Cryptocurrency is one of the most famous inventions in the business industry to change investments, and digital transactions in cryptocurrency. In addition, cryptocurrency has brought new ways of money transfer.
Decentralization in crypto transactions that functions on the principles of cryptography is one of the best aspects of crypto. It wouldn't be wrong to say that decentralization and peer-to-peer transaction systems are the leading cause of crypto's increasing popularity.
However, over time both decentralization and the absence of an intermediary authority turned out to be a downside of cryptocurrency. This is because the system is designed to eliminate the need to trust and secure your assets, and on this page BITCOINS SAFE gradually began to risk the crypto assets of investors with security.
The cryptocurrency was developed to enable anonymous and untraceable transactions. However, despite being completely anonymous, crypto transactions remain untraceable. This pseudo anonymity has gotten the attention of cybercriminals. But why?
Well, the thing is, crypto transactions are quick and cheap as there are no external interruptions or additional charges. This factor gives potential investors an excellent opportunity to become more financially stable. However, where there are a handful of opportunities to earn good money, some would love to confiscate it.
How is crypto related to cybercrimes?
With the increasing popularity of cryptocurrency, the number of scams is also increasing. Instead of opting for older scams like hacking web stores to order things or extracting credit card details, hackers now prefer exploiting crypto investors through their tricks.
Cryptocurrency, an entirely digital form of money, has enabled decentralized transactions. These transactions do not require an intermediary body to regulate them. Moreover, crypto transactions are untraceable. It is impossible to trace back to the natural person on the other end, as crypto accounts don't even require you to sign up with your real identity.
After transferring crypto assets, the transaction details like the wallet's public key are recorded on a public blockchain. The records on the blockchain can not be changed later, and that's all. But how exactly is any of this related to cybercrimes?
Impact of cybercrime on cryptocurrency
Due to decentralization, no intermediary authority is responsible for keeping a check on crypto transactions. Moreover, there are no regulations regarding cryptocurrencies in most countries.
Therefore, businesses and investors with crypto assets are the main targets of cybercriminals these days. This poses a threat to the overall crypto market because the more common such cybercrimes get, the more investors will shift to other forms of investments.
Some of the most common ways in which cybercriminals attack crypto investors are discussed below:
Phishing is one of the oldest methods of hacking into people's private accounts and extracting their personal information, such as passwords. Scammers use the same technique, but the only difference is that they do this to get access to investors' crypto wallets.
The most common approach is to send fake emails with links that lead the victim to scam sites. For example, the email could be about a giveaway or an investment opportunity that claims to get you double your profit.
Scamming websites allow you to enter your crypto wallet's details, such as your private key, and quickly access your crypto assets.
Crypto holders are advised to avoid suspicious links and emails to stay safe from such financial frauds.
Fake cryptocurrency exchanges
As the name states, cryptocurrency exchanges are apps that allow you to make crypto transactions. Most of these apps also provide additional services like crypto wallets. However, most scams in the crypto industry are taking place through fake crypto exchanges.
Investors are usually attracted to crypto exchanges offering multiple services in one app. Later, when the user enters all his information and stores his assets in the wallet, the scammer steals them, and the job is done.
The only way to stay safe from such frauds is to use crypto exchanges that are well known in the crypto market.
New and safer applications are being introduced to assist the trade journeys of investors. It is famous for automatically swapping cryptocurrencies with other available traders, helping them benefit from the value fluctuations in the currency. As a result, investors can safely track current prices and trade the currencies on demand. Furthermore, it is free of all sorts of frauds and scams.