Lately, cryptocurrency has turned into a **crime hotspot**. Over **46,000 people** reported losing more than **$1 billion** since 2021, says CNBC. Fake websites popping up like mushrooms aim to steal your crypto. Scammers use tricks like promising instant riches for a small crypto fee or baiting clicks with prizes and giveaways. Spotting these shady characters is often simple. Yet, their sneaky moves shake the crypto world, causing big losses and tarnishing names. The impact is deep, hitting hard on assets and even ruining lives.
**Stay alert** and keep your crypto safe!
So what can you do as a crypto investor to protect yourself from this other side (dark side) of the crypto world? Well, fret not! Here we take a look at the importance of investing in crypto security measures. As well as provide a raft of crypto security measures you can use to stay on the safe side. Hopefully, they can give you a peace of mind regarding your crypto transactions or dealings.
Let’s dig in!
Why should you invest in crypto security measures?
First off, it is essential to implement the necessary crypto security measures as a crypto investor due to the following reasons:
- To keep potential crypto frauds at bay: it’s a no-brainer that implementing appropriate crypto security measures can help prevent cybercriminals from interfering with your digital assets. As an example, modern security measures such as VPNs incorporate the requisite features that can help secure your crypto transactions and ideas at no extra costs. Other crypto security tips, such as the safe keeping of your seed words and the avoidance of public Wi-Fi, among others can be so helpful especially if you’re a newbie in the crypto world.
- To enable a smooth sailing and scaling up of your crypto business: without question, a crypto space that’s free from cony or sneaky deals can attract investments from individuals, as well as companies. In this context, crypto security measures can help contain some of the ongoing fraudulent activities giving crypto investors ample time to invest and grow their business empires.
Typical crypto scams / traps you might encounter in your day-to-day life
Investment scams
Investment scams capitalize on an individual’s greed to “make it big” within no time―the so-called pyramid schemes.
They present themselves in form of mouth-watering investment deals meant to lure the would-be “investors”.
Technical support impersonation scams
To soften your guard, crypto scammers can impersonate your crypto company’s support team and pretend to offer you helpful insights regarding your crypto account or problem. Then use that opportunity to glean some of your essential crypto details they can use to break into your crypto wallets or mobile wallets.
False prizes
Currently, crypto scammers have more tricks up their sleeves; for instance, they have now advanced to capitalizing on the masses’ gullibility towards freebies. In this case, they’re now impersonating celebrities and asking “fans” to send them a particular amount of crypto in exchange for bigger giveaways. They then use the exchange information to hack into their victims’ accounts.
Extortion gangs
Like in any other money-related field, the crypto world is a heaven for extortionist gangs who can do anything to steal your hard-earned digital assets. For instance, they can force you to send them your crypto account’s wallet address by threatening to air your personal details to the public. Or blackmail you in one way or another.
Social Media Scams
They’re one of the most common crypto crimes circulating the crypto world. You’ll often come across adverts or individuals requiring you to wire them a particular sum of digital coins in exchange for a prize or “something big” on social media platforms.
Phony crypto apps
In the current digital craze, dishonest developers are at their best in developing thieving apps. Most of these “crypto applications” promise mega profits out of nothing or negligible crypto investments as long as you download them and follow the provided instructions. You should avoid such at all costs.
Email scams
Email related scams have hit the rooftop since the work from home period when COVID-19 was a household name.
Nowadays it won’t be surprising if you get a baby bump on your mail wanting you to perform a particular action that can lead to the leaking of your sensitive crypto details. For instance, an email requesting you to click on a given link to win a crypto gift or grab a chance to contribute towards a particular humanitarian course, among other suspicious endeavors.
Scummy websites
They’re also part of the primary targeting methods employed by crypto scammers on innocent crypto investors or holders. They often involve crypto hackers cloning legitimate websites to lure the public into releasing their important crypto details.
Make sure to read abou the Most common Crypto Scams.
22 crypto security tips you need to be aware of
Now you have a better view on the importance of securing your crypto details and some of the crypto scams you might encounter.
Let’s get to the core of the matter; the security tips you can use to prevent them.
1. Store your crypto assets in cold wallets/ hardware wallets
Investing in a reliable cold wallet or hardware wallet is one of the most effective ways of keeping your crypto coins safe. Most cold wallets are in the form of USB sticks that you can move around with or store at a convenient place. This makes it difficult for cybercriminals to access them, unless you physically lose them or someone close to you gets a hold of them.
In our opinion they’re the best pick in comparison to hot wallets, which are pretty susceptible to cyber criminals. You can select one that is encrypted for better security of your crypto investments.
2. Do not share your private key
Another way to keep your crypto assets safe is to avoid exposing your private keys, for instance, by sharing them with your colleagues or storing them online. Observing this simple tip makes you less of a target.
An appropriate place you can store your private keys is the cold storage as it allows the deletion of digital traces reducing the chances of being hacked into. In this light, a cold storage can be a piece of paper that you can write on the details of your private keys and then store it in a secret place or out of sight.
3. Deal with reputable crypto organizations
One of the easiest ways of losing your crypto investments is dealing with a rogue crypto entity ― one that doesn’t observe the stipulated rules and regulations governing the crypto space. Sadly, there are plenty of them out there as of now that won’t hesitate to have a dig on your crypto assets.
So, a thorough vetting of whom you’re dealing with is critical before carrying out any crypto transactions.
Luckily, we have a lot of helpful information on the Internet that can help you determine, if a crypto organization is the real deal or fake. For instance, you can check out on an organization’s background and review on sites like Glassdoor and Trustpilot.
You might as well want to look at the company’s client testimonials, past crypto activities, implemented security measures and its centralized exchanges to make an informed decision.
4. Do not use provider-hosted wallets
A provider hosted wallet doesn’t cut it as the most secure way of storing your crypto assets as it denies you control over your private keys. A thing that puts your digital assets at risk in case of any security lapse in your hosting company. For example, when a rogue employee decides to snoop around your crypto details or when hackers manage to by-pass its crypto security defense.
5. Avoid hot tips from friends
It’s no secret that those closest to us heavily influence our decision-making process. However, these shouldn’t be the norm, especially when dealing with your crypto investments.
As a matter of fact some of the hot tips from your friends can misguide your decision making and as a result drag you into a financial crisis or doom. For instance, some of the “hot tips” can lure you into joining crypto associated pyramid schemes that can siphon away your hard-earned digital assets.
Therefore, it is wise to read between the lines when considering hot tips from your friends.
6. Have a secure backup for your seed words
Just like your ATM card pin, your seed phrase or recovery phrase is something you should keep close to your heart. Letting it out of the bag can give hackers a better chance of nailing your crypto details leading to the loss of your investment.
So you can store your seed phrases in cold storage, your memory, or split it up and keep the characters in different locations. This helps in the elimination of your seed word’s digital or physical footprints.
7. Do not enter your seed words on a website
As said above, your seed phrase is the entry point to your crypto assets. Therefore leaving it hanging around on a random website makes your investment vulnerable to hackers. Who can then put their skill to use, leading to a major loss that could have been avoided in the first place.
8. Subscribe to a VPN service
A Virtual Private Network will help keep your crypto transactions a secret by encrypting all your conversations. These will reduce the chances of being scammed.
9. Use secure internet only
As with money, your crypto assets can equally generate much interest from the general public. So the use of unsecured Internet connection when carrying out your crypto transactions can be risky. As an example, cybercriminals can take advantage of the presented security loopholes to steal from you.
This is why you should avoid public Wi-Fi when working with your cryptocurrency assets.
10. Avoid getting phished
Another fundamental tip of staying safe in the crypto space is to avoid crypto scams in the first place. This requires you to have basic knowledge regarding the existent cybercrimes and what you can do to sidestep them.
Here are a few things you should avoid:
- Clicking on unknown, or unverified links
- Falling for crypto adverts promising massive returns with little or no investment
- Giving out your crypto details to unknown persons
11. Use multiple strong passwords
Using a single password for all your crypto wallets and accounts can be extremely risky especially with the current advancement in technology. With a few tricks here and there, a hacker can gain access into your crypto portfolio and do the unimaginable.
So, it is crucial to use multiple passwords when securing your cryptocurrency wallet. Also, make sure they’re strong secure passwords. For instance, those that haven’t been used anywhere else and at the same time are hard to crack. And if push comes to shove, you can use a password manager to ease up things.
12. Regularly check your crypto accounts for accountability and for intrusions
A regular check of your crypto account activities and who is snooping around can also go a long way in helping keep hackers at bay. In this case, you can implement mitigation measures ASAP if you find out that someone is checking out your assets. If not, you can keep up with your check-up routine.
Better still, you can always be on the lookout for essential details such as your crypto exchanges, services, logins and cryptocurrency wallets to bring you up to speed concerning the number of services you have enrolled on. Plus, get information about your crypto accounts and crypto wallets under your name. Doing so can help you have a better understanding of how you can protect your crypto resources.
You can integrate a surveillance software in your PC’s operating system to ease your intrusion check up process. This is so as it can operate on a 24/7 basis without tiring and will alert you of any intrusion at a heartbeat.
13. Get rid of any unused or old crypto accounts
Closing your old crypto exchange accounts, as well as your unused crypto wallets is another formidable security tactic. It enables the minimization of your crypto digital footprints that can be used by hackers to reverse engineer your existing crypto accounts. Thereby gain access to your crypto assets.
Not to forget, it’s also in order to delete all the crypto apps and tools you no longer use or are in love with from your PC, tablet or phone―whatever gadget you use for your crypto transactions.
14. Check then double-check before transacting
The truth of the matter is that your crypto transactions are always one click away. A single mistake during a transaction process could send your crypto assets the wrong way or to a wrong address or recipient. And worst of all reversing such a transaction is a nightmare if not impossible.
Thus, it is essential to double-check your recipient’s crypto address, as well as the crypto websites you’re dealing with before hitting that send button, letting you lose out big time. As a rule of thumb, avoid websites that aren’t secured at all costs.
15. Avoid fake software by checking the URL
Scummy software from dubious websites are currently commonplace. A careless software download from the internet can cost big time in regard to your crypto investments.
As such, it makes sense to have a closer look at a website’s URL before downloading anything from it. A website that starts with HTTPS is ideal; one without an S or security layer isn’t advisable.
To avoid unnecessary risk, you can source a crypto app or wallet from its official developer’s home page instead of downloading it from random advertisement links or social media platforms. Some of the reputable app sites you can reach out for your software needs include the iOS and Google play stores.
16. The use of two-factor authentication
Of late, two-factor authentication is becoming a security standard in almost all digital transactions as it allows improved security. You too can take advantage of it in your crypto dealings.
Usually, you’ll be required to verify your identity in two steps. For instance, using your email first followed by an OTP code on your smartphone or vice versa depending on your platform. This makes it difficult for a scammer to interfere with your online wallets or other crypto exchanges.
Using text message is not a recommended authentication method.
17. Withdraw only to whitelisted addresses
Most cryptocurrency exchanges have an option which allows you to withdraw crypto only to whitelisted wallets. In order to add a wallet in your whitelist you need to verify via email which adds another layer of protection. Some platforms even offer an option to whitelist a wallet only for a certain period of time, i.e. 48 hours.
18. Ask if you have a hunch about something
Another way to avoid a crypto scam is to follow your gut feeling or instincts. There is no shame in second-guessing or asking about an ad, email, site or app when in doubt. The most important thing is that your crypto assets are secure.
If you are not sure about something better do your own research, ask for guidance in crypto communities, social media groups, forums etc. They can be an excellent resource, especially if they have the correct information.
19. Avoid being sweet-talked about guaranteed or overambitious returns.
It goes without saying; an overambitious or guaranteed crypto return is pure lies. The crypto world is highly volatile; therefore, no one can accurately foresee what will happen next.
A sure way of winning big time is to stake your digital assets, do your own research, cross your fingers just like everybody else, and wait for the returns.
20. Keep your crypto investment information private
As a crypto investor, keeping your investment details to yourself is advisable as you can’t trust anyone. Besides, shouting about your crypto assets can attract a hacker’s attention.
Other information you should keep private includes your private crypto keys, logins, account details and seed phrases.
21. Dedicate an email address for each exchange
If you’re a multi crypto account holder, it is vital to pick a unique email address for each of your exchange platforms and use them only for that purpose. Don`t register anywhere else with these emails nor share them with anyone. Doing so reduces the chances of your crypto accounts being tracked down by hackers who not only depend on technological tools but also on their hunch, as well as in joining the dots.
22. Store your crypto in multiple wallets
Last but not least, you can store your digital coins in several wallets to minimize the risk of losing them all at once. A good rule of thumb is to store your digital coins in at least two crypto wallets. Doing so can cushion you from the devastation that comes with losing all your “golden eggs” at once.
Final thoughts
As you can see, the crypto world is a murky one. This requires you to put your best foot forward concerning your crypto security.
Therefore, you can follow some of the provided tips or all of them to stay safe in the crypto space.
*The article contains information regarding cryptocurrency, which is not intended as professional advisory.