How Proxies Can Help Reduce the Risks When Trading Cryptocurrencies

We all know by now that cryptocurrencies are built on blockchain technology. This is a highly secure ledger in digital form that catalogues all crypto transactions. This has been stated as unhackable, although recent news stated that Binance, the world’s largest crypto exchange, has been hacked, which incurred millions in losses.

That said, with hackers becoming more sophisticated by the day, you should be aware of the threats when trading with cryptocurrencies. However, you can use a US Proxyto keep you secure. We’ve examined the most frequent concerns with crypto trading and tell you how proxies can help reduce your risk when making investments.

Crypto Trading Cybersecurity Threats

Crypto is decentralized, so no single institution controls it. This is seen as an advantage to us. However, there’s also a significant disadvantage to being decentralized. The absence of control means that the movement, production, and creation of it are unregulated. As a result, it has attracted many cyber criminals since it’s seen as an easy target.

Unregulated and Illegal Trading Platforms

Not too long ago, a crypto exchange named OneCoin was exposed as a fraudulent crypto scheme that offshore companies operated. The company was registered in Dubai and based in Bulgaria. Sebastian Greenwood and Ruja Ignatova founded it. This $4 billion Ponzi crypto scheme existed between 2014 to 2016, where OneCoin was never traded actively, and nothing could be bought with it.

Phishing

Phishing is a method cyber criminals employ by sending emails to subscribers to get them to expose sensitive financial information or hand over their crypto assets. They tend to impersonate a credible source crypto exchange platform. Users are fooled by the email’s authenticity and then either click on a malicious website or send their vital private codes or login credentials to hackers.

Private Keys Kept on Devices

Each person that owns crypto accesses their digital assets using a private key. This is a highly complicated password or code. For convenience, most of us keep our codes on our devices. This is a bad idea. Hackers know that users prefer convenience over security and love to take advantage of that fact.

If a cybercriminal should obtain access to your device, it can be a matter of seconds for them to get your private key code and other information. Additionally, once a private key is taken, it’s gone forever.

Crypto-malware

There’s malware for everything today, including crypto-malware. This software allows unauthorized cybercriminals to mine crypto on a stranger’s device or server. Infections happen in two ways.

An unexpected user will get fooled into installing the malware code on their device using phishing methods. Or the code can be placed into advertisements or websites, and when users click on these, they get activated without even knowing.