If you’ve heard anything about blockchain technology, you’ve probably heard how secure it is and how it can’t be compromised thanks to its decentralized nature. At least, that was the promise of decentralization, but things haven’t exactly gone according to plan, have they? Cryptocurrency cybercrime is becoming more and more frequent, and the industry is struggling to keep up. Cybercrime has stunted growth within the DeFi industry, what can crypto projects do to defend against cybercrime and fight back? Let’s discuss.
Reducing Human Error
Cryptocurrency cybercrime and traditional cybercrime have one thing in common; both boils down to human error. Hollywood would have you believe that cybercriminals are geniuses with advanced coding skills and nefarious technologies. While this may certainly be a part of the problem, it’s not the bigger picture. You might be surprised to learn that most cybercriminals simply wait for someone to slip up. All it takes is losing your password, or clicking the wrong link, and your internet privacy can be compromised within seconds. Most crypto experts advise people to educate themselves about the most common kinds of cybercrimes, and the best ways to avoid them, before investing in cryptocurrency.
Most investors opt to put their crypto assets in digital wallets on exchanges such as Coinbase and Binance. Is this really the safest decision? A recent history of data breaches suggests otherwise. Instead, most crypto experts now recommend storing your assets in a physical ‘cold wallet’. These crypto wallets look like an external hard drive, or USB stick. Because they exist offline, they can’t just be hacked into, making them a much safer option for investors.
Choose an Exchange Wisely
When buying cryptocurrency, always go through the proper channels, make sure you’re using a reputable exchange, and be careful who you trust online. Stay vigilant, all it takes is one mistake and you could lose everything you’ve invested.