A cryptocurrency is a form of digital or virtual money that is secured by encryption. When it comes to cybersecurity, investing in cryptocurrencies might be problematic if you don't do your research to understand the security risk associated with it. It's critical to understand how investing in cryptocurrencies might go wrong in order to prevent any cybersecurity issues. Some of the most common cybersecurity issues related to cryptocurrency investment that you should be aware of are listed here.
There are a number of security concerns to consider when accepting cryptocurrency payments. Some of the most common risks include:
- Phishing attacks: Phishing attacks are a type of cybercrime where scammers send emails or text messages that appear to be from a legitimate source, such as a cryptocurrency exchange or wallet provider. The emails or text messages will often contain a link that, when clicked, will take the victim to a fake website that looks like the real website. Once the victim enters their login information on the fake website, the scammer can steal their cryptocurrency.
- Malware attacks: Malware is software that is designed to harm a computer system. Malware can be installed on a computer through a variety of ways, such as clicking on a malicious link, opening an infected attachment, or downloading a file from an untrusted source. Once malware is installed on a computer, it can steal cryptocurrency by stealing the victim's login information, mining cryptocurrency on the victim's computer, or taking control of the victim's computer and sending cryptocurrency to the scammer.
- Exchange hacks: Cryptocurrency exchanges are online platforms that allow users to buy, sell, and trade cryptocurrency. Exchanges are often targeted by hackers because they hold large amounts of cryptocurrency. In 2018, hackers stole over $1 billion worth of cryptocurrency from cryptocurrency exchanges.
- Wallet hacks: Cryptocurrency wallets are software or hardware devices that store cryptocurrency. Wallets can be targeted by hackers because they contain the private keys that are used to access cryptocurrency. In 2019, hackers stole over $400 million worth of cryptocurrency from cryptocurrency wallets.
Protect your cryptocurrency from cybersecurity risks
- Don't share your private keys with anyone. Your private keys are the keys to your cryptocurrency. Never share them with anyone, not even with customer support.
- Store your cryptocurrency in a cold wallet. A cold wallet is a wallet that is not connected to the internet. This makes it more secure from hackers.
- Beware of quick offers. If someone offers you a way to get rich quick with cryptocurrency, it's probably a scam.
- Don't use public Wi-Fi to access cryptocurrency exchanges or wallets. Public Wi-Fi networks are not secure and can be used by hackers to steal your cryptocurrency.
- Back up your cryptocurrency wallets. If you lose your wallet or it is hacked, you can restore your cryptocurrency from a backup.
- Be careful when using cryptocurrency exchanges. Cryptocurrency exchanges are often targeted by hackers. Be careful when using them and only use reputable exchanges.
- Stay up-to-date on the latest cryptocurrency news and security threats. The cryptocurrency industry is constantly evolving and new security threats are emerging all the time. Stay up-to-date on the latest news and threats so you can protect your cryptocurrency.