What is the buzzword Cryptocurrency all about? How do you buy or sell them? What do you have to know about it? How do you protect yourself from it?
Cryptocurrency helps you to trade goods and services or buy them for profit-making. It is basically a digital asset that works as an exchange medium. The ownership records are found in the form of computerized ledgers in a cryptographic database.
Firstly, is it worth investing in Cryptocurrency?
The value of Cryptocurrency might increase, but most investors look at them as speculations more than investments. Similar to real currencies, these digital coins do not generate any real cash flow. To create profits, someone should pay more for Cryptocurrency than you do.
There is no centralized authority offering security for your funds. Hence, it is you and you alone responsible for your money on the digital market.
Unfortunately, there are no emergency helplines to call in case something goes wrong. Additionally, there is no solid algorithm to recover your Cryptocurrency money when it gets lost.
Hence, it is vital to understand how to protect yourself if you are a Cryptocurrency user.
It is an unregulated space and hence easily attracts hackers and scammers alike.
However, some due diligence and the right education can help you stay afloat in the online business. Here is a bunch of ways to improve your online security with little to no effort.
Try using a new address every time you transact
You can try using a different Bitcoin address each time you receive a new payment. This is a great way to mask your identity since you will be using a different address for each transaction. Therefore, it makes it hard for anyone to trace the ledger back to you. However, it is not impossible. But the trail becomes complex to follow your identity.
Additionally, no one can associate between two of your identities when you create multiple accounts. It won’t work unless you transact between the two of them.
Make use of a VPN when you buy or sell Cryptocurrency
You are exposing yourself to various scammers, hackers, and cybercriminals when you use various online Cryptocurrency exchanges. It is important to remember that the bitcoin system is a peer-to-peer system that relays all the user information on a public ledger. Hence, there are high chances that some of the data can be intercepted or stolen.
Generally, hackers look for your IP address to find your current location that links to personal information. Therefore, you can use a VPN to protect your Cryptocurrency payments to remain anonymous. They will help to safeguard your identity while making transactions and interacting with online exchanges.
Choose hardware wallets to store the keys
The best way to protect you while using Cryptocurrency is to store your private keys in hardware wallets. Technically, they are physical devices specifically designed to hold the keys of cryptocurrencies.
The traditional crypto wallets are called hot wallets and they work online completely. However, their counterparts are the cold wallets that stay offline. Also, it is impossible to hack unless they are in use.
To use hardware wallets, you simply need to connect them to the computer, enter the pin, and finally use the device to complete transactions. These cold wallets are mandatory for anyone with a significant amount of digital coins. It is vital because they do not expose your private keys and stay immune to any virus or worms.
Opt for privacy coins for your Cryptocurrency transactions
A privacy coin is a digital money that purposely hides some or all of the user data. Hence, it is difficult to monitor transactions since Cryptocurrency, its value, and the user identity is hidden.
It is important to note that Bitcoin is not a privacy coin. Some of the privacy coins include:
However, it is also vital to note that these are more volatile than Bitcoins. Hence, they hold more risk and are unsuitable for most users.
Keep tab of the best practices of Cryptocurrency
Finally, and most importantly, follow some of the best practices of the industry.
Do not disclose the value of the Cryptocurrency you have.
Put your assets in multiple wallets.
Opt for a hardware wallet.
Do not share your private key with anyone.
Avoid posting your address in any public space.
Place your coins in a wallet with your key and not in exchange.
Ensure two-factor authentications at every step necessary.
Do back up everything.
Beware of phishing attacks and scams.
Hope these tips come in handy when you choose to buy or sell Cryptocurrency.