Cryptocurrencies are a great financial asset and every day more and more people invest their savings in this new financial market. However, they aren’t without risks. If you have cryptocurrencies or if you are considering investing in them, you should know that they are exposed to attacks, so both your identity and your digital wallets should be protected from digital theft.
Here are a few tips to protect your digital assets:
- Beware of possible cryptocurrency scams, such as phishing, impersonation scams, investment or business opportunity scams, blackmail, fake apps, etcetera. Exercise extreme caution before approving a request and consider whether it is abnormal or suspicious. If you have any doubts, it should be rejected. Learn more about these scams here.
- Avoid exposing your identity or your Bitcoin address. To do so, you can use a versatile Bitcoin client so you can change to a new address with each transaction. Apart from hiding the IP address, extreme care should be taken when sharing transaction data on the web.
- Keep your cryptocurrency offline. Offline storage is the best option for safety, this way you can use a hardware wallet that can fit in a safe. When you want to do a transaction, just plug it into a computer or phone via USB and transfer your currency.
- Use an escrow service when you are not sure who is on the other side of a transaction. How does it work? The person who must make the payment sends their crypto to the escrow service, while waiting to receive the item they requested. This way, the seller knows that the money is safe at the custodian and sends the agreed item. Once the buyer receives the merchandise, they notify the escrow service to complete the purchase.
- Have a strong password and use double authentication whenever possible. Don’t use the same password across multiple services either, and regularly change your passwords in case a service is breached. You can employ a reliable password manager to automate this process, they are apps or web browser extensions which safely store all your passwords and enter them for you when you need them.