How to Safely Invest in Crypto

Chiji

6 months ago

The question on the minds of every Crypto Beginner is how safe Cryptocurrency is for them and mostly how calculated it is for them to invest in it.

If you own or are planning to buy/invest in crypto currency like bitcoin, etherium, cardano, solana, Tether etc, this article will give you important tips on Securing your cryptocurrency with a further step on how to safely invest in it.

Key Takeaways:

Cryptocurrency Wallets can be compromised
Techniques used in attacking Cryptocurrency
Best ways to safely Invest in Crypto

Crypto and Safety

Many new Crypto Investors think that the Blockchain offers the ultimate security solution to whatever use case we want to create. Unfortunately, this is not the case and any Blockchain component could be hacked.

Ways your Cryptos can be compromised :

Phishing
Computer hack
Smartphone hack
Keylogging
Wallets vulnerability exploitation
Social engineering
Malicious smart contract

Techniques used in attacking Cryptocurrency

1. Phishing

The easiest way of attacking wallets is the use of the phishing technique. In this technique, the attacker tries to implement some fake wallet mobile or web apps and try to get other people to use them. Usually, those apps are either similar to well-known ones or offer some attractive functionalities.

Once the victim installs the app or imports his private key to it, the attacker copies them and performs a transaction to his own account.

However, you may not notice these operations as the application will work normally for you, as all the transactions will be done correctly, and so on.

In some cases, the attacker may not send a big amount of money to not attract your attention. He may try to send small amounts in separate time frames. Unfortunately, in some cases, those kinds of attacks are very difficult to detect and you should stick to only the popular apps.

2. Computer hack

Usually, people tend to save a copy of the keys in their personal machines. Therefore, they are the target of attackers to find private keys. Unfortunately, personal computers are the most difficult machines to protect against cyber-attacks. This idea comes from the fact that there are so many apps running on the personal computer and installed by the user itself. This means that there are higher chances to be vulnerable.

Moreover, most users, even those with limited technical knowledge tend to have full admin permissions on their computers. Therefore, by exploiting a vulnerability in their computer, the attacker could easily do a privilege escalation. Once the attacker has admin access to your machine he can search and retrieve your private keys, and then use them. In addition, most users rarely install system updates on their computer, which make the situation even worse.

3. Smartphone hack

As hot wallets are usually installed in smartphones to be able to perform transactions at any moment, attackers tend to target them. To do that, they either use phishing, social engineering, or exploiting a vulnerability in the phone operating system. We have already talked about phishing in the previous subsection, and social engineering will be further detailed in the next ones. Therefore, in this section, we will discuss the finding and exploitation of an operating system vulnerability.

4. Social engineering

Social engineering is one of the most popular attacks that is used by attackers to target basically any system they want to put their hands on. In this technique, the attacker tries to exploit a human social vulnerability to either give the attacker access to his own system or even send him credentials. This technique is usually used in combination with phishing techniques to trick users.

5. Malicious smart contract

All the techniques that we have seen until now, were targeting the wallet directly to retrieve the private keys. However, the objective of targeting the wallet is stealing your money. Private keys are only a way to steal that money. A malicious smart contract can also be used to hack wallets by pretending to be offering some awesome service like quick money or something similar to push users to send money to it and withdraw the rest. Sometimes, a malicious smart contract could pretend to be vulnerable to trick users to exploit those vulnerabilities. By doing so, the attacker blocks that money from getting withdrawn back to the sender.

Tips for Securing Crypto from Compromise

1.Your Seed Phrase is the Key, Guard it Fiercely!

Never, ever share your seed phrase with anyone, not even your best bud or that charming stranger online. Write it down, store it offline (think hidden safe, not social media post!), and memorize it if you dare (but don’t tattoo it on your forehead!).

2. Double-Check Websites, Phishing is so Real

Remember those tricky phishing emails that try to lure you into clicking? Well, scammers love using fake websites that look just like the real thing. Before you log in or enter any info, double-check the URL carefully.

3. Beware the Gifts of Free Crypto, They come with Scams

Free stuff is tempting, but in the crypto world, it can be a trap. If someone offers you free crypto out of the blue, be super suspicious. It’s likely a scam to steal your personal information or even your entire crypto stash. Remember, if it sounds too good to be true, it probably is!

4. Set Strong Passwords and Use Them Wisely!

Creating strong, unique passwords for each exchange or platform you use is crucial. Think of something complex, a mix of uppercase and lowercase letters, numbers, and symbols, also store your passwords in a password manager to keep track of them all.

5. Two-Factor Authentication is Your Best Friend

Two-factor authentication (2FA) adds an extra layer of security by requiring a second code after entering your password. Most platforms offer 2FA, so enable it wherever possible!

Best Ways to Safely Invest in Crypto

1. Understand What You’re Investing in

Before you invest in any cryptocurrency, it’s important to understand what it is and how it works. Do your research and learn about the different types of cryptocurrencies, their underlying technologies, and their use cases.

2. Choose a Reputable Cryptocurrency Exchange

Once you understand what you’re investing in, you need to choose a reputable cryptocurrency exchange. There are different cryptocurrency exchanges out there, so it’s important to do your research and compare different options. Look for a secure exchange that has a good reputation, and offers low fees.

Some popular cryptocurrency exchanges include:

KOYN

KuCoin

Binance

ByBit etc.

3. Have a Private Digital Wallet to Store your Cryptocurrencies

Once you’ve purchased cryptocurrencies, you need to store them in a secured wallet. There are two main types of wallets: hot wallets and cold wallets. Hot wallets are connected to the internet, while cold wallets are not. Cold wallets are generally more secure, but they can be more difficult to use.

Some popular hot wallets include:

Coinbase Wallet

MetaMask

Trust Wallet

Some popular cold wallets include:

Ledger Nano S

Trezor One

KeepKey

4. Use Dollar-Cost Averaging (DCA)

Investing in cryptocurrencies can be a daunting experience, especially during a bear market. However, one investment method that can help reduce your risk and bring the best return on investment is dollar-cost averaging (DCA).

Dollar-cost averaging involves investing a fixed amount of money at regular intervals, regardless of the asset price. This approach allows you to buy more coins when the price is low and fewer coins when the price is high, which ultimately leads to a lower average cost per coin.

5. Diversify your Portfolio

When investing in cryptocurrency, don’t put all your eggs in one basket. Instead, diversify your portfolio by investing in a variety of different cryptocurrencies. This will help to reduce your risk if one cryptocurrency underperforms.

You can diversify your portfolio by investing in different cryptocurrencies, such as:

Large-cap cryptocurrencies (Bitcoin, Ethereum, etc.)

Mid-cap cryptocurrencies (such as Cardano, Litecoin, and Ripples).

Gaming Tokens (such as Axie Infinity, The Sandbox, GALA, and Seedify).

DeFi tokens (tokens used in decentralized finance applications such as Chainlink, Avalanche, Uniswap, Aave, and Fantom).

6. Don’t invest More Than You Can Afford to Lose

Cryptocurrency is a volatile asset class, and there’s always the risk of losing money. That’s why it’s important to only invest what you can afford to lose.

Conclusion

Cryptocurrency can be a great investment, but it’s important to start with a solid investment strategy. By following the tips in this article, you can minimize your risk and maximize your returns. At Koyn we will help you maximize your investments and you are guaranteed Security, and rocket speed transactions.

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