Automated quotations from Nasdaq in the middle of the 1970s and internet purchasing in the middle of the 1980s were revolutionary financial technology (FinTech). Cryptocurrency, the newest disruptive financial invention, is becoming more and more popular among consumers, companies, and governmental organizations. The blockchain technology that powers cryptocurrencies is particularly appealing to big businesses and governments. In reality, numerous organizations have started projects to see if utilizing blockchain to speed up, secure, and accurately record transactions is even possible.
Latest Troublemaking Technology in Fintech
Cryptocurrencies‘ future is unclear, but prior performance suggests that the FinTech high-tech financial instrument has a promising future. As an illustration, the price of a single Bitcoin increased from $280 in 2015 to $1,000 in just two years, and by the end of 2017, it had skyrocketed to an incredible $17,000 per coin. Cybercriminals, who perceive a growing market with widespread security faults, are also becoming interested in money. The passages that follow offer 5 practical suggestions to help Bitcoin owners safeguard their FinTech and data assets.
Don’t Share Your Personal Information in Public Forum
Cybercriminals often use the method of phone porting. Hackers hide on social media sites where cryptocurrency users may post personal data, including their phone numbers and email addresses, to interact with other users. The hacker calls the unwitting investor’s phone service provider after locating their target, pretends to be a victim, and has the number moved to a mobile device in their hands. Now the hacker has access to the victim’s Bitcoin exchange account, can change the password, and can make off with any money they want. Hackers can quickly steal thousands of dollars using this technique.
Make it Difficult to Hackers to Hijack Your Account
Dan Romero, vice president of operations at cryptocurrency exchange Coin Base, suggests disabling SMS account recovery as an additional safeguard against phone porting attempts. To transmit money out of the exchange, he also advises using a coin vault and turning on two-factor verification. Romero advises against discussing cryptocurrency in public, particularly online where anyone can steal from an investor. Adding an account passcode and seeking a “do not port” order for your phone are two further security measures you should take with your cell phone service provider. Finally, although cryptocurrency exchanges take security seriously, the operations VP cautions that they should not be viewed like banks because they are not.
Don’t Put All of Your Crypto Eggs in One Basket
Internet security expert Sanjay Beri advises diversifying digital financial holdings among several exchanges to minimize investor risk in the case of a hack for the best safety of your FinTech assets. Additionally, the security expert advises investors to keep their money offline in a cold wallet. This restricts hackers’ ability to access money held by investors. Beri advises using a different hot wallet for daily purchases. The security expert explains that, in essence, a hot wallet is similar to a checking account and a cold wallet is similar to a savings account.
Exchange Your Currency with Caution
Amir Bandeali, the chief technology officer and founder of 0x (zero-x), advises cryptocurrency investors to only utilize centralized exchanges if they conduct several transactions and to stay with decentralized exchanges when trading tokens on platforms like Ethereum. He argues that the main distinction between the two is that decentralized exchanges don’t hold users’ Bitcoin. There is no method for hackers to get their hands on an investor’s funds unless they can obtain the user’s confidential key.
Don’t Forget the Basics
Although using the most fundamental security precautions might seem obvious, many investors became targets of hackers because they did not adhere to these precautions. Investors in cryptocurrencies, for instance, ought to open a unique account for every exchange. By doing this, a hacker won’t be able to poke around and obtain additional important assets if they do manage to access the account. Investors should also use strong passwords for their accounts and have a hard copy of them stored securely. The hardcopy password list should only be accessible by the account holder.
Wrapping Up
Some of the most aggressive hackers will look for Bitcoin exploits nonstop. The cryptocurrency industry requires highly trained professionals who can assist investors in preventing unauthorized access to their accounts to ensure the security of this brand-new and potent financial instrument FinTech. The demand for cyber security professionals who can thwart the attacks of tenacious cyber thieves will grow along with the adoption of cryptocurrencies.