Most Bitcoin trading platforms don’t have the best reputation. Users are at risk of being hacked. The fact that operators disappear with users’ deposits is also not an isolated case. That’s why you may wonder how to protect your cryptocurrency.
While Bitcoin is completely safe, exchange platforms aren’t. This is a problem that has always arisen with a blockchain ecosystem. So, how to protect your cryptocurrency? This is a key question of our today’s article. Let’s try to find out!
How to Buy Cryptocurrency and Protect Your Investment?
How to buy cryptocurrency and protect your investment? Well, when buying cryptocurrency via exchanges, a user indicates an address to which the coins will be received. This can be a pre-created wallet on an exchange, a cold wallet, and other options. It’s very important not to make a mistake when filling in the data during purchase of coins and their transfer.
Otherwise, in 99% of cases, the assets will be irrevocably lost. But if this happened, you should always contact technical support of a platform. Managers will be able to help you.
How to protect your cryptocurrency taxed? When using exchanges, as well as when making transfers, it’s most reliable to use stablecoins, for example, a USDT token. Its rate is aligned with dollar quotes. There is a risk of a sharp drop during the transfer of funds between wallets. Because of this, a trader who sent a cryptocurrency may lose capital if its price decreases. Stablecoins eliminate this risk.
It should be borne in mind that when buying cryptocurrencies via exchanges, there is a risk of using the services of scammers. Therefore, when looking for a service, you should contact only those who have a good reputation. Various reviews can help you to find a good one.
Also, you should check whether a specific service has been noticed in illegal activity and whether there are any complaints about it. When using an exchange for the first time, you shouldn’t transfer a large sum at once. Just start with a small one, for a test.
Cryptocurrency How to Protect Your API Keys?
‘Cryptocurrency how to protect your API keys?’ is another popular issue many users face with. Let’s try to find out the answer!
It’s necessary to note that modern automated cryptocurrency trading relies entirely on APIs that transmit information to trading bots. They in turn are capable of analyzing a market situation and making decisions that are beneficial for users.
Basically, API is the use of public data in your apps for profit. That’s why it’s unlikely that this service is aimed at stealing your funds. In turn, the security of your assets can only be violated in case an attacker hacks your account.
Similarly, over-reliance on bots that rely on APIs can be risky. They may not take into account some variables that are important specifically for your strategy.
You should also make sure that a bot doesn’t risk the entire sum contained in your wallet. It should use only the part of it that you’re willing to risk.
How to Protect Your Cryptocurrency Wallets?
It’s necessary to note that the safety of dealing with cryptocurrencies is 99% dependent on a trader’s vigilance. How to protect your cryptocurrency wallets? Let’s learn the key rules!
Password Creation & Storage Rules
A password should be complex, unique. It shouldn’t contain ordinary words from a dictionary. Be sure to use symbols from different registers, numbers, as well as special characters. An example of a perfect password — hdBBn3 * 32We_3. In order to make such a password more complex, just increase the number of characters.
Make sure you store a password in a secure place and don’t lose it. You can store a password in a password-protected WinRar archive. Or, for example, in a TrueCrypt container. Storing a password on paper is also an option, but make sure to find someplace safe from prying eyes.
Device Security
Regardless of which wallet is used — offline or online — a device on which you log into the wallet must be protected. If it’s a PC or laptop, be sure to install an antivirus. If it’s a tablet or smartphone, antivirus software isn’t as effective. It would be more reasonable to simply not allow an installation of an app from unofficial app stores (Play Market for Android or AppStore for iOS).
Another important nuance is an Internet connection. While everything is clear with mobile data, Wi-Fi may be troublesome. Connecting to unfamiliar and especially unsecured networks can lead to interception of traffic. Some antiviruses can protect your device from such networks, but the best way to protect yourself is a common sense and vigilance. How to protect your crypto? What other important tips & tricks do you know? Just share your knowledge in the comments!
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