The Latest Game-Changing Innovation in Financial Technology
In spite of the fact that bitcoin’s future is uncertain, the high-tech financial instrument has shown considerable promise in the past. The price of a single Bitcoin, for example, increased from $280 in 2015 to $1,000 in just two years, and then to a staggering $17,000 by the end of 2017.
However, cybercriminals, seeing a growing market with widespread security holes, are also interested in the currency. The following are five excerpts that provide cryptocurrency owners with advice on how to secure their financial technology and information resources.
First piece of advice: be cautious about sharing personal information online.
Cybercriminals frequently use a process called “phone porting.” Hackers in this case wait for cryptocurrency investors to leave personal information online, like contact details, on social media platforms where they can network with other investors.
After obtaining a victim, the hacker contacts the victim’s phone service provider while posing as the victim, and requests that the victim’s number be transferred to the hacker’s mobile device. It’s now possible for the hacker to access the victim’s account on the cryptocurrency exchange, change the password, and make off with the money. With this technique, hackers can make off with thousands of dollars in a matter of minutes.
As a Second piece of advice: Make It More Difficult for Hackers to Steal Your Account
Dan Romero, Coinbase’s vp of operations, suggests turning off SMS account recovery as an extra line of defense against phone porting attacks. He also suggests enabling two-factor authentication and storing coins in a secure location before withdrawing them from the exchange.
Romero warns against public discussions of cryptocurrencies, especially on the internet where an unsuspecting investor could be the victim of theft. You should take advantage of all of your cell phone service provider’s security features, such as a passcode for your account and a “do not port” order for your phone. The VP of operations concludes by stressing that, despite the fact that cryptocurrency exchanges take security very seriously, they are not banks and should not be treated as such.
As a third piece of advice, you should not have all of your cryptocurrency holdings in one place
According to Internet security expert Sanjay Beri, spreading out your digital financial holdings across multiple exchanges is the best way to protect your fintech assets from loss in the event of a cyberattack. The security expert further advises that cryptocurrency investors use a “cold wallet” to store their funds offline.
Thanks to this, cybercriminals will have less of a chance of stealing investors’ money. Beri suggests using a dedicated hot wallet for all your regular purchases. The security specialist compares hot wallets to checking accounts and cold wallets to savings accounts.
Fourthly, exercise caution when exchanging currency.
Cryptocurrency investors, according to 0x (zero-x) CTO and founder Amir Bandeali, should only use centralized exchanges if they make frequent transactions, and should instead use decentralized exchanges when trading tokens on platforms like Ethereum. Decentralized exchanges, he says, are distinct from traditional ones because they do not store their customers’ cryptocurrency. It is impossible for hackers to steal investors’ money unless they first obtain access to their private key.
Fifthly, Remember the Basics
Many investors fall prey to hackers because they didn’t follow basic security measures. Cryptocurrency investors should open an exchange-specific account. This prevents hackers from accessing other sensitive data if they hack the account. Investors should use strong passwords and keep them in a hardcopy password list that only they can access.
The most determined hackers will seek cryptocurrency exploits. The cryptocurrency market needs qualified specialists to help investors protect their accounts to protect this new and powerful financial instrument. As cryptocurrency gains popularity, cyber security experts will be needed to stop persistent cyber thieves.