Since 2009 when the world was introduced to Bitcoin, cryptocurrencies have gained in value and traders. Today, the market capitalization is over US$300 billion, and experts predict we will continue to see an increase in the value of cryptocurrencies. While this is welcoming news for crypto traders, hackers looking to get a piece of the pie disrupted the market, stealing user logins and their funds. In 2019, investors lost $292,665,886 million worth of cryptocurrency. Security breaches are on the rise, fueling crypto traders’ need to take extra precautions when using exchanges and storing their cryptocurrencies. Before we look at the safety practices you can use to keep your crypto wallet safe and secure, let’s talk about some security risks.
What are the security risks?
Hackers are leveraging COVID-19 to exploit individuals. Online security risk surged in the early stages of the pandemic, with malicious attempts becoming more sophisticated. Unfortunately, the crypto market has not been spared from these attacks. The following are three security risks crypto traders are faced with:
Investor scams
Scammers posing as crypto traders or exchanges claiming high returns on cryptocurrencies have tricked unsuspecting victims. The scammers use social media and emails to target users. Bitcoin is the dominant cryptocurrency on the market; it has been the most exploited digital currency for scammers.
Phishing scams
Emails claiming to come from legitimate sources such as charities and government agencies are increasing during the pandemic. Using COVID-19 as a cover-up, these phishing scams encourage persons to click on links to donate or purchase personal protective equipment. These links take persons to malicious sites where personal information can be exposed to hackers, including private keys for crypto exchanges.
Ransomware
With ransomware, a malicious program encrypts your system and files, then asks for a ransom to return or decrypt the files. Some ransomware programs request payment in cryptocurrency.
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