That digital nature of cryptocurrencies makes them vulnerable to theft or loss. Bitcoin is the largest cryptocurrency by market capitalization, and its popularity soared after the digital coin hit the mark of $20,000 in December 2017. This high valuation garnered a lot of attention and since then, millions have invested in the cryptocurrency.
It is important to acknowledge that one can lose the Bitcoin with the slightest of the mistake. Although the network of Bitcoin on which it is based is ultra-secure, most of the time, it is the mistake of the user that deprives him/her of their precious investment in Bitcoin. User error is the primary reason responsible for the loss of the Bitcoin and in this article, we suggest ways to keep your hard-earned Bitcoin safe.
Fake Cryptocurrency Exchanges
Storing Bitcoin and other cryptocurrencies in cryptocurrency exchanges is a very regular practice. As long as cryptocurrency exchange is adopting all the necessary safeguards, there shouldn’t be any problem for your coin. However, some cryptocurrency exchanges lack security protocols and gangsters find these exchanges as honey pots. By attacking these exchanges, scammers can make a large amount of money instantly and hence; these exchanges rank high on the index of vulnerability.
Recommendation: It is advisable to trust genuine exchanges to store your Bitcoin. Only exchanges that adopt high-grade security should be used for storing cryptocurrency. These might charge you higher, but your investment will remain safe there.
Initial coin offerings (ICOs) have become the order of the day. Every now and then, a new ICO comes into the market and promises to change the future with its revolutionary coin and blockchain project. To make the offer interesting, these ICOs promise unexpectedly higher returns at low investment, thereby luring many Bitcoin holders to a loss.
Recommendation: Before investing in any ICO, you must carry out comprehensive research on the credentials of the project and the people behind it. Also, take advice and suggestions from experts before finally deciding to invest in a particular ICO.
Sending Bitcoin to wrong addresses
Sometimes out of ignorance, we send Bitcoin to the wrong address. Once that happens, there is no way by which you can retrieve your transaction. Hence, before sending the Bitcoin, you need to ensure that you have put the right address of the receiver. Remaining focused and calm makes sure that you won’t lose your precious Bitcoin owing to this silly mistake.
Recommendation: Focus and presence of mind are two simple steps that will help you to avoid making such a foolish mistake. Cross-check the address twice and only then go ahead with the transaction.
Losing Private Keys
Losing your private keys is also one of the main mistakes that people tend to make inadvertently. This might happen due to mismanagement with many people throwing their old computers or hard drives without taking a backup of their private keys. Don’t commit such a mistake; otherwise, you’ll be repenting later when bulls take over the market.
Recommendation: It is recommended to have multiple backups of your private keys. This will help you in case the primary source of the keys is lost, or you are unable to access them. You also need to make sure that the operating mechanism provided by your private wallet is seamless in its operation.
Phishing is a method of sending fake emails to customers and convincing them to reply with confidential information to the sender. It is one of the most common methods of cyber attack and in the cryptocurrency space; this pertains to stealing Bitcoin and other cryptocurrencies from the user.
Recommendation: By taking a little precaution and exercising restraint, one can easily escape from fraudulent emails. Do not open any email that hasn’t come from a trusted source. Moreover, never furnish any sensitive information through email. These steps are very common and easy to adopt and can prove instrumental in saving our investment.
Catfishing is a popular method adopted by scammers to con Bitcoin holders. It is a process in which a scammer can try to lure Bitcoin holders by impersonating somebody else. First, they will start the conversation and then slowly try to make friends. Lastly, they will try to deceive the Bitcoin holder by asking them to transfer Bitcoin for some investment or commercial purposes.
Recommendation: It is not a bad habit to make friends online, but then any suspicious activity where the person is trying to get too close and then asking for the sensitive information regarding your Bitcoin or investment need to be scanned through the prism of doubt and uncertainty. Be aware, any kind of heightened interest from the other side might be an attempt to catfish you.
Fake Crypto Wallets
Fake cryptocurrency wallets are also a popular method adopted by cheaters to dupe people. If you keep your Bitcoin in any of the fake Bitcoin wallets, your investment will be lost and you won’t be able to recover your Bitcoin.
Recommendation: One of the sure-shot ways to avoid getting conned by fake cryptocurrency wallets is to opt only for the reputable wallets which are in the market for a long time. Wallets with a credible reputation don’t offer you the best offers, bonuses, or enrollment benefits, but they will provide you a high grade of safety to keep your Bitcoin safe.
Ponzi schemes successfully trick the people who want to make a large amount of money in the shortest possible time. If anybody offers you an abnormally higher rate of return on your Bitcoin investment, then there is every valid reason to be suspicious about the scheme. Ponzi schemes claim to offers the highest rate of return, but in reality, these schemes are a way to cheat unaware investors.
Recommendation: It is important to check the credentials of any scheme which offers an unusually high rate of return. See detailed information about the promoter and verify the credential of the organization from as many sources as possible. This will help you to stay clear of any fake schemes in the market.
It is a wise decision on your part to take care of your Bitcoin and stay alert to thwart any attempt that might try to lure you into unchartered waters. By exercising some restraint and caution, you can easily save yourself from being conned by scammers and cheaters in the crypto space. Keep learn and stay aware of the Risk of Bitcoin to keep your Bitcoin safe.
MT: Here Are the List of Things to Avoid to Keep Your Bitcoin Safe
MD: Bitcoin is the largest cryptocurrency by market capitalization, and its popularity soared after the digital coin hit the mark of $20,000 in 2017.