Taking Crypto Safety Seriously!
Crypto Safety is a critical concern in the digital age as the rise of decentralized finance and blockchain technology attracts both investors and cyber threats. Protecting your digital assets begins with choosing secure platforms, enabling two-factor authentication (2FA), and using strong, unique passwords. While exchanges provide convenience for trading, self-custody wallets, especially hardware wallets, offer superior security by keeping your private keys offline. Beware of phishing attempts, suspicious links, and unverified platforms. Diversifying holdings and regularly updating your security measures ensures resilience against potential breaches. Remember, in the crypto world, safeguarding your keys equals safeguarding your wealth. Stay informed, stay secure.In this article we are covering brief aspects of Crypto asset security. Unlike regular stock brokers Crypto Exchanges do not guarantee for your investment assets these are just platforms for buy, sell, deposit and Transfer of Digital assets.
India-based WazirX, a cryptocurrency exchange was hacked in early days of July 2024, leading to the loss of approximately $234.9 million (around Rs 2000 crore) in investor funds. The exchange ceased to operate on 18 July 2024.
Here are few Safety Tips for Crypto Safety
There are several risks associated with Crypto exchanges like Hack, Bankruptcy, Regulatory risks and of course mismanagement of fraudulent activities. In recent times there is example of WazirX exchange where digital assets were stolen by Hackers.
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Do your research about which exchange to go ahead with. You can include some safety paramaters like few exchanges maintain insurance against hacks which atleast can provide partial security for your investment
Example: Binance’s SAFU (Secure Asset Fund for Users) offers partial protection for user funds.
· Invest in regulated exchanges (Like Kranken or Coinbase).
· Use 2FA for your accounts.
· Use Offline digital asset storage wallet like LEDGER Also called Hardware wallet which is offline and you avoid risk of Hack.
· You can use third party wallet providers like TRUST Wallet.
· Stay away from suspicious links, promises from unknown people.
In the ever-evolving world of cryptocurrency, security is not just an option—it’s a necessity. By adopting robust security practices, staying vigilant against cyber threats, and prioritizing self-custody, you can significantly reduce the risk of losing your digital assets. The decentralized nature of crypto places responsibility squarely on the individual, making education and proactive measures essential. As technology advances and the ecosystem matures, staying informed will remain your best defence.
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