The concept of cryptocurrencies is a hot topic that you will find featured across all kinds of websites just now. Even If you haven’t actively searched for up-to-date information about these digital currencies, there is still a huge chance that you have come across one or more cryptocurrency adverts.
With their evolution and the resulting attention that cryptocurrencies are gaining in the mainstream; they are getting a lot of people buzzing. However, it has left many others more skeptical. The reason is that a lot of people are not sure if the cryptocurrencies risks can be managed efficiently.
In this post, we will show you just how they can be managed. However, for better understanding, let’s take a quick look at the concept of cryptocurrency.
Defining The Concept Of Cryptocurrency
As stated at the beginning of this post, cryptocurrency is a digital currency. Despite its recent rise to the mainstream, the concept of digital currency has been around for a few decades. The encryption features of cryptocurrency are often used to control the generation and mining of several currency units. These features are also used for fund transfer verification.
One of the most outstanding features of a cryptocurrency is that it is decentralized. This means that policies and transfers are not controlled by any government or financial institution. This makes fund transfers extremely quick, especially on an international scale.
The first digital currency, commonly known as Bitcoin, was released and decentralized in the year 2009, and nowadays many other thriving digital currencies exist.
Cryptocurrency: The New Habitat For Money Launderers And Fraudsters
The digital features of cryptocurrency have made the many outstanding failings of these digital currencies unsurprising. Several controversies and criminals have been associated with the concept of cryptocurrency for some time. However, cryptocurrencies and marketplaces are not the only areas that are plagued by criminals.
A few reports have suggested that malware that is capable of stealing more than 190 cryptocurrencies has been developed and launched by criminals — with Bitcoin being no exception. The spike in the value of Bitcoin has made it the most targeted cryptocurrency, and as a result — security key compromises. Bitcoin wallets are most vulnerable to these attacks. Visit Nakitcoins to learn more.
These revelations place a demand on both financial institutions and individuals to remain vigilant and security conscious. This will help keep them a step ahead of any criminal looking to perpetuate his evil intentions.
Protecting Yourself Against Cryptocurrency Risks
Here are a few amazing tips that will help you manage cryptocurrency risks effectively:
· BE VIGILANT: Learn to keep your wallet ID and login details private. On no occasion should you give these details to anyone or store them on a cloud system that is not properly protected. You also need to be careful about giving your residential information to other people.
· AVOID BEING GREEDY: The reason why many people fall victim to financial crime is greed. Avoid untrustworthy websites that promise to give you free bitcoins or any other cryptocurrency.
· PROTECT YOUR IP ADDRESS: As stated earlier, stalkers are trying to intercept online transactions. Hence, the need to pay for a reliable VPN service to protect your IP address. The reason for this is that these hackers know how to trace your home or business address through your IP address. Although you may need to shell out some cash for a reliable VPN service, it is worth the investment.
· LEARN EMOTIONAL INTELLIGENCE: The fact is that in any form of investment is that you will make gains and losses. You need to accept this fact and learn how to minimize your losses. Avoid taking unnecessary risks to recuperate your lost funds. Also, avoid trusting strangers with personal info about yourself.
In conclusion, the tips above will help you in managing cryptocurrency risks effectively.
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Founder Dinis Guarda
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