Bitcoin trading is becoming increasingly popular every day. It is considered a promising market for investors looking to yield high profits on their cryptocurrency investments, but it comes with its own set of security risks. A lot of new bitcoin traders have been victims of scams and fraudulent trading, resulting in huge monetary losses. Let’s take a look at the top security tips for bitcoin traders that will help safeguard their cryptocurrency investments:
1. Keep a regular check on your account activity
New to Bitcoin trading and worried about security threats? The first and foremost thing to do is perform an audit of all your bitcoin wallets, accounts and login activity as they contain all the crucial information regarding your crypto assets.
Keep your email credentials safe and secure. Always double check your sign-in activities to ensure nothing suspicious is going on. If you see any unknown activity, take relevant action immediately, or you might be at risk of getting your account hacked.
2. Activate 2-Factor Authentication and API Keys Restriction
New bitcoin traders are recommended to use two-factor authentication in order to add an additional layer of security to their account. One important point to consider when activating two-factor authentication is to ensure that you do not go with the SMS verification method as it can easily be intercepted. Instead, opt for third-party applications like Google Authenticator App as it is easier to use and allows offline usage as well.
Crypto experts advise new bitcoin traders to place restrictions on their API keys so that your specific IP addresses are the only ones granted usage access. This will keep bitcoin scammers at bay and prevent them from hacking into your account without your knowledge.
3. Store your money in a private wallet
Various bitcoin traders have fallen prey to hacking attacks and phishing scams, which resulted in the suspension of their accounts. Crypto exchange platforms do not guarantee the complete security of your bitcoin tokens, and you are at constant risk of getting your information compromised. This is the reason why crypto experts recommend traders to store their cryptocurrency in private wallets instead.
Cold wallets or hardware wallets are the most popular in the category of crypto wallets. Hardware wallets are in-built with a Secure Element (SE) chip that enables traders to use them offline. Even if your computer faces a malware attack, your private keys will stay secure in the cold wallet.
For all new bitcoin traders and even experienced ones, the security tips shared above will surely be useful and help ensure secure and safe bitcoin transactions in the near future.