Useful Safety Considerations for Cryptocurrency Purchases

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While there are many articles discussing and debating which cryptocurrency to opt for when making investments by analyzing their market cap, philosophy, algorithms underlying their work, technical advantages and limitations, etc., here we’ll address another aspect – that related to safer purchasing and managing of crypto coins. In particular, we will address the best VPN security features that can aid a crypto trader and some safety considerations when using cryptocurrency exchange services.

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Why VPNs are Important for Cryptocurrency Traders

VPNs create encrypted communication channels between users and the Internet so that your data traffic is made virtually inaccessible to any third party (ISPs, government, hackers, etc.). Hence, whenever exchanging sensitive data on the web (such as when buying or trading crypto), you diminish the risk of this data being intercepted and used for fraud, which turns out to be a very valuable safety practice.

Another utility of VPNs is that they hide your IP address, replacing it online with the address of the VPN server through which information is routed. This latter feature enables total privacy on the web and also helps to decouple your actions on the web from your identity (which serves as an additional layer of safety and privacy). Even nowadays, many platforms allow you to make anonymous payments using crypto (many VPN providers are among such platforms).

 

How to Safely Use Cryptocurrency Exchange Services

Cryptocurrency exchange services have a central role in crypto trading since these are the places where crypto can be purchased, sold, and exchanged for other cryptos. Below are some safety practices to be followed when accessing them:

  • if you intend to store your crypto over the long term, do so in offline rather than online wallets since exchange services do get hacked often! If stored in an offline wallet, your crypto coins are considered isolated from the exchange service and can be stolen only by stealing the keys/ files stored on your device and by breaking corresponding passwords, whereas if stored in an online wallet, hackers can get access to this data through the Internet and steal your funds. Thus, use online wallets only for making transactions, after which, transfer your crypto offline.
  • make sure the exchange service implements a number of security features such as two-factor authentication, SMS warnings for suspicious events (for instance, in case someone tries to access your account with a brute force attack).
  • ensure you are accessing the website of the exchange services in safe circumstances: with an active, up to date and reliable antivirus, with VPN, activated, from a secure network, from a secure device, etc. If you are doing so from a device that does not belong to you, make sure you don’t leave traces of your activity.

 

Just like individuals, companies also take frequently the decision to invest in cryptocurrency. Such a decision serves as a good reason to revisit local cybersecurity practices to ensure all potential threats in different fields of activity are reduced to a minimum. As for the recommendations listed above, they are equally valid for both individuals and companies.

 

 

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