Cryptocurrency like Bitcoin and Ethereum may only have been in the market for a limited time, but these virtual currencies have seen a meteoric rise in popularity for several reasons. Not only do cryptocurrencies offer an easy way to perform transactions, but the decentralized nature of the market and confidentiality of these transactions is a major draw for many investors.
Market researchers have estimated that the cryptocurrency market will reach $1,758 million by 2027, which means that the likelihood of more hackers trying to cash in on the market will also rise in the years to come. The good news is that there are several safety measures that cryptocurrency traders can put into place to keep their investments safe from hackers.
Embrace Two-Factor Authentication
While having a strong, unique password when trading in cryptocurrencies is essential, the use of additional layers of security in the form of two-factor authentication is also necessary. Most two-factor authentication options involve the use of a second, independently produced password that is sent to users via email, SMS, or through an app. These programs typically produce a new password every 30 seconds to ensure that passwords are time-sensitive and thus more difficult to intercept. This second layer of security means that a hacker will not only have to have access to the username and password of a target, but also have access to this second password generator.
Use a Secure Wallet
While digital exchanges that deal in cryptocurrencies do try to protect their users from theft, they are not immune to hackers. That is why cryptocurrency experts recommend that users always use secure wallets to hold their currencies.
There are two main types of wallets, physical and digital, with each type offering users a variety of pros and cons.
Physical wallets, or hardware wallets, are the most popular type of cryptocurrency wallet and can include items like USB sticks and specially programmed hard drives. Many investors choose this type of wallet as the users’ cryptocurrency is stored offline, and is thus less susceptible to online attack, and the device is secure enough that it can be used even in combination with devices that are not secure, such as a desktop PC in a computer lab. One of the main downsides to a physical wallet is that if the device itself is stolen or lost, the currency stored inside will likewise be lost.
There is a huge selection of physical wallets available on the market, with many tailoring to specific needs, so be sure to do your research to find the best bitcoin wallet for your particular needs.
Digital wallets function similarly to physical wallets; however, they exist purely in the digital space. While they are often easier to use than physical wallets, because they require an internet connection to operate, they are an easier target.
Create Separate Email Addresses for Digital Exchanges
To ensure that data remains safe, many cryptocurrency experts recommend that users set up separate email accounts for each of their accounts they plan to open on digital currency exchanges. This ensures that should a person’s main email account details be leaked during a data breach, hackers do not have access to all of their cryptocurrency accounts.
Investing in cryptocurrencies is highly risky and speculative; however, if an investor is wise, their time and effort could pay off. This is why people who do decide to trade in cryptocurrencies must educate themselves about the safety measures they can employ to keep their investments safe.