Cybersecurity for Digital Finance
Cybersecurity for Digital Finance
Digital currency gives you the ability to perform electronic payments, transfers and simply keep your savings.
The digital currency market is fairly young, so it has market risks, as well as risks of fraud and hack attacks. First and foremost, you are responsible for the safety and security of your funds.
This article will list the most popular types of fraud and safety rules and measures you can take to protect yourself when dealing with financial offers and using digital currency.
Main types of fraud (scam)
1. Websites that request your wallet’s private key
For example, you got an email that says you won 1 ETH. But, you need to link your wallet so they can transfer it.
2. Comments under videos of popular bloggers
There could be comments from scammers, whose names are similar to that of the channel's owner. They will make various offers to the followers of the blog.
3. Scam tokens
You buy a token but you can't sell it. That’s because the smart-contract stipulates that nobody except the owner can sell the token.
4. Phishing websites and applications
They create a complete copy of a website, but with a tiny difference in the domain name. As soon as you link your wallet to a website like this, you can wave goodbye to your money. Also, a lot of phishing programs emerged in various application stores that imitate DEX services.
5. Hidden whales
If the token of a new project just got listed on a DEX exchange, first go ahead and check the initial transactions of the project in the blockchain. If you notice large token transfers to several wallets – close the deal, since the whales will detect the income and drop the coin price to zero.
6. A fraudulent Play-to-Earn game
A game project is created. Then it is promoted via social media, and the creators display the tokenomics along with the roadmap. They offer you to mint NFT games or buy an in-game token. After some time the website stops working.
7. Account bruting
If you save your wallet’s private key phrase in a messenger, social media account, “notes” and other apps on your electronic devices, you’re susceptible to software that parses key phrases from all wallets.
8. Out of the blue tokens
Scammers send you copies of real coins to your wallet. You can lose money from your wallet if you try to buy or withdraw coins. Alternatively, there is a button that triggers a smart-contract that can be disguised as the token thumbnail. You could click on it to view or delete, and so you will launch the smart-contract that will transfer digital currency to the scammers’ wallets or it will download malware onto your electronic device.
Main safety rules for working with digital finances
1. Check what websites and applications you’re connecting your wallet to. Be aware of fraudulent apps and websites.
2. Verify the authenticity of any web address. You can see links to decentralized exchanges on CoinMarketCap or CoinGecko.
3. Choose the right transfer network. You should know what network to use to transfer your funds. Make sure the exchange accepts the network you intend to use, otherwise you risk losing your money. The same goes for your wallet, check that the network is added to your wallet. If you transfer an asset before adding its smart-contract, the token will show up in your wallet after you add the contract.
4. Compare the wallet address characters before each transaction. There are viruses that will substitute your copied wallet and the scammer’s wallet is inserted.
5. Don’t fall for trust management offers and don’t trust people you don’t know that offer help, consultations, etc.
6. Verify coins on these websites:
- Rug Check - PooCoin Charts
- Token Sniffer
- RUG PULL DETECTOR.com
- Honeypot Token Checker Tool - RugDoc
7. Never trust anyone with your login, password and private key information. Don’t expose your main wallets in public and on social media. Verify the amounts that are displayed on your wallets. Use several wallets for various goals and diversification.
8. Don’t interact with coins that you don’t know the origin of. If they appear in your wallet , don’t click any buttons. In fact, don’t click anything and forget they exist.
9. Don’t ever tell anyone your seed phrase and don’t enter it anywhere. Always disconnect your wallet from the service. Always create a separate wallet for AirDrop, new games and other activities. Store the seed phrase in a reliable place, but not chats, apps, cloud storage and electronic devices in general. The same concerns screenshots, QR codes, etc.
10. Don’t store all your money on exchange platforms. The saying “not your keys, not your crypto,” is true and proof is the lack of centralized exchanges. Exchange ratings (liquidity, funds available and other indicators) can be viewed in a special section on Coinmarketcap.
Use electronic wallets. Monocurrency wallets and single-ecosystem wallets are safer in terms of hot wallets. Store large sums of money on cold wallets.
11. Install 2FA or another type of additional security on your email and activate a PIN code on your SIM card. Get a separate email for Airdrop and similar activities.Use digital finance insurance options for large sums and savings in digital currencies.
12.Use digital finance insurance options for large sums and savings in digital currencies.
13. Ideally, get a separate electronic device that you will use only to work with digital finances, if you’re working with big numbers.
14. Carefully check the seller and buyer during P2P transfer and match their information.
15. Only use verified crypto exchange services with good ratings. Also, don’t exchange currency with unverified parties.
If you follow these rules, digital finances will only benefit you.
Advantages of digital finance
Quick financial transfers and low commissions.
Decentralization and data protection with blockchain technology. About 40% of money transfers worldwide are conducted in digital currencies.
A fresh market
A fresh market always means potential and growth opportunity. When Amazon appeared on the stock exchange, not many people believed in it, and it cost the respective amount. Now, however, Amazon is one of the biggest corporations in the world. These examples are plenty - Tesla, Apple, and more. Back then, most of us would’ve preferred to buy Nokia shares, rather than Apple.
There is a rule that goes, “Buy low, sell high”. The bear cycle is an excellent opportunity to purchase promising shares at a low price.
You can start off with small capital
Currently, the market has assets with amazing growth potential. Every day the variety of offers increases.
Every day, the acceptance rate is increasing, global brands are becoming partners with digital projects, and there isn’t much that can stop the process of digital finances being integrated into our daily life.
If you still have questions, you can discuss them in our chat room.