Cryptocurrency and security – is crypto secure?

If you are considering investing in cryptocurrency, it may be a little bit of you wondering if crypto is safe at all. The question of cryptocurrency security can be about so much. For example, is privacy protected, and is there a risk of fraud?

In this guide, we will walk you through the basic security aspects of cryptocurrency. Find out what steps you need to take to protect your privacy and how to avoid fraud.

Is it anonymous to use cryptocurrency?

What many people are wondering is whether anonymity is maintained when using cryptocurrency. For many, this is not about wanting to hide their identity in order to commit criminal activities, but about privacy.

In general, cryptocurrency is very secure when it comes to maintaining anonymity. For example, when transferring money to a recipient, the recipient will not see your name or other sensitive information, but rather your public key.

The public key consists of numbers and letters. It is also this key or code that you provide to other parties that will transfer money to you. However, should you lose the key or that someone can connect the key to you personally, the anonymity disappears.

How to store and store cryptocurrency securely?

Before you buy cryptocurrency, you need to have a place to store the values. At many of the best crypto exchanges, you will automatically receive a digital crypto combo book or crypto wallet. It is important to have a wallet that ensures safe and user-friendly storage of money.

The crypto exchange usually takes care of the security around the wallet itself, but it is important that you also take your own precautions when it comes to security. For example, should you lose your password, you may also lose access to your wallet.

If someone else gets the password to your wallet, yes, they can steal the money – just like when you lose your bank card password. Feel free to choose Firi or other solutions that can secure your cryptocurrency as best as possible,

Firi has crypto wallets that secure cryptocurrency with Legal Vault. This can almost be considered a safe for your wallet. You can access the safe using secure solutions such as Vipps or usernames. If you lose your username or password, you can access the money through BankID.

Public and private key for cryptocurrency

If you have a cryptocurrency, you will have a crypto-wallet, and this has one public and one private key, often referred to as public and private key. You also have a cryptocurrency address, which can be considered as a short version of the public key.

The public key or address is the one you give to others if they are going to send you cryptocurrency, and can therefore be compared to an account number. The address consists of between 26 and 35 numbers and letters.

Make sure you provide the correct key to the sender so that the money goes to the correct recipient!

The private key is the code that gives you access to the cryptocurrency you have stored in your digital wallet. This code can easily be compared with the PIN code on the bank card you have associated with a bank account, and should never be shared with others.

How to secure your private crypto key?

Just as you should memorize and remember the code for your bank card, you should also memorize your private crypto key. It can be risky to write this down – both on paper and in digital notes. If your device is hacked, someone can get the key.

What you can write down, however, is a hint or a question that gives you the answer to what the password is, should you forget it.

How to avoid fraud when investing in cryptocurrency?

It is always a good idea to trade cryptocurrency at a crypto exchange that is registered with Finanstilsynet. These are the only crypto exchanges that can legally offer services to Norwegians. Unfortunately, many people trade on unregulated foreign exchanges.

You may therefore risk trading cryptocurrency in good faith that you are making an investment, when in reality you are exposed to fraud. For example, some players may make promises of increasing cryptocurrency for you to invest money, and then the value may not rise anyway.

It is also important to be aware of the risks involved in investing in a cryptocurrency, no matter what cryptocurrency you use. Feel free to do some research, so that you find information about prices and the market’s potential fluctuations.

Experts also point out that there are very many cryptocurrencies out there, and therefore it is difficult to get an overview of all of them. Therefore, stick to a well-known crypto such as Bitcoin or Ethereum. You will find a lot of information about these online.

Beware of fake brokers

Scammers are constantly finding new ways to scam people. In some cases, people are contacted by so-called brokers who say they can help invest in the cryptocurrency.

Many people are not aware that this can be a scam, and may not discover that it was a scam before they try to make a profit.

You can also find scams on social media, where celebrities are often exploited by scammers. You might see commercials like “Do as NN – invest in Bitcoin and make millions”, with a picture of an unsuspecting celebrity.

Secure crypto exchanges:

[etoro]

Look forward to secure crypto trading at secure crypto exchanges

If you are going to buy cryptocurrency, it is very important to pay attention to security. Although cryptocurrency itself is secure, it is wise to take certain security measures yourself as well. Take care of your private crypto key and never share it with others.

It is also important to choose a secure crypto exchange where you can also get a secure crypto-wallet. It is an advantage if you can access this through BankID or Vipps. Among the safe, Norwegian crypto exchanges, we can mention both Firi and eToro, as well as NBX.

Good luck!

FAQ

[sc_fs_multi_faq headline-0=”h2″ question-0=”Er kryptovaluta sikkert?” answer-0=”Kryptovaluta og sikkerhet kan enkelt ivaretas ved å passe på den private kryptonøkkelen din, og ved å bruke en kryptobørs registrert hos Finanstilsynet. Vær også obs på svindel.” image-0=”” headline-1=”h2″ question-1=”Er det trygt å investere i kryptovaluta?” answer-1=”Så lenge du investerer i kryptovaluta hos en børs som er registrert hos Finanstilsynet, er det trygt. Vær likevel klar over risikoen for å tape penger.” image-1=”” headline-2=”h2″ question-2=”Kan kryptonøkkelen deles med andre?” answer-2=”Du skal kun dele den offentlige kryptonøkkelen din med andre, da denne fungerer som et kontonummer. Den private nøkkelen er «passordet» ditt, og skal aldri deles.” image-2=”” count=”3″ html=”true” css_class=””]