If you are planing to jump on the crypto wave and start investing in coins then you must always ensure that security is at the top of your list of priorities. This is nothing new yet there are still so many people who are yet to really understand what it means to hold cryptocurrency and the dangers which are out there. Some experts in the field such as Robert Testagrossa have been talking about this recently and doubled down on the fact that all of these new investors have to ensure that they are security conscious when they invest. Here are some of the dangers which people have to be aware of.
There are so many alt coins that it can be hard to keep track of which ones promise a rise in price. With this being said however, there are some great options out there. Twitter is often used to find great alt coins, but sadly some are using this to defraud people. Basically there are coins which are created that are worthless, they generate attention through the use of Twitter bots and then people help the price to rise through the purchase of the coins. Once the price has risen the coin is dumped by the original inventor and the price plummets. Always be sure that you have researched every coin before you buy.
If you are sending money from one wallet to another you have to be incredibly careful and make sure that what you are sending is going to the right wallet. Each wallet has a unique code which you have to enter and if you get one digit wrong you may end up sending your money to someone else’s wallet. The key here is that if you do this, there is no protection that you will have. This is one of the differences between crypto and the current financial system which we have in place. If you send to the wrong wallet there is no centralized system to protect you or to help you to get your money back. Always ensure that you have tripled checked the wallet code before you send any money between wallets.
Thankfully there is some great software on the market that you can use in order to prevent hacks from happening. With this being said they can still happen and if you are hacked and have your funds taken, there is absolutely nothing that you can do to get those funds back. This is exactly why it is so critical that you maximize the security of your funds and that you are using wallets which are known for their high security.
These are things that you have to watch out for when you are investing in crypto because these risks are very real and they can happen. The key to avoiding the risks is to ensure that you are well read on the market and that you take advantage of security.