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The risks of investing in cryptocurrencies

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Tran Cong
The risks of investing in cryptocurrencies

Since Bitcoin's inception more than a decade ago, the cryptocurrency industry has grown and achieved considerable success, while at the same time becoming more and more popular.

Advances in blockchain technology have increased privacy and anonymity for users, the decentralized financial movement (DeFi) has flourished, and digital currencies offer limitless possibilities for banks. goods and businesses as well as private investors.

There are many reasons for the trend to invest in digital assets, mainly because blockchain technology enables safer transactions, reduces costs, and streamlines supply chain communication. However, despite all those advances, the crypto industry is still facing a major problem with security. There are a lot of security risks associated with trading and investing in cryptocurrencies, according to Telemediaonline.

SECURITY RISK WHEN TRANSACTING Cryptocurrencies
Cryptocurrency and blockchain technology benefits B2B in many ways, including payments, transactions, and more. However, this technology is not perfect and lacks certain features related to security.

1. ELECTRONIC MONEY AGENCY IS POPULAR

Scammers "do business" a lot of the Internet, deceiving users after users with their scams. Even the smartest cryptocurrency investors can be deceived, mainly when they receive a notification that they have "won" valuable gifts and rewards.

The FBI even had to officially warn that cryptocurrency fraud was on the rise during the outbreak of Covid-19.

2. TALKING NEWS

There are many reasons why an investor's crypto asset is lost.
Finding the hackers behind these cyber attacks is a difficult, time and resource consuming task. Because of this, bad guys with the necessary IT skills can use their skills to attack the network of cryptocurrency accounts and transactions. The Spanish trading platform 2pris was hacked in early August 2020 and lost $ 1.4 million.

3. NON-SAFE TRANSACTION FOUNDATION

2pris is not the only cryptocurrency trading platform affected by hackers and cybercriminals, and it will not be the last. This is due to the lack of security standards in the cryptocurrency industry, with many trading platforms containing bugs. When a platform is hacked, users are affected - possibly millions.

HOW TO COMBAT THE RISKS OF INVESTING IN Cryptocurrencies
1. USE a VPN

As mentioned above, the benefit of using cryptocurrencies is that they are anonymous, not tracked by anyone, but they also leave a digital trail and make any security related issues. more important.

To overcome this, experts recommend that investors use VPNs. The way VPNs work is that they route your data through a VPN server instead of an ISP, encrypting the data, and hiding your IP address. This allows you to remain completely anonymous.

2. USE A MULTIPLE SIGNATURE ADDRESS

A crypto wallet is a place for investors and merchants to safely store their cryptocurrencies, however, not all of them are equally secure. When looking for a secure crypto wallet, remember to choose a wallet that supports multi-signature addresses.

This means that the system will require many valid signatures before transferring the transaction. Its principle of operation is similar to the requirement for 2-factor authentication, thereby ensuring that no one can hack your crypto wallet and commit fraudulent transactions without your permission.

Reputable brand is highly appreciated: bitcoin to paypal

3. SIGN UP FOR AN EMAIL SECURITY SERVICE

If you're really serious about crypto investing and trading, you'll want to create a brand new email address just for cryptocurrencies, but before you rush and create a new Gmail account, you should look at more secure options. Some email services focus on security more than regular accounts, and they are often used by business people.

4. COMBINED WITH TRUSTED E-MONEY TRANSACTION PLATFORM

Not all trading platforms are secure, that's always true, however, some platforms are more secure than others. It is the job of a cryptocurrency investor to spend time and understanding finding the best platform. Make sure you stick with a reputable crypto exchange no matter what you do.

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