Cryptocurrency Security 101: 5 Mistakes Beginners Make and How to Stay Safe

The number of cryptocurrency investors is on the rise, with the latest reports revealing there were over 560 million users in 2024. Impressively, 65% of crypto owners are willing to make online payments with these coins. These numbers highlight the growing acceptance rate and influence of cryptocurrencies.

However, although cryptocurrency can bring investment opportunities, its decentralized structure can pose several security challenges. That's why we took the time to identify common crypto security mistakes beginners make and how to avoid them.

Mistake #1: Trusting the Wrong Exchange Platform

Before investing in your preferred digital asset, you must choose an exchange platform. This is basically a platform that allows investors to buy, sell, and store cryptocurrencies. Unfortunately, navigating the world of crypto exchanges can be too daunting for beginners. Choosing the wrong platform can lead to detrimental consequences, like losing your investment and private data.

So, how can you choose a trusted exchange platform to transact your cryptocurrencies? The first thing you must do is stick to the most established platforms with a positive reputation for security. Some of the safest options include Coinbase, Binance, and Kraken. Don't forget to research a platform's track record and user reviews before trusting it with your coins.

Other tips for choosing a secure exchange include:

• Consider platforms with security features like SSL encryption and 2FA.
• Choose exchanges that are compliant with the financial laws in their regions.
• The best exchange platforms have insurance coverage for your digital assets.
• Join an exchange service with a reliable and responsive customer support.

Mistake #2: Being Too Lazy to Create a Strong Password

After choosing an exchange, go ahead and create an account with a strong password. A good password is your first line of defense against unauthorized access to your digital assets. Sadly, most of us are too lazy to invest time in creating strong passwords for online accounts. This is evident in the increased data breaches, with the US reporting 2.28 billion password breaches this year.

You can secure your cryptocurrencies by creating a strong password with a mix of lowercase and uppercase letters. In addition, ensure that the password is at least 12 characters long and avoid using personal information like your name or birth date. You can use password generator apps to create and store strong passwords. Maximize these tools!

Mistake #3: Ignoring Multi-Factor Authentication (MFA)

Creating a strong password alone won't protect your coins from hackers. Today, scammers use advanced password crackers, which can breach your account after multiple attempts. For this reason, leverage the MFA technology to add an extra layer to your account. In this approach, you must enter a one-time code (OTP) after providing your password to access your account.

Now consider this: a report published by Microsoft in January this year revealed that 99.9% of breached accounts didn't use MFA. The good news is that multi-factor authentication can prevent up to 90% of cyberattacks. Simply head to your exchange account and scan a QR code using apps like Google Authenticator and Authy to set up this feature. It's that easy!

Mistake #4: Using Your Cryptocurrencies on Unsecured Websites

According to research by Crypto.com, more than 15,000 businesses worldwide accept cryptocurrency payments. Among them are popular brands such as Microsoft, Tesla, and AT&T. Cryptocurrency payments are even more widespread in online gaming and entertainment. Today, most new sweeps casinos allow players to purchase gaming credits with dozens of digital coins.

With these revelations in mind, do your due diligence before using your cryptocurrencies to make online payments. First, only make purchases on websites that use reliable encryption standards like SSL and TLS. These technologies protect all crypto transactions from third-party interception. In addition, ensure that the website is legal and regulated, especially in online gaming.

Mistake #5: Using Public Wi-Fi to Make Crypto Payments

Okay, we may get some stick for this point. However, as much as public Wi-Fi networks can be lifesavers, they are not the best options for making online payments. We aren't making this up; a recent study by Forbes revealed that 43% of free Wi-Fi users experienced security breaches. The thing is that unsecured public Wi-Fi networks are the most common hiding spots for hackers.

Thankfully, you don't have to avoid using public Wi-Fi when transacting cryptos altogether. First, make sure that the Wi-Fi is encrypted using a strong password. In addition, always use a VPN (Virtual Private Network) when browsing the internet with public Wi-Fi. However, the best advice is to use your mobile data or hotspot whenever you want to transact digital coins away from home.

Conclusion

Cryptos are going mainstream, with the value of coins like Bitcoin and Ethereum skyrocketing. This makes them an exciting target for hackers and online scammers. But by following the five tips above, you can ensure maximum security for your precious coins. The trick in crypto security lies in being proactive rather than reactive. Use these tips to stay ahead of crypto scams!