With time, the Diwali investment portfolio has expanded, from gold and diamond to stocks and real estate, and now cryptocurrencies. The virtual currency has been successful in capturing the otherwise conservative Indian market so much so, that as per recent reports, even top Bollywood stars like Amitabh Bachchan have jumped on the bandwagon. As per the latest reports, the 79-year-old megastar has been roped in as the brand ambassador for CoinDCX, while another TV commercial by CoinSwitch is already live with superstar Ranveer Singh promoting crypto trading.
But before you trade your hard-earned money online, you should ensure the safety of your crypto transactions. Just this week, those invested in Squid digital token lost around $3 million when it crashed by around 99 per cent to less than half a cent.
How secure are your cryptocurrency transactions?
Cryptocurrencies are digital tokens that are encrypted for secure transactions and control the creation of new units. Time and again, it has been emphasized that cryptocurrencies are powered by highly secure blockchain technology.
The technology is known to secure the transactions into “blocks” with cryptographic algorithms like hash functions that make it harder for hackers to crack it. Moreover, the transactions are further secured with an additional layer of security–two-factor authentication.
Despite all the security measures in place, there are frequent instances of data breaches and hacks reported from all parts of the world. Some of the recently highlighted data breach cases in India include the BuyUCoin data hack of over 3 lakh users, and the robbing of three Bitcoin exchanges of Rs 9 crore in November last year.
Steps to secure your crypto transactions
Here are some of the measures that may help you secure your cryptocurrency investments from hackers:
Find the best crypto exchange: With all the crypto craze, there are tens of exchanges being launched every day. While it’s good news for crypto enthusiasts, all the exchanges may not follow the highest security standards. Hence, stick to the best in the market, even if takes you a good while to upload your documents. At the same time, look for the storage options and if they offer added level of security.
Ditch the online wallet: Using an online wallet service (also called as hot wallet) offered by a crypto exchange, or the ones like the web-based or mobile app-based (that run on internet) may sound like the most convenient way to trade into cryptocurrencies, but it may cost you dearly in terms of account security these days. In an exchange, investors’ crypto are kept in a centralized storage may be vulnerable and easy to crack for hackers.with burgeoning cybersecurity concerns, it would be smarter to use an offline wallet (hardware wallets) like the Trezor hardware wallets or SafePal which is typically a USB drive. These are also called cold wallets since, they are not connected to the internet are hence, are considered safer.
Keep your guard up: If you prefer using online wallets, make sure you create strong passwords and devices running on a secure network. However, if you do choose offline wallets, double up your transaction security with multi-level authentication. This will ensure that your crypto transactions and holdings are hacker-proof.
Keep phishing attacks at bay: The recent Pegasus spyware crisis was a wake-up call for many who transact and trade online. The primary form of attack followed by the spyware was a simple phishing scheme and similar things can happen while carrying out any form of transactions online and that includes crypto trading.
Make sure that you do not reveal any sensitive data related to your account like, phone number, email address, date of birth or share your photo ID with suspicious numbers or emails, even accidentally. At the same time, abstain from clicking on pop-up ads with luring crypto schemes.
Keep track of your passwords: Forgetting passwords, especially the strong ones, is close to a crime these days. Make sure you note them down somewhere and perhaps even lock them up in a safe. Any data which is vulnerable to hackers, can be compromised and leaked on the dark web these days, so, it would be safer to keep your private keys under strict security.
Be watchful of malevolent activity: Even if you are not trading in cryptocurrencies regularly, it’s a good practice to keep a track of what’s going on with your account. Check for any suspicious activity in your crypto exchange accounts and wallets by logging into them at regular intervals and keeping yourself protected from any malicious attacks.
Transact with caution: Apart from the wallet, online/offline or hot/cold, you must also tread with caution when it’s about the keys for the crypto wallet. Bitcoin uses a key-chain (public key cryptography) to hold a pair of keys, of which, one is a private key and the other is a special public key, derived from it.
While the public key helps you to receive funds, the private key is the one owned by you and only for you to use when you wish to spend your crypto holdings. Make sure that you create a backup of this key, which is not to be shared with others and should be stored in a secure place that’s out of the reach of hackers.
At the same time, don’t miss to verify the authenticity of the beneficiary’s wallet during a P2P (peer-to-peer) transaction. As a heads up, avoid discussing the amount of currency you hold.
