With the rise in cryptocurrency trading in recent years, specifically with Bitcoin and Ethereum, crypto traders have become more susceptible to threats targeting their funds.
A major benefit of using cryptocurrency is its anonymity. It’s also easy to acquire, you just purchase the cryptocurrency of your choice via an online exchange platform. Once you acquire your crypto investment, it will be stored on that platform.
As easy as crypto is to acquire, crypto scams are just as easy to come by. There are no legal protections associated with cryptocurrency. If your cryptocurrency is compromised in any way, there is typically no one to help you recover these funds. Especially since you’re not acquiring your crypto assets through a banking institution.
So, How Can You Secure Your Crypto?
Purchase a Wallet
Many investors retain their currency on the exchange platforms they purchased them on, which are prime targets for hackers, even if they have their own safety precautions. Purchasing a wallet will allow you to keep your crypto safe and there are many types of wallets to choose from!
There are physical or offline hardware wallets, which look similar to USB drives, that allow you to store your crypto. These wallets are also known as cold storage and they have unique “keys” which will ensure your access. These wallets are very secure, but if you lose your key, you won’t be unable to recover your funds.
Make sure not to give anyone access to your private keys, and keep it offline. Don’t store it on your phone! You can also look into securing a paper wallet to help store your keys; however, other methods of cold storage are now considered more secure.
For those who would rather not use a physical wallet for their digital assets, there are also online wallets or hot wallets. These digital wallets are connected to the Internet and they also require a key, so it’s important to store your key in a secure area.
Storing your cryptocurrency in a hardware wallet, however, can make it difficult to access these funds quickly. Although online wallets attract scammers, therefore, it’s important you choose your platform and services carefully. The best thing to do is retain an amount of crypto that you’re not afraid to lose within an online wallet and store the rest within a physical wallet.
Never Reuse Passwords
Make sure that you never use the same password for any of your online accounts. Data breaches are possible on any online platform, so it's important to keep this in mind when generating your passwords. Be sure to enable two-factor authentication where you can and rotate passwords often. Complex and unique passwords are your best bet!
Use a Two-Factor Authentication App
Using SMS two-factor authentication can lead to privacy concerns if your number were to be compromised by a hacker. Using a 2FA app will make it harder for hackers to access your online accounts.
There are numerous apps like this on the market. Google Authenticator, Microsoft Authenticator, and Duo Mobile are just a few! Each one comes with its own benefits and setbacks so be sure to do your research to determine which best fits your needs.
Perform Thorough Research
Before making a decision on which platform you want to use for trading cryptocurrency, perform thorough research on each one including the benefits and setbacks of each. You want to make sure you find the most secure platforms for acquiring and storing your crypto so you can avoid potential data breaches and money loss. Typically, well-secured platforms will require multi-factor authentication and encryption. For each platform, remember to use unique passwords.How Can POND IoT Help?
The number of SIM Swap Attacks have risen recently. During a SIM Swap Attack, a hacker will port your number to their device, effectively stealing your phone number. With your phone number, the hacker can now access many of the online accounts that you use SMS two-factor authentication for. For example, your bank account and cryptocurrency exchange platforms.
This happens all the time with major carriers since most of them don’t have any SIM Swap protections in place. Many victims have had their bank accounts and crypto wallets cleared out overnight and have yet to recover their funds. At POND IoT, we offer a SIM Swap Protection feature. Our extensive number porting process makes it difficult to have your number ported to another device without the account holder's permission.
When you open an account with POND IoT, a dedicated account manager will be assigned to your account and they will work with you to determine who has access to your account (and the level of access they have). For any porting request you may have, the request will go through multiple departments that will validate the information provided. Once the information is verified by each department, your account manager will reach out to the phone number on the account and confirm the request. Only then will the phone number be released.
Keep your data protected with POND IoT. Wireless done right.