Cryptocurrency has gained much traction among people and businesses as an alternative means for carrying out transactions rather than using traditional means of payment. Alongside this, several people now trade crypto to make a profit, similar to the forex market.
However, there are still a lot of reservations about investing in crypto, despite its immense benefits, especially with the increase in news reports about exchange hacking and crypto theft.
This has raised the frequently asked questions of how secure your cryptocurrency is in your digital wallet and if you’ll ever wake up to discover that all of your cryptocurrency has been stolen.
In this interview, a representative of Coin Return Group – a company specializing in recovering stolen cryptocurrencies- elaborated extensively on cryptocurrency safety.
How can I be sure that my crypto transactions will be secure?
A secure, decentralized blockchain database permanently records that transaction’s details as soon as you do a cryptocurrency transaction. In essence, the decentralized structure of blockchain technology, which is the foundation of crypto, makes it tough to hack and impossible to manipulate transactions.
However, you can take things a step further by only using cryptocurrency exchanges that boast best-in-class security procedures and go above and beyond what other platforms do to ensure additional safeguards protect your transactions.
Will my personal information be easy to find and steal?
One advantage of cryptocurrency is that you won’t have to supply personal data like your name and address to the blockchain. Transactions only need to be initiated using a public key to enable others to recognize you while protecting your personal data’s anonymity.
Although you might be expected to submit that personal information when registering on a crypto platform, the companies have several technologies to store it safely. Hence, your personal information might be stolen if you register on a fraudulent medium.
What actions should I take to safeguard my digital assets and identity?
Only register on a highly secure crypto exchange. In addition, use strong, random passwords specific to each of your accounts to protect your cryptocurrency wallets, preferably a password that combines numbers, letters, and symbols.
It’s also critical to utilize two-factor authentication if it is available on your chosen platform while ensuring that the email address linked to the wallet is secure. In conclusion, keep an eye out for scams and phishing tactics.
Which exchanges are the most reliable for trading Crypto?
Several exchanges exist where you can trade cryptocurrencies. The top few includes, Binance, Coinbase, Kraken, Bitfinex, Cex.io, Bittrex, and Poloniex. Each platform offers different security measures and varies in terms of functionality, trading costs, and other small particulars.
If you need help deciding which to pick, it’s advisable to go with the most well-known platform because it suggests that customers have the most faith in it and its offerings.
Can the cryptocurrency I bought lose value?
The value of a cryptocurrency is constantly changing depending on the market and other factors. Hence, crypto can depreciate in value and as well experience an increase. This unpredictability is what many investors have cashed in on to make a profit in the crypto market.
In some cases, crypto can fail, bringing its value down to zero. Typically, this occurs due to negative press, fraud, an uncertain future about the coin, and subpar cryptocurrency development.
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