Do you sometimes leave your exchange account logged in after a trading session? Would it be possible to guess or find out the recovery information to the email linked to your trading or Coinbase account? Do you ever search ‘Binance’ and then click the link instead of typing the URL directly into the browser?
If you answered YES to any of the above (or a number of other common mistakes) then you could be exposing yourself to unnecessary risk. Whilst it may seem over the top to implement all of the following recommendations, it’s prudent to take as many precautions as possible when it comes to assets as vulnerable to theft as cryptocurrency.
Whilst the current market has seen portfolios deflate in value in a seemingly never ending bear movement, I worry far more about the possibility of losing a large chunk of my portfolio malicious software than the market collapsing.
The hacking of major cryptocurrency exchanges has been a fairly frequent recurring event. From the Mt. Gox breach in 2014 of $475 million worth of Bitcoin to the more recent theft of $500 million worth of NEM from Coincheck in June of this year.
Whilst there isn’t much you can do if the exchange itself is compromised, there are precautions you can take to avoid losing funds as a result of you being the central point of failure.
One of a number of such examples of individuals failing to take necessary precautions is the $50 million stolen from users of Blockchain.info, a popular provider of digital currency wallets. The thefts took place using over a prolonged period of time using phishing adds. The scammers would buy Google Adwords for cryptocurrency related terms, drowning out the real Blockchain.info site with similar looking links such as Blockclain.info, then stealing the private keys once users entered them on the identical looking website.
Whilst many of the recommendations below might seem obvious, I would put money on most investors falling foul of at least one of these (I certainly have!):
Do you have any security suggestions not included in the above list? Find a mistake? Disagree with something I’ve written? Write it in the comments and I will get back to you (or add it to the list).
If you think this article might help you or others to keep their cryptocurrency safe then share the article far and wide.
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