Security in cryptocurrency

In the world of cryptocurrencies, the security of assets and their use is even more important than trading experience, a profitable strategy, or a crypto bot. However, despite this, many crypto enthusiasts completely or partially disregard the basic rules for ensuring personal security in crypto.

How to stay safe in crypto

Security in cryptocurrency is a fundamental part of working with this type of digital asset. Today, the market is full of threats: phishing, hacking, hacker attacks, and personal/exchange data leaks. That is why, in order to keep your funds safe, you need to develop good habits for information security in cryptocurrency, use proven tools, and not neglect the basic principles of protection/digital hygiene.

Main threats: hacking, phishing, fraud

One of the most common problems remains phishing in cryptocurrency. This is a scheme where users are presented with fake websites or login forms. Data leaks are also becoming more common. In 2022, there was an incident involving 3Commas, which resulted in the leak of users' API keys. The Binance exchange warned of the problem and recommended disabling compromised keys. To this day, this case remains a classic example of the threat posed by careless use of automation tools.

Don't forget about the numerous scam projects promising guaranteed profits. These are often Ponzi schemes that collapse as soon as the flow of new investors ends.

Where is it safer to keep cryptocurrency: hot and cold wallets

The question of which type of wallet to choose is also quite acute. Hot wallets are connected to the internet and convenient for everyday use, but they are vulnerable to attacks.

Cold wallets, such as Ledger or Trezor, do not have a permanent connection to the network and are therefore the best solution for long-term storage. If you want to ensure reliable protection for your crypto wallet, choose cold storage, especially if you are dealing with large amounts.

Security on crypto exchanges

To increase security in crypto when working with exchanges, everyone should enable two-factor authentication (2FA), change passwords regularly, use unique combinations, and avoid storing large amounts on centralized platforms whenever possible. 

You should also check the website address manually, avoid phishing links, and use multi-sig for high security whenever possible.

How to protect your Veles account

The Veles platform has enhanced security mechanisms in place. First, you need to activate 2FA. Second, restrict access to API keys to authorized IP addresses only. Third, private keys must be stored separately from public systems. It is also important not to share your seed phrase with anyone, even support staff, and to regularly create backup copies of your seed phrase and store them offline.

Security tips for trading with bots

Here are a few recommendations to help ensure the security of trading bots and reduce potential risks:

• Use trusted platforms and do not trust anonymous solutions with a questionable reputation.
• Disable withdrawal rights when generating API keys.
• Set limits, IP whitelisting, and make sure that all data is transmitted over a secure channel, as this is what ensures secure data transmission.

Common mistakes made by beginners in crypto

Many beginners make typical mistakes. They use the same passwords on different services, store seed phrases in cloud storage, disable two-factor authentication, install untested extensions, and trust untested sources on social networks (Telegram, WhatsApp, Viber, X). All of these actions will directly reduce your level of security in cryptocurrency and increase the risk of losing all your funds.

FAQ

1. Which is more important: cold storage or an exchange with high security?
The best approach is to use both tools. Exchanges are suitable for active trading, while cold storage is for secure storage of assets.

2. Can trading bots be trusted?
Yes, if you follow basic security measures: use verified platforms, disable withdrawals, and carefully configure API access. This is the basis of safe trading.

3. How can I avoid falling victim to phishing in cryptocurrency?
Avoid clicking on links in emails, check website addresses manually, and always use 2FA. Do not share your data with anyone, even under the pretext of “help.”