Cryptocurrencies and their popularity among people have been surging at a soaring rate, garnering over 420 million users worldwide. The appeal here is the freedom provided by the crypto transactions that do not follow the traditional banking system. Moreover, it is great for investing, avoiding exorbitant transactional fees, and offers seamless overseas payment options.
However, There are several security risks associated with cryptocurrencies that could sabotage the experience and can potentially put your investments at stake.
Granted that crypto investments are safe and safe guarded, there are a few security measures that you can take from your side to minimize the overall risks that are inherent in the crypto market and transactions. This guide will provide you with the seven essential security tips for Asian crypto traders and investors.
1. Use Complex Passwords
Your passwords are often the first line of defense that protects your digital assets from any form of cyber threat. It is often noticed that users tend to not take this seriously and often do not put in much thought before setting up their wallet passwords.
Many of us simply set passwords that are easy to remember. Well, there is a difference between easy to crack and easy to remember.
Choose a password that includes a mix of letters, numbers, and symbols when creating login credentials for your crypto wallet. This can assist in protecting your cryptocurrency wallet from cyberattacks such as password spraying and credential stuffing. You can always note the password down and keep it safe for your personal use, like in a safe.
2. Enable two-factor authentication
Enabling two-factor authentication is another way to protect your cryptocurrency wallet. Two-factor authentication (also known as "two-step verification") is an additional layer of security that requires you to confirm your identity before you can access your account.
For example, most online banking platforms require you to enter your password before receiving an OTP via text message. Since they would need both pieces of information to hack into your account, this makes it much more difficult for someone to do so.
Even if crypto scammers discover your key, biometric data from facial recognition and fingerprint scanning software makes it nearly impossible for them to impersonate you, preventing them from getting hold of your digital holdings.
3. Secure Internet Connection
While public WiFi can be a convenient service, you should avoid interacting with any exchange or wallets while connected. Hackers can easily obtain data transmitted over the network, such as your login credentials. We strongly advise against conducting any trading activities over public networks.
In case of an emergency where you must interact with your crypto assets without the safety of a secured connection, your best alternative is to rely on a VPN service. VPN, or "Virtual Private Network" enable the ability to establish a secure internet connection when using public networks. VPNs encrypt your internet traffic and conceal your identity online. This makes it difficult for third parties to track your online activities and steal information.
4. Recognizing Phishing Scams
Phishing Scams are one of the most popular and widespread scams in Asian countries. Scammers create fake websites and apps that look exactly like the original sites and apps. The user is duped and is unaware that they have been redirected to a fraudulent website. The user enters their personal information, and the hackers have access to your credentials. The funds can be easily transferred to the hackers' wallets.
If you frequently access exchanges, bookmarking these websites is a simple security measure. You will be safe if you always use your bookmarks to access these websites. This significantly improves cryptocurrency security.
As a trader or investor, it falls on your shoulders to educate yourself against phishing and other similar scams circulating on the web. Focus on basic safety practices such as not downloading suspicious files, keeping your firewall updated and enabled, and avoiding unknown hazardous websites.
5. Withdrawal Limits
Setting up withdrawal limits on digital investments is a vital step in protecting traders and investors from potential theft due to unauthorized access or online fraud. An ideal measure would be to assess your risk and consider the amount of cryptocurrency that you are comfortable having in your account for daily trading or withdrawals.
Most crypto exchanges also provide the facility to track the login and transaction history of your account, keeping regular tabs on this information can help you detect any suspicious activities in an instance.
Another useful tool can be to set up geographical withdrawal limits, this works by restricting your withdrawals to a certain location of your choice, preferably the place where you trade from.
6. Incognito Browsing
Incognito browsing, also known as private browsing, can provide a level of protection for crypto traders when working from a shared or public connection. An incognito tab is usually the most underutilized feature of modern-day browsers which can protect your details such as location, cookies, browsing data, and a lot more from potential threats.
Some online platforms use cross-site tracking to connect your accounts across multiple websites. Incognito mode can help prevent this by creating a temporary and isolated browsing session. This reduces the possibility of your crypto trading and investment accounts being linked to other online profiles without your knowledge.
7. Cold Wallet Stashing
A cold wallet is used to store your cryptocurrencies offline. A cold wallet, aka cold storage, stores a digital wallet on a platform that is not connected to the internet, protecting it from unauthorized access, cyber hacks, and other vulnerabilities.
Furthermore, having offline access to your private keys grants you complete ownership and control over your assets, making it complicated for unauthorized parties to gain access to them. Moreover, cold wallet stashing provides a secure and reliable solution for those looking to hold onto their assets for the long term.
Protecting your crypto investments in the current market requires a proactive approach to crypto security from the user’s end. Complex passwords, two-factor authentication, and recognizing phishing scams are all vital steps that can help safeguard your online crypto assets.
Avoiding public WiFi for transactions, setting withdrawal limits, and using incognito browsing are all ways to add extra layers of security. The ultimate safeguard, however, is cold wallet stashing, which ensures offline storage of your assets.
Asian traders and investors can potentially eliminate all threats to their online crypto transactions by following the above-mentioned security steps with ease. It will alert them and be wary in the market, enabling them to focus on their strategies rather than being worried about losing their money in the process.