Last Updated on May 20, 2021 by MoneyVisual
The cryptocurrency market is on the rise again, and people interested in joining are following suit.
Many join in hopes of making money, while some are trying to evade taxes. Whichever group you belong to, you should know that the cryptocurrency market is still uncharted territory.
You could do all the research about a project, and it could still end up being a scam.
Aside from suspicious projects and fake CEOs you should pay attention to, you need to protect your cryptocurrency online and offline. Here’s how.
General Online Safety
These general online safety tips should always work in your favor.
Be Careful with Updates
Always check if alleged wallet updates come from legit sources. Cybercriminals can’t wait to put you in a state of panic for missing an update and have the power to create a fake one.
They can release the news and link to the faulty update, which contains malware you can click on and install. Always go to trusted sources for wallet updates.
Check Out Reddit
Cryptocurrency Reddit communities are very active, and chances are they’ll be the first to notify others and expose the scam. Joining is easy, although sometimes they demand that you have an older Reddit account. If you haven’t already, make one and try to be active to get some karma to increase your profile score.
After Reddit, Go to Telegram
Telegram also serves as a platform that projects use to build the community, share the news, organize giveaways, and more. However, Telegram is also a playground for scammers. Here’s what you should pay attention to upon joining:
- If the project you invested in uses a tipping bot for trades, make sure you’re dealing with a correct tipping bot
- Never send your private key to anyone
- Always make sure to make transactions through legit channels
Another thing where many beginners lose their money is the pump and dump scheme. You might get invited with the promise of receiving signals when a coin on a specific exchange grows in value.
These groups are far from legit, and the signals that they send out are fake. By the time you started trading, the coin already reached its peak, only to drop quickly, leaving you with nothing.
Online Safety on the Exchanges
You might believe that sending your cryptocurrency to the exchange is a smart move, and you’re right. Here’s how you can secure your investment even more.
Know Your Customer
KYC or Know Your Customer is a compliance procedure that financial institutions and exchanges impose on new customers. It entails collecting identity-establishing credentials to avoid fraudulent activities, such as money laundering, financing terrorist organizations, and all other forms of criminal behavior.
Serious traders and holders don’t mind going through the procedure, but some exchanges have limitations regarding certain countries. It generally helps users feel safe about the exchange. The platform needs to go through specific audits and KYC usually means that the exchange is legit.
Password and 2FA
Always choose a strong password and make sure you use 2FA. It’s a smart move to change your passwords occasionally for any website, let alone the trading platforms. If you think that you aren’t someone who can be targeted by hackers, think again. Everyone’s a potential victim. It’s better to be absolutely sure that no one can use your account but you.
Online Safety of Wallets
The cryptocurrency world is chaotic, and you can easily miss the news about the latest cyberattack that can put you in financial jeopardy.
Strong Wallet Password and PK Safety
Creating a strong password for wallets is a must. Writing down your private key or screenshotting it and sending it to your email is also another step to make sure your investment is safe. Keep in mind that if you don’t have your private keys, you don’t have access to your money.
General Offline Safety
You might think that cryptocurrency is always related to the internet, but you should be careful in the offline world as well.
People Don’t Need to Know
Avoid telling people you own crypto. It’s perfectly fine to advise people on this digital gold, but try to do so in a way that they don’t know how much you own. Cryptocurrency-related violent crimes are rare, but you don’t want to take any risks.
Keep Your Eyes on Your Phone
If you keep your wallet on your phone, you must be extra careful not to lose it. In case you have people around you who would go through your phone, set up a password for phone access. It’s also important to keep your phone operational if you use the 2FA security system. Losing your phone means that you’ll have a hard time logging in to the exchange to trade or withdraw your funds.
Offline Safety of Wallets
You can secure your wallets offline as well. Having multiple backups is a good solution since you never know what might happen.
Cryptosteel and Other Methods
You don’t have to write down your private keys and passwords on a piece of paper and risk losing or damaging it. Use steel plates to safeguard your private key. These are unmatched when it comes to the physical safety of your passwords and wallets. Other methods include laminating the QR code of your keys, using a safe, and finally, the USB to store data.
If you find that entering the cryptocurrency market is scary, you’re right. However, with high risk comes high reward, and that’s why many became part of the Bitcoin trading world. Many laws are passed in an attempt to regulate the market, but unfortunately, cybercriminals will always be present.
Before you make a move, inform yourself. Projects with a detailed whitepaper don’t guarantee a high ROI. Join the community and explore before you invest. Ask questions and talk to others.
If you use an exchange to trade, your funds should be safe, yet there are other ways to add more security levels. As soon as you purchase any token or coin, you have to create a wallet, and that can be a challenge on its own.
Keep your private keys safe, protect your backups, and guard your phone. Apply multiple levels of protection and enjoy your crypto journey.