Although crypto is a secure means of transacting and is secured by strong cryptography, it holds some risks. Lately, with the Covid-19 pandemic, crypto users have experienced risks such as crypto fraud. Some of the risks of using cryptocurrencies include:

●     Data breaches via imposter websites

At the beginning of March 2020, a quarter of a million email addresses in the Trident Crypto fund data breach were exposed as well as passwords, IP addresses, and phone numbers. The hackers decrypted the stolen passwords and published them online. This incident exposed Cryptocurrencies’ vulnerabilities and the fact that block-chain powered, and cryptography secured currency is safe, but the intermediary’s security is not guaranteed, and the theft of these digital assets is still possible.

Imposter websites are a danger, and you might fall prey by inadvertently visiting a bogus website. Many fake sites are set up to resemble the legitimate cryptocurrency websites, and once you log in, you are redirected to a different payment platform. The hackers may mine your details and expose them to the world.

●     Fakes mobile apps

Another standard method scammers use to trick investors is via fake app downloads in Apple App and Google play store.  The fake apps are quickly detected and removed, but the apps still scam thousands, especially Android users.

●     Phishing

Emails that look legitimate scam most cryptocurrency investors. The emails seem to originate from a cryptocurrency company. The logo might seem authentic, and the wording faultless, but the message usually seems off. The scammers often announce fake initial coin offerings (ICOs) as a trick to steal funds.

How to mitigate the crypto risks

It is only wise to follow these tips to protect your funds:

1.    Subscribe to a secure email service

Subscribing to a secure email service provides security and ensures your emails and data are safe from hackers. The secure email service providers have several benefits such as:

• Ensured confidentiality
• Security restrictions
• End to end encryption

2.    Install a VPN

A Virtual Private Network (VPN) provides your devices with a secure channel to access the internet anonymously. The way a VPN works is it hides your IP address and provides you with a virtual location, which ensures hackers cannot connect your computer’s location with your Bitcoin address. When you log in to your crypto account, hackers cannot tell your exact location. Neither can they read your communication as a VPN encrypts all your data.

3.    Use of multisignature addresses

Multisignature addresses are permission slips that allow you to transact in digital currency and help mitigate fraud. Multisignature or multisig addresses is a configuration that uses two or more keys to authorize any transaction. You have to trust another party to hold the other key or keys, and you can choose whom to trust. If the other parties betray you and try to steal from you, they cannot access them.

Conclusion

Cryptocurrency transactions are very secure, but crypto-risks still exist, and if you do not take care, you might lose your funds to cunning thieves. To mitigate these risks, you need to take measures that keep you a step ahead of the criminals and protect your funds.