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Protecting Your Crypto Assets: The Importance of Private Keys

cryptocurrencies offer a world of possibilities. The crypto ecosystem enables fast and easy payments, innovative financial services, and integration into previously bankless regions of the world.

But with these opportunities come challenges and risks. Many crypto platforms lack strong operational, governance, and risk practices. These issues revealed themselves with huge repercussions in 2022 with the collapse of Terra Luna – one of the largest stablecoins – and FTX – the second largest exchange to file for bankruptcy.

Aside from these meltdowns, there are also several high-profile cases of theft of customer funds related to hacking on centralized and DeFi-Platforms. These issues have fueled debate about the importance of private keys.

We recently caught up with Georgios Kalmpazidis, co-founder and CEO of Swaps.app, who shared his thoughts on the subject.

Q- What are your thoughts on the current security issues affecting the Blockchain– plague industry?

Protecting Your Crypto Assets: The Importance of Private Keys, Crypto Trading NewsCreated with the RNI Films app. Preset ‘Agfa Scala 200’

Speaking of blockchain, perhaps this is the most transparent, secure, and democratic technology and system mankind has ever created. It has grown in popularity over the years and today it is used in many other fields besides crypto such as healthcare, real estate, smart contract, etc.

Blockchain is a relatively new technology that currently faces several security challenges, but I want to look at these challenges from two perspectives – blockchain and user. From the blockchain perspective, most vulnerabilities are related to Sybil, 51% and routing attacks, which are common problems, are successfully fixed by cyber security professionals.

On the user side, the biggest challenges are phishing attacks and private key security, which are among the top issues. If we take a closer look, the issues here are similar to traditional funding and consistently guiding and educating users is key to protecting their funds and fighting scammers. It should be one of the top priorities for businesses.

On top of all the above factors, there is another major issue that is the biggest drag on the organic development of the industry. I call it an irresponsible and immature business strategy that misleads and mistreats users, bringing them huge losses. Unfortunately, we have several similar cases in the industry that we can all remember.

Q- Do you think the collapse of major crypto platforms threatens crypto adoption?

The decline of market capitalization and the events with some of the major crypto platforms in 2022 created a sense of uncertainty around crypto’s adoption rate. Past events have eroded trust in the industry and impacted the market, increasing the need for independent and secure storage of private keys.

At Swaps.app, we are optimistic that the industry will survive after all these collapses. The pace would definitely be different, but more regulation will make the industry much healthier, more trustworthy, and more consistent.

Q- How important is it for users to keep their private keys?

As I mentioned before, private key security remains one of the top issues, especially in the current market situation. It is the master key to users’ funds and should be owned and kept by them. Of course, it also depends on the needs and trading behavior of users. Many crypto platforms offer custodyWallet-Services that provide a high level of security and wallet protection, convenient for those who actively trade crypto. In this case, users need to be choosy when choosing between public depot wallets. Despite this, we advise you to always keep most of your money on your private key.

Q — What is the best way for crypto users to protect their private keys from being guessed or hacked?

When it comes to protecting private keys, I always compare this to the situation when we lock the front door after we’ve left the house. We never leave it open or leave the key in the lock. The same applies to the private keys. If it is weak or unprotected, your funds are at risk.

The first, perhaps trivial, step for users to protect their private keys is to keep their credentials secret from others. I call it trivial because it sounds simple, but more often than not, in phishing attacks, users mistakenly share it with hackers.

It’s also important to keep two-factor authentication enabled, avoid simple combinations of passwords, not store your password in browsers, regularly clear your browser’s cookies and caches, and securely store your login information wherever no one, even a close friend or family member, has access, use software or apps to detect malicious links, improve device security with antivirus software, keep the device system and browser up to date, do not connect to open or public WiFi networks .

We constantly remind our users of these simple rules and encourage them to keep their personal information and credentials safe when buying crypto from Swaps.app.

Q — What security features must crypto platforms incorporate to prevent high-profile hacks and scams?

Security is the cornerstone of the crypto industry, and while platforms compete on price, tariffs, speed, and other important parameters, security wins the competition. After that comes the rest.

A cryptocurrency system requires the secure generation of cryptographic keys and seeds. Businesses should review their organization’s security measures in this area, keeping confidentiality and invaluable numbers in mind.

Maintaining the integrity of cryptocurrency wallet/key usage is also critical. Risks such as lost or stolen keys, or unintentional disclosure of the wallet holder’s identity can be avoided through best practices such as key retention and stricter ongoing assessments.

Q — What do you think will be the biggest blockchain trend over the next 12 months?

There are many blockchain trends to watch out for in 2023, but the biggest for me is the widespread adoption of CBDCs as more and more governments adopt their digital assets. At Swaps.app we look forward to supporting CBDCs for users and counterparties whenever they are public. The rising investments in stablecoins and greater interest in DeFi will also be blockchain trends in the next 12 months.

Q — What has been the biggest challenge you have faced in our industry so far?

High speed and trust issues in the industry have been our biggest challenges. I can proudly state that because of the constant improvements and updates, Swaps.app succeeds in providing high quality and seamless crypto purchases for customers as well as fast and secure crypto and fiat payment processing for online businesses.

Also, we are very careful and selective in choosing liquidity, fraud prevention and payment partners, making us a secure crypto platform. Over the past 12 months, we’ve completed our integration with industry-leading companies including TrueLayer, Stripe, Sumsup and Binance, updated our services and introduced new coins and features, giving us a major leap into the next chapter of the company’s story.

Swaps.app is a fully compliant and regulated European crypto company that combines industry-leading security with a lightning-fast and incredibly user-friendly platform to make crypto buying and selling possible for everyone, beginner or expert, company or individual.

Picture: Swaps.app blog

Source: Crypto News Deutsch

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