Last updated on April 17th, 2023 at 12:56 am
In 2009 the first cryptocurrency called Bitcoin appeared. In the beginning nobody believed it would become so popular and precious. In fact nowadays we have thousands of different cryptocurrencies that continue to overwhelm the market. Even though blockchain technology, which is a basis of the cryptocurrency, is marked by a high level of security, fraudsters and thieves find some sophisticated methods of stealing cryptocurrencies from the exchange.
Due to this even such common transactions as from ETH to SC require great attention and responsibility. Money fraud is a big issue not only for users, but for cryptocurrency exchanges as well.
Now many experts predict that in the future cryptocurrency will replace banking cards and the traditional banking system as a whole. To make it possible its security must be improved considerably. If not, people will avoid switching to it because of fear of going bankrupt.
How to maximize a crypto exchange security?
If you want to start your crypto exchange, you should take security measures seriously. Luckily, there are some guidelines that will make you sleep peacefully at night. So, let’s look at them closer.
- Choose cold wallets
To secure your cryptocurrency opt for a hardware wallet like Ledger and Trezor. A cold wallet is cryptocurrency storage that does not have a permanent connection to the Internet. In this case, we are talking about the local storage of files with private keys that provide access to addresses with bitcoins in the blockchain network.
Unlike hot wallets, which allow you to make transactions at any time, a cold wallet, due to its peculiarity (offline state), is not intended for frequent use in asset transfer transactions.
2. Two-factor authentication
2 FA is the way to protect your account not only with a password, but also with a data carrier that belongs to you. How does it work? In fact, you already know and even use this system if you have a banking card. In this case the data carrier is a plastic card, and the password is a pin code that only you know. To put it simply, two-factor authentication lies in establishing the additional security level that a person uses every time he or she opens a crypto wallet.
3. Push notifications about currency withdrawal
Thanks to this feature users can detect suspicious behavior on time. If you bridge Avax to Polygon you will get a push notification confirming that the operation was done successfully. However, if it wasn’t you, then it can be a hacker. If you take appropriate actions immediately, you can cancel the suspicious transaction.
4. Find a reliable cryptocurrency wallet
Before downloading a wallet from Google Play pay attention to the user feedback, rating, and the number of downloads. You should be careful with new apps even if there are a lot of rave notices and opt for a more popular crypto wallet. It is also a good idea to get to know whether the service provider offers additional guarantees in case of money theft.
Drawing the line
Cryptocurrency will continue to develop and become more popular each year. Now it is viewed as a fast and convenient way of transferring money. But if you take all the needed security measures, then it will also be one of the most secure ways to store your money and even gain profit from it. Cryptocurrency has already revolutionized the finance industry. Who knows, maybe one day it will replace all traditional banking services? The best way to get prepared for it is to open a cryptocurrency wallet now!
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