Even though years have passed since the emergence of Bitcoin, the cryptocurrency world is still in chaos when it comes to security. So, how secure is cryptocurrency in today’s digital world?
As a cryptocurrency investor, you will be grateful to have the opportunity to trade, invest and save money through trading. But imagine going to sleep happily one fine night, only to wake up to an empty wallet.
You can blame it all on the cybercriminals and hackers, but it all comes back to the steps you took to ensure the safety of cryptocurrency investments.
Is Cryptocurrency A Safe Investment?
It is a fact that no investments are genuinely safe. However, cryptocurrencies have proven to be a lucrative investment for many investors today.
Compared to stocks, investing in cryptocurrencies comes about as a less complex process. However, the lack of regulations also raises a red flag. But cryptocurrencies can be a safe investment if you take the appropriate safety measures at the right time.
So, how secure is cryptocurrency if you take the proper security measures?
Selling and buying crypto does not have to be risky if you thoroughly understand the market and treat the assets properly. From choosing the correct coins to ensuring the safety of the investments, you have full control over the process.
Ways to Ensure Safety of Cryptocurrency Investments
Back in 2009, cryptocurrency was considered a trend that no one believed would last long. Fast forward to 2021; Bitcoin is now the most trusted and most prominent cryptocurrency in the world.
Along with success come hacks and quacks. Be it an individual or even the digital currency exchange as a whole can be open to malicious hacks and irreversible security compromises.
These compromises result in the loss of large quantities of digital currencies, all of them untraceable. The only way to steer clear of such threats is by taking steps to ensure the safety of your investments.
Choose a Safe Cryptocurrency Exchange
Before choosing a crypto exchange platform, carefully research the different security features it offers to understand better how your data will be protected. Some must-have security characteristics that you should look for in an exchange platform are:
- Multifactor Authentication
- Using air-gapped devices that are kept offline
Make sure to use a solid password manager to ensure that your passwords remain intact. It applies even to cases in which you use more than one crypto platform.
Secure the Wallets
This is one of the essential steps you must take to ensure the safety of your cryptocurrency. Find an exchange that offers more security measures than the standard wallets do.
For instance, choosing wallets that use encryption to secure private keys is a much safer and better option. Moreover, you can also encrypt your data with various crypto-encryption providers.
Don’t Share the Secret Keys
Secret keys are used to validate that the user who is sending or receiving the cryptocurrencies is the actual owner of the wallet which is in use. Therefore, it is essential not to share this private or secret key with anyone at any time.
One of the safest ways to store private keys is by adopting cold storage. Cold storage translates to printing out your key and destroying all digital traces of it.
With hackers and cybercriminals quickly gaining access to digital storage applications and end-user machines, it is essential to safeguard the keys and, in turn, the investments.
Securing your cryptocurrency investments should be your top priority, regardless of your experience in the market. So first, choose a suitable cryptocurrency exchange and follow all the safety measures to the t without slacking. Then, once you start gaining experience, learn to optimize the level of protection as you go.