A major concern for traders is the safe and secure of their assets. They need to know that their assets are protected from hackers and thieves and that they can trust the company with which they are conducting business.
Cryptocurrencies are not regulated by any government entity or bank, which is part of the appeal for many investors. However, when a cryptocurrency account is hacked, there is no law to protect the investor.
The price of cryptocurrencies can be quite uncertain, and nowadays there are many criminals looking to steal this valuable commodity. It’s been almost 10 years since Bitcoin was created, and in these 10 years there have been numerous hacking incidents related to cryptocurrency exchanges or crypto wallets.
This article will discuss the different practices through which traders can protect their crypto asset safe and secure from hackers, thieves, and other cybercriminals when trading cryptocurrencies online.
So let’s get started,
What hackers try to threat and target in crypto trading?
The most common threats to them are cryptocurrency wallets and exchange providers.
It is no secret that the world of cryptocurrency is a murky one. The anonymity afforded to digital currencies by the decentralized blockchain technology makes it difficult to track criminal activity.
For example, if someone steals your private key, they can transfer all of your cryptocurrencies to their own account and you will never know about it.
The 2017 Equifax security breach is one example of how hackers were able to steal the personal information of 143 million Americans and half a billion credit card numbers. And this was just a single company’s servers!
10 Best Practices for Safe and Secure Online Crypto Trading
1) Use a Secure Exchange
A secure exchange is an online platform where you can trade crypto currencies without the risk of losing your money or getting hacked. These exchanges are created with the sole purpose of keeping your funds safe and sound from fraudsters and hackers.
There are many benefits that come with using a secure exchange, including:
- You don’t have to worry about your funds being stolen by hackers or fraudsters
- You don’t have to worry about being scammed by shady traders or brokers
- You can enjoy all the benefits that come with trading
2) Two-Factor Authentication
Two-factor authentication, or 2FA, is a security measure that requires not one but two pieces of information to log into an account. The first piece of information is a username and password, and the second is a code that changes periodically.
The primary benefit of 2FA is that it provides an extra layer of protection against hackers. If someone manages to steal your password, they still need access to your phone in order to log into your account.
3) Secure Your Personal Devices
In order to prevent accidents like hacking, traders are advised to encrypt their devices with strong passwords and use antivirus software with regular updates. It is also recommended that traders store their cryptocurrencies offline in cold storage wallets or hardware wallets, which can easily be done by a variety of sellers on the market.
You should also ensure that you have a backup plan in place if your device gets lost or stolen. If your device has been compromised, there is no way for you to access your account and execute trades securely without having access to this device again.
4) Monitor Your Account Activity
Monitoring your account activity is very important for crypto traders because there are many different things that can happen with your account. You may be hacked, or you may have mistakenly traded wrong coins.
Monitor your account activity by checking in on it periodically throughout the day or week, depending on how often you trade cryptocurrency and how much money is in your account(s). You can also set up email alerts to notify you when specific events happen, including an order being filled or a deposit/withdrawal from the account.
5) Separate Trading Accounts from Personal Accounts
One of the biggest problems traders face is how to keep their personal assets separate from their trading account assets.
While it may seem like a simple task to create two different accounts and transfer funds back and forth, the reality is that it’s not so easy. The reason for this is because many exchanges require users to provide the same information for both accounts, which can lead to mistakes and potential security breaches.
It is important to separate the trading account from personal accounts to avoid any potential losses.
1. Create a new email address for a trading account
2. Create a new password for the trading account
3. Use 2FA (two-factor authentication) on the trading account
4. Don’t use your personal email address or phone number when registering the trading account
5. Use a separate bank account for all crypto transactions
6) Don’t Use Public WiFi/Unsecure Networks to Trade Cryptocurrencies
If you are trading cryptocurrencies, you should not use public WiFi or unsecure networks to do so.
Public WiFi networks can be easily hacked. This is because they are not encrypted and the passwords are usually easy to crack.
A hacker may be able to get your private information from a public WiFi network, such as your bank account number and password.
Furthermore, if you download malware on your computer, it could infect all of the computers in the public network as well.
You might also want to make sure that you’re using a secure VPN for these transactions. A VPN is a virtual private network that will encrypt everything that goes through it, which means it would make it much more difficult for hackers to intercept your data and steal from you.
7) Protect Your Passwords with Strength and Complexity for crypto wallet
Passwords are the keys to your online life. They allow you to access everything from your email to your bank account. It is important to have a secure and complex password for all of these accounts, but it can be difficult to remember them all.
One way that people keep their passwords safe is with a password manager. Password managers store all of your passwords in one place, and they are protected with a single master password that you create. You only need to remember one password, and the rest is taken care of by the software.
8) Use a hardware wallet for storing cryptocurrency offline.
A hardware wallet is a physical electronic device, built for the sole purpose of securing cryptocurrency. They are often shaped like a USB stick and can be used to store different types of cryptocurrency offline.
Hardware wallets are considered more secure than other types of wallets because they do not require an internet connection to function properly. This makes them difficult for hackers to access, as it would require them to physically steal the hardware wallet and then break into it in order to access the funds stored inside.
There are a variety of reasons why it makes sense to use a hardware wallet like Ledger Nano S, Trezor 1, safepal S1
9) Backup of your crypto asset
Crypto assets are the future of money. It is not a question of if but when they will replace cash. The problem with crypto assets is that they are not backed by anything. This means that the value of your crypto asset can fluctuate wildly and you could lose everything overnight, which is why it is important to have a backup of your crypto asset.
The most common way to back up your crypto asset is to use a paper wallet or a hardware wallet like Trezor or Ledger Nano S. A paper wallet can be generated by using an online generator like Coinomi, Mycelium, or Bitaddress.
10) Be wary of phishing scams and malware attacks
Crypto trading is a high risk activity. It’s important to be aware of the risks and take steps to protect yourself from potential scams and attacks.
The first step is to educate yourself about the basics of cryptocurrency trading, especially if you are new to it. The second step is to set up your crypto trading account in a secure way. The third step is to practice safe trading habits while trading, such as using only reputable exchanges and following the security practices outlined by these exchanges.
The use of cryptocurrencies has been on the rise in recent years. This is because they are decentralized and do not have a central authority that can decide to change their value as they please. The main downside is that it’s hard to find a reliable place to trade them, which is why people often turn to online exchanges.
There have been many cases of exchanges being hacked and people losing all their money. This is why it’s important for people who want to trade in cryptocurrencies to only use safe and secure exchanges
The first thing to do is to make sure that you only trade in regulated exchanges and trading platforms. This way, you can be assured that your funds are safe and secure.
Secondly, it is important to keep your crypto assets in a safe wallet so that hackers cannot steal them from you.
Finally, it is important to be aware of all the risks involved in crypto trading so that one can make informed decisions when investing their money into these markets.