Nasdaq’s automated quotations in the mid-1970s and online purchasing in the mid-1980s were both revolutionary financial technology. Cryptocurrency, the most recent disruptive financial invention, is gaining traction among consumers, businesses, and government agencies. The underlying technology of cryptocurrencies, known as blockchain, has piqued the curiosity of large corporations and governments. In reality, many firms have started pilot projects to see if blockchain can be used to facilitate accurate, rapid, and secure transactions.
Fintech’s Newest Disruptive Technology
While the future of cryptocurrencies remains uncertain, prior performance suggests that the high-tech financial instrument has a promising future. For example, the value of one Bitcoin increased from $280 in 2015 to $1,000 in just two years, and by the end of 2017, it had risen to a staggering $17,000 per coin.However, fraudsters are taking notice of the money, which they view as a growing industry with several security weaknesses.
The following extracts contain five useful advice for bitcoin owners who want to preserve their financial and data assets.
1. Don’t Divulge Personal Information in Public Forums.
Phone porting is a frequent method used by cybercriminals. Hackers loiter on social networking platforms where cryptocurrency investors may disclose sensitive information, such as phone numbers and email addresses, to connect with other investors, in order to carry out this type of assault.
After securing a target, the hacker contacts the unwitting investor’s phone service provider, appears as a victim, and has the number moved to a mobile device. The hacker can now gain access to the victim’s bitcoin exchange account, reset the password, and make off with the assets. Hackers may steal thousands of dollars in minutes using this strategy.
2. Make It More Difficult For Hackers To Gain Access To Your Account.
Dan Romero, VP of Operations at Coinbase, suggests deactivating SMS account recovery as a secondary safeguard against phone porting attempts. For moving cash off the exchange, he also suggests using a coin vault and establishing two-factor verification. Romero advises against discussing cryptocurrency in public, particularly online, where anyone might target an investor for theft.
It’s also a good idea to use all of your cell phone service provider’s available security features, such as adding an account passcode and requesting a “do not port” order for your phone.Finally, while cryptocurrency exchanges take security seriously, they are not banks and should not be treated as such, according to the operations VP.
3. Don’t Put All Your Cryptocurrency Eggs In One Basket.
Internet security expert Sanjay Beri advocates spreading digital financial holdings across various exchanges to minimise investor exposure in the event of a hack for maximum fintech asset protection. Investors should also keep their money offline in a cold wallet, according to the security expert.
This restricts hackers’ access to the funds of investors.Beri suggests keeping a separate hot wallet for daily purchases. In essence, a hot wallet is similar to a checking account, while a cold wallet is similar to a savings account, according to the security expert.
4. Use Caution When Exchanging Money
Amir Bandeali, the Chief Technology Officer and Founder of 0x (zero-x), advises cryptocurrency investors to utilise centralised exchanges only if they make frequent transactions, and to use decentralised exchanges when trading tokens on platforms like Ethereum.
He argues that the fundamental distinction between the two is that decentralised exchanges do not store consumers’ bitcoin.There is no method for a hacker to have access to an investor’s funds unless they obtain the user’s private key.
5. Don’t Forget About the Fundamentals
While it may seem obvious to implement the most basic security procedures, many investors fall prey to hackers because they fail to follow fundamental security measures. Cryptocurrency investors, for example, should open a separate account for each exchange. If a hacker manages to obtain access to the account, they won’t be able to look around and access other critical information.
Investors should also use strong passwords for their accounts and maintain a hardcopy of them safe, and the hardcopy password list should only be accessible by the account holder.The most determined hackers will look for bitcoin exploits at all costs.
The cryptocurrency market requires highly qualified specialists that can assist investors in preventing unwanted access to their accounts in order to safeguard the safety of this new and powerful financial instrument. As bitcoin becomes more popular, so will the demand for cyber security experts who can defend against persistent cyber thieves.
- University of North Dakota – Master of Science in Cyber Security
- Northeastern University – Guide to the Rise of Cryptocurrency, Digital Currency and Bitcoin
- The New York Times – The Evolution of Financial Tech
- CNBC – This is how you can protect your cryptocurrencies from hackers