Cryptocurrency transactions are generally secure and anonymous if you know the party on the other end of the deal. Unfortunately, many beginners think by transacting digitally, they are immune to cyber threats and therefore transact without taking any precautions. This recklessness is what hackers use to get hold of innocent users’ information and even con them of their hard-earned money. The following tips should help you circumvent these data security and privacy risks and go about your digital transactions smoothly:
- Use Bitcoin ATMs
Online exchanges are the most popular platforms for cryptocurrency transactions, but they do not offer data privacy as they require ID verification when buying or selling coins. Physical Bitcoin ATMs are not only easier to use but also designed to provide anonymity to users. Your Bitcoin ATM Chicago won’t require you to divulge sensitive information or leave any trails linking the transaction directly to you. Everything will be done anonymously, and your personal data will not be exposed.
- Don’t use web wallets
Web wallets are hosted by third parties and do not offer the standard of security you may want for your Bitcoins. Newbie Bitcoin users get attracted to these wallets by their relative ease of use, and hackers know it. Most of the Bitcoin hacking scandals of the past couple of years have taken place on web wallets, so if you are going to use one, at least ensure it comes from a trusted provider.
- Use both cold and hot wallets
Storing your Bitcoin in two or more wallets does not precisely protect you from hackers, but it reduces the chance of losing all your money in the event a hacking incident takes place. Cold wallets are offline, and that makes them safer, particularly when you have no plan of using the money in the near future. Hot wallets, on the other hand, are online and are perfect for active Bitcoin users, but they are less secure as they are connected to the World Wide Web. The best thing to do is to only keep what you need for transactions in your hot wallet.
- Store your private keys online
Private keys are your authentication credentials to your crypto wallet, meaning anyone who gets hold of them can access your funds. For this reason, you should keep them in a place where they are least likely to be accessed. Ideally, your private keys for all your Bitcoin wallets should be kept in a computer that isn’t connected to the web.
- Use two-factor authentication
Two-factor authentication provides an extra layer of security to your primary password strategy. The activation process can be a little complicated, but given the minimal chance of recovering your funds once stolen, the hassle is worth it.
These are some of the tried-and-tested tips for keeping your digital currency and transactions safe from hackers and other individuals with malicious intent. To beef up your security strategy, it’s also worthwhile to sign up to exchanges you are sure you can trust. Before depositing any money to your wallet or transferring it to or from your online exchange account, take time to assess it from a security perspective.