Crypto Is Secure…

A large number of cryptocurrencies are created using blockchain. This is a technology where transactions are recorded into “blocks” and then strung together in a “chain.” If you need to change something, you record another block and add it to the chain; there’s no option to delete a record, only create new ones.

It sounds simple, but it’s quite technical and in-depth; so much so that it’s actually difficult for hackers to tamper with the blockchain. What’s more, cryptocurrency transactions are also protected by various security measures like two-factor authentication (2FA).

… But Crypto Can Be Vulnerable

While cryptocurrencies and blockchain are highly secure, remember that they’re not 100% unhackable. In fact, some of the biggest cryptocurrency hacks resulted in the loss of more than USD 700 million.

What’s more, the value of cryptocurrencies is entirely dependent on supply and demand. This means that gains and losses can be quite dramatic.

Stay Informed

The best thing to protect yourself against crypto hackers and scammers is to stay informed. Practice internet security habits, like always activating 2FA on your crypto wallet, mobile phone, and the email you used to create your accounts.

You should always be aware of the usual methods of scammers, such as phishing. If anything seems suspicious, don’t click! Also, get in the habit of using strong passwords and changing them regularly.

Don’t Invest Everything Into Crypto

Just like traditional financial investments such as stocks or mutual funds, it’s best to diversify your crypto portfolio. This way, if one crashes, you won’t lose everything. You should also stop yourself from investing in crypto ONLY. Distribute your investments accordingly and only stake what you’re prepared to lose.

Choose a Good Cryptocurrency

At present, there are thousands of active cryptocurrencies. Some of them will succeed, while many of them will fail. So, before you invest, make sure to do your own research. Don’t be shy to ask for advice from those who are more experienced than you.

Also, the cryptocurrency exchange or marketplace you choose also matters. As much as possible, choose a reputable one that’s vetted by experts and authorities.

The bottom line here is that all kinds of investments have their own risks, cryptocurrency included. Still, both crypto and the technology behind it are getting stronger and more stable by the day.