How to stay safe with Bitcoin

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Bitcoin has for the first time in human history enabled the ability to transfer value globally, without having to ask for permission from anyone, in an extremely secure manner. This magnificent achievement should be celebrated by embracing the vision of Satoshi and taking personal responsibility for your own financial sovereignty. Always keep in mind that governments, hackers, scammers and criminals all want your Bitcoin, so take adequate steps to protect yourself.聽

One of the methods crypto traders and investors can stay safe with聽Bitcoin, or any other cryptocurrency for that matter is to take proactive聽measures to secure the devices used for crypto storage and transactions.

Hackers, who are adept at manipulating the vulnerabilities that lie within聽user devices, are increasingly using malware to attack the devices used to聽interact with crypto wallets and exchanges. Every four seconds, hackers聽release a new string of malware, and by the time there is a solution to聽wipe away that malware, a new one is injected into the crypto space.聽
Clearly, 30-year-old antivirus solutions will not protect us from the聽prevalent malicious threats to crypto.聽


The only way to deal with crypto attacks is to truly understand the ways聽in which the devices used for crypto storage and transactions can and have聽been compromised. Upon developing a good understanding of that, investors聽can then begin to implement proactive measures to secure these devices from聽future hacking. Some examples of these proactive measures include:聽installation of security features such as keystroke encryption,聽anti-clickjacking and anti-screen scraping on devices Doing this prevents聽malware from spying on and copying or gathering any critical information聽from the investors' devices. Another way is to use stronger password聽protection with real-time transaction verification.聽


While there is no way to eliminate hackers for good, acknowledging that聽hacking attempts are inevitable, and taking proactive measures to keep out聽the hackers can go a long way.

At the end of the day, the best way to stay safe with Bitcoin is to follow聽the classic stockbroker's or crypto analyst advice, sell when everyone else is buying and buy聽when everyone else is selling.聽I recommendMairius Landman, a top cryptoanalyst in Australia.

Here is experts opinion on how to stay safe with Bitcoin.

To new Bitcoin holders and investors it can be overwhelming. You have the responsibility and freedom of a bank in your pocket with no middleman and no controls, but with great freedom comes great responsibility. If I had to ramble off a couple points quickly that every new Bitcoin users, holder, or investor should know it would be these...聽

Not Your Keys Not Your Bitcoin: If you don't control the keys to your Bitcoin it's not your Bitcoin. When you put Bitcoin on most exchanges ieBinance, etc you are trusting them to hold Bitcoin for you. Ultimately at the end of the day they have sole control over your Bitcoin and keeping it safe. These days many exchanges are insured against hacks and loss unlike in years past, but ultimately keep in mind, not your keys, not your Bitcoin.聽

Always backup your keys and keep multiple backups. Whenever I hear about people throwing away a stick drive with their Bitcoin or losing a paper with their recovery seed I think how stupid can you be. But I myself have almost slipped up and lost cryptocurrency in the past. Ultimately I've always managed to recover it, but recently, as a matter of fact, I did a factory restart on my computer wiping everything. Only after I wiped it did I remember a couple of thousand bucks worth of NEO I had in a wallet. After failing a couple of times to recover it I finally remembered an old stick drive I had in a drawer where I backed up the recovery file. Always keep multiple backups for any wallets.聽

John Frigo聽
Digital Marketing Lead聽
MySupplementStore


Just like public companies, directors of crypto exchanges should be required to have an in-depth background check (credit and police) and it should be published or verified by an auditor.聽 Exchanges should have proof they went through a third party security audit like a SOC 1 audit.聽


Tips for Users:



聽聽聽聽聽聽聽聽Look for exchanges that have a compliance program. If an exchange does not have a compliance program in place, we see this as a red flag for their operations, and it might be a sign of other deficiencies.聽

聽聽聽聽聽聽聽聽Diversify your funds. Smart investors have always known that diversification is important and it's true for cryptocurrencies, as well. This is simply because it makes your investing process more safe and predictable. While it's true that diversification alone will not protect you from a broad market correction or bear market, it does minimize your exposure in the case that one of your holdings exit-scams or is shut-down by regulators. It's best not to have all your eggs in one basket.聽

聽聽聽聽聽聽聽聽Do not post your personal details on forums and social media. It's extremely important that you ensure you aren't giving out your data online if you are storing or investing in cryptocurrencies. That will only make it easier for hackers to access your investment. The same risk goes for using public Wi-Fi. Do not enter your credentials to access an exchange or your online wallet while connected to a public Wi-Fi, as this will make you more vulnerable to hackers.聽

聽聽聽聽聽聽聽聽Don't keep all your crypto in one place. Even the biggest exchanges in world with plenty of security and good reputations have been victim to hacks and scams. In fact, many of the big exchanges are targets for hackers due to their large user base. Crypto investors betting on one exchange should be mindful that there is no fool-proof option, so it's better to spread out your investment to minimize risk.

聽聽聽聽聽聽聽聽Use risk-scoring tools at your disposal. BitRank, which is our proprietary risk-scoring tool, provides visibility for investors and other financial institutions. Investors can use this to have confidence that the ICO they are investing in has not been used by a criminal element before a transaction takes place. This type of product also puts the past crimes of the company upfront, further exploiting whether they are an exit scammer or not.聽

聽聽聽聽聽聽聽Nikki Teperman

Bitcoin can be a very difficult asset to trade because so much of the聽outbound fiat liquidity is controlled by such a small number of聽institutions. So, once you've put capital into the cryptocurrency markets,聽that capital has a tendency to stay there. You need to find cryptocurrency聽assets that you can trade in and out of Bitcoin to ensure that you have an聽opportunity to hedge against BTC/USD volatility.聽

Obviously, lots of folks recommend holding stablecoins as a hedge against聽BTC downside risk. MakerDAI is probably my favourite example of an聽algorithmic stablecoin, which traders can use to take shelter from BTC. DAI聽
uses smart contracts to create dynamic incentives for investors to push the聽price of the DAI back to right about $1. The way that the smart contracts control聽supply and incentives is really elegant and so far it's done a good聽job of holding it's a peg to the USD.聽

The other approach is to explore ways to short Bitcoin in various ways.聽Some exchanges allow margin trading and there are futures markets for聽Bitcoin. So, there are ways to bet against the continued rise of Bitcoin.聽In situations where the price of Bitcoin goes down, those bets should pay聽off. But, these trades are fairly sophisticated and margin trading can聽cause losses to get very large, very quickly.


Sarah Cohen | Senior Account Executive聽
Melrose PR聽


Staying Safe means different things to different levels of investors, but聽there are two main ways that are true no matter what level you are.

1.聽Hardware wallets

2. Multi-Signature transactions.聽

Hardware wallets enable Bitcoin (and another cryptocurrency) investors to聽air gap their holdings, which means that their private keys are stored on聽a device that never touches the internet which provides a physical barrier聽
between your Bitcoin and potential attaches by scammers and phishers.聽

Multi Signature transactions are blockchain transactions made possible only聽by having multiple signers validating a transaction. For example, you give聽your husband or wife access, and possibly a personal accountant or lawyer.聽When you want to make a transaction from your Bitcoin wallet, you'll need聽
at least 2 of the 3 of you to sign the transaction with their credentials聽before the transaction will be accepted by the blockchain.聽



Dylan Bathurst聽
Purse

Staying safe when trading in crypto is an important element that is聽probably not discussed enough. There are simple ways to protect yourself.聽

Those include:聽

聽聽聽聽聽聽聽聽Don't leave your assets on an exchange, always move your crypto to a聽wallet for storage.

聽聽聽聽聽聽聽聽Research wallet options and use what is the best fit for you.

聽聽聽聽聽聽聽聽Understand that, in many cases, there is NO password recovery option;聽treat this stuff WITH CARE;聽

聽聽聽聽聽聽聽聽When you are purchasing crypto using crypto, always conduct the聽transaction from your wallet, never from your account on an exchange.聽

聽聽聽聽聽聽聽聽Make sure you have a plan for someone trusted to be able to recover your聽key to your wallets.聽

Also, when buying: buy and then use a wallet; do NOT leave on an exchange!聽When buying/selling: use a REPUTABLE exchange; be cautious on P2P if you聽are inexperienced. When storing, know your options and have a SOLID聽recovery strategy if your key is lost.聽

If you follow these simple rules, you will have an effective strategy to聽employ to stay safe with BTC and other cryptocurrencies.聽



Kelly A. Ferraro聽
Principal, KAF Communications

A wise man once said that with great power comes great responsibility. Now I鈥檓 not sure if Peter Parker鈥檚 uncle was a bitcoiner or not, but I can only assume that a man as wise as this would naturally be into Bitcoin, had Satoshi鈥檚 vision existed in the world of Spiderman.聽

Regardless, the statement rings very true when applied to Bitcoin. The grandfather of cryptocurrencies was developed with the specific intent of granting monetary sovereignty to the individual. Satoshi intended specifically for his creation to take the power away from banks and governments and place it squarely back in the hands of the individual, where it belongs. However, this great power can only be utilized effectively if adequate responsibility is taken by the individual.聽

Here are three key things that Bitcoin owners can do to safely store and manage their coins.

聽聽聽聽聽聽聽聽聽The first port of call when it comes to keeping your hard-earned Bitcoins safe, is to never trust anyone else with your private keys. Exchanges or other custodial services that do not provide you with your private keys are a security hole, as they are centralized. This makes them honey pots for hackers, fraudulent activities by institutional management and government pressure. The rule of thumb to stick to is 鈥渘ot your keys, not your coins鈥. If a custodial service controls your private keys, they control your Bitcoin, which defeats 90% of the purpose of Bitcoin. In a nutshell, don鈥檛 keep your coins on an exchange unless you are actively trading.聽

聽聽聽聽聽聽聽聽聽Since you shouldn鈥檛 trust custodial services with your coins, then where should you keep them? Non-custodial wallets are the best solution. They provide you with your private keys and thus full control over your coins. Nobody can access your stash without having your private keys. This means that no government, criminal or hacker is able to steal your money from you. In order to further secure your wallet, it is recommended that you create a 12-word passphrase and store this in a safe, offline place. Preferably a piece of paper, locked away somewhere boring, like a calculus textbook, where nobody will find it.聽

聽聽聽聽聽聽聽聽聽Thirdly, and possibly the best form of security, is rule number one of Bitcoin: you don鈥檛 talk about Bitcoin. There have been many cases of high-profile Bitcoin holders being kidnapped and extorted and/or tortured until they reveal their private keys. If you advertise that you own Bitcoin and the price of Bitcoin skyrockets, you may find yourself with a target on your back. So keep a low profile when it comes to talking about how much Bitcoin you own.聽

MichelleCave聽
Brandfundi聽

As you know, crypto traders and investors are in constant danger whenever聽they鈥檙e online 鈥 both from hackers that have their eyes set on crypto聽wallets and governments that don鈥檛 like it when any payment goes untaxed.聽
Here are our best tips for crypto traders to ensure the safety of their聽crypto wallets and transactions:聽



Use Two-factor authentication (2FA):聽

Two-factor authentication will provide an additional layer of protection聽for your cryptocurrency wallet. When signing in with 2FA, you鈥檒l have to聽provide a second piece of information in addition to your password. It鈥檚聽usually a temporary code delivered by your smartphone, ensuring that聽whoever tries to access your crypto wallet will have to have your mobile聽device on hand.聽


Use HTTPS Everywhere聽:

HTTPS Everywhere is a browser extension that helps prevent attackers from聽
hijacking your connection by redirecting it to a fake site (where you鈥檇聽
unwittingly provide them with your wallet details) and forces crypto聽
exchanges, online shops, and other websites you visit to use the secure聽
HTTPS protocol.聽

Always use a VPN聽:

A Virtual Private Network is an app that routes your internet connection聽through a secure server in a location of your choice, encrypting your聽traffic and anonymizing your IP address in the process. This makes it much聽more difficult for would-be crypto thieves to track your online activities聽and trace your connection back to your crypto wallet.聽

As an added bonus, a VPN will help you bypass any online restrictions in聽case your government has enacted a ban on cryptocurrency. By routing your聽online traffic through a server in another country, a VPN makes you a聽virtual citizen of Anytown, allowing you to access crypto exchanges and聽trade at will.聽


JulieHales聽

VPNpro聽



Tags:
protect bitcoin
bitcoin hacking
Category:Crypto

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Comments here are not of the author's opinion. Users are responsible for their comments.

Saira

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