Like many digital innovations, cryptocurrencies are stirred by several security challenges. Although many people have accepted this payment system, others are still sceptical about the security of their wealth, should they choose to trade or store it in the form of cryptocurrencies.
So, can cryptocurrencies be hacked or stolen? Read on to get the answer to this question and other useful information regarding cryptocurrencies security.
Can cryptocurrencies be hacked?
Yes. Cryptocurrencies can be hacked. It’s almost natural for any hacker out there to be targeting bitcoins and other cryptocurrencies. I mean, this is already cash!
And guess what? This is not the only existing security concern surrounding these payment systems. Here are other security risks associated with storing and trading cryptocurrencies.
3 security risks associated with cryptocurrencies
● Hackable currency exchanges
Being a cash business, cryptocurrency is very appealing to a large set of cybercriminals. The hackers can break into your crypto platforms and before you know it, your digital fortunes have disappeared into thin air.
Many attackers use malware to launch their attacks on unsuspecting crypto-traders. To counter these attacks, you need to have effective security systems in place.
● Cyber extortion
Investors trading in cryptocurrencies may fall victim to cyber extortion which is carried on through misinformation and other social engineered attacks. The information may be disguised as true or as the most ideal deal but may end up costing an investor a good fortune.
Cybercriminals have in the recent past conned unsuspecting cryptocurrency holders using seemingly true information on the best deals available and related to the coronavirus pandemic.
● Account security risks
Digital currencies are accessed using a private key as the passcode. While this key is a complex password combination, many people tend to store it on their device like any other file.
This is a risky behaviour because should hackers succeed in accessing your computer, then they will gain express access to your cryptocurrencies and once this happens, your digital wealth will be gone.
5 ways to stay protect your cryptocurrencies
● Subscribing to a secure email service
Subscribing to a secure email service will help filter out any phishing emails from suspicious contacts who might be out to send malicious links or content to your mailbox.
This service also secures your email correspondences with end-to-end encryption which makes the content unreadable should it be accessed by the unintended recipient.
● Using a multi-signature address
A multi-signature address requires that you input several keys to authorize a cryptocurrency transaction. It is like using multiple passwords to authorize access to an account. Enabling this feature makes it difficult to compromise your cryptocurrency account.
● Installing a VPN
You can also secure your crypto coins by downloading a VPN app. Using a Virtual Private Network is a very convenient way to secure all your internet traffic including your cryptocurrencies data.
With the help of this service you are able to trade anonymously without having to worry about your data being exposed to the prying eyes. The data you send or receive is secured through a private data encryption tunnel.
● Use trusted wallets
While choosing a wallet for your currencies, go for options that have the best reviews and recognition. You can tell this from the financial brands that are in the support of the particular wallet.
● Store your private keys offline
To avoid the possibility of losing your hard-earned fortune to malware and other data-harvesting attacks, do not store your private keys on your PC.
Store this crucial information in an offline gadget such as a USB hardware wallet. Doing so will keep your access keys safe should anyone hack into or access your PC without your consent.
You can invest in cryptocurrencies safely
Although the risks associated with investing in cryptocurrencies can cause dire consequences, putting the tips discussed above into practice can help you avoid them. Remember other best practices including maintaining your cool before making any transaction move.