The success of cryptocurrencies such as Bitcoin and others also attracts scammers. However, there are some tips on how you can protect your cryptocurrencies. With an intensive tool, you can manage your finances and track your investments.
Money Patrol: Tips on how to keep crypto assets safe
Manage your cryptocurrency yourself
There is an iron rule in the crypto industry. It reads: “Not your Keys, Not Your Coins”. This means that cryptocurrencies are usually stored in a digital purse. To do this, you create an account with such a wallet and then receive the so-called private keys.
Use a hardware wallet
One of the best and most effective protections for cryptocurrencies like Bitcoin or Ethereum is to use a hardware wallet. This is a small device that stores the aforementioned private keys in a way that makes it almost impossible for hackers to access them. This is exactly the advantage over conventional software wallets. Whenever you use them to send Bitcoin or Ethereum, for example, there is a possible attack vector where hackers can get to the coins.
Keep the key and seed safe
The following applies to both software and hardware wallets. In addition to the keys, they generate a so-called “seed phrase”. This is a string of 12 or 24 words that “restores” the wallet. Strictly speaking, cryptocurrencies are never “in” a wallet, but always on the blockchain. The wallet whether hardware or software only allows access to these coins. If, for example, the hardware wallet is lost or damaged, the cryptocurrencies remain unaffected. The configuration of the device and thus access to the coins can be restored with the seed phrase.
Use bookmarks for crypto websites
Again and again, scammers create clones of well-known crypto websites that are almost indistinguishable from the originals. The URL often looks same. At times, the cybercriminals even manage to attain a high Google ranking or the offenders promote their “services” using an ad.
It can happen when a user is searching for a precise crypto exchange and the result is a fake plagiarism. There he then unintentionally enters his login data for the Exchange and falls into the trap. However, this can easily be prevented by checking the Internet address carefully in advance and then creating a bookmark for the respective page. You can do this for all crypto offerings.
Read More