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How safe cryptocurrency is? Few Tips for safety.
- Posted on August 10, 2020
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By Karan Kapoor
Cryptocurrency has been in the news lately, and it has driven fear in the minds of new investors due to some lack of safety. Here you will get all your fears cleared.
Crypto means secret, and the currency is a mode of unitary/standard exchange, in any country. The simple language, cryptocurrency is a secret currency of a secret mode of exchange of monetary objects. The only flaw with cryptocurrency is that there is no trail of this currency and very little legibility. Though companies like Bitcoin came up with some transparency and responsibility.
Still, there had been headlines we read nowadays, money vanishing from the crypto accounts of people, they losing everything.
CipherTrace, and intelligence firms for cryptocurrency, in Silicon Valley, reported that theft in cryptocurrency reached $1.2 Billion, within 3 months of 2019, and for the whole year of 2018 it was $1.7 Billion.
The hot wallets have been the most targeted, in the year 2019. Through cyber theft, 7000 Bitcoins were stolen, converting them to almost $40 Million.
Security
The security problems have been increasing every year, could be due to advancements of software, and before a new better security system comes into existence, it’s hack is ready.
There has been a breakthrough in the new blockchain system. This new system now enables some security. It means the transactions are recorded in clocks that are time stamped. It is a really complex system, but the ledger of the cryptocurrency is blocked for the hackers to tamper with. In addition to it, it also comes with two wall authentication. First username and password, the other being a verification code. The firewall is later installed, when the safer you require.
Since the implementation of this new system, the theft has reduced, but not stopped. The higher the security system, the hacker with more means can still try and make a breakthrough.
Another way to keep your cryptocurrency is to keep them in flash drives, the cloud is accessible for the world, a flash drive can help us keep them safe on a remote level. It will only be in the eyes of a threat once it is in use(connected to the system).
To tackle all the threats you should have some tricks up your sleeves while investing
Exchange of Research
Learn everything about cryptocurrency before investing even a single penny in the cryptocurrency. Have your research ready with you, there are over 500 exchanges from where you can gather knowledge. Read reviews, talk to seasoned investors, you should be prepared.
Know the storage portals for DigiCurrency
After your exchange, you have to store the currency, and for that, you need special digital wallets and portals. Another would be your physical drives. Store them in flash drives to that they are stored in a digital safe, which can only be accessed once connected.
Diversify
Apart from bitcoin, there are various more platforms. Diversifying will allow you to spread your money. It’s like asset storing money at various banks, so if there is theft at one, not all the money is lost.
Stay put for Volatility
Like the shares and mutual funds, there is a risk of crypto to go up and down. It is a boat in stormy waters, if you invest, you will have to be ready for ups and downs.
To learn more about cryptocurrencies.
