Tags: hackers | coincheck | coinbase | bitcoin

How to Keep Your Cryptocurrency Holdings Safe

How to Keep Your Cryptocurrency Holdings Safe
(© Gualtiero Boffi/Dreamstime)

By    |   Monday, 29 January 2018 11:15 AM

Hackers are getting more brazen about targeting digital currencies for theft, as last week’s $535 million heist from Japanese cryptocurrency exchange Coincheck revealed.

The incident is a reminder to the growing number of people who are putting money into digital currencies, either to use for payments or to hold as a hedge against a decline in the value of fiat currencies like the U.S. dollar.

More than 3 million bitcoins have been lost, according to blockchain tracking company Chainalysis. Because bitcoin was created in a way that limits its supply at 21 million coins, about 14 percent of the currency could be permanently gone, CNBC reported.

Coincheck was vulnerable to a hacker attack because it kept its cryptocurrencies on so-called hot storage, which means it was online at all times.

CNBC has several tips on how to avoid getting ripped off:

  1. Be careful where you do business. While people who lose their coins may suspect they sent them to the wrong address, it’s more likely they sent them to a business they thought was legitimate, such as an initial coin offering. It’s best to transaction with well known exchanges like Coinbase.
  2. Store virtual currency offline. Instead of keeping your coins in a Coinbase account, where they could be vulnerable to hacking attacks like viruses, consider keeping them on a hardware wallet, such as Ledger Nano S or Trezor. They look like USB thumb drives, and will keep coins off the internet.
  3. Backup systems. Consider keeping passwords for instant access to cryptocurrencies in a safe place, such as a cryptosteel device that can withstand temperatures up to 1500 degrees Celsius.

Remember to be mindful of “social engineering” attacks that attempt to fool you into giving out sensitive information over the phone, internet or email.

Unfortunately, the internet is rife with scams, such as pop-up ads that warn computer users of a possible virus attack. While such scam ads say they can help remove the virus, they may be “phishing” attempts to trick people into giving out credit-card numbers, bank PINs or other personal information.

© 2019 Newsmax Finance. All rights reserved.

   
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Hackers are getting more brazen about targeting digital currencies for theft, as last week's $535 million heist from Japanese cryptocurrency exchange Coincheck revealed.
hackers, coincheck, coinbase, bitcoin
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2018-15-29
Monday, 29 January 2018 11:15 AM
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