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Security and cryptocurrencies: what you should take into account to protect your digital assets

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By cyphershieldtechPublished about a year ago 5 min read

Everyone is talking about cryptocurrencies. Like it or not, we are going to have to live with them in the coming years . We are not required to use them, at this time. But knowing about cryptosecurity, cryptocurrencies and/or crypto assets will help us understand the world of cryptocurrencies . Not only that, it will also help us to know a little more about cybersecurity.

And it is that cryptocurrencies are based on cryptography , encryption, to make secure transactions, create more virtual currencies and verify those transfers. Based in turn on blockchain technology , translated as chain of blocks, an encrypted and decentralized database records who owns such a quantity of cryptocurrencies. While that user is anonymous. We will have access to these cryptocurrencies with a code or key that we will keep in a cryptocurrency portfolio or crypto wallet .

But even if everything is very safe, in cybersecurity there is always the possibility of human error , carelessness or a vulnerability that someone will take advantage of to get hold of such a precious commodity such as cryptocurrencies. It is not something that happens often, but for our part we can take several precautions to protect our crypto assets or digital assets.

The importance of a good password

Cryptocurrencies are based on encryption technology that, to date, is unbreakable. Crypto security advocates say that Bitcoin has not been hacked so far since it was created in 2008. So, in principle, cryptocurrencies are safe. Where is the weak part of the chain? In the user and in the platform that guards the digital assets.

So the first tip that is usually given in cybersecurity is to have a good password . That is, one that is difficult to guess. It is usually recommended to mix letters, numbers, uppercase and lowercase . There are no foolproof passwords, but the more complex it is, the more it will cost to figure it out. We can help ourselves with password generators. Password managers often come with one. The most popular password managers are 1Password, LastPass, Dashlane , and Bitwarden .

In relation to the password, try to always activate the verification in two steps . Many current Internet services require turning it on by default. This is a second layer of security for when you log into a web page or mobile application. It is not enough to enter the password. You will have to confirm it in a second step. More security, more difficult for cybercriminals.

And of course. No sharing passwords or credentials . They are private, so it is convenient to keep them safe and use them only us. If we want to share them, it is better to exchange the cryptocurrencies instead of sharing the virtual wallet at the risk of losing its content if it falls into the wrong hands.

Cryptocurrencies and phishing scams

Many of us call it social engineering . What some media attribute to the cybercriminal's computer expertise is actually something as old as deception. There has always been someone who has made a living deceiving others. And with the Internet, telephones and emails, this is still the case.

Fraudulent emails, WhatsApp or Bizum messages, phone calls... There are many methods. Today they are known as phishing or identity theft . Someone pretends to be someone who is not for you to provide information. They can ask you for your ID, your bank account, your credit card or your password.

Focusing on the world of cryptocurrencies and cryptosecurity, messages are often sent to potential victims with links to fake web pages . It looks like a legal cryptocurrency platform, so if you fall for it, just enter your details like you always do. The downside is that this data ends up with someone who wants to steal your cryptocurrency wallet .

If you access your virtual wallet or exchange or exchange platforms from the browser, access from the official page. It is usually encrypted by default , that is, you will see a padlock in the browser bar. Save those links in your browser to always enter from there and not from a link you receive in a message.

Another important detail of cryptosecurity is that of the addresses to send cryptocurrencies . Try not to be wrong. Copy and paste the address instead of doing it by hand or you will send money to the wrong address at the risk of not getting it back. Addresses can typically be copied to the clipboard or even embed a QR code for easy sharing.

Attacks on cryptocurrency platforms

The above tips are directed at users and holders of cryptocurrencies. But it is not always within our reach to defend ourselves against cybercriminals. Cybersecurity also affects those who custodian our cryptocurrencies. That is, the exchange or exchange platforms.

It is not often, but from time to time we read that someone has lost their cryptocurrencies because a platform has been attacked by cybercriminals . Sometimes they can be recovered, but this is not always the case. And that the owner took security measures.

One of the advantages of owning cryptocurrencies is that you can guard them yourself. In other words, by default we can have a cryptocurrency portfolio whose content is monitored and stored by a platform such as Binance, Coinbase , Crypto and many more. But we can also choose to have that portfolio at our disposal . The risk is that if we lose the keys we will not have access to the cryptocurrencies. The good thing is that if the exchange platform is attacked we will avoid losing our cryptos.

More cybersecurity tips for day to day

We have seen the three most important cryptosecurity tips to protect our digital assets. But in cybersecurity there are many dangers and many precautions to take. For example, we must avoid connecting to public WiFi networks if we are going to make purchases online or manage our cryptocurrencies. It is not frequent, but that WiFi network may not be secure. Better to do these efforts from home.


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