Crypto Trading with Windows: Tips for Secure and Efficient Investments

Cybercriminals are becoming more innovative and persistent in their attempts to steal assets, according to our Security team at Coinbase. While this may initially sound unsettling, the good news is that you can significantly enhance your digital security by following a few simple steps. These measures not only safeguard your funds but can also be applied to other aspects of your digital life. A strategic approach and priority on data protection is what distinguishes smart investments from reckless ones.

Tips for Safe Cryptocurrency Trading

#1 Don't keep money on the stock exchange

Newcomers often purchase cryptocurrency from popular exchanges like Coinbase or Kraken, keeping their holdings in the exchange's "custodial" wallets. However, it's important to consider that exchanges are vulnerable to hacking due to their significant role in handling billions of dollars worth of transactions daily.

Instances like the Mt. Gox incident in 2014, where 750,000 bitcoins belonging to customers were lost, the $60 million robbery of NiceHash in December 2017, and a near-miss at Binance in 2018 serve as cautionary tales, demonstrating the risks associated with leaving your coins in an exchange's online wallet.

What is the safest way to trade Cryptocurrency? The safest thing to do is to store cryptocurrency in cold wallets and anonymously place only what you want to sell or convert now on the exchange.

#2 Use 2-factor authentication (2FA)

Use two-factor authentication (2FA) in addition to strong passwords, whenever possible choose the strongest type of 2FA allowed by the platform, such as a Yubikey or similar hardware security key.

If Yubikey is not supported by the service provider, opt for an authentication app like Google Authenticator or Duo Security instead of relying on SMS-based 2FA.

If only SMS-based 2FA is available, always require a one-time 2FA code to be sent to your device during login to prevent unauthorized access in case your password is compromised.

If an organization does not provide any of these options, it may be advisable to consider not using their service.

#3 Use a VPN

To safely store and transfer assets, it is wise to use a VPN. With a powerful VPN service like VeePN, you can protect your assets from interception and remain anonymous. If you set up the Windows 11 VPN, the risk that someone will intercept your keys or passwords from the exchange is greatly reduced. It is enough to use even the free trial version of VPN to get a significant increase in cyber protection.

Do you know what is the most successful crypto trading strategy? Historically, investors have earned more than traders. It is difficult to predict local movements, but over large periods the cryptocurrency is growing.

#4 Learn to resist phishing

Phishing stands out as the most prevalent scam, so it's crucial to arm yourself with knowledge about deceptive techniques instead of falling prey to these malicious schemes.

One instance of a phishing email involves a phony domain name designed to resemble a trusted one—like www.goog1e.com (note that it's not www.google.com). It could even imitate a commonly used trading platform, such as a counterfeit MetaMask wallet site that mimics authenticity and tricks users into revealing their seed phrase, empowering scammers to instantly drain their digital assets.

According to data, approximately 65% of organizations worldwide fell victim to some form of phishing attack in 2022. If your email has been compromised or you had a compromised account in the past, be especially cautious as phishing emails are tailor-made to target you. Statistics reveal that around 96% of phishing attacks originate from email sources.

#5 Use strong passwords

Hackers will always target a user's compromised account and password when attempting to hack a cryptocurrency account, as this is the most economical choice. To prevent such incidents, a knowledgeable cryptocurrency holder can take the following preventive measures.

Firstly, create a new email account specifically for the cryptocurrency platform. This will help bypass any previous digital footprint that could potentially lead to a successful hack or cloning of your account. Secondly, avoid using weak or common passwords. Of course, the strategy of using strong passwords must be backed up by VPN online no download to prevent them from being intercepted. This is also an important aspect to pay attention to.

According to a report by CipherTrace, a blockchain certificate company, 65% of the world's top 120 cryptocurrency trading platforms have weak Know Your Client (KYC) verification processes. This implies that once a hacker cracks your crypto account password, they can effortlessly access and transfer your crypto assets to their wallet address on a trading platform. Sadly, these leave little chance of recovering your assets.

Conclusion

Cybersecurity in cryptocurrency is especially important due to the irreversibility of most actions. In most cases, it is impossible to return stolen funds. You have to rely only on preventive measures, as well as active and passive defense strategies. You can read about them above.