The recent and largest ever recorded crypto heist of $1.5 billion Ethereum from the Bybit exchange platform has caused commotion throughout the cryptocurrency community. This renders cryptocurrency investments vulnerable to cyber threats and at the same time, raises alarms on the importance of making security a priority. Subsequently, as many people are venturing into cryptocurrency trading, they need to adhere to safe practices to protect their assets. In this article, we will discuss the crucial but vital security measures that cryptocurrency investors must take to keep their investments safe.
Security measures for safeguarding cryptocurrency investments on exchanges such as Binance
Secure Wallets
Investors are encouraged to use secure wallets as one of the most important security measures for their assets. These wallets are digital storage solutions that protect cryptocurrency private keys from unauthorized access. The types of wallets currently available include;
Hardware wallets (Cold wallets). For example, Ledger Nano S and Trezor.
Software wallets (Hot wallets). Such as meta mask, coin base wallet, trust wallet, and exodus.
Paper wallets. These are physical pieces of paper that contain your private keys, printed or written down.
#NOTE : Hardware wallets, such as Ledger and Trezor, are considered the most secure option as they store private keys offline and require physical authentication.
Enable Two-Factor Authentication (2FA)
By norm, every crypto currency investor is no stranger to the importance of security. one crucial aspect in safeguarding assets is using two-factor authentication applications like Google Authenticator or Authy that can be found on Play store or Apple store. These apps help add an extra layer of protection to exchange platforms by generating time-based one-time passwords (TOTPs), which mostly lapse after 60 seconds.
Beware of Unsolicited Communication
Investors should be extremely cautious when receiving unsolicited emails, calls, or messages asking for sensitive information. These include things like private keys, passwords, and credit card details. If someone or a company asks for such information without logical reasons, then it is highly probable to be a scam or phishing attempt to trick investors into giving away personal information consequently, loosing money.
Reputable and reliable cryptocurrency exchanges like will never ask for sensitive information via email or phone.
For investors to stay safe, they need to verify requests by doing the following,
Contact the exchange or service directly to verify its authenticity.
Use official contact channels like website chat or support emails.
Never, ever share sensitive information via email or phone.
Conduct Research Before Choosing a Crypto Exchange
As the cryptocurrency exchange platforms continue to boom, investors need to exercise patience and cautiousness when selecting a platform, with priority given to those with open and clear policies, high investor retention levels, good reputation, and more importantly, unbleachable security measures. When one or a company wants to invest in cryptocurrency, they must do thorough and own research on the exchange's regulatory compliance, authentication procedures, both user and customer support responsiveness, as well as trading fees. On the other hand, there is a need to stay up-to-date with emerging cyber threats and best security practices to safeguard assets. To stay in the loop, investors should normalize checking crypto-related information from credible sources like cryptocurrency news sites, security blogs, social media, and online forums, i.e. Telegram.
Diversify Your Portfolio
Diversification is one of the ultimate and clever strategies of managing risks. Investors can manage their portfolios across various asset sectors and regions, thereby reducing the risk of putting eggs in one basket as far as cryptocurrency investment is concerned. This approach to security equips an investor to weather the storm during times of successful hacks on a particular exchange or even when more volatile assets take a sudden, unpleasant turn in the crypto market as the portfolio will be more resilient against uncertainty.
Conclusion
The $1.5 billion Ethereum theft from Bybit is a stark reminder of the importance of security in cryptocurrency investments. By adopting safe practices, such as utilizing secure wallets, enabling 2FA authentication, being cautious of unsolicited communication, conducting research before choosing a crypto exchange, and staying informed about cyber threats and security practices, investors can significantly reduce the risk of losing their assets to cyber threats. Remember, security is a shared responsibility between investors, exchanges, and service providers. By working together, we can create a safer and more secure cryptocurrency ecosystem.
