18 days ago

Cryptocurrency Security in 2024

Industry analysis
background

The crypto industry is not only about benefits and profitability. It is also about the risks. And this should be understood by every novice investor in the first place. 

 

For example, in 2022 alone, the losses of the cryptocurrency industry from various hacker attacks and fraudulent crypto schemes amounted to about $ 4 billion! And obviously, the scammers are not going to stop there. While the developers of the latest cryptocurrency security systems are launching more and more advanced mechanisms to combat hacker attacks, scammers are coming up with new ways of stealing. 

 

Therefore, the security of cryptocurrencies is a topic that is becoming more relevant every year. Analysts of leading crypto platforms specialising in cybersecurity urge users to be vigilant and aware of all possible risks. 

 

In the article, we will look at all this in more detail.

 

Crypto Security Definition

 

Crypto security is a field of information security that deals with the protection of confidentiality, integrity, and authenticity of data using cryptographic methods and tools. To do this, the latest technologies, protocols, and techniques are used to protect information from unauthorised access, modification, and forgery.

 

The Importance of Safeguarding Digital Assets

 

Currently, cryptocurrency security plays a crucial role. Since the advent of Bitcoin, hackers have tried to hack many online wallets, and many of these attacks have been successful. 

According to the American company Foley & Lardner, about 70% of top traders and crypto investors consider attacks on security systems and unauthorised access to be the Number-One threat.

Well, what are the most common threats that also exist these days in the crypto market?

 

Most Common Crypto Threats for 2024

 

Phishing attacks

 

Phishing attacks often involve fraudulent attempts to obtain confidential information such as private keys or login credentials. These attacks can be carried out through misleading emails, fake websites, or social engineering techniques.

 

Man-in-the-middle (MITM) attacks

 

The attacker is trying to intercept the communication between the two parties, posing as one of them. It allows the fraudster to view and even change the transmitted data.

 

The ransomware program

 

A scammer can send you malware (which will restrict access to files) and promise to return them after receiving a ransom in the form of bitcoins or other currency. However, there is no guarantee of receiving your files back after payment.

 

Fake wallets

 

The fake crypto wallets are created to steal personal data, and then the user's digital assets. They are available for download in the Google Play app store or on various websites.

 

Ponzi Schemes

 

You may be offered to participate in a new project, purchase its coins, or enter into a special deal that requires a crypto deposit. The terms of the project may be too attractive and tempting. It will be a fraud. Do your research and ensure that you are investing in a safe project.

 

Main Cryptocurrency Security Regulations

 

Today, several regulators directly affect the maintenance of cryptocurrency security worldwide. Here they are: 

  • AML

Anti-Money Laundering is a system of procedures and measures taken by financial and other market participants, including the cryptocurrency world, to identify and prevent attempts to legalise funds obtained as a result of illegal activities. 

 

The AML verification includes an analysis of the sources of funds received by the crypto address and a risk assessment using a risk score.

  • CCSS

For ten years now, the cryptocurrency community has been trying to self-regulate. Today, Cryptocurrency Security Standards (CCSS) are in force. They were developed by scientists, industry experts, and security specialists. The purpose of the standards is to ensure transparency of the criteria for evaluating and comparing the security in crypto.

  • GDPR

The General Data Protection Regulation (GDPR) is a regulatory act signed by the EU in 2018 to harmonise data protection laws in member states. Its main goal is to strengthen the protection of personal data of individuals and give them more control over how their information is processed. GDPR applies not only to organisations within the EU but to companies outside the EU that process the personal data of EU citizens.

 

Proven Ways to Protect Crypto

 

To be sure of the safety of their funds, many sites are improving their protection methods. But ordinary users using cryptocurrency should also take care of this. 

  • Encryption

It is an effective method of securing cryptocurrency. Encryption is a mathematical algorithm that converts info into an incomprehensible form (cipher). Given code can only be understood by a user who has the keys to decrypt.

  • Blockchain

It is a distributed ledger technology that records and verifies transactions securely and transparently. With the help of technology, users conduct untrustworthy automated transactions.

  • 2FA

This is a method of identification to log in to the platform, where you need to confirm in at least two ways that you are the account owner.

  • Asset allocation

Cybersecurity experts recommend dividing the cryptocurrency into different repositories so that when scammers gain access to one wallet, they will not have the opportunity to steal all the funds.

  • DeFi

Be careful when working with Decentralised Finance (DeFi) protocols. Keep an eye on what permissions the DeFi platform requests when interacting with the wallet. If you see something different from the standard list of actions, the site may be phishing.

  • Multiple subscriptions wallets

This method requires signing multiple keys to complete the transaction, which increases securing cryptocurrency and prevents one-sided attacks on the wallet.

 

Cryptocurrency Safety Tips

 

Here is a list of practical cryptocurrency safety tips to help you secure assets:

 

Use reputable wallets

 

This advice may also seem obvious, but a reliable coin storage wallet like Wiex is the best way to protect your hard-earned digital currency from hackers.

 

Double-check transaction details

 

Always double-check the address to which you are sending the cryptocurrency. One mistake can lead to irreversible losses. In addition, take into account the current activity on the Bitcoin network to estimate the transaction time and fees. This information can help you plan the best time to send digital currency.

 

Regular software updates 

 

Update the operating systems, software, and applications on your devices regularly. Such updates contain fixes for security vulnerabilities.

 

Regular Backups

 

Create backups of crucial data on external media or in the cloud. It will help to recover information in case of loss or cyberattack.

 

Create strong passwords

 

Keep confidential documents and data encrypted. Use strong passwords in conjunction with other security of cryptocurrency methods to access important files. Update passwords regularly.

 

cryptocurrency security

 

Enable 2FA

 

You will increase the level of protection of your accounts thanks to enhanced verification in addition to the password. Authentication methods include SMS codes, authentication applications, or hardware tokens.

 

Be wary of a phishing scam

 

Most phishing emails start with the phrase “Dear customer!” So, you should be on your guard when coming across such emails. If in doubt, contact the platform directly, rather than clicking on a potentially dangerous link.

 

Avoid public Wi-Fi and use a reliable internet connection

 

When you make transactions with cryptocurrency on a public Wi-Fi network, you are putting yourself at high risk. The fact is that even a novice hacker can easily intercept such a connection.

 

Educate yourself

 

Keep up to date with market conditions and news that may affect your investments. Update your knowledge and analyse current trends and events in the market. Besides, take a close look at each company or asset you invest in. Assess their financial condition, reputation, and growth prospects to make informed investment steps.

 

Diversify storage solutions

 

Distribute your investments among current assets such as stocks, bonds, funds, and cryptocurrencies. It will help reduce the risks and cut the impact of potential losses.

 

Conclusion

 

In the crypto space, you need to be constantly on your guard. Ensuring the safety of funds requires an active and multifaceted approach. Fortunately, some methods can significantly increase the level of security for cryptocurrency. By being aware of new security trends, staying vigilant against phishing attempts, and implementing the latest security technologies, you will save money and prevent crypto scammers from celebrating success.

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