“How much ever secure a system can be, hackers and fraudulent always find one loophole and take it from there, in their own way” – Avanik Vekariya, Founder, Citrus Tech.
The world is still trying to understand fully how cryptocurrencies work and how secure they are. In the year 2020. The crypto market saw a drastic incline, with millions of investors exploring the nukes and corners of the cryptocurrency. Many new investors leap of faith without understanding the risks and crimes that happen in the crypto marketplace. It is always advised to understand and gain knowledge about the risk factors before anyone can invest in the crypto marketplace.
DARK SIDE OF THE CRYPTO MARKETPLACE:
The ever-growing growth and privacy features of cryptocurrencies are beginning to attract more and more attention worldwide. Criminals are attracted to features that allow for cash withdrawals and confidentiality, while investors see the potential for greater profits from reporting. Likewise, many governments and banks are beginning to cry foul. While some countries have directly banned cryptocurrencies, others, including the U.S., are trying to control them. While talking about legal regulation, the prices of cryptocurrencies began to decline from their peak in early 2019. Central banks have also joined the dispute by beginning to ban cryptocurrencies from using their credit cards. However, Japan stands alone. They were the first to offer a virtual currency known as cyber as an official tender form in mid-2017. As a result, it gained popularity in the country and the citizens represented one-third of all Bitcoin activity at the end of 2017.
HOW TO PREVENT CRYPTO RISKS AND CRIMES:
The activity of hackers can be challenging to track because their digital tracks can be removed. Investors have less legal access if their cryptocurrency account is hacked because the visible coins are currently not controlled by any government agency or central bank. So, to have a risk free market, investors need to be aware of the following:
- IN-DEPTH RESEARCH ABOUT EXCHANGES:
Read and research more about digital currency trading before investing even a single dollar. These platforms allow users to buy and sell digital currencies but different exchanges to choose from. Before deciding, do your homework, learn to review, and talk to more experienced investors.
- UNDERSTANDING HYBRID STRATEGY:
Online wallets are becoming increasingly popular, and on the contrary, parts are attracting attackers’ attention. The cryptocurrency of consumers should be stored in offline or physical wallets, with only a minute amount stored in an online wallet. The wallet should be kept secure, such as in a safe or secure deposit box. Separating private and public keys is also a good idea. If possible, both should be protected using complex passwords and multifactor authentication.
- UNDERSTANDING THE ROLE OF PASSWORDS AND PERSONAL KEYS:
Never use the same password for multiple accounts, especially since cryptocurrency services are the most popular thing for cybercriminals. Assume that everyone will break the data at some point. Reduce your risk using a different, stronger password for each, preferably with two-factor authentication.
A private key is used to verify that the sender or receiver of digital currency is the wallet’s owner. Cold storage is the safest way to store your private key. Printing your key and erasing all its digital tracks is extremely important. “We value each and every one assets as our own asset in Citrus, and maybe that is why the credibility of the people towards Citrus has increased drastically,” says Avanik Vekariya, as he addresses the security structure of Citrus Tech.
Although savvy investors in the cryptocurrency space usually move their holdings to the exchange platform once they have completed the transaction, there is still a significant amount of involvement in the exchange process. For that reason, cryptocurrency investors are warned to choose carefully when deciding which exchanges to use. In many cases, popular digital currencies such as Bitcoin, Ether, Cardano, and Ripple are available in a wide variety of different trades. These exchanges are not the same in terms of safety and security; it requires due diligence on the part of the investor to ensure that they do not add unnecessary risks to the transaction process through unsecured transactions. These are only a few primary prevention methods, but following them will keep the investor and their assets completely safe.