Have you ever asked yourself: How do I protect my cryptocurrency? If so, you’re not alone. It’s a common question among crypto enthusiasts. With the rise of crypto hacks and scams, it’s essential to have a safety strategy for your digital assets.
What’s more, blockchain technology works to safeguard crypto transactions, but that doesn’t mean that bad actors can’t trick you into giving access to your wallet to hack your account.
To give you the best chance to avoid this disastrous consequence, let’s go through five methods to protect your cryptocurrency.
Secure Crypto Wallets
There are multiple types of wallets you can look into, but the easiest and most convenient for beginners are online hot wallets. This is one of the most popular ways investors use to store and secure cryptocurrency.
When choosing the best hot crypto wallet, choose a hot wallet that is easy to use but, most of all, secure.
For example, when you choose a hot wallet, you need to write down the recovery phrase that will be sent to you (a 12-phrase password generated by the platform) that allows you to recover your wallet from any device. For extra security, write it down on paper and store it somewhere safe.
Since you can use hot wallets for free, you can divide your crypto across multiple wallets. Even if one is compromised due to a hack or if you’ve lost your recovery phrase, you don’t lose your entire crypto portfolio.
Avoid Phishing Attacks
Phishing attacks are one of the oldest forms of scams out there — even older than crypto. The basis of this scam is to trick you into giving sensitive information to a criminal by clicking on a link in an email, text, or social post.
Once you’re on their website, they do their best to trick you into giving them access to your wallet with promises of free crypto or to receive NFTs. The second they have access, they can take any cryptocurrency or NFT you own.
If you think it won’t happen to you, don’t be so sure. Well-known actor Seth Green was the victim of a phishing scam that cost him a very expensive Bored Ape NFT.
To avoid this scenario, the easiest way to protect your cryptocurrency is to never click on a random link you receive in an email or text message. Never give sensitive information (like passwords or wallet recovery phrases), and never let a shady website have access to your wallet’s possessions.
Always Buy Crypto From a Reputable Source
Scams can vary in type, but one that can make you lose a lot of money is fake cryptocurrency websites.
These sites try their best to pretend to pass as legitimate cryptocurrency exchanges or platforms — regardless of if they are already established platforms or new ones.
Always double-check that you’re on the right website (check the URL spelling) and that you’re sure the platform’s legitimate. Check certificates, KYC, the team (if they don’t make them public, that’s a red flag), or anything that assures you they’re legitimate.
Protect Your Password
Most of us have some crypto on a platform — a crypto banking platform or DeFi platform. —
And, we forget that we can update our password as many times as needed, yet most of us don’t make password security a priority.
More than 70% of millennials admit to using the same password on multiple platforms. If you want to protect your crypto and keep your accounts safe, make it a habit to update your passwords constantly.
Use a Secure Internet Connection and VPN
Cyber-attacks are a constant problem in the crypto world. And, just like any transactions on the internet, a secure connection is a must when buying crypto or conducting transactions.
Avoid using a public Wi-Fi connection when buying or selling cryptocurrency — it’s easier for hackers to track your transactions. You can also use a virtual private network (VPN).
A VPN is a program that allows you to change your IP address and location to anywhere in the world. It also encrypts all your data (downloads, uploads, movements) from outside sources, trying to get wind of your actions.
Why It’s Essential to Protect Your Cryptocurrency
As you’ve seen, there are multiple ways hackers and scammers can try to get a hold of your cryptocurrency. You could lose some of your crypto to scams or cyber-attacks if you’re not careful.
But one way to hold your cryptocurrency and keep it safe is with Abra. Here at Abra, you’ll always be able to buy crypto without worries. Download the Abra app and start investing today!
DISCLAIMER: THIS CONTENT IS FOR GENERAL PURPOSES ONLY. NONE OF THE INFORMATION PROVIDED CONTAINS AND IS INTENDED AS LEGAL AND/OR INVESTMENT ADVICE WITH RESPECT TO THE TOPICS DISCUSSED, INCLUDING, BUT NOT LIMITED TO, LEGALITY OF AND INVESTMENT IN DIGITAL ASSETS.Download App
Established in 2014, Abra is on a mission to create a simple and honest platform that enables millions of cryptocurrency holders to maximize the potential of their assets. Abra enables both individuals and businesses to safely and securely buy, trade, and borrow against cryptocurrencies – all in one place. Abra’s vision is an open, global financial system that is easily accessible to everyone.
Based in the United States, Abra is available in over 150 countries and makes it easy to convert between crypto and a wide variety of local fiat currencies. With over 2MM customers, $7B in transactions processed, and $1.5B in assets under management, Abra continues to grow rapidly. Abra is widely loved and trusted – in April 2022, pymnts.com reviewed and rated Abra amongst the top 5 most popular crypto wallets in the market. Abra is backed by top-tier investors such as American Express Ventures and First Round Capital.
How Abra Protects Your Funds
Abra places clients’ financial objectives and security first. Abra practices a culture of risk management across all levels and functions within the organization.
Abra employs a state-of-the-art enterprise risk management framework that comprises a comprehensive set of policies, procedures, and practices detailing all applicable risk-related objectives and constraints for the entirety of the business. Abra has instituted a complete set of requisite systems and controls that continuously enforce these policies, procedures, and practices to manage all operations, including credit and lending. Abra’s independent Risk Committee comprises experienced compliance, risk, securities, and fraud operations professionals with backgrounds in industries ranging from traditional and digital assets banking, payments, remittance, to fintech.
Please visit our FAQ to learn more.