Cryptocurrencies continue to be a topic of hot debate. There’s no denying cryptocurrency’s worth as we see these assets’ value rise. It’s become such a lucrative investment that individuals with no experience in trading are trying their hand at crypto trading for the first time. However, before investing, you must be aware of some cybersecurity risks that could affect your crypto trading experience.
This article examines the threats looming over crypto trading, such as phishing attacks, malware, and illegal trading platforms. We’ll also look at some of the measures you can take to protect your trading efforts, such as enabling two-factor authentication and using rotating proxies or other reliable proxies from reputable providers. Keep reading to discover how you can protect your crypto trading investments.
The Main Threats Affecting Crypto Trading
Even though cryptocurrency is based on blockchain technology that uses a secure ledger to record all transactions, that doesn’t make it 100% safe. As the value of cryptocurrency continues to grow, it fuels hackers’ interest in these assets. There have already been numerous attacks that have led to the loss of millions in crypto. As such, it’s essential to be aware of the threats when trading. Some of the most common threats include the following:
Crypto trading is not free from phishing attacks, and you can easily become a victim if you’re not careful. In a phishing attack, the attacker pretends to be a credible firm or company, such as a legitimate trading platform. They’ll send professional-looking emails with signatures, logos, and other convincing evidence to get the user to perform a certain action, such as sharing their login details. Hackers use these scams to convince users to hand over their cryptocurrency.
Illegal Trading Platforms
New trading platforms are popping up daily as more people try to get into the crypto craze. However, not all of these platforms are reliable, and some are outright dangerous. Illegal trading platforms, like One Coin, aren’t unheard of and can trick users into investing in a scam.
Using Third-Party Software
Many crypto traders use third-party apps to help them manage their trading. These can be in the form of e-wallets or crypto tax reporting services. However, each additional platform you link to your account carries potential vulnerabilities that hackers can exploit.
Crypto-malware enables unauthorized users and hackers to mine cryptocurrencies on your computer or device. Victims are tricked into installing the malware on their devices through phishing tactics, websites, or ads, and when a user interacts with this, they activate the malware.
Lack of Security of Crypto Trading Accounts
Many trading platforms are accessed through a private key or access code. However, not everyone stores this information as securely as they should. Some users save this password in a note on their computer, in their emails, or in some other format that can easily be hacked.
Exchanges That Aren’t Regulated
Crypto is decentralized, which is considered one of its main advantages. However, while this does have some benefits, security isn’t one of them. Being decentralized means that there’s no single governing body or entity to manage the production or movement of crypto. This means if your account is hacked, you bear all the responsibility.
Ways To Protect Against These Threats?
If these threats make it seem like trading crypto is unsafe, don’t worry. There are ways that you can protect yourself and your investment. Let’s take a look at some of the measures you can use to improve your online security when trading.
Implement Two-Factor Authentication
Enable two-factor authentication on all of your accounts related to your trading. This can be for your trading account, e-wallet, and other third-party apps you use to manage your funds and investments. You can add even more security to this process by using an authenticator app like Google Authenticator.
Withdraw Your Crypto
Exchange platforms are usually attractive targets for hackers since they typically hold a lot of crypto from different users. As such, it’s recommended to withdraw any crypto you don’t plan on reinvesting to a more secure wallet set up on your PC.
Use Strong and Original Passwords
You’re probably tired of hearing how important it is to use strong and original passwords, but the fact remains that it’s essential to protect any of your online accounts. This includes your crypto trading accounts. A strong and unique password that’s randomly generated is much less likely to be guessed by hackers or brute force attacks.
Use a Proxy Server
Using rotating proxies and servers is one of the best ways to protect your online activities. These servers disguise your IP address and encrypt your data. If you enable rotating proxies while trading, hackers won’t be able to read any of your queries, nor will they be able to track your location or collect your data for phishing attacks.
Trading in cryptocurrencies can be lucrative, but they can also be risky. Before you start trading, make sure that you’re aware of any potential security threats so that you can protect yourself by using rotating proxies, secure trading platforms, two-factor authentication, and more.