Cryptocurrency has come a long way since Bitcoin was introduced to the world in 2010. The thing that kept investors from getting involved for so long was concerns about the safety and security of user investments.
Though measures have come a long way, there are still concerns. While the main focus is the price of BTC, there are some security questions that could potentially impact users and exchanges going forward.
Malware
Just as is the case with other forms of software, malware is a concern in cryptocurrency spaces. Basically, this is the kind of software that gives unauthorized users the chance to mine cryptocurrencies by using someone else’s computer or server. It can wind up costing a user in several ways.
There are generally two ways in which malware can impact a user. The first is that the victim gets duped into installing the code on their computer by using phishing tactics (more on those later). The second is that victims engage with malicious ads or websites. From there, the code can be activated on the victim’s computer, allowing the hacker to gain access to that computer.
Phishing Attacks
Phishing is one of the oldest forms of cybersecurity compromise there is. Since the early days of the internet, phishing has become one of the main tools for hackers, criminals, and unauthorized users to gain access to another user’s computer. Worst of all, it is a simple thing to avoid but is oftentimes overlooked.
Phishing generally shows up in the way of a questionable email or link to a website. By clicking on that email or website, the user is essentially handing over their digital assets. The user on the other end of the phishing attack can then control those assets, use the victim’s computer for mining purposes, and a litany of other less than wonderful applications.
Unregulated Exchanges
A common mistake that cryptocurrency investors make is not paying attention to the quality of the exchange that they choose. These exchanges can all look the same and telling them apart becomes far more difficult. So, do your homework and find out whether the exchange you are considering has a trustworthy track record. If you can’t find anything, stay away because you won’t know what you are getting into.
By using exchanges that are not regulated, there is no telling what or who may access your account. Major exchanges have regulations in place to keep users and their assets safe with each use. Anything that looks a little sketchy will likely wind up being even worse. Save yourself the hassle, time, and expense by choosing a well-known cryptocurrency exchange that has some form of regulation.
Lost or Stolen Private Keys
Users can access their digital assets through the use of a private key. This key can be a complicated passcode and is only available to the user. No one else has access to this information, even the exchange where you do your business. While this can be a very good thing, it can also be a major risk for investors.
If you have any substantial amount of assets in your wallet, make sure you have the password memorized or accessible only to you. If you can’t remember your login, you only get so many chances to get it right. Guess wrong too many times and you will be locked out of your account permanently. There is no “forgot password” link, either. Don’t fall victim to the simple yet major mistake that could wind up costing you all that you have invested in cryptocurrency.