Cryptocurrency investment is not only related directly to profits but also to risks and uncertainty. Therefore here we discuss tips on Cryptocurrency security guide.
Cryptocurrencies are doing great, and they are not; this is why millions of investors trade in Cryptocurrency. Lots of investors are buying it for the first time.
Why not?
They provide great growth opportunities. But along with the growth opportunities, there are risks and uncertainties with it. Not only the investors but also the scammers have their opportunities.
Are you, too, among the new investors?
This is the best time to invest in Cryptos as the market experts predicted the highest-ever Cryptocurrency adoption. But you also have to ensure that you are knowledgeable enough to be aware of the several pitfalls of Cryptocurrency investments.
Otherwise, you will be prey to these scammers. Yes, you got it right; we are discussing security guides to help you with your Cryptocurrency investment.
Security Guides That Can Help You Trade In Cryptocurrency
As we mentioned above, Cryptocurrency investment is not only related directly to profits but also to risks and uncertainty. You are new to it and might fall prey to scammers.
Take for instance, Liquid, the Cryptocurrency exchange, was hacked in August 2021. Scammers cleared away over 97 USD million worth of Crypto. In another story, around 30 USD million.
You can make use of the crypto boom to initiate your safe Cryptocurrency trading. Therefore we discuss some of the ways through which you could trade with the desired protection you need for Cryptocurrency trading.
1. Use The Two-Factor Authentication
The two-factor authentication is a highly effective way, and it provides you with an extra layer of protection for the users. It is a system that can prevent unauthorized investors from getting into systems.
What you need is to set the password twice before entering it into your system. The malicious elements make a dent in your network. If you are using third-party software, in this case, you need to restrict your API keys so that they function only with one dedicated system. This way, you can be assured that no one enters your system.
2. Are You Using The Original ICOs?
The inexperienced investors fall into the trap of the FALE ICOs that tempt them with a high return on the investment. But later, they turn themselves into scammers.
You need to do certain things to check the authenticity of the ICOs. Check their website and look closely at their activities. If you see that the number of followers and the likes do not tally with the activities, they are fake for sure.
Read the important documents of the exchange and the ICOs to see if their activities are at all genuine. See if they have implemented well-researched financial models.
Before you click any external link, check the domain name of the companies. This can help out in your trading. Legitimate companies use the domain name to send emails.
3. Use Authenticator App
One of the most effective ways through which you can ensure your security guide is using authenticator apps. They are extremely effective, especially the new investors.
They do not use SMS text messaging. The malicious elements searching desperately for withdrawal codes can not reach them easily.
Even if you are using the 2FA enabled, the attacker may be able to evade the exchange’s security. Therefore, the withdrawal codes are extremely important for you and the safety of your investment.
4. Back Up Seed Words
If you are storing the plain text seed words on your personal computer, be prepared to face the risks and uncertainty associated with it. The malicious element can enter your network and take them even if you store them on your computer.
They will find out the image copy of your seed words. Please remember, unless you are using a hard wallet, there will be a copy of the seed words in the file named “key vault.”
The particular key can help you make the transaction, and you do not have to enter the seed words. Follow these basics:
- Write your seed words on a piece of paper.
- Keep the paper safe.
- Do not keep plain text copies of your seed words.
- Keep the location of your device backup a secret.
Finally!
You can use a strong password to protect your important documents. If your device is infected with malware, hackers can reach your passwords.
Make your passwords as difficult as possible to ensure safety. You could also use a hardware wallet to ensure your protection. It is difficult for an attacker to get into the hardware wallet and harm your information. So follow these measures to get the required safety.
