Although more and more people are starting to use cryptocurrencies as a way to save and invest, some use them for criminal activities. Why have cryptocurrencies become so popular among criminals and how can you protect your funds from theft?
One reason for the popularity of cryptocurrencies among criminals is that transactions using them are irreversible. This means that when a criminal receives your cryptocurrencies, there is no way to recover them unless the criminal voluntarily returns them to you. That is why criminals often demand payments in cryptocurrencies, as they feel safer in such situations.
Another reason why criminals prefer cryptocurrencies is their anonymity. The addresses used to send them are publicly visible, but are not usually linked to the identity of the owner of the cryptocurrencies. This makes it more difficult to track criminals and recover stolen funds.
A hardware wallet is a device that allows you to store cryptocurrencies offline. This means that they are not connected to the internet and cannot be stolen through a network attack. It is a secure way to store cryptocurrencies because the hardware wallet is protected by a password or PIN code.
Do not keep all your cryptocurrencies in one place. Consider storing them in several different wallets to minimize the risk of losing all your funds in case of an attack.
Passwords are the first line of defense against cryptocurrency theft. Make sure your passwords are strong and unique. Avoid using passwords that are easy to guess or contain personal information such as your name or date of birth. Instead, use a combination of letters, numbers, and special characters.
Two-factor authentication is an additional security measure that requires entering an additional code or password, in addition to the standard password. When logging into an online wallet or conducting a transaction, you will receive an SMS or code from an authentication app that you must enter to access your cryptocurrency.
Phishing is a method in which cybercriminals pretend to be trusted financial institutions or cryptocurrency wallets and attempt to extract your login information or password. Beware of suspicious emails or websites and do not enter your information unless you are sure the site is authentic.
In summary, cryptocurrencies are secure and convenient, but only when properly secured. To protect them from theft, it is worth following the above steps. Remember, the security of your cryptocurrencies depends primarily on your behavior and your diligence in securing them.