Digital currencies have become a global financial phenomenon. They have started as a niche market for those who are interested in being anonymous online. However, they are now used by both large and small businesses and are used as a hedge during the time of economic insecurity.
This also means that there are more safety concerns now when more people are using them. This is partly because there are more attempts at hacking and because the governments are becoming interested in the field and some security measures will become mandatory. Here’s on how to keep your digital currency safe.
Table of Contents
Passwords
Passwords are the simplest level of protection and they are something even the least experienced users are familiar with. This doesn’t, however, mean that passwords shouldn’t get enough attention in terms of security. It’s best not to choose and remember your own passwords, but to use applications made for this purpose.
The apps create randomized passwords and allow you to access each of your accounts with just a press of a button. It’s also a good idea to designate a person that will deal with your passwords and accounts in case something happens to you.
Be on a lookout for scams
Now when digital currencies are much more popular than before, there are scams designed to defraud the public that’s not that familiar with them. These mostly come in the form of scam emails that are asking for your personal data. The easiest defense against these is to use common sense and not answer emails from addresses you’re not familiar with and that seem suspicious.
There are also software solutions dedicated to these tasks. Some of these aren’t free, but that’s something you shouldn’t save money on because, once someone gets your address, they can rather easily cash in on your digital savings.
Digital exchanges
Digital exchanges are the place to buy and sell Dash and other cryptocurrencies. They are essential to the process because they allow the buyers to connect with the worldwide market from their home. This is also where the most dangers lie in terms of safety.
It’s important to have in mind that the exchanges are made to promote purchasing the currencies and not to store them. That means that once you’ve made your purchase, you should retrieve the digital currency and store it in a place that’s designed to do it safely.
Hardware solutions
Most of the digital currency-related tasks are done online and on platforms that keep you connected with a lot of different people, not all of whom can be trusted. That’s why it’s important to remove some of your digital funds of the grid and to store them on a separate hardware device.
This device is called a digital wallet and can be purchased rather inexpensively. Once you get it, all you need to do is to take care of it as you would with an ordinary wallet. Even if you lose it or if someone steals it, you can quickly retrieve the money from it without obtaining the device.
Hiding your IP
Someone stealing your digital currency isn’t the only issue that might come up. Personal data can also be stolen and that can present much more of a problem because a lot of our professional and personal lives happen online these days. Hiding your IP address is therefore needed while dealing with digital currency.
This can be done using VPN services. That way, your online activity and its location remain hidden. It can also be used for other purposes such as accessing the websites that aren’t available in your country.
Two-factor authentication
In the end, all the activities related to digital currencies should require you to use two-step authentication. That means that you use at least two devices to verify who you are before you’re able to use a certain service or to perform a certain action.
The simplest way of doing this is by providing your personal info on a computer for the first step and on your mobile device for the second level of authentication. That way, even if one of your devices is compromised, there’s no chance that the digital currency you have stored can be stolen.
It’s important to stay safe online and to keep your digital trading secure. Digital currencies provide a lot of exciting options but they can also be a safety concern and you need to go into it prepared.
