I have been writing about cryptocurrency scams for years. There a variety of scams that attempt to steal your cryptocurrencies from you. One of the most important decisions anyone should make when deciding whether to invest in cryptocurrencies is what kind of a wallet they will hold their investment in. Many cryptocurrency scams involve people being tricked into turning over access to their cryptocurrency wallets and losing all of their funds.
Your digital wallet is where the key that allows you to access your cryptocurrency account is found. If your key falls into the hands of a hacker, you can easily lose all of your cryptocurrency account so it is of paramount importance to secure your digital wallet. Digital wallets can either be hot wallets or cold wallets. Hot wallets are connected to the Internet which makes them more susceptible to being hacked which is why a cold wallet which is not connected to the Internet, but rather is is kept in a portable hard drive is your best bet.
If you do decide to invest in cryptocurrencies, how can you secure your wallet in the best and most convenient manner?
When doing cryptocurrency transactions online, use a Virtual Private Network (VPN) to provide encryption for your communications which will make the transactions more secure and refrain from using public WIFI for cryptocurrency transactions. Use a strong, complex password for your account and consider using a password manager or store your password on a portable hard drive that you keep in a secure spot.
Use dual factor authentication for your account for additional security, however, it is important to note that many cryptocurrency thefts have occurred when hackers were able to defeat dual factor authentication through SIM swapping whereby they contact the cell phone service provider of their victim, answer a security question and manage to get the cell phone service provider to switch the phone number of the victim to a phone controlled by the criminal thus defeating the dual factor authentication.
The best thing you can do to protect your SIM card from being swapped is to set up a PIN or password to be used for access to your mobile service provider account. This will help prevent a criminal from calling your carrier posing as you and convincing your mobile carrier to swap your SIM card to the criminal’s phone merely by providing personal identifying information or answering a security question.
Finally, I strongly urge anyone considering investing in cryptocurrencies as well as any investment to research the investment thoroughly before investing. No one should ever invest in anything they do not fully understand.
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