Cryptocurrencies are a growing area in the world of financial markets. With the emergence of Bitcoin, the first cryptocurrency as a new means of digital currency, individuals are in effect our own bank and responsible for its security.
Research suggest that about 25 million American’s are considering buying cryptocurrency in the next 12 months according to a study concluded by Nobl Insurance, based in Michigan.
The opportunity to make a profit from the increasing Bitcoin price brings out the bad in human nature. The reality is, wherever there is greed, there will be online frauds and hackers.
By following these 3 tips, investors can avoid being scammed and protect their crypto assets.
Tip #1 – Use a Reputable Bitcoin Exchange
In the hype that is Bitcoin, many users will rush to Google search for a Bitcoin exchange in their country and click the first exchange without doing any investigation or research.
Beginner may fall into the trap of visiting an unsuspecting and fake exchanges that can appear like a reputable exchange. These websites are just an illusion to steal your personnel information and will use attractive promotional material that will appear too good to be true.
Exchanges with smart phone applications should also be vetted. There have been known instance where these apps have been downloaded from legitimate app stores such as Google Play.
To minimise this risk, we suggest using a reputable and trusted exchange to buy Bitcoin. To make it easy, visit hedgewithcrypto to find the safest cryptocurrency exchanges which will greatly reduce the risk of hackers. Once you’ve settled on an exchange, make sure you bookmark the address on your browser and always use it to avoid clicking on a phishing link.
Tip #2 – Get a Hardware Wallet
Storing private keys to your Bitcoin on the C: drive of a PC is a terrible idea. Hackers in this day and age can gain access to this data residing will little to no effort and will be able to steal your cryptocurrency.
To solve this problem of securing the private keys, hardware wallets were developed. They provide an ‘air gap’ and complete isolation between your private keys and anyone else.
A hardware wallet is a purpose-built device that is specifically designed to store Bitcoin and other cryptocurrencies. The wallet can be connected online to allow the transfer of to and from exchanges and trading platforms. It can then be removed offline to safely protect the cryptocurrency data.
All of the transaction data associated with the wallet is stored on the device. The most critical piece of information is your private keys. The private keys provide claim to your Bitcoin and must never be told to anyone.
As long as you hold onto the private keys, your Bitcoins are safe.
Tip #3 – Get a Virtual Private Network (VPN)
A common way for hackers to target Bitcoin owners using social engineering is through an unsolicited email that looks legitimate. The email may appear to be from a trusted organisation such as a bank, or in this case, a cryptocurrency exchange or software wallet.
The email will often contain a link to another website that looks almost identical to the exchange or software wallet page you would normally visit. Unfortunately, this is all a disguise to obtain your login information.
Using a reputable VPN software such as SaferVPN that encrypts the data on the computer when buying, selling or trading Bitcoin or altcoins making it harder to intercept through phishing attacks, malware and viruses.
The VPN functions to disguise the location of the computer to prevent a hacker tracking the IP address. This means the computer’s location will not become connected to your Bitcoin address and eliminates the possible threat of hackers.