryptograpy and use a portfolio tracker. What is cryptography? Click the linked guide to learn more about this security feature.
When pressed, mention a safe BTC price for your holdings instead.
Improve Bitcoin Safety Now!
These are some Bitcoin safety tips you can do without a lot of expertise. Invest in these security practices to protect your cryptocurrency assets from hackers and other criminals.
Why end your learning here? Browse our other blog posts for more information.