Have you ever had the thought: “Is my crypto really safe once I hit send?” I certainly did the first time I moved Bitcoin. I kept refreshing my screen because I was worried it was going to disappear. The reality is crypto can actually be quite safe—but only if you take some simple precautions and you know what you are doing.
The main ways crypto is safe:
• Encryption: Transactions are secured through a strong code.
• Decentralization: There is no one server to hack.
• Verification: Miners or validators verify transactions before they are put on the chain.
Sounds safe, right? Here is the rub—the blockchain is highly secure but your wallet or your exchange isn't always secure.
Be aware of:
• Phishing attacks - Emails or websites that look real but are actually scams.
• Strong passwords - You don't want to use something like "crypto123."
• Hot wallets - Wallets that operate online. While they can be convenient, they are susceptible to compromise.
• Public Wi-Fi - Do not transact on cryptocurrency networks using public Wi-Fi.
In general, it is like owning a car that you leave unlocked with the keys in it; you have to be careful with cryptocurrency.
The next time you’re sending cryptocurrency, ask yourself, “Am I being safe?” In cryptocurrency, you are your own bank, and your own security.
How Crypto Transactions Are Safe
Crypto utilizes something called a blockchain that acts sort of like a digital notebook for keeping track of every transaction that happens. When your transaction is added, it can't be modified or garbage discarded.The main ways crypto is safe:
• Encryption: Transactions are secured through a strong code.
• Decentralization: There is no one server to hack.
• Verification: Miners or validators verify transactions before they are put on the chain.
Sounds safe, right? Here is the rub—the blockchain is highly secure but your wallet or your exchange isn't always secure.
Where Problems Occur
Most cryptocurrency thefts occur because of user error and not due to a flaw in the blockchain. For instance, one individual lost thousands by keeping their keys in a simple text file on their computer.Be aware of:
• Phishing attacks - Emails or websites that look real but are actually scams.
• Strong passwords - You don't want to use something like "crypto123."
• Hot wallets - Wallets that operate online. While they can be convenient, they are susceptible to compromise.
• Public Wi-Fi - Do not transact on cryptocurrency networks using public Wi-Fi.
In general, it is like owning a car that you leave unlocked with the keys in it; you have to be careful with cryptocurrency.
How To Protect Your Cryptocurrency
So here’s what I do, and what you should do too:- Use hardware wallets: A hardware wallet (like the Ledger or Trezor) will keep your cryptocurrency safely offline.
- Use 2FA (two-factor authentication): Even if someone gets your password, they would still need your phone.
- Verify addresses: That’s right, even if you copy an address, hackers can still change them.
- Keep your software patched: Wallets and exchanges deal with security issues all the time, so always keep your software patched.
Is Crypto Ever 100% Safe?
Nothing is perfect, but cryptocurrency, gives you more control over your own money than banks do. You don’t need to be a tech-smart nerd, but you should always act cautiously.The next time you’re sending cryptocurrency, ask yourself, “Am I being safe?” In cryptocurrency, you are your own bank, and your own security.