Cryptocurrencies 3 ways to protect them from embezzlement 2023
Cryptocurrencies are vulnerable to theft… (3) ways to protect them from embezzlement in 2023
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Countries increasingly seek to further regulate the cryptocurrency sector (Shutterstock)
The field of cryptocurrency speculation and investment attracts many scammers, and not a single week goes by without the media reporting incidents of cryptocurrency theft and misappropriation. Hacking often occurs during currency transfers or simply by hacking the owners’ accounts.
In this report, published by the French Numerama website, author Bogdan Bodnar presented some quick solutions that can be adopted to secure your cryptocurrency.
The writer said that digital currencies are based on blockchain technology that makes these currencies secure. If you use the online currency-sending service through popular platforms and applications like most cryptocurrency holders, then as stated in the usage protocol, you do not actually own your coins because your funds and their conversion keys already belong to that platform, and when you decide to withdraw or transfer that currency, you ask the platform or exchange to sign the withdrawal transaction on your behalf.
The writer mentioned that all these services are available via the Internet, which means that a third party can – at some point – interfere and disrupt the transfer process, and it is possible to transfer your cryptocurrencies to a computer hard disk or a USB flash memory specially designed for this purpose.
Here are 3 simple ways to protect your cryptocurrency:
THE HOT WALLET
This is the easiest way and is to download a special application on the smartphone, and the services provided are generally easy and suitable for daily use. This type of application, for example, allows scanning an address in the form of a QR code to make the transfer process faster, and the applications offered are often free, while specialized security applications offer affordable plans.
The developers of these applications use storage mechanisms on servers that are either online or offline to protect user wallets. However, you should be careful and aware that the wallets and keys in the app are connected to the internet and hence are more vulnerable to attacks, which is why they are not recommended when it comes to huge sums.
THE COLD WALLET
Unlike a hot wallet, this wallet is not connected to the internet, and in most cases, this wallet is in the form of a USB flash drive. And unlike other apps, these tools are offline, which means they are less vulnerable to hacking.
Cryptocurrencies can still be stored on this wallet when a glitch occurs on the platform. Some companies offer an encrypted wallet to provide more security, and this is the recommended solution when the value of the funds is very large.
A cold wallet requires a signature for every transaction to prove identity, so exchanges take a little longer than other apps. And if you lose your device, you’ll never get your money back, and you’re always at risk of having your credentials stolen, so you need to make sure you take the proper precautions.
the paper wallet
the paper wallet
The world of cryptocurrency offers ways unimaginable a few years ago to store money, and you can actually print out an address to store your coins that uses a QR code drawn on the paper to receive transactions. Obviously, this wallet is very secure because it is not connected to the internet.
To create this wallet, you must go to sites that generate a random key, the most famous of which are bitcoinpaperwallet.com or bitaddress.org, and then you must click on the “Generate a new address” tab or the “Generate a key and print paper wallets” tab to create a new address.
Source: the French press