In general if someone lost money through his bank account through any fraud or any other reason than there bank will help them to regain that money or we say sometimes reimburse the amount to the holder but in case of cryptocurrency there is no centralized authority so no one is responsible for any of your loss, so you have to take some precautions while trading in cryptocurrency. The reimburse of crypto coins is also not possible because in case of bank accounts all the transactions are recorded in bank ledgers so there is a less chance of fraud but in case of crypto no such entry is recorded so it is difficult to reimburse the money.
How To Protect Your Cryptocurrency?
In crypto, the proprietorship lies totally with you. Additionally, the transactions, when executed, can’t be reversed. This because the crypto is made of blockchain technology and the verification of crypto owner can only be done through private key which is allocated by the exchanges to the owner of the crypto so anyone who is having a private key will be the owner of the crypto. The private key is generally saved by people on their email id’s which are connected to the internet which can easily be hacked. The greater part of the occasions the trade wallets are on the web and such wallets are called “Hot Wallets”. Hot wallets represent the riskiest chance since they are associated with the open web but the wallets which are not connected to the open web are comparatively less risky and known as “Cold Wallet”.
LET ME TELL YOU THE BEST WAYS TO AVOID LOSSES AND TO PROTECT YOUR CRYPTOCURRENCY-
- Security From Phishing Scams– This is the very commonly used scam done by the hackers in this scam hackers send a mail to the crypto user and user unknowingly click on it and enters there password and get trap, or they use some other links to get the password of the crypto wallet. So be careful while clicking on any of unknown link.
- Security from our own devices– The hackers also install some type of software to our devices through which they can to know all the information stored in our device, also they can track us through these devices when we are filling our important passwords. So don’t give your devices to everyone.
- Private key security– The common mistake done by maximum people is they store there crypto tokens on the exchanges. This online storage of crypto tokens can easily be hacked by hackers so avoid storing of crypto tokens on exchanges.
- Avoid Public Wi-Fi– The most important precaution which we generally forget to do, don’t use public Wi-Fi while trading in cryptocurrency the probability of getting your account hacked will become maximum. Avoid using public Wi-Fi to secure your cryptocurrency.
- Security from social media– There are several groups of cryptocurrency on all social media platform which guaranteed you to increase your profits, but maximum of them are spams and frauds so be aware of these spam posts, pages and groups on social media. They just want to connect you to get your crypto wallet access.
- Use hardware wallets– To secure your money for the long period of time in cryptocurrency use hardware wallets. A hardware wallet is generally similar to a pen drive that stores your private key far from a PC and subsequently ensures against infections, malware or key loggers to take your passwords or private keys. Despite everything, they give full ownership of the coins.
These are all some basic precautions one should take to secure their important money while trading in a cryptocurrency.