Cryptocurrency theft is on the rise. As reported by Forbes, hackers stole more than US$4 billion worth of coin in 2019, a sharp increase compared to the $1.7 billion stolen in 2018. In 2020, the numbers are higher still and the COVID-19 crisis has provided an additional boon to threat actors.
Thanks to the deregulated and decentralized nature of bitcoin and other cryptocurrencies, digital coins will always be an attractive target for hackers. Further enticement to steal is down to the fact that it’s relatively easy for threat actors to cover their tracks after a coin hack.
As a crypto trader and investor, keeping your currencies secure should be number one on your priority list. With that in mind, below we go over five different methods to ensure bitcoin security.
1. Don’t keep all your currencies in one place
As the old adage goes, it’s never wise to put all your eggs in one basket. Likewise with cryptocurrencies, keeping all of your coin profits in one place means losing everything if something goes wrong.
Instead, try to disperse any significant sums of money so that a single hack doesn’t result in the loss of the century.
2. Use trusted and secure networks only
There’s a critical difference between connecting to your exchange platform or wallet provider on your home wifi network and connecting when you’re on public wifi. The former offers an element of protection while the latter is akin to waving your coin in the air and asking to be robbed.
Open public wifi networks are somewhat like public swimming pools, people of all kinds congregate and share germs. Like a swimming pool, a public wifi network is rife with viruses but unlike a swimming pool, there’s no chlorine to sanitize the bugs. If you must connect to a public wifi network, make sure you have downloaded a VPN to secure your traffic and encrypt your data.
3. Choose multisig wallets
Single key versus multi-key wallets really represent the trade-off between convenience and security crypto investors frequently face. On one hand, you have easy access and use, but on the other, you have greater assurance that your currencies are safe.
When it comes to keeping your currency safe in an increasingly dynamic threat landscape, you are always better off with multisig (multi-signature) wallets. Then, if your private key is lost, it cannot be used alone to access your account.
4. Be aware of current phishing scams
Phishing is a popular tactic among cybercriminals simply because it works well. A prime example of this is the two Israeli brothers, Ali and Assaf Gigi, who were arrested in 2019 after running a highly profitable phishing scam for three years.
The brothers phished for investors on popular trading forums and led them to trading platforms that mimicked the real deal. They are estimated to have stolen around $100 million in cryptocurrency.
These kinds of scams are rife in the crypto world, and differentiating between genuine investments and fraudulent offers can be difficult.
A good rule of thumb is to approach any cold outreach offer with extreme caution, ask yourself why an unknown person would offer an amazing ICO opportunity, or any other investment opportunity, to you.
Likewise, try to keep abreast of the current scams so you have an idea of what to look out for.
5. Keep your crypto business to yourself
Did your latest investment punt work out really well? If so, congratulations, but try to keep a lid on your enthusiasm and keep your big wins to yourself. Posting about it on social media on any cryptocurrency forum is akin to inviting robbers into your house.
As soon as you make noises about your successes, you are actively placing a target on your back. Scammers may try to make friends with you online before inviting you into an investment that will cost you more than you bargained for.
