First things first, let’s understand what Cryptocurrency is, and how it works.It is a virtual currency secured by cryptography and based on Blockchain technology, where each block of data is transferred into a chain. It offers the benefits of quick digital transactions and payments, along with the guarantee of reduced transaction cost.
You can trade and invest in cryptocurrencies via crypto exchanges like Coinbase, Binance, and lots more. Some of the most popular cryptocurrencies available in the market are Bitcoin, Litecoin, Ethereum, Cardano and Binance Coin.
Is Cryptocurrency Safe & Secure? – A Million Dollar Question
As it is based around Blockchain technology, each and every transaction is stored and recorded into blocks. Due to its complex code, framework and architecture, it is ‘near impossible’ for hackers to get past the virtual security barriers and apparatus in-place. It starts with a two-stage authentication and verification process, wherein you need to enter a username, and a verification code is sent to your smartphone via email or text. Therefore, cryptocurrency as a mode of virtual payment is becoming more relevant, especially vis à vis forex trading.
Security Standards in Cryptocurrency Payments
It refers to a set of security parameters for the systems and procedures in cryptocurrency. With Cryptocurrency Security Standards (CCSS) in-place, it allows, users, crypto traders and forex brokers to make smart decisions regarding new investments and sell-offs. The CCSS is followed by almost all crypto exchanges. Let’s look into the key steps.
- Seed/Key Generation
- Crypto Wallet Creation
- Key/Seed Storage
- Key/Seed Usage
- Key Compromise Policy
- Grants & Policies for Keyholders
- Audits by Third-Party
- Log Audits
- Data Sanitization Policy
As a dedicated forex broker and trader, if you’re wondering how to pay with Bitcoin (BTC), ETH or USDC, and at the same time worried about the security aspect of cryptocurrency, this article or blog post can be of some help.
Ways to Protect Digital Investments
Due to the fact that cryptocurrencies are used by millions of crypto traders, digital asset investors, and forex brokers worldwide for various purposes, including receiving and making payments for the purchase of goods and services, it becomes absolutely imperative to protect digital assets. Therefore, before trading or using a crypto payment gateway or investing in cryptocurrencies, you need to consider some key points
- Carrying out a thorough research about popular crypto exchanges/crypto payment gateway.
- Storing cryptocurrencies and crypto assets in safe wallets.
- Always use a strong password that is not at all obvious.
- Always go for trustworthy wallets.
- Keeping the key secret is the most important step to secure any crypto transaction.
Important Steps in Preventing Cyber Attacks
Due to the heightened risks of cyber-attacks on crypto transactions, it becomes increasingly essential to have a robust and foolproof security apparatus in-place, for preventing such infringements and digital sabotage that results in huge monetary losses for traders and brokers. So, you need to understand as to what are the measures that need to be taken for a secure crypto transaction.
- Avoid storing cryptocurrencies on digital storage platforms that are more vulnerable to cyber-attacks and hacking.
- Go for investing in a crypto hardware wallet, which is better in terms of security.
- Avoid using public Wi-Fi for making cryptocurrency transactions, be it in the area of forex trading or digital asset buying through making payments in BTC, ETH or LTC.
- Always used secure private networks and internet connections.
- Do NOT install any unsecured or unknown Apps that might compromise upon transaction security.
- Go for 2-stage verification and authentication for enhanced security.
- Steer away from ‘alluring’ Bitcoin gambling sites.
- Use a strong, unique and heavily encrypted password.
- Never share your password and wallet details with anyone else.
Forex Trading with Crypto Payments
If you’re into full-time forex trading on digital exchanges, and using cryptocurrencies to make payments, always keep in mind to abide by the strict security measures and systems. This would help keep your assets, transactions and currencies safe. Today, a majority of forex brokers are paying or buying through crypto currencies like Bitcoin, Ethereum Pay, Litecoin, etc. via a dedicated cryptocurrency payment processor or a USDT payment processor. Even though you are trading in fiat money pairs like USD/EUR, USD/GBP or EUR/GBP, payment is mostly done through ETH, BTC & LTC, if accepted by the trading exchange or broker. Therefore, the aspect of transaction safety is paramount.
Top Security Measures for Cryptocurrency Trading
In order to stay safe from digital frauds, losses, scams, and wallet-hacking, you need to have a robust security built into your existing system, thus preventing hackers from carrying out precise cyber-penetrations through phishing and malware. Some of the ways and measures are listed below, by which you can prevent the occurrence of such attacks for securing crypto investments.
- Using Cold Wallet is a preferred method, as it is not connected to the internet.
- Ensuring the use of secured networks and connections.
- Keeping ‘multiple wallets’ option as a stand-by.
- Totally ignore phishing emails.
- Keep on updating your password.
- Ensuring your devices and systems are updated with the latest software.
- Install anti-virus software to protect your system from malware attacks and viruses.
- Keep your keys in a safe and secure location.
After learning about these key technicalities related to ‘safe’ and secure cryptocurency trading methods, rules, guidelines, measures and protocols, it would become easier for you to secure your digital assets that are stored in wallets. As a first-time forex trader, online merchant, digital asset investor or broker, you need to understand on how to trade securely in cryptocurrency for getting the biggest profit margins. Whether it’s about researching a crypto exchange, a particular type of currency or a secure storage option like a ‘cold wallet’, it has to be properly scrutinized before taking any decision or step. This is how you can have peace of mind, while trading in different currencies, be it fiat or crypto. So, as a forex trader, you can benefit from reading this post that sheds light on the ways to secure your digital transactions and assets in a professional way.