A report by CipherTrace revealed that in the first half of 2019, criminals and fraudsters stole more than $4 billion worth of crypto up from $1.7 billion for the entire 2018, according to Forbes.
While it has taken measures to secure cryptocurrency transactions and storage, hackers are always innovating ways to outpace state-of-the-art cybersecurity solutions.
Many security breaches involve mixed attacks in which criminals use multiple tactics such as phishing, URL hijacking, or SIM swapping.
As the debate about whether the world is ready for crypto-fiat debit cards continues, it is essential to understand how to protect your cryptocurrency from hackers.
Learn How Private Keys and Cryptocurrency Work
Cryptocurrency demands a higher level of engagement when it comes to trading. Before you can start investing, it pays to learn how crypto currencies work.
Also, find out the role of the private keys. By reading and learning more about crypto and the work of private keys, you gain knowledge about protecting yourself against risks linked with digital currency.
Another excellent way of gaining experience is through monitoring and trading digital currencies. When you trade, you get a clear picture of what you are dealing with and learn the tricks to make meaningful and secure investments.
Utilize Cloud for Backup
According to DSC, with cloud storage, you don’t need on-site equipment. This means that in the event of natural disaster or theft, your files will be secure even if you lose your devices. Depending on your needs, your service provider can design and install a cloud-based security system across one or multiple locations. That way, you can access your digital coins under one platform conveniently.
In addition, cloud storage for cryptocurrencies is decentralized, meaning that when you transact a litecoin or bitcoin, the entire network run by the blockchain knows. Decentralized cloud storage guarantees enhanced security and privacy of crypto. You don’t have to worry about cyberattacks because your files are divided and spread across different nodes or computers.
Don’t Overlook Two-Factor Authentication
If you are using cryptocurrency exchanges, it is vital to take the necessary measures to secure accounts and digital currencies. Because of their digital nature, cryptocurrencies, bitcoins, ethereum, and litecoin attract cybercriminals. Your best option is two-factor authentication.
For you to use this security option, you need to install software like Google Authenticator, or Authy, on your smartphone. Then follow the simple steps for setting up the two-factor authentication.
After completing the process, you’ll be required to enter your username, password, and a one-time password sent via text message on your smartphone for verification. That way, hackers cannot gain easy access to your account unless they have your cell phone.
Since digital coins are non-entities that only exist on the Internet, there is no fraud protection or recovery system for stolen assets. It is up to you to secure your currencies. A general rule is to have backups in different formats and use strong passwords. Use cloud storage, exchanges like Coinbase and private keys or hard wallets such as Trezor and Ledger Nano S to store your crypto.