How You Can Stay Safe While Trading Crypto
Cryptocurrencies’ volatility and decentralized nature create unique risks for traders and investors. However, utilizing best security practices can help you confidently participate in crypto markets while minimizing exposure to scams or theft. Here are key tips for remaining vigilant and protecting your assets when trading crypto.
Enable Multi-Factor Authentication
Always use two-factor or multi-factor authentication (2FA/MFA) to access crypto exchange and wallet accounts. This requires providing two credentials when logging in, like a password plus an SMS code or biometric scan. 2FA creates critical extra protection by ensuring thieves can’t access accounts even if they obtain your password alone.
Work With Established, Regulation-Compliant Platforms
Conduct due diligence before trusting any crypto platform with your personal and financial data. Reputable exchanges like Coinbase and Kraken adhere to applicable KYC (know your customer) and AML (anti-money laundering) regulations in the jurisdictions in which they operate. This provides oversight and accountability protections. Only use regulated platforms.
Don’t Talk Openly About Your Holdings
Be cautious about sharing specifics about your crypto investments and trading activities openly on social media or in person. Even vague details can inadvertently expose you to hacking, scams, or theft by making you an attractive target. Never disclose wallet details or holdings publicly. Keep any chatter about crypto activities generic.
Stay Up To Date With The Latest News
Follow trusted industry news sources to stay informed about new crypto scams. Knowledge of current threats circulating allows you to take quick action to secure accounts further if any of your platforms are impacted. News outlets also cover major hacks and vulnerabilities as they occur, alerting users. If you want the latest updates, head to a site like News BTC. They have the expert analysis and news you need to know about.
Only Download Apps From Official Sources
Exchanges and hardware wallet companies provide official mobile apps to check balances and trade conveniently. However, only download directly from Google Play or Apple App Store. Fake apps with similar names and logos frequently appear to steal login credentials or inject malware. Triple-checking the publisher protects against fraudulent apps.
Don’t Store Crypto on Exchanges Long Term
While convenient for trading, leaving significant cryptocurrency assets on an exchange long term poses security risks. Exchanges can be hacked, block withdrawals, or even go bankrupt. For holdings not actively trading, transfer to a secure offline hardware wallet under your custody. Only keep short-term trading amounts on exchanges.
Run Updated Antivirus and Firewall Software
Malware and viruses specifically target cryptocurrency holders, attempting to steal wallet data or credentials stored on devices. Running robust, updated antivirus software and firewall protection provides strong shields against these hacking attempts. Enable software auto-updates and scans to maintain constant vigilance.
Beware “Free” Airdrops and Gifts
Scammers commonly offer fake gifts of cryptocurrency or tokens in exchange for you sending cryptocurrency first or sharing your wallet address. These are never legitimate. Any unsolicited offers are bait to steal your funds or data. Never send crypto or share personal information to collect supposed “airdrops.”
Don’t Click Suspicious Links
Treat any emails, chats, or texts containing crypto-related links as extremely suspicious, even if they seem to come from trusted entities. Hover over links to inspect destination URLs for spoofing. When in doubt, navigate manually to exchange or wallet sites to err on the side of caution. Clicking unknown links risks infecting devices.
Keep Devices Clean and Updated
Hackers exploit vulnerabilities in outdated operating systems and software. Keep all internet-connected devices updated, including installing the latest OS patches and browser versions. Only install apps from official sources like the Play Store. Use strong passwords. These basics create layers of security from technical exploits.
Trading cryptocurrency poses unique risks, but education and vigilance provide strong protection. Following the best security and account management practices ensures you can invest, trade, and hold crypto safely while the asset class matures. Stay cautious and keep your knowledge current.
