Cryptocurrency is charging forward. Not to mention that 2017 has been a breakout year for cryptocurrency giants (i.e. Bitcoin) and altcoins (i.e. Ethereum and Dash), it is undeniably growing continuously.
From being invented out of the need for secured communications, it has rapidly evolved – with the help of the digital era, of course – as a means to not only secure communications and information but, nowadays, your money as well.
In the present, cryptocurrencies are regarded as digital currencies (more like virtual money) and are mostly utilized for almost everything – from an alternative way of paying for goods and services through to long-term investment holds. Meaning, we are talking about huge amounts of money being transacted every day. And due to this nature of the business, most especially because transactions are done over the internet, it does not come as a surprise that it is prone to security threats and attacks such as hacking and phishing.
But aren’t cryptocurrencies supposed to be safe and secure?
Cryptocurrencies can feel safe and secure. This is because digital transactions are decentralized and anonymized. However, these measures don’t make cryptocurrencies less susceptible to threats and attacks. Although the nature of being decentralized gives you the opportunity to “be your own bank”; there is no entity that can ensure the safety of your digital funds nor compensate for losses incurred for whatever the causes are.
This also means that you are solely responsible for protecting and keeping your cryptocurrency safe. After all, it is your crypto money that is at risk and it just makes perfect sense that you should understand the responsibility of protecting them and keeping them safe.
Your next question might be, how can I protect my cryptocurrency?
New scams always crop up as the old ones resurge all the time, millions of digital assets have already been lost or stolen, and there is definitely something to watch out for at every turn.
However, no matter how alarming these security threats are; the good news is, a few simple steps can help you guard your cryptocurrency against a swath of common attacks. And while the following won’t guarantee to completely defend against every attack, it is rather a good place to start.
Understand how the cryptocurrency market works.
The very first and necessary thing to do when entering the cryptocurrency market (and essentially anywhere) is to understand how it works.
Before deciding to invest, the smartest move to make is to conduct a research. And although the most important aspect you have to understand is the basic blockchain methods as it is a foundational technology and the heart of cryptocurrency transactions; learning about simple things such as what to expect, the circumstances that commonly arise and how to properly deal with them, and the like are as important.
Because upon entering the cryptocurrency market, according to Medium, “one experiences a paradigm shift from the world of traditional currency”, it is better to familiarize yourself with the basic defenses in order to reduce your vulnerability and the chances of being attacked.
Purchase a cryptocurrency wallet.
Cryptocurrency wallets are the first requirement when starting or investing in cryptocurrency-based businesses as all transactions are carried out through them. Mostly, coins have their own official wallets or recommended third-party wallets. However, if you wish not to use them, a wide variety of wallets are still available which, depending on the type, have their own pros and cons.
The question here, however, is not how cryptocurrency wallets can help secure your digital funds but which wallet should you be using – which unfortunately does not have a satisfying answer.
Like all forms of insurance, security comes at the cost of money and of course, convenience. So, perhaps to balance it in a way that suits your risk profile; you must define some unique features that you want your cryptocurrency wallet/s to have. This might come in the form of cost, security, mobility, user-friendliness, convenience, and/or style.
Many websites highly recommend cryptocurrency wallets by NEO, Bitcoin, Ethereum, and Dash as they allow users to get the most out of their cryptocurrencies. These coins, however, offer almost the same types of wallets. And if you are wondering what NEO wallet or Bitcoin wallet you should be picking, again, you might want to check on the wallet features that suit your risk profile.
Now, once you have familiarized yourself with the basics of cryptocurrency marketing; make sure that your peers adapt the same mindset. The more secure the ecosystem, the fewer security threats and attacks there will be. As what Cornell’s Sirer said, “Help newcomers to crypto with their security. The area is new and we have to support the people who are just finding their way in.”