Safe handling of cryptocurrencies – Crypto News Aktuell in German

What used to be the gold rush is today cryptocurrencies. With the rapid developments in prices and their crashes, many people have become rich and many others have become poor. In the meantime, the media and the general public have also gotten wind of the potential of cryptocurrencies.

Like the gold rush of the Wild West, the crypto boom is not only attracting honest adventurers, but unfortunately also scammers.

Who are scammers targeting?

Beginners who are still inexperienced in dealing with digital currencies are a target for scammers because they do not yet know which ones Driven associated with cryptocurrency trading.

You should always observe these five principles when dealing with digital currencies:

1. Tell only a few about your investments
2. Pros rely on hardware wallets
3. Pay attention to password security
4. Rely on private networks
5. Diversification protects against losses

The great advantage of digital currencies is the freedom and independence from financial supervisory authorities associated with them. However, this is also your risk, because nobody guarantees the security of investments in cryptocurrencies. Losing a password, for example, means losing all related investments. Also, transfers cannot be reversed, since everyone involved usually remains anonymous.

You should therefore be aware of the special responsibility that you bear as an investor in the crypto cosmos and take appropriate security precautions.

Not everyone needs to know about your investments

Only tell those closest to you that you have invested in cryptocurrencies. The same applies, of course, to other forms of investment. This way you minimize the risk of the information being passed on to people who are less kind to you.

Use a hardwareWallet

With a hardware wallet make life difficult for hackers. It is also an external hard drive on which you can safely store digital currencies. Instead of being on the Internet, the data is on your PC, where it is very difficult for hackers to access it. Because hardware wallets are so secure, this is where you should keep the majority of your investments.

Use strong passwords

Using the same password over and over again is generally a reckless mistake. This makes it unnecessarily easy for hackers to find out your password and empty all of your accounts in no time at all.

With strong, individual passwords and 2FA-Authentication gives you the best chance of protecting your investments from outside attacks.

Public networks are not secure

Under no circumstances use a public network with devices on which you store crypto wallets. This increases the risk that your data transmitted over the network will be used against you.

If you still need to use a public network, use a VPN to protect your data.

Spread your investments

If you split your investments across different digital currencies and storage locations that are independent of each other, you make a decisive contribution to the security of your investments. This distribution is called “diversification”.

As discussed, a majority of your digital currencies should be kept on a hardware wallet. While this is a robust safeguard against theft and fraud from the Internet, it can be lost or broken as a physical object, or stolen from your home.

Therefore, invest part of your digital currencies in software wallets and crypto exchanges to avoid the risk of losing your entire investment.

Conclusion

With our security measures, you have a good chance of success in the crypto market. Nevertheless, be aware that the responsibility for your safety when dealing with digital currencies lies entirely with you.