Security in cryptocurrencies
The security of virtual assets is currently an important issue for many investors. This is due to the active interest of hundreds of thousands of users, including hackers, in the new type of electronic money. The large number of hacker attacks has led to the actualization of the issue of protecting their funds.
Security basics in cryptocurrencies
If you have not yet become a bitcoin owner, but want to purchase electronic currency or want to protect your existing capital, use reliable and trusted exchanges. The best ones are those that have been operating in the market for a long time and have proven themselves.
Storage and protection of cryptocurrencies
Given that virtual funds are transacted online, there is a real threat that criminals can intercept and use the personal codes of depositors. Investor losses are a reason to learn a lesson and not repeat previous mistakes. All experts emphasize the importance of choosing the right platform. In addition, other options for storing and protecting electronic capital should also be considered.
Hacker attacks on cryptocurrency exchanges and wallets
There are many examples of unauthorized intrusions into exchanges and virtual wallets. Let's consider the largest examples.
- Mt.Gox is a Tokyo-based exchange that has been regularly subjected to hacker attacks throughout its existence (since 2010). As a result, it led to the complete bankruptcy of the platform. The estimated losses amounted to $615 million. Part of the funds belonged to the company, the rest to investors.
- Coincheck is a large exchange in Japan that did not learn from the experience of the previous platform to provide reliable protection. The loss of virtual assets amounted to $535. The reason for the hack was the storage of funds in an unprotected hot wallet. They are connected to the Internet, so they are always the most vulnerable.
- KuCoin is a Singaporean exchange that has also fallen victim to the vulnerability of hot wallets. The reported amount of losses is $281 million.
To prevent other companies from falling for hacker schemes, experts recommend building a security system at the early stages.
Phishing and fraudulent schemes in cryptocurrencies
Phishing fraud is a popular method used by criminals. A customer receives a fake link to an official website or an email from a well-known company. Just one click is enough to take the user to a website where personal data will be instantly stolen.
Fake platforms and wallets are another well-known scheme for stealing money. Investors often receive offers to purchase electronic assets at discounted prices and are persuaded to do so through the website. At the initial stage, users are required to pay a high commission and constantly increase their investments. At the same time, they convince them that profits will grow rapidly. But when the client wants to withdraw his or her funds, he or she will see that they have disappeared.
Fake broker - fraudsters use the data of a registered broker and receive users' money to their accounts. By the time investors suspect the fraud, the broker will have disappeared without a trace. At the same time, the broker in whose name the fraudster was registered will not know that his or her identity was used to implement the fraudulent scheme.
Investment schemes are based on the investor's desire to make quick money. Attackers offer to invest in a project. As soon as the funds fall into their hands, they immediately disappear. Another variant of the scheme is the creation of a fictitious project that is closed after investors' contributions.
The scheme with updates may not be suspicious to many people, as the software is always updated. By using fake updates, fraudsters can force users to give up their private keys.
Means of protection against cyber threats in cryptocurrencies
There are several tips for investors that will help to protect their funds:
- Avoid suspicious messages that come to any means of communication.
- Do not click on hyperlinks or open files from unknown senders.
- Install antivirus on each device.
- Block transactions if you have any suspicions.
Simple recommendations will help prevent malicious intrusion.
Rules for safe trading and investing in cryptocurrencies
If you still want to invest, let's talk about safe trading:
- Don't spend a lot of money at once.
- Buy and sell at extreme prices.
- Make small transactions.
- Do not buy on credit.
- Make a clear plan.
- Use technical analysis.
- Diversify your investments.
- Practice with a demo account.
Before you make your first investment, read the relevant literature, ask about other people's experiences, and trade with caution.
Risks and opportunities for making money on cryptocurrencies
Any money transactions and investments are always a risk. You can lose your investments at a moment's notice or, on the contrary, make big profits. Currently, there are some obstacles that investors can face:
- malware;
- hacker attacks;
- lack of a legal framework and legal risks;
- bankruptcy and closure of exchanges;
- lack of guarantees for compensation of losses;
- market instability;
- errors in transactions.
At the same time, everyone has a chance to make big profits by using such methods as mining, trading, and investments. Earnings schemes work and can bring generous rewards. However, it is worth remembering that everyone should take care of their own safety, as risks will always be present in this area.