By Brandon Vigliarolo Tech Republic
Security is a top concern for cryptocurrency enthusiasts. This infographic can help you make smart decisions.
Cryptocurrency exchanges and theft have been regular news since Bitcoin went big, but that hasn’t deterred investors: The number of digital cryptocurrency wallets in existence by the end of 2017 was 21.5 million. That’s a huge increase from 2015, when only 5.4 million wallets were around.
Along with the new popularity of cryptocurrency has come a new breed of cryptocurrency criminals. In 2016 $95 million worth of Bitcoin was stolen, and in 2017 the amount stolen exploded: $115 million was lost to phishing, $103 million to exploitation of software and storage, $7.4 million to hacks, and $4,000 to Ponzi schemes.
That’s a lot of lost cryptocurrency—so how are criminals doing it?
Five ways cryptocurrency gets stolen
There are five popular ways that cryptocurrency criminals get their hands on your virtual coins:
- Brute forcing, in which an attacker simply tries again and again to guess a password until they finally get in.
- Phone porting, in which criminals call cellular customer service, have a number transferred to their phone, and use the number to reset a crypto account password.
- Phishing, which installs malware that looks for, and steals, digital wallet addresses.
- Ponzi schemes, in which investors are paid returns that are actually just the money new investors put in (see BitConnect).
- Mining malware, which uses a victim’s computer to do the mining for the hacker.
So, risks come from all angles: anonymous hackers on the internet, fake exchanges that run away with your money, or even malware that makes you do the work for someone else’s gain.
That doesn’t mean safe investment isn’t possible.
How to safely invest in cryptocurrency
Cryptocurrency brokerage CryptoGo has some tips for investing in cryptocurrency without placing yourself in harm’s way.
- Encrypt and back up safely so that you always have a record of your wallet. Use a mnemonic phrase to ensure you can recover a lost wallet.
- Use an antivirus product that was built with cryptocurrency in mind, such as Spybot Anti-Beacon or Comodo.
- Only use “hot wallets,” those that are connected to the internet, for small transactions. If you’re going to store large amounts of cryptocurrency for long-term investment keep them in a secure, offline wallet.
- Use multifactor authentication, either through a hardware token or an app, to secure cryptocurrency-related accounts.
- Don’t use SMS authentication—phone numbers can be stolen via phone porting.
- Diversify your holding through different exchanges and use different passwords and recovery methods for each one.
New/Upcoming Releases to Watch
Looking For Cryptocurrency Project/Token/ICO/Gambling Site or Company Promotion?
We are the best in the business! Learn more here
If This Article Was Beneficial In Any Way feel free to Subscribe to Our Blog! (It’s Free)
Happy Trading! If you’re just here to learn that’s great too!
To register for a trading account on an exchange use one of the links below. Our referral links are there and you’ll receive a discount on all trades and be eligible for bonuses!
The information provided on this website does not constitute investment advice, financial advice, trading advice or any other sort of advice and you should not treat any of the website’s content as such. CryptoClarified does not recommend that any cryptocurrency, game or token should be bought, sold or held by you and nothing on this website should be taken as an offer to buy, sell or hold a cryptocurrency, token, game or anything similar. Do conduct your own due diligence and consult your financial advisory before making any investment decision.
Accuracy of Information:
CryptoCurrency Clarified will strive to ensure accuracy of information listed on this website although it will not hold any responsibility for any missing or wrong information. You understand that you are using any and all information available here AT YOUR OWN RISK.
The price of Bitcoin and other cryptocurrencies are highly volatile. It is common for prices to increase or decrease by over 20–100% in some coins in a single day. Although this could mean the potential for huge profits, this also means the potential for huge losses. The same goes for CryptoCollectible games which can be wildly speculative. DO NOT INVEST ALL YOUR MONEY IN CRYPTOCURRENCIES. Only invest money which you are willing to lose.
Cryptocurrency trading may not be suitable for all users of this website. Anyone looking to invest in cryptocurrencies should consult a fully qualified independent professional financial advisor.