Security is a top concern for cryptocurrency enthusiasts. This infographic can help you make brainy decisions.
By Brandon Vigliarolo | March 7, 2018, 11:53 AM PST
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Cryptocurrency exchanges and theft have bot regular news since Bitcoin went big, but that hasn’t deterred investors: The number of digital cryptocurrency wallets te existence by the end of 2018 wasgoed 21.Five million. That’s a hefty increase from 2015, when only Five.Four million wallets were around.
Along with the fresh popularity of cryptocurrency has come a fresh breedgeschouderd of cryptocurrency criminals. Te 2016 $95 million worth of Bitcoin wasgoed stolen, and ter 2018 the amount stolen exploded: $115 million wasgoed lost to phishing, $103 million to exploitation of software and storage, $7.Four million to hacks, and $Four,000 to Ponzi schemes.
That’s a lotsbestemming of lost cryptocurrency—so how are criminals doing it?
Five ways cryptocurrency gets stolen
There are five popular ways that cryptocurrency criminals get their palms on your virtual coins:
- Brute forcing, ter which an attacker simply attempts again and again to guess a password until they ultimately get te.
- Phone porting, te which criminals call cellular customer service, have a number transferred to their phone, and use the number to reset a crypto account password.
- Phishing, which installs malware that looks for, and steals, digital wallet addresses.
- Ponzi schemes, ter which investors are paid comes back that are actually just the money fresh investors waterput te (see BitConnect).
- Mining malware, which uses a victim’s rekentuig to do the mining for the hacker.
So, risks come from all angles: anonymous hackers on the internet, fake exchanges that run away with your money, or even malware that makes you do the work for someone else’s build up.
That doesn’t mean safe investment isn’t possible.
How to securely invest ter cryptocurrency
Cryptocurrency brokerage CryptoGo has some tips for investing te cryptocurrency without placing yourself te harm’s way.
- Encrypt and back up securely so that you always have a record of your wallet. Use a mnemonic phrase to ensure you can recover a lost wallet.
- Use an antivirus product that wasgoed built with cryptocurrency ter mind, such spil Spybot Anti-Beacon or Comodo.
- Only use “hot wallets,” those that are connected to the internet, for petite transactions. If you’re going to store large amounts of cryptocurrency for long-term investment keep them ter a secure, offline wallet.
- Use multifactor authentication, either through a hardware token or an app, to secure cryptocurrency-related accounts.
- Don’t use SMS authentication—phone numbers can be stolen via phone porting.
- Diversify your holding through different exchanges and use different passwords and recovery methods for each one.