3 easy ways to avoid cryptocurrency scams and keep your money safe
Cryptocurrency is the future and is expected to become a key element in banking and finance. After all, it has top notch security and is almost impossible to hack, yet thousands of people are scammed every day.
Learn how to prevent your investments from being compromised and secure your cryptocurrency today. Here we go into three critical risks and three solutions.
Public WiFi networks
Check Your Bitcoin Balance? Curious to see if you got the money you've been waiting for? It might not take long to complete these tasks, but within seconds you can be robbed on an open network.
In short, if you have public wifi you are in danger. The hacker just has to position himself between you and the network and wait for you to log in. As soon as you are logged in, he will have your information data and can steal your cryptocurrency. Fortunately, you can avoid this situation.
The solution: use VPN encryption
Secure your money and personal information with these essential privacy and security tools. The definition of VPNs is Virtual Private Networks and they do exactly what they say they do by protecting your activity from snoopers. In addition, VPNs encrypt your data, making it almost impossible to steal. All you have to do is turn on the app and connect to the VPN server of your choice.
Crypto phishing relies on your inattentiveness and a variety of social engineering tactics to steal your confidential information. The most common phishing attempt in crypto theft is fraudulent email. These emails appear to be from your cryptocurrency provider and ask for your credentials or warn you that someone has tried to get into your account.
There is usually a sense of urgency. The messages will tell you that if you want to be sure, you must log into your account immediately. If you react the way the hackers intended, they could steal your information and your cryptocurrency.
Fake websites are another consideration. They may look exactly the same as the original, but they were specifically created to steal your investment.
The solution: use anti-phishing measures
Check every link and email address carefully. The best way is to avoid clicking a link, rather typing it into the address bar manually. Remember, no cryptocurrency provider will request your credentials via email.
Unfortunately, it's all too easy to fall victim to phishing attempts, especially when you're tired or not fully focused. For extra protection, consider using anti-phishing software to block suspicious websites and protect your sensitive information.
A compromised account
Whether it's malware, you've been hacked, or your phone has been stolen, if a hacker gets your private key, you could lose your investment. All it takes is one click on the popup and all your money is gone. But what if you didn't have to rely on just one key?
The solution: use multisig
Think of your private key as the key to a safe. You only trust one key very much and if your account is compromised you could lose all of your money. However, you can reduce the risk by using multisig sign-up processes.
Imagine three keys:
- On your cellphone
- From your multisig provider
- In your safe (security key)
To use your cryptocurrency, you need to use at least two keys. Yours and one from a multisig provider. Multisig providers will verify your identity and location to make sure they are you and then send an additional key. For example, if you lose your phone, a threat actor cannot access your information because they only have one key.