Is Trading Cryptocurrency Bad for your Cybersecurity?

Is Trading Cryptocurrency Bad for your Cybersecurity?

With BitCoin returning to its maximum value, a new wave of the digital gold rush is upon us. And while it is normal to want to take part in the action, even without knowing how to calculate the temperature coefficient of resistance, we need to be aware of our cybersecurity when trading cryptocurrency.

There are four known points where hacks happen and where your crypto might be in danger:

  1. Individual phishing attempts
  2. Malware and device-jacking
  3. Compromised small trading platforms
  4. Outright fake trading platforms

Ironically, the main advantages of cryptocurrency, namely the anonymity and decentralization, are why such issues pop up. Unless you can confirm with the chain that your data is correct, you may be subjected to a scam or direct theft.

And, unlike the theft of your other personal information or funds, this is nigh impossible to track, and there are little to no legal cures you may use to return your funds.

The best thing to do is to be careful and have a system in place that will keep your cryptocurrency safe. Primarily, by using a good virtual private network provider such as Le VPN, you can conceal your IP and shield your data, then you are only left with the question of picking the right platform to trade on.

Anonymity Works both Ways

Is Trading Cryptocurrency Bad for your Cybersecurity? | Le VPN

Anyone even familiar with what is a VPN knows that the biggest advantage of the system is the protection of your privacy. The main reason we use these services, at least from a cybersecurity perspective, is for anonymous browsing when we are online.

But, when it comes to cryptocurrency trading, everyone is using a VPN, and everyone within their right mind will stay anonymous about their wallet. This is a benefit for the users, but also any successful hacker.

If you get hacked, there is no way for the blockchain to determine that you are not the one approaching with your username and password. Also, there is no way to know to whom the account your coins are sent belong to.

This insecurity is the main reason why additional care and prudence are needed when trading or mining for crypto.

Identifying Cybersecurity Weak Points with Cryptocurrency

Aside from the four weak points, we have mentioned when trading cryptocurrency itself; there is also one that is connected with trading prices of crypto with the banks, such as Forex trading.

Thankfully, in the words of Sherlock Holmes, all problems created by humans can be solved by humans. This is the case for these hacks as well, and some are really easy to avoid cryptocurrency theft if you know what they are looking for.

Phishing

Phishing websites pretending to be crypto-traders or access points are currently flooding the internet. They will always be marketed through social media and have simple websites where you only need to enter your details to trade crypto cheaply and instantly.

The reason why they sound too good to be true is that they are. Same as exchanging any money, it is never done quickly and always with a fee. Operating a safe platform is costly, and there is no altruism in the world of finance, including digital.

Small Trading Platforms

Even good platforms that are connected to the blockchain and can trade need to work tirelessly as not to become compromised. Regretfully, they are the most common target of attacks.

Hackers would want to piggyback on a regular platform to steal data and gain entry to wallets. And with smaller platforms, that is usually much easier.

If a platform offers some benefits that you like, it would be better to make a separate wallet. Only place the funds in that account that wouldn’t ruin you if they got stolen.

Trading Bots

Trading bots are popular due to the automation they provide, but they don’t come for free and don’t do more than buy and sell. That is unless you are ready to employ a developer to make you a trading bot from scratch.

Whatever you do, don’t use bots you see promoted on social media and make extensive checks when buying them from a developer.

Fake Trades and Fake ForEx

One of the most popular ones; because it gains real money and can be dismantled and resurrected in minutes if someone is at the hacker’s tail.

Namely, scammers will make whole trading platforms for both crypto and forex and let you trade as if they are real. They will even offer trading bots that gain impossible profits. But this is all a scam.

You will have the access to your account and even be able to pay in more money. But, as soon as you try to draw any funds, you will be kicked out and blocked, with all of your money stolen.

This is why using a trusted trading platform with a history of honest dealing is the best option.

Device Malware

Finally, there is simple malware that hitches on your device and steals your data. Once your data is stolen, the hacker will access your wallet and draw all of your cryptos to their account.

If you know what is a VPN for and have some premium anti-malware software, this is easy to prevent.

Conclusion

There are cybersecurity issues when it comes to trading cryptocurrency, but that shouldn’t stop you from engaging in the practice. Same as with any financial transaction, you should be careful about your security and who you are dealing with.

If you have a premium provider such as Le VPN, your devices will be safe from snooping and hacking, and the rest of the precautions are on you.

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Written by Vuk Mujović @VukMujovic

Vuk Mujović

Vuk Mujović is the founder of MacTíre Consulting, an analyst, data management expert, and a long-term writer on all things business & tech. He authored blogs, articles, and opinion pieces aimed to help both companies and individuals achieve growth without compromising their security. Vuk is a regular guest author to Le VPN Blog since January 2018, where he gives his expert opinion on the topics related to cybersecurity, privacy, online freedom, and personal data protection. He also often shares his tips and best practices in relation to internet security and digital safety of private individuals and small businesses, including some additional applications of using a VPN service.

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