Posted: 07.07.2021 | 05:13
How to Store Bitcoin and Other Cryptocurrencies Safely?
RECOGNIZING FRAUD TO REDUCE RISKS
Successful criminals stay ahead of law enforcement and regulation. They follow technological innovation closely and take advantage of people trying to learn new things. Therefore, as with any new technology, cryptocurrency has risks. You need to understand these risks and make sure you have the tools to protect yourself and your money.
Owning cryptocurrency makes you a more attractive target for cybercrime. Coinpara has the necessary infrastructure to keep your Bitcoin safe. However, only you can keep your passwords safe.
“Phishing” is an attack where criminals use fake websites that appear legitimate to trick you into entering your password/details. They then use your password to access your account.
DIFFERENT PHYSICAL ATTACK TYPES
Phishing websites: Attackers create fake versions of websites to get you to enter login details. Be careful not to click on fake Google ads. Before entering any details, carefully check the website address to make sure you are at the correct URL.
Email phishing: Attackers can send legitimate-looking emails to entice them to share login information. Check the sender email and make sure the website you are directed to has the correct address.
You might think you can spot traps and avoid them. But ask yourself, are you 100% sure of every link you've ever clicked?
Always check your browser address bar to verify that you are visiting the correct website address and not a fake site.
Use two-factor authentication on all your Bitcoin wallets and email addresses.
Use a password manager program.
If you're using a Gmail account, do a quick security check.
Since the cryptocurrency space is relatively young, investment scams trying to rip you off your money are common. Scammers may come across differently, but with a little practice you can easily spot them and avoid them.
Cloud mining scam
99% of cloud mining operations are suspect. Legitimate Bitcoin miners can suggest 10%, 20%, 30% profitable Bitcoin mining per month, mentioning that the profit margins in mining are very small. Most of these are fraudulent.
Multi-level marketing scams
If the company's referral program is more difficult than getting the product, it's probably a scam. Presumably, they are paying existing investors with the amounts brought in by new investors. Eventually the music stops and they disappear, taking everyone out of their pockets and only then the victims realize they have no idea who they are sending their money to.
Bitcoin “doublers” or high-yield investment schemes (Ponzi schemes)
This scam convinces you that they have found a private or secret method to make incredible profits. Whether you trade for yourself or take advantage of the technical aspects of cryptocurrency. In reality, although they were making a lot of profit, they certainly wouldn't need your investment.
How to detect a fraud?
Do some research before investing in something. If the promised returns sound too good to be true, it's probably a scam. Also check out the bad list at “badbitcoin.org”.
Attention to Volatile Markets!
While this isn't about criminal activity, it's important to be aware that Bitcoin and other cryptocurrencies are exceptionally volatile. Price fluctuations can be severe and it is important that you do not risk large sums of money (more than you can afford to lose).
Keep in mind that during market volatility, misinformation may spread in the news and cryptocurrency service providers may experience service interruptions. You may not always be able to sell your cryptocurrency immediately.