In today’s world, there are around 700 cryptocurrencies of which few are famous like Bitcoin, Blackcoin, Dash, Litecoin, Dogecoin, Peercoin. You may have heard stories on the news about it, but do you know what it is? If you do, do you know how to protect it from cyber criminals?
What is cryptocurrency?
Cryptocurrency is an advanced form of cash or digital asset, in which encryption methods are utilized to direct the age of units of money. It’s different from flat currency because it is not regulated by any financial authority, instead working independently.
Whenever you buy or receive cryptocurrency, it is automatically encrypted. Instead of paper moneys, you instead get an address of a digital key through which you can access it. That’s why it is important for you to keep your key in safe place. Many use something called a “wallet” to store this information, and there are various kinds available in the marketplace: desktop wallets, online wallets, mobile wallets, paper wallets, and hardware wallets.
Due to its inconsistent nature, the exchange rate for any given cryptocurrency can fluctuate wildly day-to-day. Still, it has various advantages over debit or credit cards like low transaction fees, ownership, identity protection, accessibility, and risk-free for sellers. On the other hand, it has its disadvantages, like unfamiliarity, volatility, and overall newness. It can also be frustrating to use because once a transaction has been made, you can’t reverse it. However, there are some service providers and companies aiming to make it more user-friendly.
Why is cryptocurrency so popular?
The uniqueness of cryptocurrency is that it offers an innovative way of anonymously storing and spending money. It is relatively new in the market, so most people are still either unaware of or confused by it. But it is catching on, and fast. With the way it is spreading around the globe, soon it will be an essential method of transactions.
Judging by this rising popularity, there is an obvious need for protection and awareness. Protecting cryptocurrency will only get more difficult. Professional black hat hackers are already desperately in a hunt for it. It’s important for you to know why this is happening and how to secure it from hackers.
How to protect cryptocurrency from hackers?
When it comes to the mechanisms behind cryptocurrencies, it is a technological puzzle. This means that sooner or later, the puzzle will be solved. In fact, stealing and hacking of cyptocurrency has already happened!
So how can you protect your investments in the cryptocurrency of your choice? Here are some ways to improve your security:
- Don’t share your information with anyone, keep it private to yourself.
- Use a password manager and strong, unique passwords for email and accounts.
- Use a VPN to hide your IP address.
- Add two- or multi-factor authentication to login processes.
- Always install and use robust anti-virus on your computers.
- Store cryptocurrency in something called a “cold storage wallet.” It isn’t connected via internet, so chances of hacking will be negligible.
- Create a separate email for cryptocurrency at any encrypted email service. (I personally use ProtonMail.)
- Don’t put all your cryptocurrency in one wallet. Instead, spread it out in several.
- Only share the details with trustworthy parties, who will be guardian or owner of your wealth.