5 Security Tips When Trading Cryptocurrency on the Stock Market
5 Security Tips When Trading Cryptocurrency On The Stock Market
When trading cryptocurrency, it’s important to prioritize your security. This way, you get to protect your assets without having to worry about anything.
It’s worth mentioning that (over the past decade), thousands of everyday people and traders have lost their crypto tokens for a variety of reasons. Common examples include:
Cyberattacks on exchanges
Phishing scams via email and SMS
Poor management of private keys
Let’s flashback to March 2022 for a second. During this month, one of the biggest cryptocurrency security breaches of all time took place when the blockchain Ronin Network was hacked by cybercriminals. As a result, more than $600 million worth of crypto was stolen, which sent shockwaves through the industry.
Now that you know this, you’ll understand why security is so important when trading and storing the cryptos that you own.
If you feel like you need a helping hand with this, look no further than the tips provided below.
1. Only Reliable Trade Cryptocurrencies
In the crypto market, there are over 10,000 active cryptocurrencies to choose from.
Of course, the further down the chain you go, the less reliable that cryptocurrencies become due to their lower value.
This is why you should only ever trade reliable cryptocurrencies that are established on the market, such as Bitcoin and Ethereum. For a closer look at cryptocurrencies that you can trade with peace of mind, visit okx.com for crypto stock prices.
2. Use More Than One Crypto Wallet
When trading crypto, this requires you to move crypto from your digital wallet. However, if you’re only using a single wallet, this is putting you at greater risk. Essentially, it’s a little bit like storing every penny you have under your bed – if someone breaks into your house, they can take everything in a matter of seconds! This is why (instead) it’s smarter to spread your portfolio out across various crypto wallets. This way, the damage would be less impactful if you were ever to get hacked.
For maximum security, use cold crypto wallets, which operate offline rather than online. This makes it impossible for them to be hacked or breached by cybercriminals.
Out of nowhere, you might receive an email or text message promising you the world if you follow the link inside. Usually, when you click this link, it will provide cybercriminals with access to your crypto accounts, enabling them to steal the tokens that you have. When this happens, due to the fact that crypto isn’t regulated, it makes it nearly impossible to get your assets back.
So, each time you go online, always be conscious that phishing scams are out there.
This is because public WIFI isn’t encrypted, which makes it a goldmine for hackers who can monitor your activity and see exactly what you’re up to.
Instead, only trade when you’re using your home WIFI or mobile network.
5. Don't Lose Your Private Keys
Private keys are what people use to make transactions and prove ownership of their crypto holdings. Without the private keys, nothing can be done. Therefore, it’s incredibly important to look after your private keys and store them somewhere safe.