Nasdaq’s automated quotes in the mid-1970s and online shopping in the mid-1980s were disruptive technologies for the financial industry. The latest disruptive fintech innovation, cryptocurrency, is gaining popularity with consumers, businesses, and government agencies. Large corporations and governments are particularly interested in the underlying technology of cryptocurrencies known as the blockchain. In fact, many organizations have launched initiatives to test the feasibility of using blockchain to facilitate accurate, fast, and secure transactions.

The Latest Disruptive Technology in Fintech

Cryptocurrencies’ future is unclear, but prior performance suggests that the high-tech financial instrument has a promising future. As an illustration, the price of a single Bitcoin increased from $280 in 2015 to $1,000 in just two years, and by the end of 2017, it had skyrocketed to an incredible $17,000 per coin.

Cybercriminals, who perceive a growing market with widespread security faults, are also becoming interested in money. The passages that follow offer 5 practical suggestions to help bitcoin owners safeguard their fintech and data assets.

Tip 1: Don’t Provide Your Private Information in Public Forums

Cybercriminals often use the method of phone porting. Hackers hide on social media sites where cryptocurrency users may post personal data, including their phone numbers and email addresses, in order to interact with other users. The hacker calls the unwitting investor’s phone service provider after locating their target, pretends to be a victim, and has the number moved to a mobile device in their hands. Now the hacker has access to the victim’s bitcoin exchange account, can change the password, and can make off with any money they want. Hackers can quickly steal thousands of dollars using this technique.

Tip 2: Make It Harder for Hackers to Hijack Your Account

Dan Romero, vice president of operations at cryptocurrency exchange Coinbase, suggests disabling SMS account recovery as an additional safeguard against phone porting attempts. In order to transmit money out of the exchange, he also advises using a coin vault and turning on two-factor verification. Romero advises against discussing cryptocurrency in public, particularly online where anyone can steal from an investor. Adding an account passcode and seeking a “do not port” order for your phone are two further security measures you should take with your cell phone service provider. Finally, although cryptocurrency exchanges take security seriously, the operations VP cautions that they should not be viewed like banks because they are not.

Tip 3: Don’t Put All of Your Crypto Eggs in One Basket

Internet security expert Sanjay Beri advises diversifying digital financial holdings among a number of exchanges to minimize investor risk in the case of a hack for the best safety of your fintech assets. Additionally, the security expert advises investors to keep their money offline in a cold wallet. This restricts hackers’ ability to access money held by investors. Beri advises using a different hot wallet for daily purchases. The security expert explains that, in essence, a hot wallet is similar to a checking account and a cold wallet is similar to a savings account.

Tip 4: Exchange Your Currency With Caution

Amir Bandeali, the chief technology officer and founder of 0x (zero-x), advises cryptocurrency investors to only use centralized exchanges if they conduct several transactions, and to stay with decentralized exchanges when trading tokens on platforms like Ethereum. He argues that the main distinction between the two is that decentralized exchanges don’t hold users’ bitcoin. There is no method for a hacker to access an investor’s funds unless they are able to obtain the user’s private key.

Tip 5: Don’t Forget the Basics

While using the most basic security measures may seem like a no-brainer, many investors fall prey to hackers because they neglect to follow basic security measures. For example, crypto investors must create a separate account for each exchange. That way, if a hacker gains access to an account, they won’t be able to break in and gain access to other sensitive assets. In addition, investors should use strong passwords for their accounts and secure them in hard copy and only the account holder has access to the hardcopy password list.

The most aggressive hackers will not stop looking for cryptocurrency mining operations. To ensure the security of this powerful new financial instrument, the cryptocurrency market needs highly qualified professionals who can help investors prevent unauthorized access to their accounts. . As the popularity of cryptocurrencies increases, so will the need for cybersecurity professionals who can prevent attacks from persistent cyberattacks.