Ways to Protect Your Money on Cryptocurrency Exchanges

As we benefit from technology, especially the internet, it helps us fulfill all the needs in our lives. However, when we use the Internet so easily and conveniently in areas like the cryptocurrency market, we may never think about how risky it is. In the internet world that we use at random, information spreads very quickly.

As the usage rate reaches a very high point, the cryptocurrency industry is also creating an advantage for all of us. When I talk about crypt currency, the first thing that comes to mind is of course Bitcoin and altcoin units. Of course, keeping those digital currencies you buy and sell online safe will be one of your most important points. I will try to explain the methods you need to follow to keep cryptocurrencies like Bitcoin safe.

How do you protect cryptocurrencies?

After Satoshi Nakamoto launched the cryptocurrency called Bitcoin in 2009, hundreds or even thousands of different cryptocurrencies have been released to date. Today, there are thousands of cryptocurrency exchanges worldwide to buy, sell and invest in these cryptocurrencies. Although cryptocurrencies are not owned by any institution, country or individual and are decentralized, cryptocurrency exchanges can serve any person or institution. You may be worried about keeping your cryptocurrency safe on cryptocurrency exchanges.

Due to their structure, cryptocurrencies actually represent a very reliable digital asset. When a transaction is carried out on cryptocurrencies, i.e. the blockchain network, you as the wallet owner carry out an encrypted transaction. Your transactions are recorded regularly, approximately every 10 minutes, on the blockchain and reliably stored. Given this security, when you invest in cryptocurrency, you also need to keep the cryptocurrency you own safe.

Users’ security concerns about cryptocurrencies are also increasing. But I can clearly say that with all cryptocurrencies, including Bitcoin, security is actually in your hands. You definitely need to check that you are confident that you are making secure transactions when you own digital currencies. For example, we can initially focus on points such as wallet selection.

Storing cryptocurrencies in a reliable wallet

To protect digital money, you have to be very careful. Just as you keep your physical money, your digital money in your wallet can also be lost or stolen. Users often store cryptocurrency wallet files on their personal computers and encounter problems such as malware or device corruption. Although these wallets, which allow you to securely protect your digital currencies, are considered the most reliable way of storing them, there are always risks. Cold and hot wallets have different functions.

• Cold wallet, as it is called, is a type of wallet that you can use for cold storage. In other words, it can be used offline without requiring an internet connection and the risk is always lower. These wallets, also called hardware wallets, contain a chip to store your private key and your key is kept safe. You only need to connect your wallet to the computer when making transactions. Nowadays, many experienced investors emphasize using cold wallet by choosing major hardware wallet brands.
• Warm wallet protects your key with online connection. Although this is a matter of preference, security vulnerabilities can arise when private and public keys are used to make cryptocurrency available in these online wallets. Although it offers the ability to easily access and trade cryptocurrencies, it can be subject to cyber-attacks and is less protected.

How can you avoid fraud?

When you conduct cryptocurrency transactions using different payment systems, risks such as misleading payment information and phishing may arise. In this case, security damage can occur if the transmission is carried out using malware. For example, some software programs can change the wallet number during the transfer process. At this point, to avoid fraud, the network you use must be secure and the device you use must be reliable. My advice would be that you don’t believe investment messages that give you a higher return by fraudulently withdrawing your cryptocurrency.

Cryptocurrency Security Tips

To avoid security vulnerabilities and protect yourself from threats when storing cryptocurrencies, you need to pay particular attention to a few points. For example, it is absolutely important that the device you use is up to date, that you use reliable antivirus software, and that you regularly update the wallet applications you use. Cyber hackers primarily exploit old software and hardware. On the other hand, staying up to date with the latest security patches will make it easier for you to evade cyber hackers.

Of course, at another point you need to focus on the security of your passwords. To protect your investments on cryptocurrency exchanges, you need to choose really difficult and complex passwords to guess. In fact, change these passwords regularly and use different passwords if you have more than one wallet.

Not only does your password need to be changed regularly and be secure, but the verification processes also need to be at the highest level. This is why the two-factor authentication system we call 2FA is a popular and reliable method. This method uses a password that you receive from your cell phone that only you can access and provides an additional layer of security.

Benefit from different exchanges

Under one heading, I can recommend you to use different exchanges to protect your cryptocurrency investments. Even if you find a cryptocurrency exchange very reliable and use it constantly, it would not be right to make large transactions at once even on such exchanges.

If large amounts of money need to be processed, you can break these transactions into small chunks. You can even protect your cryptocurrencies by doing this process gradually on different exchanges instead of a single exchange. Even if there are problems with one of the cryptocurrency exchanges, part of your investment will remain safe on other cryptocurrency exchanges.

Internet connection is more important than anything else

Everything I have explained so far represents important details to keep your digital assets safe when exchanging cryptocurrencies. But if we go back to the point I explained first, the most important detail that ties all of this together is of course the internet connection.

Because of course, your biggest need for buying and selling transactions, investing, maintaining and purchasing transactions with cryptocurrency is an internet connection. At this point, the Internet connection you are using may have wired or wireless functionality.

Nowadays, many users generally prefer mobile devices, namely smartphones, when using cryptocurrency exchanges. There are also users who carry out transactions via computers. In general, high sensitivity is required when using wireless connections on these devices. If you use your personal mobile network, you have an advantage in terms of security. However, there may be risks for you, especially if you use a Wi-Fi connection in public places.

It will be of great help to you to benefit from VPN services for added security in cryptocurrency transactions even if you use wired internet at home. You can change your IP address and location, protect yourself from browsing threats, and keep yourself fully protected.

Despite all these points, it is not possible to achieve absolute security of digital assets. By paying attention to these details and quickly addressing your vulnerabilities by keeping your information up to date, you can achieve a higher level of protection.

See you in the next post,

Anil UZUN