How do I protect myself when trading with Cryptocurrencies?

Bitcoins and other crypto currencies are on everyone’s lips. As demand rises, prices rise. But the explosion of prices also attracts more and more hackers, who try to harm new and unneeded users of the crypto currency. In addition to the dangers from the Internet, conventional problems such as the reliability of the PC used also concern the users of crypto currencies. In the article 5 tips are given for the safety and safe handling of Bitcoins.

Why are crypto currencies susceptible to fraud?

Even though the handling of cryptocurrencies no longer represents the Wild West experience as in the early years, investors are confronted with certain risks.

  1. The threats are manifold and with the increasing value it becomes more and more interesting for well financed hacker groups. Whether fake wallets, phishing attempts or fake crypto currencies – there is always something to watch out for at every opportunity.
  2. Crypto currencies were created to avoid the manipulation – vulnerability of central bank controlled currencies.
  3. Through the digital, decentralized transactions, a system was created to perform transactions anonymously and securely. Each transaction is executed through a complicated blockchain based system.
  4. Make sure to pick a reliable bitcoin exchange, you can compare most of them at BestBitcoinExchange

Crypto currencies can feel secure because they decentralize and often anonymize digital transactions. They also validate everything on public, tamper-proof blockchains. But these measures do not make crypto currencies any less vulnerable to the types of simple, traditional scams that crooks elsewhere have relied on. For example, fraud cases have been reported where funds have been diverted from users’ mining rigs to harmful wallets because victims have forgotten to change their default credentials. Search engine phishing scams calling malicious trade sites through legitimate exchanges have also spread. And a Trojan named CryptoShuffler has stolen thousands of dollars by lurking on computers and spying on Bitcoin Wallet addresses that ended up in copy/paste clipboards.

With a few simple steps, crypto currency users can protect themselves from a number of common attacks. Just as you should keep normal money in mind or keep expensive jewelry in a safe deposit box, it’s worth taking care of the secure management of the crypto currency. The following tips are not comprehensive and won’t protect against every conceivable attack, but it’s a good start.

Tip 1: Choosing a secure desktop PC

Trading crypto currencies is a digital process that is only possible using a PC. Even though this may seem trivial, you should be aware of which PC you are using for trading before trading.

  • Notebooks that are regularly connected to different public WLAN networks are generally more likely to be infected with viruses and malware than a home desktop PC. Therefore, using a home PC is probably safer than using a mobile laptop.
  • In addition, a PC should be used that is fail-safe and low-maintenance, so that unnecessary repairs, in which third-party providers may come into unattended contact with the PC, are avoided.

The Swiss computer manufacturer Prime Computer offers a PC that meets all these requirements. In addition to server systems, the manufacturer primarily offers high-performance PCs. The supplier’s flagship is the PrimeMini3.

“At the moment Crypto Traden with Bitcoin & Co. is extremely popular. On the one hand, it is important to have a reliable machine for trading 24/7, and on the other hand, the device must also be extremely robust, since you may have the Crypto Wallets on your computer,” says Mario Tanner from Prime Computer. “If the PC then goes down, the money may be gone if the security is inadequate. A problem that certainly occupies many people. The PrimeMini 3 is due to the compactness, as well as the fanless and stable construction an extremely interesting device for traders who care about the system stability.”

Thanks to the fanless, non-mechanical system, there are no maintenance costs for the Mini PC. The Mini PC is not only convincing because of the countless technical advantages it offers over conventional PCs, it is also very environmentally friendly and, according to Prime Computer, helps to save up to CHF 2330 within 5 years.

Tip 2: Check the security of the software

Once you have decided on the appropriate hardware, you should accept and carry out the usual security recommendations.

  • It is recommended to reinstall the operating system on an already used PC. This way you can ensure that no viruses or other malware is installed on the device.
  • A regular update of the software is extremely important to patch known security holes and vulnerabilities. You should therefore also make sure that you do not use outdated operating systems, as these are no longer updated.

Schedule routine antivirus scans and/or have an IT expert scan your computer for Trojans, keyloggers, malicious applications/browser plug-ins. (Here you will find comprehensive instructions for cleaning and protecting your Windows PC.)

Tip 3: Using good passwords

Once you are sure that your PC will run maintenance free and secure, you should think about using appropriate passwords.

The guidelines for good and secure passwords are relatively simple:

  • Length: 28+ characters
  • Mix: Mix of numbers, upper and lower case letters and symbols.
  • Uniqueness: Each website or service should have its own unique password. Please do not reuse passwords!

Since you have many different services, it is recommended to use a password manager – especially if you follow the above rules, it can quickly become complex with 28+ characters.

Tip 4: Using the right wallets

Since the crypto currency resources are all technically stored in the blockchain, the resources are basically very secure. However, the key pairs that occupy the property must be stored somewhere. In general, there are two locations for this. Wallets and exchanges.

A Cryptocurrency Wallet is a secure digital wallet that stores not the currency but the public and private keys and addresses – the so-called AKA key pairs. Public keys (AKA addresses) are a place on the block chain to track where assets are located. In order to send crypto currency, you also need an address for the destination and source of the transaction. The source address is programmatically locked and can only be used with the corresponding private key. Fraud is therefore only possible if someone has access to the address and the relevant passwords.

In addition to online wallets, there are also local wallets that are stored on a PC. You should make sure that you yourself are responsible for the backups of local wallets – a stable PC is therefore extremely relevant, as mentioned above.

Tip 5: Use VPN Services

The use of a VPN is recommended when conducting private transactions online. It’s a great way to protect yourself – especially if you use WiFi in public places like hotels, trade shows, cafes or co-working rooms. There are many services that can be used once on the desktop PC as well as on the mobile.