Crypto

Cryptocurrency trading: 5 valuable tips

jan 19, 2022 | 10 min read

Crypto is a global phenomenon that is yet to be fully mapped. The cryptocurrency market is constantly changing, and enthusiasts are striving to keep pace. Which platforms are the best way to protect against hackers, and what should you look out for when trading

Cryptocurrencies have gradually become one of the world's most popular investment opportunities. Due to the high volatility of prices, some people see them as a way to make money quickly and easily. This also makes crypto an attractive target for hackers. To avoid unnecessary risk when cryptocurrency trading, aim to follow our five general tips:

1: Trade on crypto exchanges that offer two-factor authentication (2FA)

Crypto exchanges are one of hackers' main targets. Hackers can easily gain access to your exchange account by stealing a user's login information (username and password). Adding another security layer with a second-level authentication process will hinder hackers' access your crypto accounts.

Two-factor authentication means that users must provide not only their username and password, but also something they always have with them – such as a code received via SMS or Google Authenticator, etc. This makes it almost impossible to hack into cryptographic accounts. Crypto exchanges with established two-factor authentication include WEXO, Binance, Bitfinex, Huobi Pro, BitMex, and Okex.

2: Use cryptographic wallets that require two-factor authentication

In addition to trading on crypto exchanges with strong security measures in place, you should also
use crypto wallets that have another layer of protection - as well as two-factor authentication.
Two-factor authentication protects against many security threats that target user passwords and accounts (phishing, misuse of credentials, etc.). However, the second factor may be vulnerable to brute force attacks and may contain vulnerabilities such as logic errors.

The most reliable second authentication methods for crypto products include:

  • Biometric authentication – Touch ID or Face ID.
  • FIDO security keys – developed and supported by digital leaders (Google, Amazon and Microsoft), they give users secure access to numerous digital services such as cryptocurrency wallets and exchanges.
  • Push authentication – push notifications are about more than updating cryptocurrency prices and new token lists. They can also be used as a password-free method for users to verify their identity.
  • Native App biometrics and Device Binding – device binding refers to the connection of a trusted device to an account, and the subsequent use of that device to authenticate the user through proof of ownership. The basic example is to log in to a bank's app using only Touch ID or Face ID, while a strong cryptographic authentication protocol is running in the background.
  • Magic link – Magic links offer seamless entry into the world of password-free authentication. This works by emailing the user with a link that, when clicked, enables logging in directly to the online service provider that issued the link.

With the WEXO crypto wallet, you can simply and securely trade in cryptocurrencies such as Bitcoin, Ethereum, Litecoin, etc.

3: Use a hardware wallet

Hardware wallets are physical devices that store your private keys offline. This makes them one of the most secure ways to store cryptocurrencies because they are not connected to the Internet. Another advantage of hardware wallets is that they make it easy to send and receive crypto payments offline, which can be very handy in some situations.

4: Use VPN when trading cryptocurrencies

VPN (virtual private networks) create an encrypted tunnel between your computer and a server operated by a VPN provider. This protects your data from being intercepted by third parties, such as hackers or your ISP.
When using a VPN, all your traffic is routed through this encrypted tunnel, so you can be sure that your crypto transactions are secure.

5: Beware of online scams

Even today, there are many fraudsters who try to take advantage of people's lack of knowledge about cryptocurrencies. A common example is a crypto payment processor that promises to give cryptocurrency for free if they register with a referral code and first pay a small fee.
Also beware of scams during large market movements. For example, if the price of Bitcoin or another cryptocurrency rises sharply, it is quite likely that online fraud will also increase. When people are under emotional strain (either euphoric or panic), they may not think clearly and will be susceptible to fraudulent schemes. Stay alert, don't let emotions control you, and always double- check all information.