How To Prevent Cybercrimes In Crypto Trading?



The trend of investing in Cryptocurrencies have increased in the last couple of years. Perhaps the most influential factors are the stories of the people who claim to have doubled or even tripled their investing via Crypto trade. And the best part of these stories is that they are all true.

After hearing these successful stories, people get encouraged to involve themselves with the Cryptocurrency investment. With the increasing Crypto market, there are several opportunities for you to earn a hefty profit; however, these trends also invite fraudulent activities.

While there are many people who want to try their luck in the Crypto trade market and make a profit out of the deals, there are still a few who are still scared of its volatility. It is very important that you consider the security factor while investing in Cryptocurrencies.

How Can You Secure Your Crypto Trading From Cyber Crimes?

Cryptocurrency is still a new technology compared to the existing financial technologies. However, it has certainly disrupted the market in many ways. With the soaring Bitcoin’s price, investors and traders see a boost in the Crypto trade market. Hence, it has become important to keep your digital asset safe than ever.

Here are some tips that you can practice to ensure your Crypto trading activity is safe from Cybercrime.

1. Check Your Account Activity Regularly

Have you ever audited all your digital information? If not! You are keeping your accounts at potential risk. To start, you can look into your Emails to visit  you have currently signed up for. You can write all this information on a sheet of paper or record it somewhere you think is highly accessible and secure.

Knowing all your account details will help you keep track of your Crypto trade activities. Hence, if any suspicious activity is taking place, you will be instantly aware of it. This process might seem very simple and laborious; it is effective, nonetheless.

2. Authenticate ICOs

While investing and trading in cryptocurrency, there will be times when you will come across the Initial Coin Offerings (ICOs). ICOs are the investments you make into new blockchain-based start-up’s. This idea might be tempting and ensure you high returns. However, history has shown us that if you invest in ICOs without any prior information, you are bound to be scammed.

Although ICOs are profitable deals, you need to know the red flags and how you can avoid them. You can use the following to identify the fake ICOs:

  • Check the member list of the project on their official website.
  • Read their white paper.
  • Ask for repositories such as GitHub.

3. Use Two Factor Authentication

Two-factor authentications are becoming the norm in the security industry. Today, everything has to go through two-factor authentication. However, you must know that the SMS 2FA has a loophole and can be intercepted. Hence, if you are using SMS 2FA for logic into your account, stop doing that.

If you are using a third-party software to place your Crypto deal, it would be best to place a form of restriction on your API keys. This will help you access your account with a particulate IP address.

4. Don’t Store All Your Money On Exchange

No matter how secure a trading system is, it has been seen that hackers have found a way to infiltrate it. This has resulted in several fraudulent activities. Even if you know that it has the best security features, it would be best not to keep all your assets on the exchange platforms.

Try to use a digital wallet. These wallets have recently become popular as they provide the needed security to the Crypto assets. Here are the types of wallets that you can get in the market.

  • Hot Wallet.
  • Cold Wallet.
  • Paper Wallet.

Take Away

It is very simple; don’t be naive. In 2021, the technological industry is in full bloom. We are certain that these technologies will be used by hackers to their advantage ads well. Hence, it is necessary that you use the security tips mentioned above to keep your digital assets secure.