TL;DR Breakdown
• Crypto wallets are better than exchange and hosting systems.
• Thefts in cryptocurrencies have increased since 2020.
Not surprisingly, crypto assets are gaining popularity in today’s economy due to their potential for easy profits. The word “cryptocurrency” has changed how you can view financial schemes because of its blockchain technology. However, you must learn how to take care of those crypto profits.
Kaspersky, a Russian cybersecurity company, notes that cryptocurrency account fraud is on the rise. The company notes that the thefts of crypto assets are majorly focused on Bitcoin due to its high purchasing power in the global market.
Unsurprisingly, the fame that embraces cryptocurrencies like Bitcoin has sparked interest in malicious people. Other cryptocurrencies like Ethereum are not spared from this widespread fraud.
Crypto asset theft increases with the market on the rise
According to data published by the CipherTrace Cryptocurrency Intelligence agency, cryptocurrency theft in 2020 amounted to $1.9 billion. This figure increased from the $1.5 billion stolen in 2019.
It is crucial to protect your crypto assets and digital date and not be affected by digital fraud. The first point to consider is the use of a secure crypto wallet. Options like Trust Wallet, MetaMask, or Electrum are the good options for keeping cryptocurrencies.
With a crypto wallet, you can keep your tokens protected with a private key and make transactions with them. Crypto wallets are more secure than exchange systems, which are the victims of many cyber attacks. An authorization key will allow you to withdraw the money from the wallet.
Seed phrases: A way to protect crypto assets
You can create various keys within your crypto portfolio to make deposits, withdrawals, exchanges. The seed phrase can contain keywords of your tastes, country where you live, favorite movies, etc.
You must be very attentive to the words you enter, as forgetting them could cause a loss of access to the portfolio. Seed phrases are independent of the access or transaction key you place in your wallet.
The best way you can protect your crypto assets is to use the most trusted wallets. The reputation of these mobile, desktop, hardware or paper wallets must be very good to use. You can try each wallet until you find the most suitable for your cryptocurrencies.
As a final point, use the most prominent crypto asset exchange systems on the internet and not the first option. The theft of your cryptocurrencies can occur when you do it on illegitimate websites.
Limit transactions which do not occur on the the most reliable exchanges like Binance. You can also rely on hardware crypto wallets that have the highest level of security. However, the only downside to these external wallets is that you have to pay to own them, and they are usually high value.
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