As a new crypto investor, keeping your crypto investments secure is one of the most crucial things to consider; therefore, we’ve put together a security checklist of precautions you should check. This crypto security checklist covers everything from protecting your crypto on your chosen exchanges to safeguarding your accounts from unauthorized access to relocating your assets to secure offline storage.
Let’s not wait further; jump on the bandwagon to read what the security checklist consists of.
Need for a security checklist
In the past few years, the crypto market has gained a lot of popularity and has attracted millions of investors. However, scams and security breaches have always been a part of the financial industry, may it be the traditional banks or the crypto world. The crypto industry has also been exposed to a lot of scams that can result in the loss of funds for crypto investors.
While entering the crypto industry, the new investors should be extra cautious; there are high chances they might be exposed to security breaches and may lose their investment to cyber crimes. Although the cryptocurrencies and tokens are built on highly secure blockchain technology, but as an investor, one should always remain cautious and beware of the scams that can happen to them.
To help the new crypto investors, we have created a security checklist they should follow. Keep reading to learn more about them.
#1 Keep a check on fake websites and apps
One of the most common threats that new investors should be careful about is fake websites and apps portraying themselves as legit and authentic.
If you are downloading an application, check its level of traction, reviews, branding and marketing, and other points that prove the app’s authenticity.
Similarly, when you visit a website, make sure to check the above-mentioned key points. Don’t just blindly trust social media advertisements; it has become easier to trap people using fake website ads.
#2 Always create unique passwords and emails
After selecting an official app or a crypto exchange of your choice, make sure you set up a new email specifically meant for crypto trading and create a unique password that you don’t use on any other platforms.
This is a usual mistake that investors make. They keep the same password for all the platforms to save themselves from extra confusion. Doing this may make your account vulnerable to security breaches.
#3 Always enable 2-Factor Authentication
After setting up your new email account and unique password, the most important thing to do is setting-up two-level verification checks for your account.
Firstly, never share your password with anyone. Keep them private and keep them to yourselves.
In a two-factor authentication (2FA), usually, you set a password, along with a one-time password (OTP). Enabling this verification method, investors can be double-sure about their crypto assets. Even though their password gets leaked, the hackers cannot move funds easily as they might have thought.
#4 Keep a check on phishing scams
To trick the new crypto investors into sharing their login credentials and other personal information, the scammers often use different kinds of scams and phishing attacks. In a phishing scam, the hackers portray themselves as authoritative figures and then create an urgency to ploy the investors. Due to the urgency created, the newbie investors forget to check the sender’s credibility.
As you enter the crypto market, keep reading about various scams and try not to fall into any trap. But, be aware, don’t be fooled; invest wisely!
Whitelisting is a type of authentication method by which you can pre-approve your wallets and crypto addresses as authenticated accounts from which you are able to send funds; the rest of other outgoing trades are blocked.
After whitelisting, even if your account is compromised, the hackers won’t be able to transfer your funds to an unknown wallet that they control; the reason behind your funds not getting transferred is because their address is not whitelisted.
As a newly introduced digital asset, cryptocurrency can be vulnerable to various online attacks and phishing scams if the precautions are not taken seriously. Furthermore, the security of your account can be compromised by hackers as they are always on the lookout for new crypto investors’ accounts to fall prey to such scams. Therefore, the most important steps you can take are: always use your common sense and due diligence and keep a check on the above-mentioned security checklist.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn’t represent any investment advice or WazirX’s official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.