LEARN FROM CRYPTO HACKS

Overview

Despite the immutable, impenetrable nature of the technology underlying cryptocurrencies and blockchain, the one sobering lesson that cryptocurrency investors around the world have discovered over the years is that their crypto assets and transactions are not secure.

Contents Included

1. What is a cryptocurrency
2. Cryptocurrency Payment
3. Things to be careful on Crypto scams
4. Do’s & Don’ts
5. What have these cyberattacks taught us?
6. How is it secured in the crypto world?
7. Wrap Up

1. What is Cryptocurrency?

A sort of digital currency known as cryptocurrency often only exists online. To purchase bitcoin, you often use your phone, computer, or a cryptocurrency ATM. Although there are many various types of cryptocurrencies and new ones are constantly being developed, Bitcoin and Ether are two of the most well-known.

2. Cryptocurrency Payment

• No legal Protections: In the event of a problem, credit cards and debit cards are legally protected. For instance, your credit card issuer offers a procedure to assist you to get your money back if you need to dispute a transaction. Such safeguards are generally absent from cryptocurrencies.

• Not Reversible: Normally, you can only receive your money back after making a cryptocurrency payment if the person you paid sends it back. Investigate the reputation of the seller before making a bitcoin purchase to learn more.

• Some information is meant to be public: People refer to bitcoin transactions as being anonymous. The reality, however, is more complicated. It’s occasionally feasible to determine the individuals engaged in a particular transaction using transaction and wallet data. Additionally, when you purchase anything from a vendor who also keeps track of other details about you, such as your mailing address, that data may potentially be utilized in the future to locate you.

3. Things to be careful on Crypto Scams

• Scammers demand cryptocurrency payment: No trustworthy company would ask you to send cryptocurrencies in advance, neither to make a purchase nor to safeguard your funds. Always a swindle, that.

• Offers big guarantee or returns: Don’t believe those who assure you that you may profit from the cryptocurrency markets rapidly and effortlessly.

• Never mess up with online business: It’s a fraud if someone you meet on a dating website or app asks you to transfer their cryptocurrency or wants to teach you how to invest in cryptocurrencies.

4. Do’s & Dont’s

• Do’s

• Do be aware of the risk. Even if you aren’t being conned, trading in virtual currencies is risky and unpredictable. An investment that may be worth thousands of dollars on Tuesday “might only be worth hundreds on Wednesday,” according to the FTC.
• Don’t give in to pressure to buy today. Scammers frequently attempt to inflate the urgency around a purportedly hot cryptocurrency.
• Do your research before purchasing from any dealer in virtual currency options or futures contracts. An online background check tool is available from the Commodity Futures Trading Commission (CFTC) of the United States.
• Do careful research before supplying any credit card information, sending money, or exposing sensitive personal information to any virtual currency platform or digital wallet provider.
• A contract with a supplier of a digital wallet should be carefully studied. The Consumer Financial Protection Bureau cautions that, unlike banks and credit card issuers, they might not take responsibility for replacing your money if it is stolen.

• Dont’s

• If you don’t fully comprehend how a virtual currency investment operates, don’t invest money in it.
• Never risk money on cryptocurrency speculation that you can’t afford to lose.
• Don’t trade or invest in virtual currencies on the advice of someone you’ve only interacted with online, whether it’s a fictitious romantic interest or an anonymous social media tipper.
• Never send bitcoin in response to threats regarding payments or promises of a prize.
• Never give anyone access to your “private keys,” which are the complicated letter-and-number codes that give you access to your virtual money. Keep them in a safe location.

5. What these cyberattacks have taught us?

The majority of bitcoins were taken from hot wallets with insufficient security, which is always connected to the internet. Additionally, the majority of prominent assaults occurred as a result of service providers’ security flaws.
Sadly, the majority of these crime victims never received their money back. We must thus be very vigilant about where we keep our money.
Blockchain technology and cryptocurrencies enable us to achieve the financial independence we’ve always yearned for.
This freedom carries a heavy burden, though. In contrast to the fiat world, there are no third parties that will give you a chargeback when you get hacked, such as banks or credit card firms. A crypto transaction sent to the incorrect address will not be refunded or returned to you.

6. How it be secured in the Crypto World?

• Use hot wallets (such as exchange wallets) sparingly and only briefly while dealing or exchanging money. Once you’re done, transfer your money to a secure wallet.
• Use a wallet with excellent security and cold storage. Though they are not that expensive, if you have the money, think about getting a hardware wallet.
• Make sure you have done your research on any service you use or intend to utilize. Check reviews on social media and forums like Reddit or Bitcointalk before utilising a service or a product.
• Use forums or social media to ask inquiries if you are unsure of something.
• Use common sense, and that’s last but not least. Sending 0.1 Bitcoin to this address will instantly return 10 Bitcoin; if this seems too good to be true, it probably is.

7.Wrap Up

There are many various types of cryptocurrencies and new ones are constantly being developed. Investigate the reputation of the seller before making a bitcoin purchase to learn more.
Even if you aren’t being conned, trading in virtual currencies is risky and unpredictable. The majority of bitcoins were taken from hot wallets with insufficient security, which is always connected to the internet.
We must be very vigilant about where we keep our money in the crypto world. Use hot wallets sparingly and only briefly while dealing or exchanging money.