#CryptoSecurity101
Cryptocurrency security is a top priority to prevent financial losses due to hacking and scams. With over $3.8 billion stolen in cryptocurrency in 2023, it's crucial to understand the risks and take necessary precautions.
*Key Security Measures:*
- *Strong Passwords & 2FA*: Use unique, complex passwords and enable two-factor authentication to protect your exchange accounts and wallets. Accounts with 2FA are 99% less likely to be compromised.
- *API Key Management*: Secure your trading bots and automated strategies with proper API key management.
- *Risk Management (Margin)*: Prevent liquidation and excessive losses with effective risk management strategies.
- *Exchange Research*: Choose a secure and reputable exchange with robust security measures, such as anti-money laundering (AML) and know-your-customer (KYC) regulations ¹ ².
*Common Threats:*
- *Phishing Attacks*: Be cautious of fake emails, websites, or messages that trick you into revealing sensitive information. Phishing attacks accounted for approximately 30% of all cryptocurrency thefts in 2021.
- *Malware and Ransomware*: Protect your devices from malware and ransomware that can steal sensitive information or lock your device for ransom.
- *Exchange Hacks*: Major exchanges invest heavily in security, but remain attractive targets for hackers due to the large volume of assets they hold ³ ¹.
*Best Practices:*
- *Use Secure Networks*: Avoid public Wi-Fi when accessing your crypto accounts, and consider using a VPN to encrypt your internet connection.
- *Keep Software and Firmware Updated*: Regularly update your devices, wallets, and exchange apps to protect against vulnerabilities.
- *Diversify Your Risk*: Spread your assets across multiple wallets and exchanges to minimize potential losses in case of a hack or scam ⁴.
*Blockchain
